Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1692

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 14
Chunk 1692
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 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. 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
Series D warrants.

The
note was payable on demand, and the other WCI stockholder was permitted to utilize any of his remaining Mentor warrants as currency to
partially repay the loan at a negotiated 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.

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