Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 428

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 428
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 December 31, 2024 and 2023.

    F-29

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

On
November 4, 2020, the Superior Court of California in the County of Marin granted Mentor Capital, Inc.’s and Mentor Partner
I’s motion for summary adjudication as to all four causes of action: both causes of action against G FarmaLabs Limited for
breach of the two promissory notes totaling $1,166,570
and one cause of action against each of Mr. Gonzalez and Ms. Gonzalez related to their duties as guarantors of G FarmaLabs
Limited’s obligations under the promissory notes.

On
August 27, 2021, the Company and Mentor Partner I entered into a Settlement Agreement and Mutual Release with the G Farma Entities and
guarantors (“G Farma Settlors”) to resolve and settle all outstanding claims (“Settlement Agreement”). The Settlement
Agreement required the G Farma Settlors to pay the Company an aggregate of $500,000 plus interest, payable monthly as follows: (i) $500
per month for 12 months beginning on September 5, 2021, (ii) $1,000 per month for 12 months beginning September 5, 2022, (iii) $2,000
per month for 12 months beginning September 5, 2023, and (iv) increasing by an additional $1,000 per month on each succeeding September
5th thereafter, until the settlement amount and accrued unpaid interest were paid in full. Interest on the unpaid balance initially
accrued at the rate of 4.25% per annum, commencing February 25, 2021, compounded monthly, and was to be adjusted on February 25th of each
year to equal the Prime Rate as published in the Wall Street Journal plus 1%. In the event that the G Farma Settlors failed to make any
monthly payment and had not cured two such defaults within 10 days of notice from the Company, the parties stipulated that an additional
$2,000,000 would be added to the amount payable by the G Farma Settlors.

On
October 12, 2021, the parties filed a Stipulation for Dismissal and Continued Jurisdiction with the Superior Court of