Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 44

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 44
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consolidated balance sheet. The investment in NeuCourt and unrealized and realized investment gains and losses are included in the
Corporate, Other, and Eliminations section below.

Our Chief Operating Decision Maker (“CODM”)
is our Chairman and Chief Executive Officer, Chet Billingsley. Our CODM evaluates the performance of the Company’s operating segments
on an ongoing weekly basis and he routinely monitors each segment’s exposure to risk due to potential economic factors, societal
trends, and market conditions in order to assess and determine the proper allocation of resources related to segment expenses. Our CODM
uses segment operating income (loss) to review monthly, quarterly, and annual segment trends. Additionally, he regularly monitors actual
and prospective cash and cash equivalent balances weekly.

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. Accrued royalty income is estimated and
recognized in the month it is earned. The difference between this accrued royalty revenue and the amount finally received is
adjusted when royalty payments are actually paid out. Accrual of estimated royalty income was $2,000
and $0,
at March 31, 2025 and 2024, respectively. Royalty income received was $0
and $0, at
March 31, 2025 and 2024, respectively. 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.

    -29-

Note 17 – Segment Information
(continued)

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, adverting 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 months ended March 31,