Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 25

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 25
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 the three months ended March 31, 2025 and 2024, respectively.

Note 7 – Convertible notes receivable

On November 22, 2017, the Company invested $25,000
in NeuCourt, Inc. (“NeuCourt”) as a convertible note receivable. The note bore interest at 5% per annum, originally matured
November 22, 2019, and was amended to extend the maturity date to November 22, 2021. No payments were required prior to maturity. However,
at the time the November 22, 2017 note was extended, interest accrued through November 4, 2019, was remitted to Mentor. As consideration
for the extension of the maturity date for the $25,000 note, a warrant to purchase up to 25,000 shares of NeuCourt common stock at $0.02
per share was issued to Mentor.

On October 31, 2018, the Company invested an additional
$50,000 as a convertible note receivable in NeuCourt, which bore interest at 5%, originally matured on October 31, 2020, and was amended
to extend the maturity date to October 31, 2022. As consideration for the extension of the maturity date for the $50,000 note plus accrued
interest of $5,132, a warrant to purchase up to 52,500 shares of NeuCourt common stock at $0.02 per share was issued to Mentor. On June
13, 2022, the Company sold $2,161 in note principal to a third party, thereby reducing the principal face value of the note to $47,839.

Principal and unpaid interest on the Notes could have
been converted into a blend of shares of a to-be-created series of Preferred Stock and Common Stock of NeuCourt (i) on the closing of
a future financing round of at least $750,000, (ii) on the election of NeuCourt on the maturity of the Note, or (iii) on the election
of Mentor following NeuCourt’s election to prepay the Note.

On July 15, 2022, the November 22, 2017 and October
31, 2018 convertible notes were exchanged for a Simple Agreement for Future Equity (“SAFE”). Prior to the exchange, the Conversion
Price for each Note was the lower of (i) 75% of the price paid in the Next Equity Financing, or