Annual report pursuant to Section 13 and 15(d)

Note receivable

Note receivable
12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Note receivable

Note 5 – Note receivable


On October 4, 2023, in connection with the sale of the Company’s ownership interest in WCI, the Company received a one-year unsecured, subordinated, promissory note in an initial principal face amount of $1,000,000 from Ally Waste Services, LLC (“Ally”) at 6% per annum. The note is recorded at the principal face amount of $1,000,000 plus accrued interest of $15,000 and $0 at December 31, 2023 and 2022, respectively. The note is unsecured, subordinated, and junior in right of payment of the indebtedness of borrowed money and obligations of Ally owed to senior lenders. Subject to the terms of agreements with senior lenders, the note principal plus accrued interest is payable on October 4, 2024. Ally’s failure to pay the principal and accrued interest on October 4, 2024, among other enumerated events of default, will result in the interest rate retroactively increasing to 12% per annum. The note may be set off against any indemnification obligations owed by the Company to Ally, which indemnification obligations are secondary to indemnification obligations owed by the other WCI selling shareholder to Ally. The Company has received assurances from Ally that the note will be paid, so management has not impaired the note receivable. If management is given any indication from Ally or the other selling shareholder of WCI that collection is uncertain, the Company will impair the note receivable at such time. At December 31, 2023 and 2022, our note receivable consisted of the following:


    December 31,

December 31,


October 4, 2023 Ally Waste Services, LLC subordinated promissory note receivable, including accrued interest of $15,000 and $0, at December 31, 2023 and 2022, respectively. The note bore interest at 6% per annum. No payments are required under the note until the maturity date, October 4, 2024. Ally has the option to pay the note plus any accrued interest at any time prior to its maturity without penalty. Any prepayment shall be applied first to accrued but unpaid interest and then to the outstanding principal.   $ 1,015,000     $        -  
Total note receivable   $ 1,015,000     $ -  



Mentor Capital, Inc.

Notes to Consolidated Financial Statements

December 31, 2023 and 2022