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

Segment information

v3.26.1
Segment information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment information

Note 18 – Segment information

 

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. The first reportable segment is its classic energy segment, which consists of the Company’s operations and investment in the classic energy space, including its oil and gas royalty interests. 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, and (iii) coal through Core Natural Resources, Inc. (CNR) stock, plus the Company’s March 2025 acquisition of 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 for total consideration of $1,369,899. The Company’s primary aim for its classic energy segment is to acquire 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. The second reportable segment consists of the Company’s historic residual operations, which include the fully impaired settlement payments receivable from G Farma and its co-defendants in the amount of $2,539,597 plus $628,985 accrued interest at December 31, 2025, and the operation of subsidiaries Mentor IP, Partner I, Partner II, and TWG. The Company also maintains a gold investment for profit 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. 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, that 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 gold investment, short-term treasury exchange-traded funds, and the investment in NeuCourt are included in the Corporate and Eliminations section below.

 

The Company’s Chief Operating Decision Maker (“CODM”) is Chairman and Chief Executive Officer, Chet Billingsley, a former SEC-registered investment advisor. The 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. The CODM uses segment operating income (loss) to review monthly, quarterly, and annual segment trends. Additionally, the CODM regularly monitors actual cash and cash equivalent balances.

 

Routine expenses related to Company’s oil and gas royalty interests within its energy segment were limited to the severance and ad valorem tax liabilities of $13,050 and $0 as of December 31, 2025, and 2024. 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, advertising 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, 2025 compared to the year ended December 31, 2024, Selling, General, and Administrative Expenses for a further disclosure and discussion of the Company’s management and headquarters related expenses.

 

 

Mentor Capital, Inc.

Notes to Consolidated Financial Statements

December 31, 2025 and 2024

 

Segment information for our current operating segments is as follows:

 

    Energy Segment    

Historic

Segment

    

Corporate, Other, and

Eliminations

     Consolidated  
2025                                
Net revenue   $ 166,811     $ -     $ -     $ 166,811  
Operating loss    

166,811

       (982 )     (792,462 )     (626,633 )
Interest and dividend income     41,819       -       4       41,823  
Interest expense     -       -       -       -  
Severance and ad valorem taxes     13,050       -       -       13,050  
Property additions, net     -       -       5,992       5,992  
Fixed asset depreciation and amortization     -       -       763       763  
Other asset additions     1,369,899       -       -       1,369,899  
Other asset amortization     103,251       -       -       103,251  
Total assets     1,400,605       1,327       1,457,911       2,859,843  
                                 
2024                                
Net revenue   $ -     $ -     $ -     $ -  
Operating loss     -       (990 )     (779,222 )     (780,212 )
Interest and dividend income     20,289       -       150,966       171,255  
Interest expense     -       -       -       -  
Severance and ad valorem taxes     -       -       -       -  
Property additions     -       -       -       -  
Other asset additions     -       -       -       -  
Fixed asset depreciation and amortization     -       -       1,073       1,073  
Other asset amortization     -       -       -       -  
Total assets     618,038       1,744       2,794,780       3,414,562  

 

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the years ended December 31, 2025 and 2024, as presented in the consolidated income statements:

 

    2025     2024  
Operating loss   $ (626,633 )   $ (780,212 )
Gain (loss) on investment in account receivable     -       (250,208 )
Realized gain (loss) on investment in securities     (179,775 )     41,376  
Unrealized gain (loss) on investment in securities     194,882       (6,387 )
Interest and dividend income     41,823       171,255  
Interest expense     -       -  
Other income (expense)     26       -  
Income before income taxes   $ (569,677 )   $ (824,176 )

 

 

Mentor Capital, Inc.

Notes to Consolidated Financial Statements

December 31, 2025 and 2024