Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 80

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 80
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 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 estimates that this first royalty payment will be received by the Company in or around September 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 will
participate in and 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 were $75,000 and $0 for the three months ended June 30, 2025 and 2024, and $77,000 and $0 for
the six months ended June 30, 2025 and 2024, respectively. Royalty payments actually received were $0 and $0 for the three months
ended June 30, 2025 and 2024 and $0 and $0, the six months ended June 30, 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.

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The Company also maintains gold investment and short-term treasury
exchange traded funds for the purpose of facilitating investment into the Company to support potential future energy acquisitions and
to collect low-risk interest to offset inflation, respectively.

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