Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 341

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 341
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 On October 4, 2023, the Company sold its 51% equity interest in WCI. See Note 3.

Item
3. Legal Proceedings.

G
FarmaLabs Limited

On
August 27, 2021, the Company and Mentor Partner I settled certain litigation with G FarmaLabs Limited, a Nevada corporation, and certain
of its affiliates (the “G Farma Settlors”). The G Farma Settlors partially performed, and then breached, the Settlement Agreement.

Consequently,
in February 2023, the Company and Mentor Partner I filed a Request for Entry of Judgment seeking entry of a stipulated judgment against
the G Farma Settlors for (1) the remaining unpaid settlement amount of $494,450 promised, all accrued and unpaid interest thereon, and
an additional $2,000,000 principal amount as agreed in the Settlement Agreement, (2) the Company’s incurred costs, and (3) attorneys’
fees paid by the Company to obtain the judgment. 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, which is comprised of $2,494,450 principal (calculated as the aggregate settlement
amount, less payments made by the G Farma Settlors, plus the default addition) plus accrued and unpaid interest of $40,219, costs of
$1,643, and attorneys’ fees of $3,285 incurred by Mentor and Mentor Partner I in connection with obtaining the judgment. 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.

13

The
Company has retained the reserve on the unpaid notes receivable balance and collections of the unpaid lease receivable balance due to
the long history of uncertain payments from G Farma and the G Farma Settlors. Payments recovered will be reported as Other Income in
the consolidated income statements. The $2,539,597 judgment and interest receivable of $375,025 for the twelve months ended December
31, 2024, is fully reserved pending the outcome of the Company’s collection process. We will continue to pursue collection from
the G Farma Settlors over time.

Item
4. Mine Safety Disclosures.

Not
applicable.

PART