Mentor Capital, Inc. Annual Report: A Plain-English Guide

I’ve put together this guide to help you understand how Mentor Capital, Inc. performed this year. My goal is to cut through the corporate jargon and explain what is actually happening with the business so you can decide if it fits your portfolio.

1. The Big Picture

Mentor Capital is a holding company based in Plano, Texas. Think of it as an aggregator rather than a traditional business. After selling its waste management subsidiary, Waste Control Inc., in late 2023, the company returned to its roots in the energy sector.

They now focus on buying royalty interests and ownership stakes in oil, gas, coal, and uranium. To manage their cash, they hold gold bullion as a hedge against inflation while they wait for the right energy projects to fund.

2. The Numbers

As of March 2026, the company had 21,719,571 shares outstanding. Because it is a smaller company, it keeps a lean structure with few shares available for public trading.

• Market Value: As of June 30, 2025, the total market value of shares held by the public was about $997,561, based on a price of $0.046 per share.
• Capital: The $6 million from the 2023 sale of their waste business fuels their current strategy. They use this money to buy minority interests in energy production. This allows them to collect royalty income without the headache of managing daily drilling or mining operations.

3. Highs and Lows

The company’s main strength is its agility. By acting as a holding company, it avoids the high costs of heavy machinery and large payrolls. Instead, it focuses on financial deals and asset buying. They have successfully secured royalty interests in various wells, which provide a steady, though fluctuating, stream of income.

The downside is a lack of control. Because Mentor Capital only holds minority stakes, they have little say in how these assets are managed. Investors face a "transparency gap." The company’s performance depends entirely on production levels and energy prices set by third parties, making revenue hard to predict.

4. Financial Health

Mentor Capital is financially sensitive. Because it trades on the OTC Pink Sheets rather than a major exchange, the stock is hard to buy or sell quickly. You may see large gaps between the buy and sell prices, which can make trading expensive.

Their health is tied directly to energy prices. While they have no significant debt, their main risk is burning through their $6 million cash reserve on poor acquisitions or administrative costs before their royalties become self-sustaining.

5. The Risks

The biggest risk is the unpredictable nature of energy prices and global politics. Revenue depends on global markets, meaning OPEC+ decisions, the war in Ukraine, and Texas regulations on fracking all impact their profit.

As a small company, they lack the safety net of a larger, diversified business. If their energy bets fail, they have no other income to cover the losses. Finally, be aware of the risk of more shares being issued, which reduces your ownership percentage and the value of your current shares if the company doesn't grow enough to offset it.

Final Thought for Investors: Mentor Capital is essentially a bet on energy prices managed through a lean, royalty-focused structure. It is a high-risk, speculative play best suited for those who understand the volatility of the energy sector and the liquidity challenges of OTC-traded stocks. Before investing, consider whether you are comfortable with the company's lack of operational control and its reliance on external market forces.