The Company reports that for the nine months ended September 30, 2022, Mentor had revenues of $5,647,817 and gross income of $1,723,437, with net income attributable to Mentor of (0.1) cents per action. This represents a 34.93% increase in revenue and a 32.20% increase in gross profit over the prior year quarter ended September 30, 2021, in which Mentor had revenue of $4,185,887 and gross of $1,303,612.
As of September 30, 2022, the Company had 22,941,357 shares of its common stock and 11 Series Q convertible preferred shares outstanding, as well as 6,250,000 Series D warrants outstanding with an exercise price of $1.60 per share.
No principal was granted to directors, insiders, consultants or investor relations firms during the nine quarters ended September 30, 2022. A long-term stock repurchase plan was authorized in 2014 and as of September 30, 2022 remain a total of 255,252 shares to be repurchased under the plan.
The Company’s shares ended the quarter at a closing price of $0.05 per share, representing a market capitalization of $1,147,068 compared to a 2021 year-end closing price of $0.0508 per share and a corresponding market capitalization of $1,160,828. The Company ended the quarter with a book value of $2,398,466 or $0.10 per share and a price-to-book ratio of 48% compared to a book value of $2,078,677, as of the end of 2021.
Series Q Convertible Preferred Stock, for Accredited Investors, initially valued at $10,000 per share on May 30, 2018, was valued at $20,843 per share on September 30, 2022, and 11 Series Q shares could have been converted at a price of conversion of $0.063 per share into 3,639,262 shares of Mentor common stock, representing an 18.5% compound annual rate of return for each of the past four years.
As of March 2018, Mentor has invested $417,664 to facilitate the purchase of production equipment to lease to Pueblo West Organics, LLC (“Pueblo West”). As of September 13, 2022, $485,358 had been raised on the lease, and on September 27, 2022, Pueblo West exercised its lease prepayment option and purchased the lease for $245,369, bringing total proceeds on the investment to $730,727.
As of the quarter ended September 30, 2022, the Company had invested $396,666 in a legal repossession purchase agreement with Electrum Partners, LLC against Aurora Cannabis Inc. After the quarter ended on November 19, 2022, Electrum paid Mentor $460,000 from proceeds of Aurora Legal Recovery. At the same time, Mentor and Electrum will release and cancel any remaining involvement with each other.
As of September 30, 2022, the Company had received $250,000 in loans from CEO, Chet Billingsley. Loans accrue interest at 7.8% per annum, capitalized quarterly, and are on demand.
The Company is managed by Chairman and CEO Chet Billingsley (70), who founded Mentor Capital first as an acquiring partnership in 1985. Billingsley’s interest is reported at 8.87% on a fully diluted basis as at 30 September 2022, with other directors and officers hold an additional 6.22% on a fully diluted basis.
The Form 10-Q may be referenced through the SEC’s EDGAR system at: https://www.sec.gov/edgar/searchedgar/companysearch.html or on the Company’s website: www.MentorCapital.com, where further important information for investors can be found.
About Mentor Capital: The Company seeks to partner and assist private companies, their founders and investors in achieving their liquidity, equity financing and acquisition objectives.
This press release does not constitute an offer to sell or a solicitation of offers to buy any securities.
Forward-Looking Statements: This press release contains forward-looking statements pursuant to federal securities laws, including statements regarding financial projections, financing activities, business combinations, product development activities, and sales and licensing activities. Such forward-looking statements are not guarantees of future results or performance and are sometimes identified by conditional words such as “should”, “may”, “expects”, “may”, “intends”, “seeks”, “appears”, “moves” or “plans” and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or anticipated. Such risks include, but are not limited to: failure to execute investments, difficulties in partners and portfolio, potential marketing and sales delays, problems securing the necessary funding to continue operations, problems involving the continued illegality of cannabis products, the potential for competitive products, services and technologies, difficulties encountered in product development, recruitment of qualified personnel, protection of intellectual property and the effects of global economic events a adverse events, such as the resurgence of the coronavirus and the recent rise in inflation. Additional information about these and other risks is included in the Company’s filed Form 10-Q, which, along with other very important details about the Company, can be found here: https://ir.mentorcapital.com/all-sec-filings
The Company undertakes no obligation to update or revise any such forward-looking statements to reflect new information, events or circumstances occurring after the date of this press release.