Mentor Capital Reports 12.5% Growth in 2nd Quarter 2020 10-Q

Mentor Capital, Inc. (OTCQB: MNTR) announced a 12.5% year-over-year revenue growth for the second three months of the year in its quarterly 10-Q filing for the second quarter ended June 30, 2020, filed with the Securities and Exchange Commission.

The Company reports that for the quarter ended June 30, 2020 Mentor had revenues of $1,158,867 and gross profit of $368,197 with a resulting net loss attributable to Mentor of ($184,185) or (0.8 cents) per share. This is an improvement over the prior year quarter ended June 30, 2019, in which Mentor had revenues of $1,029,749, gross profit of $301,159 and resulting net loss attributable to Mentor of ($408,275) or (1.8 cents) per share.

As further disclosure to our 10-Q, on January 31, 2020, all remaining equipment leased to G Farma by Mentor Partner I was repossessed by the Company and on March 5, 2020 and in June of 2020 the Company sold all the recovered equipment for net sale proceeds of $222,031 and $27,459, respectively. We will continue to pursue judgement and collection of the G Farma notes receivable for which $1,045,051 has been reserved, plus the residual finance lease payments remaining for which $1,203,404 has been reserved, from G Farma, its affiliates, and the guarantors.

The effect of the novel coronavirus pandemic (“COVID-19”) has significantly impacted the United States economy. Mentor’s legal efforts have been hindered due to the closure of the courts in California and British Columbia, following COVID-19 concerns there. This delays potential recoveries from the G Farma lawsuit, and the Company’s interest in the Aurora Cannabis, Inc. lawsuit through Mentor’s investee, Electrum Partners, LLC.

Our 51% owned subsidiary, Waste Consolidators, Inc (“WCI”) helps lower monthly service costs paid by its client properties. WCI revenue for the six months ended June 30, 2020 increased by 15.72%, as compared to the prior year six month period. Any impact of COVID-19 for WCI’s six month period ended June 30, 2020, is estimated to be immaterial.

On April 23, 2020 and May 5, 2020, the Company and WCI each received PPP loans in the amount of $76,500 and $383,342, respectively. The loans are expected to be forgiven by the government. Subsequent to quarter end, on July 9, 2020, WCI received an additional Economic Injury Disaster Loan in the amount of $150,000, through the SBA. The loan is secured by all personal property of WCI, bears interest at 3.75% per annum, requires monthly payments, and matures July 2050.