Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1141

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1141
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7, 2018, and March 4, 2019.
Partner I acquired and delivered manufacturing equipment as selected by G Farma Lease Entities under sales-type finance leases. 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 Farma and related entities.

As
discussed in Note 8, on February 22, 2019, the City of Corona Building Department closed access to G Farma’s corporate location;
the Company was not informed by G Farma of this incident until March 14, 2019. On April 24, 2019, the Company was informed that certain
G Farma assets at its corporate location, including equipment valued at approximately $427,804 leased to the G Farma Lease Entities under
the Master Equipment Lease Agreement, was impounded. This event severely impacted G Farma’s ability to pay amounts due to the Company
in the future, and the G Farma lease receivable was put on non-accrual status effective April 1, 2019. In 2019, an impairment of $783,880
was recorded. Additional bad debt expense of $19,519 was recognized for the year ended December 31, 2020.

In
2020, the Company repossessed leased equipment under G Farma’s control with a cost of $622,569
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
August 27, 2021, the Company and Mentor Partner I entered into a Settlement Agreement and Mutual Release with the G Farma Entities to
resolve and settle all outstanding claims, as further discussed in Notes 1, 8, and 18.

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.

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 the