Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1508

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 1508
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shown in the accompanying financial statements, the Company has an accumulated deficit of ($9,027,312) as of December 31, 2024. The Company
has recently received significant profit on the sale of its former majority owned subsidiary, although negative cash flows from operations
continue.

Ongoing
capital formation

The
Company will endeavor to raise additional capital to fund its acquisitions from both related and unrelated parties to generate increasing
growth and revenues. The Company has 4,250,000 Series D warrants outstanding, and the Company has reset the exercise price to $0.02 per
share, which is below the current market price. The Company may reverse split the stock to raise the stock price to a level further above
the warrant exercise price. The warrants are specifically not affected and do not split with the shares in the event of a reverse split.
These consolidated financial statements do not include any adjustments that might result from repricing the outstanding warrants.

Management’s
plans include increasing revenues through acquisition, investment, and organic growth. Management anticipates funding new activities
by raising additional capital through the sale of equity securities and debt.

Impact
related to endemic factors

Our
future financial condition may be materially and adversely impacted as a result of the ongoing worldwide economic, political, and
military situations, economic sanctions, the impact of inflation, interest rate increases, tax increases, tariff increases,
recession, climate regulation, cybersecurity risks, evolving and sophisticated cyber-attacks and other attempts to gain access to
our information technology systems, increased risk to oil and energy markets, potential banking crises, the war in Ukraine, the
Israel-Hamas war, the post-election change in the U.S. federal government’s administration, future weakness in the credit markets,
increased rates of default and bankruptcy, political change, and significant liquidity problems for the financial services industry
may impact our financial condition in a number of ways. For example, our current or potential customers, or the current or potential
customers of our partners or affiliates, may delay or decrease spending with us, may not pay us, or may delay paying us for
previously purchased products and services. Also, we, or our partners or affiliates, may have difficulties in securing additional
financing. Additionally, the collectability of our investment in account receivable was impaired by $116,430
on February 15, 2022, due to a reduction in our estimated collection amount for the 2020 annual installment payment, which was
affected by the COVID-19