Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 107

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 3
Chunk 107
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 for shares of Common Stock at $0.02 per share.
These Series D warrants do not have a cashless exercise feature. The Company estimates that the warrants may be increasingly exercised
anytime the per share price of the Company’s Common Stock is greater than $0.24 per share. Exercise of these Series D warrants
may result in immediate and potentially substantial dilution to current holders of the Company’s Common Stock. In addition, the
Company has 413,512 outstanding Series H warrants with a per share exercise price of $7.00 held by an investment bank and its affiliates.
These $7.00 Series H warrants include a cashless exercise feature. Current and future shareholders may suffer dilution of their investment
and equity ownership if any of the warrant holders elect to exercise their warrants.

-40-

Beginning
on February 9, 2015, in accordance with Section 1145 of the United States Bankruptcy Code and in accordance with the Company’s
court-approved Plan of Reorganization, the Company announced that it would allow for partial redemption of up to 1% per month of the
outstanding Series D warrants to provide for the court specified redemption mechanism for warrants not exercised timely by the original
holder or their estates. On October 7, 2016, the Company announced that the 1% redemptions which were formerly priced on a calendar month
schedule would subsequently be initiated and priced on a random date to be scheduled after the prior 1% redemption is complete to prevent
potential third-party manipulation of share prices during the pricing period at month-end. Company designees that apply during the redemption
period must pay 10 cents per warrant to redeem the warrants and then exercise the Series D warrant to purchase a share of the Company’s
Common Stock at a maximum of one-half of the closing bid price on the day preceding the 1% partial redemption. The 1% partial redemption
may continue to be periodically recalculated and repeated according to the court formula until such unexercised warrants are exhausted,
or the partial redemption is otherwise suspended or truncated by the Company. There were no warrant redemptions in the three and six
months ended June 30, 2025 or in fiscal year 2024.

We
may be unable to collect on our ownership in oil and gas royalty interests in the form of oil and gas royalty payments or amounts owed
to us may be reduced due to external market conditions, regulatory changes, or the performance of third-party oil and gas operators.