Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 459

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 459
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ma’s corporate location; the Company was not informed
by G Farma of this incident until March 14, 2019. On April 24, 2019, the Company was notified that certain G Farma assets at its corporate
location, including approximately $427,804 of equipment leased by G Farma Entities from Mentor Partner I, LLC, under a Master Equipment
Lease Agreement, were impounded. See further description under Mentor Partner I, LLC, below, and Note 9 to the consolidated financial
statements.

This
event severely impacted G Farma’s ability to pay amounts due the Company in the future and led the Company, in the quarter ended
March 31, 2019, to fully impair G Farma notes receivable of $1,045,051 and fully impair the Company’s 3.843% equity interest in
G Farma Equity Entities, formerly valued at $41,600. See Note 8 to the consolidated financial statements.

Following
the initiation of an action against the G Farma Lease Entities and their guarantors (collectively, the “G Farma Entities”)
in California Superior Court for Marin County, the Company and Mentor Partner I and the G Farma Entities entered into a settlement agreement
on August 27, 2021, whereby the G Farma Entities were to pay the Company an aggregate of $500,000. The G Farma Entities made a handful
of payments and then ceased the performance of their settlement obligations.

In
February 2023, the Company and Mentor Partner I sought entry of a stipulated judgment against the G Farma Entities. On July 11, 2023,
the Court entered judgment against the G Farma Entities and in favor of Mentor and Partner I in the amount of $2,539,597, which is comprised
of $2,494,450 of principal (calculated as the aggregate settlement amount, less payments made by the G Farma Entities, plus an additional
$2,000,000 in default principal) plus accrued and unpaid interest of $40,219, costs of $1,643, and attorneys’ fees of $3,285 incurred
by Mentor and Mentor Partner I in connection with obtaining the judgment. The judgment also accrues post-judgment interest at the rate
of 10% from July 11, 2023 until such time as the judgment is paid in full.

The
Company has retained the full reserve on the unpaid notes receivable balance