Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 32

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 32
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March 17, 2025, the Company purchased a 3
(three) kilogram gold position for $295,328.
Because the Company’s primary purpose for purchasing gold was for investment purposes, the Company elected the fair value
option under ASC 825-10 “Financial Instruments – Fair Value Option.” The fair value measure that fits the
Company’s investment in gold is Level 1 because there are quoted prices in active markets for the identical investment
position. The Company reports changes in the fair value of its investment in gold as unrealized investment gains (losses), net of
the Company’s cost to sell to a known broker within the dealer market system including commission.

    -23-

Note 11 - Common stock warrants

On August 21, 1998, the Company filed for voluntary
reorganization with the United States Bankruptcy Court for the Northern District of California, and on January 11, 2000, the Company’s
Plan of Reorganization was approved. Among other things, the Company’s Plan of Reorganization allowed creditors and claimants to
receive new Series A, B, C, and D warrants in settlement of their prior claims. The warrants expire on May 11, 2038.

All Series A, B, C, and D warrants have been called,
and all Series A, B, and C warrants have been exercised. The Company intends to allow warrant holders or Company designees, in place of
original holders, additional time as needed to exercise the remaining Series D warrants. The Company may lower the exercise price of all
or part of a warrant series at any time. Similarly, the Company could reverse split the stock to raise the stock price 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. If
the called warrants are not exercised, the Company has the right to designate the warrants to a new holder in return for a $0.10 per share
redemption fee payable to the original warrant holders. All such changes in the exercise price of warrants were provided for by the court
in the Plan of Reorganization to provide a mechanism for all debtors to receive value even if they could not or did not exercise their
warrants. Therefore, Management believes that the act of lowering the exercise price is not a change from the original warrant grants,
and the Company did not record an accounting impact as the result of such change in exercise prices.

Exercise prices in effect from