Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 56

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 56
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 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, 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 in Texas. This liability would be assessed
according to value by the county assessor in the locality 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.

The
Company also maintains a gold investment and short-term treasury exchange-traded funds for the purpose of facilitating investment
into the Company to support potential future energy acquisitions and to collect low-risk interest to offset inflation,
respectively.

-35-

Mentor
IP, LLC (MCIP)

On
April 18, 2016, the Company formed Mentor IP, LLC (“MCIP”), a South Dakota limited liability company and wholly owned subsidiary
of Mentor, to hold interests related to patent rights. On October 24, 2023, the Company divested Mentor IP, LLC’s intellectual
property and licensing rights related to a certain United States and Canadian patent. The Company received no payment for its divestment.
Patent application and maintenance fees have been expensed when paid and there were no assets related to the MCIP patents represented
on the condensed consolidated financial statements at September 30, 2025 and December 31, 2024.

NeuCourt,
Inc.

NeuCourt,
Inc. (“NeuCourt”) is a Delaware corporation that is developing a technology that is expected to be useful to the dispute
resolution industry.

On
July 15, 2022, the Company and NeuCourt entered into an Exchange Agreement whereby the Company’s outstanding convertible promissory
notes and accrued interest, in an aggregate net amount of $83,756, was exchanged for a Simple Agreement for Future Equity (“SAFE”)
in equal face value. On January 20, 2023, the Company and NeuCourt entered into a SAFE Purchase Agreement, increasing the Company’s
aggregate SAFE Purchase Amount to $93,756