Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1136

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1136
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) that number of shares of Common
Stock equal to the Total Number of Shares minus the Number of Preferred Stock.

On
July 15, 2022, the Company and NeuCourt, Inc. entered into an Exchange Agreement by which the $25,000 and $47,839 principal amounts of
the NeuCourt November 22, 2017 and October 31, 2018 convertible notes and accrued unpaid interest in the amounts of $3,518 and $9,673,
respectively, were exchanged for a Simple Agreement for Future Equity (“SAFE”), a security providing for the conversion of
the SAFE into shares of NeuCourt common or preferred stock (“Capital Stock”) at some future date. As of July 15, 2022, the
Company received SAFEs in the aggregate face amount of $86,030 (the “Purchase Amount”).

    F-28

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

The
valuation cap of the SAFE is $3,000,000 (“Valuation Cap”), and the discount rate is 75% (“Discount Rate”).

If,
prior to termination, conversion, or expiration of the SAFE, NeuCourt sells a series of preferred stock (“Equity Preferred Stock”)
to investors in an equity financing raising not less than $500,000, Mentor’s SAFE shall be converted into shares equal to the Purchase
Amount divided by the lessor of (x) the price per share of the Equity Preferred Stock multiplied by the Discount Rate and (y) the price
per share equal to the Valuation Cap divided by the number of outstanding shares of NeuCourt on a fully diluted, as-converted basis (“Conversion
Shares”). The Conversion Shares shall consist of (a) the number of shares of Equity Preferred Stock equal to the Purchase Amount
divided by the price per share of the Equity Preferred Stock (“Preferred Stock”) and (b) the number of shares of common stock
equal to the Conversion Shares minus the Preferred Stock.

The
SAFE will expire and terminate upon the earlier to occur of (i) conversion and (ii) repayment. The SAFE may be repaid by NeuCourt upon
sixty (60) days prior notice (“Repayment Notice”) to the Company unless the Company elects during that period to convert
the SAFE.

If
NeuCourt does not close an equity financing round raising $500,000 or more prior to expiration or termination of the