Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 41

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 41
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 ended June 30,
2020, the Company sold all of the recovered equipment, with an original cost of $622,670, for net proceeds of $249,481, after deducting
shipping and delivery costs. All proceeds from the sale of repossessed equipment have been applied to the G Farma lease receivable balance
that is fully reserved at March 31, 2025 and December 31, 2024.

On November 4, 2020, the Court granted Mentor Capital,
Inc.’s and Mentor Partner I’s motion for summary adjudication as to both causes of action against G FarmaLabs Limited for
liability for breach of the two promissory notes and one cause of action against each of Mr. Gonzalez and Ms. Gonzalez related to their
duties as guarantors of G FarmaLabs Limited’s obligations under the promissory notes.

On August
27, 2021, the Company and Mentor Partner I entered into a Settlement Agreement and Mutual Release with the G Farma Entities and guarantors
(collectively, “G Farma Settlors”) to resolve and settle all outstanding claims (“Settlement Agreement”). The
Settlement Agreement requires the G Farma Settlors to pay the Company an aggregate of $500,000 plus interest, payable monthly as follows:
(i) $500 per month for 12 months beginning on September 5, 2021, (ii) $1,000 per month for 12 months beginning September 5, 2022, (iii)
$2,000 per month for 12 months beginning September 5, 2023, and (iv) increasing by an additional $1,000 per month on each succeeding
September 5th thereafter, until the settlement amount and accrued unpaid interest is paid in full. Interest on the unpaid
balance shall initially accrue at the rate of 4.25%, commencing February 25, 2021, and shall be adjusted on February 25th
of each year to equal the Prime Rate as published in the Wall Street Journal plus 1%. In the event that the G Farma Settlors fail to
make any monthly payment and have not cured such default within 10 days of notice from the Company, the parties have stipulated that
an additional $2,000,000 will be immediately added to the amount payable by the G Farma Settlors.

In August, September, and October 2022, the