Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 43

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 43
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1934.

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 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 June 30, 2025 and December 31, 2024.

On
November 4, 2020, the Court 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 promissory notes 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 (collectively, “G Farma Settlors”) to resolve and settle all outstanding claims (“Settlement Agreement”).
The
Settlement Agreement requires 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,