Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1553

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 1553
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 deferred fees on the Company’s financials and the deferred asset on WCI’s
financials were eliminated in our September 30, 2023 consolidation.

On
October 4, 2023, we sold off our majority, controlling 51% interest in WCI for $6,000,000. Upon the date of the sale, our legacy investment
in WCI was deconsolidated, and it is now reported as a discontinued operation. See Note 3.

    F-37

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Note
16 – Commitments and contingencies

On
May 28, 2019, the Company and Mentor Partner I, LLC filed suit against the G Farma Entities and three guarantors to the various G Farma
agreements, described in Notes 1, 8, and 9, in the California Superior Court in and for the County of Marin. The Company primarily sought
monetary damages for breach of the G Farma agreements, including promissory notes, leases, and other agreements, to recover collateral
under a security agreement and to collect from guarantors on the agreements. The Company obtained, in January 2020, a writ of possession
to recover leased equipment within G Farma’s possession. On January 31, 2020, all remaining equipment leased to G Farma by Mentor
Partner I was repossessed by the Company. In the quarter ended June 30, 2020, the Company sold all of the recovered equipment, with an
original cost of $622,670, for net proceeds of $249,481, after deducting shipping and delivery costs. All proceeds from the sale of repossessed
equipment have been applied to the G Farma lease receivable balance that is fully reserved at December 31, 2024 and 2023. Due to the
uncertainty of collection, the Company has recorded reserves against the finance leases receivable described in Note 9 and has fully
impaired all other notes receivables and investments in G Farma described in Note 8.

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 both causes of action against G FarmaLabs Limited for liability for breach of the
two promiss