Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 48

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 48
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 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
as of September 30, 2025 and 2024, 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 July 2025. Actual and estimated severance taxes were approximately 5.22%
of actual and accrued royalty income at the nine months ended September 30, 2025. The difference between the estimated incurred
severance tax liability and the amount paid is adjusted upon the Company’s receipt of royalty statements. The Company’s
CODM monitors changes in market conditions, commodity prices, production volumes, and other factors, which may materially impact the
recoverability of our royalty interests.

The
Company anticipates incurring annual ad valorem tax liability for its royalty interests in Texas. This liability would be assessed
according to value by the county assessor in the locality where our royalty interests are located, in accordance with local and state
law. Ad valorem tax liability was $0 and $0 for the three months and nine months ended September 30, 2025, and 2024.

Costs
not allocated to our two reportable segments represent activities associated with the Company’s management and headquarters functions,
especially with regard to accounting and audits for the Company and its majority-owned subsidiaries. The Company’s headquarters
functions also include monitoring our less than majority positions for value and investment security, and reviewing possible acquisition
candidates and acquisition assets on an ongoing basis. These costs primarily included administrative expenses, professional service fees,
advertising and promotion expenses, travel-related expenses, employee and officer salaries, employee and officer accrued benefits, employee
and officer payroll tax expenses, board fees, and depreciation expenses. See Management’s Discussion and Analysis of Financial
Condition and Results of Operations, Results of Operations for the three and nine months ended September 30, 2025