Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 67

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 67
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and equity ownership if any of the warrant holders elect to exercise their warrants.

-40-

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 three and six
months ended June 30, 2025 or in fiscal year 2024.

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 be decreased due to declines in production levels on properties in which we have mineral and royalty interests or changes
in supply and demand levels for oil, gas, and natural gas. Our royalty interests may also be impacted by negative market and trade conditions
that may affect the demand for oil, gas, and natural gas, which would impact prices for those commodities. We may be impacted by actions
taken by the members of the Organization