Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 425

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 425
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 Next Equity Financing, or
the price obtained by dividing a $3,000,000 valuation cap by the fully diluted number of shares. The number of Conversion Shares to be
issued on conversion was the quotient obtained by dividing the outstanding principal and unpaid accrued interest on a Note to be converted
on the date of conversion by the Conversion Price (the “Total Number of Shares”), The Total Number of Shares consisted of
Preferred Stock and Common Stock as follows: (i) That number of shares of Preferred Stock obtained by dividing (a) the principal amount
of each Note and all accrued and unpaid interest thereunder by (b) the price per share paid by other purchasers of Preferred Stock in
the Next Equity Financing (such number of shares, the “Number of Preferred Stock”) and (ii) 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,