Note 2 - Summary of significant accounting policies: Impact Related to COVID-19 (Policies)
|6 Months Ended|
Jun. 30, 2020
|Impact Related to COVID-19||
Impact Related to COVID-19
The effect of the novel coronavirus (COVID-19) has significantly impacted the United States and the global economy. COVID-19 and the measures taken by many countries in response have adversely affected and could in the future materially adversely impact the Companys business, results of operations, financial condition, and stock price. The ongoing worldwide economic situation, future weakness in the credit markets and significant liquidity problems for the financial services industry may impact our financial condition in a number of ways. For example, our current or potential customers, or the current or potential customers of our partners or affiliates, may delay or decrease spending with us, or may not pay us, or may delay paying us for previously purchased products and services. Also, we, or our partners or affiliates, may have difficulties in securing additional financing. Additionally, our legal recovery efforts may be hindered due to the closure of the courts in California and British Columbia, which may cause COVID-19-related scheduling delays, hindering our legal recovery from the G Farma entities and delaying the receipt of the Companys interest in the Electrum Partners, LLC legal recovery, respectively.
Public health efforts to mitigate the impact of COVID-19 include government actions such as travel restrictions, limitations on public gatherings, shelter in place orders and mandatory closures. These actions could impact WCIs client businesses ability and speed of collecting their tenant rent payments. We do not expect this to significantly reduce demand for WCI services because WCI helps lower monthly service costs paid by its client properties. However, WCIs clients will likely experience a delay in collecting rent from tenants, which in turn is expected to cause slower payments to WCI and possible discontinued service and uncollectible accounts receivable. WCI revenue in six months ended June 30, 2020 increased by 15.7%, as compared to the same period in 2019 and any impact of COVID-19 for the first half of 2020 is estimated to be immaterial. We will closely monitor our customer accounts and continue to assess the impact on collection of accounts receivable as we collect more information.
According to the Critical Infrastructure Standards released by the Cybersecurity and Infrastructure Security Agency on March 18, 2020, Financial Services Sector businesses, like Mentor, are considered essential businesses. Because of the financial nature of Mentors operations, which consist of oversight of our portfolio companies, accounting, compliance, investor relations, and sales, Mentors day to day operations are not substantially hindered by remote office work or telework.
We anticipate that current cash resources will be sufficient for us to execute our business plan for the next 10 months. The ultimate impact of COVID-19 on our business, results of operations, financial condition and cash flows is dependent on future developments, including the duration of COVID-19 and the related length of its impact on the global economy, which are uncertain and cannot be predicted at this time.
Represents the textual narrative disclosure of Impact Related to COVID-19, during the indicated time period.
No definition available.