Mentor Capital Breakup Value Exceeds Stock Price

Mentor Capital, Inc. (OTCQB: MNTR) Reported revenue of $8,269,003 for the trailing twelve months or $0.36 per share against a market capitalization of $606,799 at a corresponding share price of $0.026 per share in its quarterly Form 10-Q filing for the second quarter ended June 30, 2023, filed with the Securities and Exchange Commission. The Company estimates that the theoretical cash breakup value of the business, net of liabilities, may significantly exceed the current market price of the Company's stock.

The Company reports that for the six months ended June 30, 2023, Mentor had revenues of $4,280,805 and a gross profit of $1,606,082, with a resulting net loss attributable to Mentor of (0.8) cents per share. This represents a 15.15% increase in revenue and a 25.10% increase in gross profit over the prior-year quarter ended June 30, 2023, in which Mentor had revenues of $3,717,518 and gross profit of $1,283,852.

On June 30, 2023, the Company had 22,941,357 common shares and 11 Series Q convertible preferred shares outstanding, plus 6,250,000 Series D warrants outstanding with an exercise price of $1.60 per share, and 413,512 Series H warrants that an investment bank holds at a $7.00 per share exercise price.

No equity was granted to directors, insiders, consultants, or investor relations firms during the quarter ending June 30, 2023. A long-term share repurchase plan was authorized in 2014, and on June 30, 2023, a total of 232,852 shares remained to be repurchased under the plan. For the six months ended June 30, 2023, a total of 22,400 shares were repurchased but have not yet been retired at an average price of $0.027 per share. Subsequent to quarter end, the remaining 232,852 shares were repurchased at an average price of $0.028 per share.

The Company's shares finished the quarter at a closing price of $0.026 per share, representing a market capitalization of $606,799 compared to a 2022 year-end closing price of $0.050 per share and a corresponding market capitalization of $1,147,068. The Company finished the quarter with a book value of $1,637,987 or $0.071 per share, compared to a book value of $1,726,099 at 2022 year-end.

The Series Q Convertible Preferred Stock, for accredited investors, first valued at $10,000 per share on May 30, 2018, was valued at $20,843 per share on June 30, 2023, which is an approximate 15.5% average compound annual rate of return over each of the last five years.

The Company is managed by Chairman and CEO Chet Billingsley (70), who founded Mentor Capital first as an acquisition partnership in 1985. Mr. Billingsley's interest is reported at 7.45% on a fully diluted basis as of June 30, 2023, with other directors and officers holding an additional 6.22% on a fully diluted basis.