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

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 10
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 from the underlying properties, without incurring any operating or production costs in the
future. See Note 9.

    -10-

Note 2 - Summary of significant
accounting policies (continued)

Ongoing capital formation

The Company will endeavor to raise additional capital
to fund its acquisitions from both related and unrelated parties to generate increasing growth and revenues. The Company has 4,250,000
Series D warrants outstanding, and the Company has reset the exercise price to $0.02 per share, which is below the current market price.
The Company may reverse split the stock to raise the stock price to a level further above the warrant exercise price. The warrants are
specifically not affected and do not split with the shares in the event of a reverse split. These consolidated financial statements do
not include any adjustments that might result from repricing the outstanding warrants.

Management’s plans include increasing revenues
through acquisition, investment, and organic growth. Management anticipates funding new activities by raising additional capital through
the sale of equity securities and debt.

Impact related to endemic factors

Our
future financial condition may be materially and adversely impacted as a result of the ongoing worldwide economic, political, and
military situations, economic sanctions, the impact of inflation, interest rate fluctuations, tax increases, tariff increases,
recession, climate regulation, cybersecurity risks, evolving and sophisticated cyber-attacks and other attempts to gain access to
our information technology systems, increased risk to oil and energy markets, market conditions that could impact the price of gold,
potential banking or currency crises, the war in Ukraine, the war in the Middle East, the post-election change in the U.S. federal
government’s administration, future weakness in the credit markets, increased rates of default and bankruptcy, political
change, and significant liquidity problems for the financial services industry may impact our financial condition in a number of
ways. For example, our current or potential customers, or the current or potential customers of our partners or affiliates, may
delay or decrease spending with us, may not pay us, or may delay paying us for previously purchased products and services. Also, we,
or our partners or affiliates, may have difficulties in securing additional financing. Additionally, the collectability of our
investment in account receivable was impaired by $116,430
on February 15, 2022, due to a reduction in our estimated collection amount for the 2020 annual installment payment, which was
affected by the COVID-19 pandemic, and the terms of the investment