Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 79

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 79
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 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 $2,000 compared to $0 for the prior year period. The Company’s cost of goods sold for the three months ended March 31, 2025
were $0 and $0 for the prior year period.

Selling, general and administrative expenses

Our selling, general and administrative expenses for
the three months ended March 31, 2025 was $195,975 compared to $271,263 for the prior year period, a decrease of $75,288. We experienced
a ($68,048) decrease in professional expenses, a ($9,396) decrease in employee salary and benefits, a ($2,475) decrease in officer salary
and benefits, and a ($184) decrease in depreciation expense, offset by $3,750 increase in board of director fees, a $508 increase in accumulated
amortization expense, a $468 increase in administrative fees, a $78 increase in insurance, and a $11 increase in travel related expenses
resulting in an decrease in other selling, general and administrative expenses of 27.75%, for the three