Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 239

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 239
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, the Company received a one-year unsecured,
subordinated, promissory note in initial principal face amount of $1,000,000 from Ally Waste Services, LLC (“Ally”) at 6%
per annum. The $1,000,000 initial principal face amount of the note plus accrued interest of $60,000 was paid by Ally on October 4, 2024.
See Note 5.

19

Liquidity
and Capital Resources

The
Company’s future success is dependent upon its ability to make a return on our acquisitions and investments to generate
positive cash flow and to obtain sufficient capital from non-portfolio-related sources. The Company currently has enough cash to
effectuate its business plans for the next four years. Management believes they can raise additional funds to support
their business plan and develop a successful operating company.

Critical
Accounting Policies

Basis
of presentation

The
accompanying consolidated financial statements and related notes include the activity of majority-owned subsidiaries of 51% or more.
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States
of America (“GAAP”). Significant intercompany balances and transactions have been eliminated in consolidation.

Certain
amounts from the prior year have been reclassified to conform with the current year’s presentation.

As
shown in the accompanying financial statements, the Company has a significant accumulated deficit of ($9,027,312) as of December 31,
2024. The Company has recently received significant profit on the sale of its former majority owned subsidiary, although negative cash
flows from operations continue.

Ongoing
capital formation

The
Company will endeavor to raise additional capital to fund its acquisitions from both related and unrelated parties to generate increasing
growth and revenues. The Company has 4,250,000 Series D warrants outstanding, and the Company has reset the exercise price to $0.02 per
share, which is below the current market price. The Company may reverse split the stock to raise the stock price to a level 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.
These consolidated financial statements do not include any adjustments that might result from repricing the outstanding warrants.

Management’s
plans include increasing revenues through acquisition, investment, and organic growth. Management anticipates funding new activities
by raising additional capital through the sale of equity securities and debt.

Segment
reporting

Continuing
Operations

The
Company has