Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 34

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 34
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 States Bankruptcy Court for the Northern District of
California, and on January 11, 2000, the Company’s Plan of Reorganization was approved. Among other things, the Company’s
Plan of Reorganization allowed creditors and claimants to receive new Series A, B, C, and D warrants in settlement of their prior claims.
The warrants expire on May 11, 2038.

All
Series A, B, C, and D warrants have been called, and all Series A, B, and C warrants have been exercised. The Company intends to allow
warrant holders or Company designees, in place of original holders, additional time as needed to exercise the remaining Series D warrants.
The Company may lower the exercise price of all or part of a warrant series at any time. Similarly, the Company could reverse split the
stock to raise the stock price further above the warrant exercise price. The warrants are specifically not affected and do not split
with the shares in the event of a reverse split. If the called warrants are not exercised, the Company has the right to designate the
warrants to a new holder in return for a $0.10 per share redemption fee payable to the original warrant holders. All such changes in
the exercise price of warrants were provided for by the court in the Plan of Reorganization to provide a mechanism for all debtors to
receive value even if they could not or did not exercise their warrants. Therefore, Management believes that the act of lowering the
exercise price is not a change from the original warrant grants, and the Company did not record an accounting impact as the result of
such change in exercise prices.

Exercise
prices in effect from January 1, 2015 through September 30, 2023 for Series D warrants were $1.60 per share plus a $0.10 per warrant
redemption fee, if applicable. On October 14, 2023, the Board of Directors of the Company authorized a reset of the Series D warrants
strike price to $0.02 plus the $0.10 per warrant redemption fee, if applicable, and the exercise price in effect at June 30, 2025 for
the Series D warrants is $0.02 per share plus a $0.10 per warrant redemption fee, if applicable.

In
2009, the Company entered into an Investment Banking agreement with Network 1 Financial Securities, Inc. and a related Strategic Advisory
Agreement with Lenox Hill Partners, LLC regarding a potential