Annual report [Section 13 and 15(d), not S-K Item 405]

Segment information

v3.25.1
Segment information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment information

Note 17 – Segment information

 

Continuing Operations

 

The Company is an operating, acquisition, and investment business. Subsidiaries in which the Company has a controlling financial interest are consolidated. The Company generally has two reportable segments: 1) the historic residual operations segment, which formerly included the cost basis of our former membership interests of Electrum, the former contractual interest in the Electrum legal recovery prior to settlement and payment to the Company on or about September 14, 2022, the settlement payments receivable from G Farma and its co-defendants in the amount of $2,539,597 plus $375,025 at December 31, 2024, the former finance lease payments receivable from Pueblo West to Partner II received on September 27, 2022, and the operation of subsidiaries Mentor IP, Partner I, Partner II, and TWG, and 2) its classic energy segment which consists of the Company’s operations and investment in the classic energy space. The classic energy segment includes the fair value of securities investments in (i) oil and gas through Exxon Mobil Corp. (XOM) stock, Occidental Petroleum Corp. (OXY) stock, and Chevron Corp. (CVX) stock, (ii) uranium through Cameco Corp. (CCJ) stock, (iii) coal through Arch Resources, Inc. (ARCH) stock, and (iv) energy pipelines through Energy Transfer LP (ET) stock. The Company’s primary aim for its classic energy segment is to acquire tangible, revenue-generating energy assets, such as oil and gas royalties, oil service businesses or other private energy operating companies as viable opportunities for such acquisition(s) become available. Additionally, the Company formerly had small investments in securities listed on the NYSE and NASDAQ, an investment in note receivable from a non-affiliated party that was fully impaired on June 11, 2024, and the fair value of convertible notes receivable and accrued interest from NeuCourt, which on July 15, 2022, was exchanged for a NeuCourt SAFE security investment that is carried at cost as a long-term investment and is included with the Company’s long term investments on the Company’s consolidated balance sheet. The investment in NeuCourt and unrealized and realized investment gains and losses are included in the Corporate, Other, and Eliminations section below.

 

Our Chief Operating Decision Maker (“CODM”) is our Chairman and Chief Executive Officer, Chet Billingsley. Our CODM evaluates the performance of the Company’s operating segments on an ongoing weekly basis and he routinely monitors each segment’s exposure to risk due to potential economic factors, societal trends, and market conditions in order to assess and determine the proper allocation of resources related to segment expenses. Our CODM uses segment operating income (loss) to review monthly, quarterly, and annual segment trends. Additionally, he regularly monitors actual and prospective cash and cash equivalent balances weekly.

 

Costs not allocated to our two reportable segments represent activities associated with the Company’s management and headquarters functions, especially with regard to accounting and audits for the Company and its majority-owned subsidiaries. The Company’s headquarters functions also include monitoring our less than majority positions for value and investment security and reviewing possible acquisition candidates and acquisition assets on an ongoing basis. These costs primarily included administrative expenses, professional service fees, adverting and promotion expenses, travel related expenses, employee and officer salaries, employee and officer accrued benefits, employee and officer payroll tax expenses, board fees, and depreciation expenses. See Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Results of Operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, Selling, General, and Administrative Expenses for a further disclosure and discussion of the Company’s management and headquarters related expenses.

 

Segment information for our current operating segments is as follows:

 

    Energy Segment    

Historic

Segment

    

Corporate, Other, and

Eliminations

     Consolidated  
2024                                
Net revenue   $ -     $ -     $ -     $ -  
Operating income (loss)     -       (990 )     (779,222 )     (780,212 )
Interest and dividend income     20,289       -       150,966       171,255  
Interest expense     -       -       -       -  
Property additions     -       -       -       -  
Depreciation and amortization     -       -       1,073       1,073  
Total assets     618,038       1,744       2,794,780       3,414,562  
                                 
2023                                
Net revenue   $ -     $ -     $ -     $ -  
Operating income (loss)     -       (1,305 )     (1,773,905 )     (1,775,210 )
Interest and dividend income     5,292       -       69,488       74,780  
Interest expense     -       -       15,847       15,847  
Property additions     -       -       2,291       2,291  
Depreciation and amortization     -       -       1,706       1,706  
Total assets     647,363       2,472       3,797,006       4,446,841  

 

 

Mentor Capital, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

 

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the years ended December 31, 2024 and 2023, as presented in the consolidated income statements:

 

    2024     2023  
Operating income (loss)   $ (780,212 )   $ (1,775,210 )
Gain (loss) on investments     (215,219 )     4,802,905  
Interest and dividend income     171,255       74,780  
Interest expense     -       (15,847 )
Other income     -       1,291  
Income before income taxes   $ (824,176 )   $ 3,087,919  

 

Discontinued Operation – Facilities Operations Segment

 

As disclosed in Note 3 of the consolidated financial statements, we sold our entire ownership interest in WCI, our facilities operations segment, on October 4, 2023 for $6,000,000. Following our sale of WCI, we received no new income from WCI and had no further involvement or continuing influence over its operations. Consequently, our facilities operations segment was eliminated at the time of sale. Additionally, the results of operations associated with our facilities operations segment were excluded from our continuing operations and presented as a discontinued operation in our consolidated financial statements. WCI worked with business park owners, governmental centers, and apartment complexes to reduce their facility-related operating costs. The WCI facilities operations segment is now reported as a discontinued operation. See Note 3 of the consolidated financial statements for detailed financial information on our former facilities operations segment.