Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 32

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 32
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 days following the transfer of title, or until the end of the fourth quarter of 2025. Generally, it is estimated
that payments will be received thirty to ninety days from the date of production. The performance and accuracy of third-party producers
who send royalty payments to the Company, production volumes, and prices of oil and natural gas, may materially impact our royalty income
receivable amounts.

Accrual
of estimated royalty income was $38,456 and $0 as of September 30, 2025 and 2024, respectively, which represent the
Company’s estimated receivables for approximately two and a half months. Royalty payments received were $21,312 and $0 for the
three months ended September 30, 2025 and 2024, which represent a portion of the royalty income earned by the Company in July 2025. Royalty
payments received were $78,974 and $0 for the nine months ended September 30, 2025 and 2024, respectively, which represent a portion
of the royalty income earned by the Company between March 2025 and July 2025. Actual and estimated severance taxes were approximately
5.22% of actual and accrued royalty income at the nine months ended September 30, 2025. The difference between the estimated incurred
severance tax liability and the amount paid is adjusted upon the Company’s receipt of royalty statements. The Company monitors
changes in market conditions, commodity prices, available production volumes, and other factors, which may materially impact the recoverability
of our royalty interests.

The
Company anticipates incurring annual ad valorem tax liability for its royalty interests located in the state Texas. Such
liability may be assessed according to value by the county assessor in localities where our royalty interests are located, in
accordance with local and state law. Ad valorem tax liability was $0
and $0
for the three months and nine months ended September 30, 2025, and 2024.

Subsequent
to quarter end, the Company received a total of $18,244 in royalty interest payments, gross, which, after payment of $884 in
severance taxes paid by the Company, were $17,360, net, which represents a portion of the royalty income earned by the Company
in August, 2025. See Note 18.

    -23-

Note
10 – Investments and fair value

The
hierarchy of