Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 9

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 9
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 any operating or production costs. See Note 9.

Note 2 - Summary of significant accounting policies

Condensed consolidated financial statements

The unaudited condensed consolidated financial statements
of the Company for the three month period ended March 31, 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.

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 ($9,232,027) as of March 31, 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 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