Mentor Capital, Inc.

In 2020, the Company and WCI each received loans in the amount of $76,500 and $383,342, respectively, from the Bank of Southern California and the Republic Bank of Arizona (collectively, the “PPP Loans”). The PPP Loans were forgiven in November 2020, except for $10,000 of WCI’s loan that was not eligible for forgiveness due to receipt of a $10,000 Economic Injury Disaster Loan Advance (“EIDL Advance”). However, on December 27, 2020, Section 1110(e)(6) of the CARES Act was repealed by Section 333 of the Economic Aid Act. As a result, the SBA automatically remitted a reconciliation payment to WCI’s PPP lender, the Republic Bank of Arizona, for the previously-deducted EIDL Advance amount, plus interest through the remittance date. On March 16, 2021, The Republic Bank of Arizona notified WCI of receipt of the reconciliation payment and full forgiveness of the EIDL Advance. The $10,000 forgiveness is reflected as other income for the three months ended March 31, 2021, in the condensed consolidated income statements.

On May 28, 2019, the Company and Mentor Partner I, LLC filed suit against the G Farma Entities and three guarantors to the G Farma agreements, summarized above, in the California Superior Court in and for the County of Marin. The Company is primarily seeking monetary damages for breach of the G Farma agreements, including promissory notes, leases, and other agreements, to recover collateral under a security agreement and to collect from guarantors on the agreements. The Company previously sought, and on January 22, 2020, the Court granted the Company’s request for a writ of possession to recover leased equipment within G Farma’s possession. On November 4, 2020, the Court granted Mentor Capital, Inc.’s and Mentor Partner I’s motion for summary adjudication as to all four causes of action, including 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.

Effective upon filing this Form 10-Q, Lori Stansfield will no longer serve as the Company’s Chief Financial Officer. The transition between Ms. Stansfield, a California resident, and the Company, now relocated to Plano, Texas, is amicable, and there are no accounting disagreements. As needed, Ms. Stansfield will continue to provide transition support to the Company to assist with its reporting obligations. Ms. Stansfield will remain a Director and the Treasurer of the Company’s board of directors. Ms. Stansfield continues to be a significant shareholder of the Company

Because of his employer's acquisition by a prominent public company, effective May 15, 2021, Stan Shaul will no longer be able to serve as a board member and audit committee member of Mentor Capital or any other public company. Mr. Shaul expressed that it was a pleasure to serve as a Director of the Company for over twenty years, since his appointment to the board on November 24, 1998. Mr. Shaul remains a significant shareholder of the Company.

Other income and expense, net, totaled $17,572 for the three months ended March 31, 2021 compared to $13,944 for the prior year period, an increase of $3,628. We experienced an increase of $9,886 due to a gain on investments in securities of $4,849 in the current year period compared to a loss of ($5,037) in the prior year period, an increase of $5,169 due to a loss in the prior year period on long-term investments, and we recognized $10,000 of Paycheck Protection Program Loan forgiveness in the three months ended March 31, 2021. These increases were partially offset by a decrease of ($2,914) in interest income, a decrease of ($4,733) due to increased interest expense, a ($643) loss on right of use asset disposal, and a decrease in other income of ($13,137), in the three months ended March 31, 2021, as compared to the prior year period.