Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 27

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 27
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 of Equity Preferred Stock equal to the Purchase Amount divided by the price per share
of the Equity Preferred Stock (“Preferred Stock”) and (b) the number of shares of common stock equal to the Conversion Shares
minus the Preferred Stock.

The SAFE will expire and terminate upon the earlier
to occur of (i) conversion and (ii) repayment. The SAFE may be repaid by NeuCourt upon sixty (60) days prior notice (“Repayment
Notice”) to the Company unless the Company elects during that period to convert the SAFE.

If NeuCourt does not close an equity financing round
raising $500,000 or more prior to expiration or termination of the SAFE, the Company may elect to convert the SAFE into the number of
shares of a to-be-created series of preferred stock equal to the (x) Purchase Amount divided by (y) the Valuation Cap divided by the number
of outstanding shares of NeuCourt on a fully diluted, as-converted basis (“Default Conversion”). Additionally, if NeuCourt
experiences a change of control, initial public offering, ceases operations, or enters into a general assignment for the benefit of its
creditors prior to conversion, termination, or expiration of the SAFE, the Company will receive the greater of (a) a cash payment equal
to the Purchase Amount and (b) the value of the shares issuable on Default Conversion.

On July 22, 2022, the Company sold $989 of the SAFE
Purchase Amount to a third party. On August 1, 2022, the Company sold an additional $1,285 of the SAFE Purchase Amount to a third party,
thereby reducing the aggregate outstanding SAFE Purchase Amount to $83,756.

On January 20, 2023, the Company and NeuCourt entered
into a SAFE Purchase Agreement by which the Company invested an additional $10,000 in the form of a NeuCourt Simple Agreement for Future
Equity under the same terms as the previous July 15, 2022 SAFE Purchase Agreement between NeuCourt and the Company, increasing the aggregate
SAFE Purchase Amount to $93,756. At March 31, 2025 and December 31, 2024, the SAFE Purchase Amount was $93,756.

Note 8 – Finance leases receivable

Net finance leases receivable from G Farma payable
to Mentor Partner I, LLC (“Partner I”) remain fully impaired at March 31, 2025 and December 31, 2024. At March