Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 970

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 970
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31, 2024 is fully reserved pending the Company’s collection process.

    F-30

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Note
9 – Finance leases receivable

Partner
I entered into a Master Equipment Lease Agreement with G FarmaLabs Limited and G FarmaLabs DHS, LLC (the “G Farma Lease Entities”)
with guarantees by GFBrands, Inc., formerly known as G FarmaBrands, Inc, Ata Gonzalez and Nicole Gonzalez (collectively, the “G
Farma Lease Guarantors”) dated January 16, 2018, and amended March 7, April 4, June 20, and September 7, 2018, and March 4, 2019.
Partner I acquired and delivered manufacturing equipment as selected by G Farma Lease Entities under sales-type finance leases. In 2018,
Mentor contributed $996,000 of capital to Partner I to facilitate the purchase of manufacturing equipment to be leased from Partner I
by G Farma and related entities.

As
discussed in Note 8, on February 22, 2019, the City of Corona Building Department closed access to G Farma’s corporate location;
the Company was not informed by G Farma of this incident until March 14, 2019. On April 24, 2019, the Company was informed that certain
G Farma assets at its corporate location, including equipment valued at approximately $427,804 leased to the G Farma Lease Entities under
the Master Equipment Lease Agreement, was impounded. This event severely impacted G Farma’s ability to pay amounts due to the Company
in the future, and the G Farma lease receivable was put on non-accrual status effective April 1, 2019. In 2019, an impairment of $783,880
was recorded. Additional bad debt expense of $19,519 was recognized for the year ended December 31, 2020.

In
2020, the Company repossessed leased equipment under G Farma’s control with a cost of $622,569
and sold it to the highest offerors for net proceeds
of $249,481 after shipping and delivery costs. Net sales
proceeds were applied against the finance lease receivable.

On
August 27, 2021, the Company and Mentor Partner I