Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 26

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 26
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 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”).

    -19-

Note 7 – Convertible
notes receivable (continued)

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