Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 11

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 11
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 which a controlling financial
interest is owned. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“GAAP”). Significant intercompany balances and transactions have been eliminated in consolidation.
Certain prior period amounts have been reclassified to conform with the current period presentation.

As
shown in the accompanying financial statements, the Company has a significant accumulated deficit of ($9,446,057) as of September 30,
2025. The Company has recently received significant profit from the sale of its former majority-owned subsidiary, although negative cash
flows from operations continue. In March 2025, the Company acquired three fractional, non-operating royalty interests in oil and gas
properties covering approximately one hundred twenty-one (121) wells in the Spraberry Field of the Permian Basin in West Texas, through
related public auctions for a total consideration of $1,369,899. The royalty interests entitle the Company to receive a proportional
share of revenues generated from the future production of hydrocarbons from the underlying properties, without incurring any operating
or production costs in the future. See Note 9.

Ongoing
capital formation

The
Company will endeavor to raise additional capital to fund its acquisitions from both related and unrelated parties to generate increasing
growth and revenues. The Company has 4,250,000 Series D warrants outstanding, and the Company has reset the exercise price to $0.02 per
share, which is below the current market price. The Company may reverse split the stock to raise the stock price to a level further above
the warrant exercise price. The warrants are specifically not affected and do not split with the shares in the event of a reverse split.
These consolidated financial statements do not include any adjustments that might result from repricing the outstanding warrants.

    -11-

Management’s
plans include increasing revenues through acquisition, investment, and organic growth. Management anticipates funding new activities
by raising additional capital through the sale of Series Q Preferred Stock, other equity securities, and debt.

Impact
related to endemic factors

Our
future financial condition may be materially and adversely impacted as a result of the ongoing worldwide economic, political, and military
situations, economic sanctions, the impact of money printing, inflation, interest rate fluctuations, tax increases, tariff increases,
recession, climate regulation, cybersecurity risks, evolving and sophisticated cyber-attacks and other attempts to gain access to our
information technology systems, increased risk to oil and energy markets, market conditions that could