Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 951

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 951
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 Mentor portion of liabilities in excess of assets 
     (49,143)
  
    Goodwill 
     1,324,143 
  
    Net assets acquired 
    $1,275,000 

Goodwill
of $1,324,143 was derived from consolidating WCI effective January 1, 2014. The remaining $102,040 of goodwill was related to our first
acquisition of a 50% interest in WCI. The Company accounted for its goodwill in accordance with ASC 350, “Intangibles –
Goodwill and Other,” which required the Company to test goodwill for impairment annually or whenever events or changes in circumstances
indicate that the carrying value of an asset may not be recoverable, rather than amortize. No impairment write-downs were required prior
to our sale of WCI on October 4, 2023.

    F-16

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Disposal

On
October 4, 2023, the Company sold the entirety of its interest in WCI for $6,000,000 by entering into a Stock Purchase Agreement whereby
the shareholders of WCI sold all of the outstanding shares of stock to Ally Waste Services, LLC. In connection with the sale,
the Company received $5,000,000
in cash and a one-year unsecured, subordinated, promissory note in the initial principal face amount of $1,000,000.
The note accrued interest at 6%
per annum and matured on October
4, 2024. The $5,000,000
cash payment was paid by Ally on October 4, 2023. The $1,000,000
initial principal face amount of the note plus accrued interest of $60,000
was paid by Ally on October 4, 2024.

At
December 31, 2023 we recognized a $4,805,389 gain on our sale of WCI as follows:

 Schedule of gain on sale of WCI 

    Cost basis of WCI 

    Purchase price allocation at 51% WCI assets and liabilities 
     1,275,000 
  
    Net investment in 51% earnings 
     326,735 
  
    Net investment in distributions 
     (407,124)
  
    Total WCI Cost Basis 
    $