Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 75

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 75
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    title to all oil, gas, and associated liquid or liquefiable hydrocarbons, including royalty, overriding royalty, unit interest and
    mineral interests of whatever nature, in, on, and under that may be produced from or attributable to the property including royalty
    interests in the name of Mentor Capital, Inc. was recorded on April 9, 2025, subsequent to quarter end, in Martin County, Texas by a
    certain Mineral and Royalty Deed effective April 1, 2025. Therefore, royalty payments owed to the Company commenced and will be
    recognized on April 1, 2025. The Company estimates that this first royalty payment will be received by the Company on or around
    August 2025.

The
royalty interests entitle the Company to receive a proportional share of revenues generated from the production of hydrocarbons from
the underlying property, without incurring any operating or production costs. Working interest owners operating the wells we
participate in bear the costs of operation and development. Accrued royalty income is estimated and recognized in the month it is
produced. The difference between accrued royalty income and the amount received is adjusted when royalty payments are paid.
Accrual of estimated royalty income was $2,000 and $0, at March 31, 2025 and 2024, respectively. Royalty income received was $0 and
$0, at March 31, 2025 and 2024, respectively. The Company monitors changes in market conditions, commodity prices,
production volumes, and other factors, which may materially impact the recoverability of our royalty interests.

Mentor IP, LLC (MCIP)

On April 18, 2016, the Company formed Mentor IP, LLC
(“MCIP”), a South Dakota limited liability company and wholly owned subsidiary of Mentor, to hold interests
related to patent rights. On October 24, 2023, the Company divested Mentor IP, LLC’s intellectual property and licensing rights
related to a certain United States and Canadian patent. The Company received no payment for its divestment. Patent application and maintenance
fees have been expensed when paid and there were no assets related to the MCIP patents represented on the condensed consolidated financial
statements at March 31, 2025 and December 31, 2024.

NeuCourt, Inc.

NeuCourt, Inc. (“NeuCourt”) is a Delaware
corporation that