Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 31

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 31
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ually or if events or changes in circumstances indicate the asset may be significantly impaired. As of September 30, 2025, the total
carrying value of all royalty interests taken together was $1,300,896, which was calculated as the beginning balance of our royalty interests
of $1,369,899 less accumulated amortization of $69,003 at September 30, 2025. No indicators of impairment were identified during the
three and nine months ended September 30, 2025.

The
following table summarizes activity related to the royalty interests at September 30, 2025 and December 31, 2024:

 Schedule of activity related to royalty interests 

    September 30,  2025  
    December 31,  2024 
  
    Beginning balance(1) 
    $1,369,899  
    $- 
  
    Additions 
     -  
               - 
  
    Amortization 
     (69,003) 
     - 
  
    Impairment 
     -  
     - 
  
    Ending balance 
    $1,300,896  
    $- 

(1)The beginning balance
                                                                                                                                                                reflects the Company’s total royalty interest acquisitions as of September 30, 2025. A total of $1,369,899 royalty interests
                                                                                                                                                                had been acquired as of March 31, 2025.

    -22-

The
Company’s three (3) fractional royalty interests entitled 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 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 production, severance, environmental, and regulatory taxes (collectively, “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. Some of the initial payments owed to us may not be received until
one hundred and twenty