Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 42

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 42
---
 G Farma
Settlors failed to make monthly payments, and failed to cure each default within 10 days’ notice from Company pursuant to the Settlement
Agreement. As a result, $2,000,000 was added to the amount payable by the G Farma Settlors in accordance with the terms of the Settlement
Agreement. The Company and Partner I sought entry of a stipulated judgment against the G Farma Settlors for (1) $494,450, the remaining
amount of the $500,000 settlement amount which has not yet been paid by the G Farma Settlors plus $2,000,000 and all accrued unpaid interest,
(2) the Company’s incurred costs, and (3) attorneys’ fees paid by the Company to obtain the judgment. On July 11, 2023, the
Court entered judgment against the G Farma Settlors and in favor of Mentor and Partner I in the amount of $2,539,597, which is comprised
of $2,494,450 in principal (calculated as the aggregate settlement amount, less payments made by the G Farma Settlors, plus the default
addition) plus accrued and unpaid interest of $40,219, costs of $1,643, and attorneys’ fees of $3,285 incurred by Mentor and Mentor
Partner I in connection with obtaining the judgment. The judgment also accrues post-judgment interest at the rate of 10% from July 11,
2023 until such time as the judgment is paid in full.

    -28-

Note 16 – Commitments
and contingencies (continued)

The Company has retained the full reserve on the unpaid
notes receivable balance and collections of the unpaid lease receivable balance due to the history of uncertain payments from G Farma
and the G Farma Settlors. Payments from the G Farma Settlors will be recognized in Other Income as they are received. No recovery payments
were included in other income in the consolidated financial statements for the year ended March 31, 2025 and December 31, 2024. The $2,539,597
judgment and interest receivable of $437,646 for the three months ended March 31, 2025 is fully reserved pending the outcome of the Company’s
collection process. See Notes 1 and 8 to this Quarterly Report and Notes 1, 8, 9, and 16 to Company’s