Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 24

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 24
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 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.

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. The 2024 and 2025 annual installment payments have not been received. At June 11, 2024,
the receivable was fully impaired due to a history of uncertain payments.

The
investment in account receivable consists of the following at June 30, 2025 and December 31, 2024:

 Schedule of receivables with imputed interest

    June 30,  2025  
    December 31,  2024 
  
    Face value* 
    $287,200  
    $287,200 
  
    Impairment 
     (250,208) 
     (250,208)
  
    Total 
     36,992  
     36,992 
  
    Unamortized discount