Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1307

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9B
Chunk 1307
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 closure. On April 24,
2019, the Company was notified that certain G Farma assets at the corporate location, including equipment leased to G Farma by Mentor
Partner I valued at approximately $427,804, were impounded. This event significantly impacted G Farma’s financial position and
its ability to make future payments under the notes purchase agreements and the finance leases receivable, described in Note 9, due the
Company.

All
arrangements with G Farma, were placed on non-accrual basis effective April 1, 2019. Accrual of interest on notes receivable and finance
leases, as well as consulting revenue, were suspended April 1, 2019. The notes receivable balance of $1,039,501 at December 31, 2024
and 2023, is fully reserved and reflected in the consolidated balance sheet as $0 at December 31, 2024 and 2023.

    F-29

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

On
November 4, 2020, the Superior Court of California in the County of Marin granted Mentor Capital, Inc.’s and Mentor Partner
I’s motion for summary adjudication as to all four causes of action: both causes of action against G FarmaLabs Limited for
breach of the two promissory notes totaling $1,166,570
and one cause of action against each of Mr. Gonzalez and Ms. Gonzalez related to their duties as guarantors of G FarmaLabs
Limited’s obligations under the promissory notes.

On
August 27, 2021, the Company and Mentor Partner I entered into a Settlement Agreement and Mutual Release with the G Farma Entities and
guarantors (“G Farma Settlors”) to resolve and settle all outstanding claims (“Settlement Agreement”). The Settlement
Agreement required the G Farma Settlors to pay the Company an aggregate of $500,000 plus interest, payable monthly as follows: (i) $500
per month for 12 months beginning on September 5, 2021, (ii) $1,000 per month for 12 months beginning September 5, 2022, (iii) $2,000
per month for 12 months beginning September 5, 2023, and (iv) increasing by an additional