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

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 10
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Condensed
consolidated financial statements

The
unaudited condensed consolidated financial statements of the Company for the three and six month periods ended June 30, 2025 and 2024
have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial
information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the
information and footnotes required by accounting principles generally accepted in the United States of America for complete financial
statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the
opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for
interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as
of December 31, 2024 was derived from the audited financial statements included in the Company’s financial statements as of and
for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange
Commission (the “SEC”) on March 31, 2025. These financial statements should be read in conjunction with that report.

    -11-

Basis
of presentation

The
accompanying consolidated financial statements and related notes include the activity of subsidiaries in which a controlling financial
interest is owned. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“GAAP”). Significant intercompany balances and transactions have been eliminated in consolidation.
Certain prior period amounts have been reclassified to conform with the current period presentation.

As
shown in the accompanying financial statements, the Company has a significant accumulated deficit of ($9,448,732)
as of June 30, 2025. The Company has recently received significant profit on the sale of its former majority owned subsidiary,
although negative cash flows from operations continue. In March 2025, the Company acquired three fractional, non-operating royalty
interests in oil and gas properties covering approximately one-hundred twenty-one (121) wells in the Spraberry Field of the Permian
Basin in West Texas, through related public auctions for a total consideration of $1,369,899.
The royalty interests entitle the Company to receive a proportional share of revenues generated from the future production of
hydrocarbons from the underlying properties, without