Equus Total Return, Inc. reported a net increase in net assets of $3.9 million for the first quarter of 2025, compared to a net decrease of $2.4 million in the same period of 2024. The company's total investment income rose to $0.34 million, up from $0.28 million year-over-year, driven by increased income from control investments and the introduction of non-affiliate investments. However, total expenses also increased to $1.45 million from $1.37 million, primarily due to higher compensation and professional fees. The net investment loss for the quarter was $1.11 million, slightly higher than the $1.09 million loss reported in the prior year.
In terms of asset management, Equus saw a significant increase in its net asset value per share, which rose to $2.52 as of March 31, 2025, from $2.17 at the end of 2024. This 16% increase reflects a recovery in the fair value of its portfolio, particularly in its control investments. The company’s total assets increased to $36.5 million, up from $29.9 million at the end of the previous fiscal year, largely due to the appreciation of its investments in portfolio securities, which rose to $33 million from $27.5 million.
Strategically, Equus has made notable changes to its investment portfolio, including the sale of Equus Energy to North American Energy Opportunities Corp. for $1.25 million in cash and preferred stock. Additionally, the company issued a $2 million convertible senior note in February 2025, which is convertible into common stock at a price of $1.50 per share. This move is part of Equus's broader strategy to enhance liquidity and support its operational needs. The company also acquired a senior convertible promissory note from General Enterprise Ventures, further diversifying its investment portfolio.
Operationally, Equus has maintained a consistent number of shares outstanding at approximately 13.6 million. The company’s cash and cash equivalents increased to $0.67 million as of March 31, 2025, compared to $0.3 million at the end of 2024. Despite these improvements, the company has expressed concerns regarding its liquidity and the potential need for additional financing to support its operations. The management has indicated that it may require loans or capital investments to cover any cash shortfalls in the future.
Looking ahead, Equus Total Return, Inc. is evaluating its strategic options, including a potential transformation into an operating company. The management has acknowledged the challenges posed by current market conditions, particularly in the oil and gas sector, which could impact the valuations of its portfolio companies. The company remains committed to maximizing shareholder value through prudent investment strategies and operational efficiencies, while also navigating the complexities of the evolving economic landscape.