Business Expansion in Texas Leads Trailing Revenues to 270% of Current Market Capitalization
Mentor Capital, Inc. (OTCQB: MNTR) announced in its 10-Q filing for the third quarter of 2021 that revenues increased 21.2% and gross profit 30% during the third quarter compared to the same quarter in 2020. Trailing twelve-month revenues increased 15.2% to $5.47 million or 23.9 cents per share compared to a closing share price of 8.86 cents on November 13, 2021, corresponding to a current market capitalization of $2.02 million.
Mentor CEO, Chet Billingsley, notes that much of Mentor's 15.2% trailing year-over-year revenue growth springs from Mentor's 51% owned subsidiary, Waste Consolidators, Inc. (WCI). WCI's revenue increased to $4.8 million for 2020, from $4.2 million in 2019 and $3.6 million in 2018, continuing a 14.6% annualized growth trend.
In its third quarter 10-Q filing to the SEC, the Company reports that Mentor had quarterly revenues of $1,492,624 and gross profit of $488,584 with resulting break-even results per share of (0.0 cents). This is a revenue betterment over the prior-year quarter ended September 30, 2020, in which Mentor had revenues of $1,231,530 and gross profit of $375,735 with a resulting net loss attributable to Mentor of ($273,955) or (1.2 cents) per share.
On June 16, 2021, Mentor CEO, Chet Billingsley, invested a second $100,000 loan into the Company at 7.8% per annum and is due upon demand.
On August 27, 2021, the Company entered into a Settlement Agreement with the G Farma Entities, who will pay the Company, over approximately six years, $500,000 plus 4.25% interest in steeply increasing payments. In the case of default, an additional $2,000,000 will be added to the unpaid settlement amount payable by the G Farma Entities and guaranteed by their owners.
Subsequent to quarter end, on October 6, 2021, the Company invested additional capital of $9,998 in Electrum for litigation costs in their lawsuit against Aurora Cannabis, Inc. and pursuant to a legal Recovery Purchase Agreement. The amount invested by the Company into Electrum for litigation costs has increased to $191,527, bringing the total combined Electrum investments that may be collected in the legal recovery to $585,555, which is recorded at cost, without allowance for additional significant percentage participation in any award. Trial in the Electrum vs. Aurora litigation is currently scheduled to commence on March 7, 2022.
Subsequent to quarter end, on October 26, 2021, the Company received full forgiveness of its third Paycheck Protection Program Loan of $77,121 in principal and interest, bringing cumulative loan forgiveness for the Company and its 51% owned subsidiary, WCI, to $529,469 under the program.
On September 30, 2021, there were 22,850,947 Company shares or share equivalents issued and outstanding. No equity was granted to directors, insiders, consultants, or investor relations firms in the third quarter of 2021 nor during the previous two and half years.
The Form 10-Q may be referenced through the SEC's EDGAR system at: https://www.sec.gov/edgar/searchedgar/companysearch.html or at the Company's website: www.MentorCapital.com, where additional important information for investors can be found.
About Mentor Capital: The Company seeks to come alongside and assist private companies with their founders and investors in meeting their liquidity, equity financing, and acquisition objectives. The Company is currently exploring its start in the crypto space, looking at certain medical device companies, working on expanding its existing Waste Consolidators operations in Texas, and seeking to collect on or sell off the Company's former cannabis financings, patents, leases, and Mentor's investments in the legal proceedings of other parties.
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," "moves," 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 continued illegality of cannabis products, the potential of competitive products, services, and technologies, difficulties experienced in product development, in recruiting knowledgeable personnel, in protecting intellectual property, and the effects of adverse 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 additional very important details on 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.
Mentor Capital, Inc.
Chet Billingsley, CEO