Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 24

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 24
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’s continuing operations on December 31, 2023, and prior periods of comparison and WCI’s
financial results were presented as a discontinued operation in the Company’s consolidated financial statements at such time. See
Note 3 in the Company’s Annual Report for the year ended December 31, 2023 on Form 10-K as filed with the Securities and Exchange
Commission on April 1, 2024 for further discussion regarding the Company’s former interest in WCI.

Note
4 – Investment in account receivable

On
April 10, 2015, the Company entered into an exchange agreement whereby the Company received an investment in an account receivable with
annual installment payments of $117,000 for 11 years through 2026, totaling $1,287,000 in exchange for 757,059 shares of Mentor Common
Stock obtained through the exercise of 757,059 Series D warrants at $1.60 per share plus a $0.10 per warrant redemption price.

The
Company valued the transaction based on the market value of Company common shares exchanged in the transaction, resulting in a 17.87%
discount from the face value of the account receivable or net present value of $0.78 per share, the then current share price closing.
The discount is being amortized monthly to interest over the 11-year term of the agreement. In the fourth quarter of 2020, we were notified
that due to the effect of COVID-19, we might not receive the 2020 installment or the full 2021 installment. Based on management’s
collection estimates, we recorded an investment loss of ($139,148) on the investment in account receivable at December 31, 2020. In 2021,
the Company re-evaluated estimated collections and recorded an investment gain of $22,718. Subsequently, on February 15, 2022, the terms
of the investment were modified, resulting in an additional loss of ($41,930). The loss of ($41,930) and gain of $22,718 were reflected
in Other Income on the consolidated income statement for the years ended December 31, 2022 and 2021, respectively.

    -18-

On
January 10, 2023, the Company received the 2023 annual installment payment of $117,000. Three additional $117,000 annual installment
payments were due in early 2024, 2025, and 2026