Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1715

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 15
Chunk 1715
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 Canadian patent.
On October 24, 2023, the Company divested MCIP’s intellectual property and licensing rights related to the United States and the
Canadian patent. The Company received no payment for its divestment. Patent application national phase maintenance
fees were expensed when paid, and there were no assets related to MCIP patents represented on the consolidated financial statements on
December 31, 2024 and 2023. Activity had been limited to payment of patent application maintenance fees in Canada.

On
August 27, 2021, the Company and Mentor Partner I entered into a Settlement Agreement and Mutual Release with G FarmaLabs Limited, its
affiliated entities, and guarantors (“G Farma Settlors”) to resolve and settle all outstanding claims on an unpaid finance
lease receivable and notes receivable of balances of $803,399 and $1,045,051, respectively, plus accrued interest (“Settlement
Agreement”). On October 12, 2021, the parties filed a Stipulation for Dismissal and Continued Jurisdiction with the Superior Court
of California in the County of Marin. The Court ordered that it retain jurisdiction over the parties under Section 664.6 of the California
Code of Civil Procedure to enforce the Settlement Agreement until the performance in full of its terms is met.

    F-7

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

In
August 2022, September 2022, and October 2022, the G Farma Settlors failed to make monthly payments, and failed to cure each default
within 10 days’ notice from Company pursuant to the Settlement Agreement. On July 11, 2023, the Court entered judgment against
the G Farma Settlors and 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.

The
Company has retained the reserve on collections of the unpaid lease receivable balance due to the long history of uncertain payments
from G Farma. Payments from G Farma will be recognized in Other Income as they are received. We will continue to pursue collection from
the G Farma Settlors over time. No recovery payments have been received since October