Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 55

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 55
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 Prior to the
                                            Company’s purchase, average daily production in the last six months was approximately
                                            15,734 BBLs and 20,645 MCF. Transfer of 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 in Martin County, Texas by a certain Mineral and Royalty Deed effective April 1, 2025.
                                            Therefore, royalty payments owed to the Company commenced and were recognized on April 1,
                                            2025.

The
Company’s three (3) fractional 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
of our royalty interests operating the wells will participate in and bear the costs of operation and development.

Royalty
revenue was $40,430 and $0 for the three months ended September 30, 2025 and 2024, and $117,430 and $0 for the nine months ended September
30, 2025 and 2024, respectively.

Accrued
royalty income and incurred severance taxes are estimated and recognized in the month oil is produced, when royalty income is earned.
The difference between accrued royalty income and the amount received is adjusted when royalty payments are received.

Accrual
of estimated royalty income was $38,456 and $0 for the three months ended September 30, 2025 and 2024, and $38,456 and $0 for the nine
months ended September 30, 2025 and 2024, respectively, which represent the Company’s estimated receivables for approximately two
and a half months. Royalty payments received were $21,312 and $0 for the three months ended September 30, 2025 and 2024, which represent
a portion of the royalty income earned by the Company in July 2025. Royalty payments received were $78,974 and $0, for the nine months
ended September 30, 2025 and 2024, respectively, which represent a portion of the royalty income earned by the Company between March
2025 and