Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 40

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 40
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 as currency to partially repay the loan at a rate of $0.45 per
warrant upon the surrender of such remaining unexercised warrants. The note accrued interest at 0.42% per annum with annual interest only
payments due. The note was issued September 13, 2011, as payment for past amounts owed of $380,000 and included prepaid amounts of $700,000
for administrative fees payable to the Company under that certain May 31, 2005 Liquidity Agreement between the Company and WCI. The WCI
note receivable and interest on the Company’s financials and the Mentor note payable and interest on WCI’s financials were
eliminated in our September 30, 2023 consolidation.

    -27-

Note 15 – Related party
transactions (continued)

WCI deferred fees represented deferred administrative
fees relating to the paid $1,080,000 note receivable from WCI, a related party at such time. The Company recognized $2,667 in deferred
fees per month and an additional $318,667 in deferred fees on September 6, 2023, concurrent with WCI’s payment of the note to the
Company. The deferred fees on the Company’s financials and the deferred asset on WCI’s financials were eliminated in our September
30, 2023 consolidation.

On October 4, 2023, we sold the entirety of our majority,
controlling 51% interest in WCI for $6,000,000. Upon the date of the sale, our legacy investment in WCI was deconsolidated and reported
as a discontinued operation. See Note 3.

Note 16 – Commitments and contingencies

On May 28, 2019, the Company and Mentor Partner I,
LLC filed suit against the G Farma Entities and three guarantors to the various G Farma agreements in the California Superior Court in
and for the County of Marin. The Company primarily sought monetary damages for breach of the G Farma agreements, including promissory
notes, leases, and other agreements, to recover collateral under a security agreement and to collect from guarantors on the agreements.
The Company obtained, in January 2020, a writ of possession to recover leased equipment within G Farma’s possession. On January
31, 2020, all remaining equipment leased to G Farma by Mentor Partner I was repossessed by the Company. In the quarter