Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 427

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 427
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 a Notes Purchase Agreement with G FarmaLabs Limited (“G Farma”), a Nevada corporation.
Under the Agreement, the Company purchased two secured promissory notes from G Farma in an aggregate principal amount of $500,000, both
of which bore interest at 7.42% per annum, with monthly payments beginning on April 15, 2017 and maturity on April 15, 2022. The two
G Farma notes, as amended by subsequent addenda, are secured by all property, real and personal, tangible, or intangible of G Farma and
are guaranteed by GF Brands, Inc. and two majority shareholders of G Farma. As of March 4, 2019, the Company and G Farma had executed
eight addenda subsequent to the original agreement. Addendum II through Addendum VIII increased the aggregate principal face amount of
the working capital note to $990,000 and increased the monthly payments on the working capital note to $10,239 per month beginning March
15, 2019. G Farma has not made scheduled payments on the notes receivable since February 19, 2019.

On
February 22, 2019, the City of Corona Building Department closed access to G Farma’s corporate location and posted a notice preventing
entry to the facility; the Company was not informed by G Farma of this incident until March 14, 2019. The notice cited unpermitted modifications
to electrical, mechanical, and plumbing, including all undetermined building modifications, as the reason for the 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