Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 85

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 85
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 of our ability to
secure such financing. A failure to obtain additional financing could prevent us from making substantial expenditures for advancement
and growth to partner with businesses and hire additional personnel. If we raise additional future financing by selling equity, or convertible
debt securities, the relative equity ownership of our existing investors could be diluted, or the new investors could obtain terms more
favorable than previous investors. If we raise additional funds through debt financing, we could incur significant borrowing costs and
be subject to adverse consequences in the event of a default.

Management voluntarily transitioned to a
fully reporting company and spends considerable time meeting the associated reporting obligations.

Management operated Mentor Capital, Inc. as a non-reporting
public company for over 28 years and approximately 9 years ago voluntarily transitioned to reporting company status subject to financial
and other SEC-required disclosures. Prior to such voluntary transition, management had not been required to prepare and make such required
disclosures. As a reporting company, we may be subject to the Securities and Exchange Act, as amended (“Exchange Act”), the
Sarbanes-Oxley Act, the Dodd-Frank Act, and other securities rules and regulations. If we were listed on an Exchange, we would be subject
to the rules of the Exchange on which we were listed. The Exchange Act requires, among other things, that we file annual, quarterly, and
current reports with respect to our business and operating activities. Preparing and filing periodic reports imposes a significant expense,
time, and reporting burden on management. This distraction can divert management from its operation of the business to the detriment of
core operations.

Investors may suffer risk of dilution following
exercise of warrants for cash.

As of March 31, 2025, the Company had 21,686,105 outstanding
shares of its Common Stock trading at approximately $0.046 per share. As of the same date, the Company also had 4,250,000 outstanding
Series D warrants exercisable for shares of Common Stock at $0.02 per share. These Series D warrants do not have a cashless exercise feature.
The Company estimates that the warrants may be increasingly exercised anytime the per share price of the Company’s Common Stock
is greater than $0.24 per share. Exercise of these Series D warrants may result in immediate and potentially substantial dilution to current
holders of the Company’s Common Stock. In addition, the Company has 413,512 outstanding Series H warrants with a per share exercise
price of