Annualized Current Revenues are 240% of Market Capitalization for M&A Company
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.
The Company had approximately 11,087 shareholders reported as of June 30, 2020, with 22,850,947 shares issued, plus 6,252,954 Series D warrants outstanding at an exercise price of $1.60 per share. No equity was granted to directors, insiders, consultants or investor relations firms in the six months ended June 30, 2020. As of August 12, 2020 the Company’s shares closed at a price of $0.0835 per share representing a market capitalization of $1,908,054 compared to a 2019 year end closing price of $0.12 per share. and a corresponding market capitalization of $2,285,095. Mentor’s Series Q Preferred Stock, first sold at $10,000 per share on May 30, 2018, were exchangeable for approximately $15,343 per share in Mentor common shares on June 30, 2020.
The Company is managed by CEO, Chet Billingsley (67), who founded Mentor Capital in 1985. He received his undergraduate education at West Point before earning a Master’s Degree in Applied Physics at Harvard University. His early career was at General Electric. Treasurer, CFO, and director Lori Stansfield, CPA (61), was most recently Director of Audit Services for a regional CPA firm. She graduated Magna cum Laude in accounting and received a Master’s Degree in Marketing from the University of Colorado. Ms. Stansfield is certified as a public accountant in both Colorado and California. Secretary and director Robert Meyer (81), director and Audit Committee member Stan Shaul (55), and director and Audit Committee Chairman David Carlile (64) are independent directors; each has been or is a business owner and major shareholder. Altogether, the directors and officers hold a 21.15% fully diluted interest in Mentor Capital with Mr. Billingsley’s interest reported at 14.54% on a fully diluted basis as of August 4, 2020.
The Form 10-Q may be referenced at the Company’s website or through the SEC’s EDGAR system at:
About Mentor Capital: The Company seeks to come alongside and assist private companies and their founders in meeting their liquidity and financial objectives and to help incubate private companies. The Company may target energy, defense, mining, plastics, legal recovery, cannabis, and manufacturing sectors. Additional important information for investors is presented at:
This press release is neither an offer to sell nor a solicitation of offers to purchase securities.
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the federal securities laws, including statements concerning financial projections, financing activities, corporate combinations, product development activities and sales and licensing activities. Such forward-looking statements are not guarantees of future results or performance, are sometimes identified by words of condition such as "should," "could," "expects," "may," "intends," "seeks," "looks," "targets," or "plans" and are subject to a number of risks and uncertainties, known and unknown, that could cause actual results to differ materially from those intended or anticipated. Such risks include, without limitation: nonperformance of investments, partner and portfolio difficulties, potential delays in marketing and sales, problems securing the necessary financing to continue operations, problems involving illegality of cannabis products, potential of competitive products, services, and technologies, difficulties experienced in product development, in recruiting knowledgeable personnel, in protecting intellectual property, and the effects of negative worldwide economic events, such as the recent coronavirus outbreak. Further information concerning these, and other risks is included in the Company’s Form 10-Q filing which, along with other very important information about the Company, can be found here: https://ir.mentorcapital.com/all-sec-filings
The Company undertakes no obligation to update or revise such forward-looking statements to reflect new information, events, or circumstances occurring after the date of this press release.
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Mentor Capital, Inc.
Chet Billingsley, CEO