Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 236

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 236
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, LLC,
GFBrands, Inc., Finka Distribution, Inc., and G FarmaLabs, WA, LLC under which Mentor was supposed to receive equity interests in the
G Farma Equity Entities and their affiliates (together the “G Farma Equity Entities”) equal to 3.75% of the G Farma Equity
Entities interests. On March 4, 2019, Addendum VIII increased the G Farma Equity Entities’ equity interest to which Mentor is immediately
entitled to 3.843% and added Goya Ventures, LLC as a G Farma Equity Entity. We have fully impaired the equity investment with these entities,
formerly valued at $41,600. See Note 8 to the consolidated financial statements.

On
February 22, 2019, the City of Corona Building Department closed access to G Farma’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