Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 115

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 4
Chunk 115
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. 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 $7.00 held by an investment bank and its affiliates. These $7.00 Series H warrants include a cashless exercise feature. Current
and future shareholders may suffer dilution of their investment and equity ownership if any of the warrant holders elect to exercise their
warrants.

Beginning on February 9, 2015, in accordance with
Section 1145 of the United States Bankruptcy Code and in accordance with the Company’s court-approved Plan of Reorganization, the
Company announced that it would allow for partial redemption of up to 1% per month of the outstanding Series D warrants to provide for
the court specified redemption mechanism for warrants not exercised timely by the original holder or their estates. On October 7, 2016,
the Company announced that the 1% redemptions which were formerly priced on a calendar month schedule would subsequently be initiated
and priced on a random date to be scheduled after the prior 1% redemption is complete to prevent potential third-party manipulation of
share prices during the pricing period at month-end. Company designees that apply during the redemption period must pay 10 cents per warrant
to redeem the warrants and then exercise the Series D warrant to purchase a share of the Company’s Common Stock at a maximum of
one-half of the closing bid price on the day preceding the 1% partial redemption. The 1% partial redemption may continue to be periodically
recalculated and repeated according to the court formula until such unexercised warrants are exhausted, or the partial redemption is otherwise
suspended or truncated by the Company. There were no warrant redemptions in the first quarter of 2025 or in fiscal year 2024.

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We may be unable to collect on our ownership
in oil and gas royalty interests in the form of oil and gas royalty payments or amounts owed to us may be reduced due to external market
conditions, regulatory changes, or the performance of third-party oil and gas operators.

We may
be unable to collect on our ownership in oil and gas royalty interests owed to us due to a failure of third-party producers to
properly send royalty payments to us, or we may experience delays in payments or mistakes in the amounts sent to us. Further, our
royalty payment amounts may