Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 678

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 678
---
 unpaid notes receivable balance and collections of the unpaid lease receivable balance due
to the long history of uncertain payments from G Farma and the G Farma Settlors. Payments from G Farma and 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 December 31, 2024 and 2023, respectively. No payments have been received from the G Farma Entities since October 11, 2022.
The $2,539,597 judgment and interest receivable of $375,025 at December 31, 2024 is fully reserved pending the outcome of the Company’s
collection process. See Notes 8, 9, and 16.

18

Mentor
Partner I, LLC

Mentor
Partner I, LLC (“Partner I”) was reorganized as a limited liability company under the laws of the State of Texas as of February
17, 2021. Partner I was formed as a wholly owned subsidiary of Mentor for the purpose of acquisition and investment. In 2018, Mentor
contributed $996,000 of capital to Partner I to facilitate the purchase of manufacturing equipment to be leased from Partner I by G FarmaLabs
Limited (“G Farma”) under a Master Equipment Lease Agreement dated January 16, 2018, as amended. During the years ended December
31, 2024 and 2023, Mentor withdrew no capital from Partner I. Partner I acquired and delivered manufacturing equipment as selected by
G Farma and its related entities under sales-type finance leases. Partner I did not have any equipment sales revenue for the years ended
December 31, 2024 or 2023.

In
2020, the Company repossessed leased equipment under G Farma’s control with a cost of $622,669 and sold it to the highest offerors
for net proceeds of $249,481 after shipping and delivery costs. Net sales proceeds were applied against the finance lease receivable.

On
July 11, 2023, the Court entered judgment against the G Farma Entities in favor of Mentor and Partner I in the amount of $2,539,597.
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.
Collection is uncertain at this time. The remaining finance