Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 39

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 39
---

  
    Offset by shareholder advance 
     (261,653) 
     (261,653)
  
    Total outstanding liability 
    $465,809  
    $476,578 

As approved by resolution of the Board of Directors
in 1998, the CEO will be paid an incentive fee and a bonus, which are payable in installments at the CEO’s option. The incentive
fee is 1% of the increase in market capitalization based on the bid price of the Company’s stock beyond the book value at confirmation
of the bankruptcy, which was approximately $260,000. The bonus is 0.5% of the increase in market capitalization for each $1 increase in
stock price up to a maximum of $8 per share (4%) based on the bid price of the stock beyond the book value at confirmation of the bankruptcy.
For the three months ended March 31, 2025 and 2024, there were no incentive fee expenses.

Note 15 – Related party transactions

On August 10, 2023, Mentor received a $50,000 loan
from its CEO, which bore interest at 7.8% per annum, was compounded quarterly, and was due upon demand. On October 7, 2023, the loan plus
accrued interest of $545 was paid in full.

On August 2, 2023, Mentor called a $1,080,000 note
receivable from WCI, a related party at such time, plus accrued interest of $3,591. On September 6, 2023, WCI satisfied the note and accrued
interest in full. WCI’s payment consisted of $66,712 cash and a $1,016,879 credit from the Company in exchange for the other WCI
shareholder’s surrender of rights to exercise 2,259,732 Series D warrants of the Company at $0.45 per warrant. The Company recorded
the $1,016,879 warrant credit as a reduction to additional paid in capital in accordance with ASC 480 “Distinguishing Liabilities
from Equity Overall.” WCI recorded the $1,016,879 credit as a capital contribution because it was derived from the surrender
of the WCI non-controlling stockholder’s rights to exercise the Company’s 2,259,732 warrants.

The note was payable on demand, and the other WCI
stockholder was permitted to utilize any of his remaining Mentor warrants