Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 54

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 54
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 royalties, oil service businesses or other private energy operating companies as viable opportunities
for such acquisition(s) become available. Our general headquarters functions are aimed at providing accounting, legal, and general business
support for our larger investment targets and our majority-owned subsidiaries. We monitor our smaller and less than majority positions
for value and investment security. Management also spends considerable effort reviewing possible acquisition candidates on an ongoing
basis.

Mentor seeks to take significant positions in target
companies to provide public market liquidity for founders, protection for investors, funding for the companies, and incubate private companies
that Mentor believes to have significant potential. When Mentor takes a major position in its investees, it provides financial management
when needed but leaves operating control in the hands of the company founders. Retaining control, receiving greater liquidity, and working
with an experienced organization to efficiently develop disclosures and compliance that are similar to what is required of public companies
are three potential key advantages to company founders working with Mentor Capital, Inc.

The Company continually works to identify potential
acquisitions, investments, and divestitures. While evaluating whether an acquisition or divestiture may be in the best interests of the
Company and its shareholders, no transaction will be announced until that transaction is certain.

Liquidity and Capital Resources

The Company’s future success depends upon its
ability to make a return on its investments, generate positive cash flow, and obtain sufficient capital from non-portfolio-related sources.
Management believes they have approximately four years of operating resources on hand and can raise additional funds as may be needed
to support their business plan and develop an operating, cash flow positive company.

Results of Operations

Three Months Ended March 31, 2025, compared to
Three Months Ended March 31, 2024

Revenues

On
March 1, 2025, only nine (9) of the one hundred twenty-one (121) wells associated with royalty interests that the Company acquired
in March 2025 were effective for revenue recognition during the last 30 days of the first quarter of 2025. Royalty revenue for the
remaining one hundred twelve (112) wells will commence on April 1, 2025. Accrued revenue for the three months ended March 31, 2025 was
$2,000 compared to $0 for the three months ended March 31, 2024 (“the prior year period”).

Gross profit

Gross profit for the three months ended March 31,
2025 was