Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1203

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 1203
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 and Mentor Partner II, LLC, was the lessor of manufacturing equipment subject
to leases under master leasing agreements. The leases contained an element of dealer profit, and the lessee bargained purchase options
at prices substantially below the subject assets’ estimated residual values at the exercise date for the options. Consequently,
the Company classified the leases as sales-type leases (the “finance leases”) for financial accounting purposes. For such
finance leases, the Company reported the discounted present value of (i) future minimum lease payments (including the bargain purchase
option, if any) and (ii) any residual value not subject to a bargain purchase option as a finance lease receivable on its balance sheet
and accrued interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over
the term of the lease. For each finance lease, the Company recognized revenue in an amount equal to the net investment in the lease and
cost of sales equal to the net book value of the equipment at the inception of the applicable lease.

    F-13

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Basic
and diluted income (loss) per common share

We
compute net income or loss per share in accordance with ASC 260, “Earnings Per Share.” Under the provisions of ASC
260, basic net income or loss per share includes no dilution and is computed by dividing the net income or loss available to common stockholders
for the period by the weighted average number of shares of Common Stock outstanding during the period. Diluted net income or loss per
share takes into consideration shares of Common Stock outstanding (computed under basic net income or loss per share) and potentially
dilutive securities that are not anti-dilutive.

There
were 4,250,000 potentially dilutive outstanding warrants as of December 31, 2024 that on a treasury stock basis would have the dilutive
effect of 3,128,628 common shares. Earnings for the twelve months ended December 31, 2024 were negative and the inclusion of the computational
effect of the 3,128,628 common share equivalents from the warrants would be anti-dilutive, so no dilution effect was included for the
period ending December 31, 2024, for the 4,250,000 potentially dilutive warrants then outstanding. At December 31, 2023, these 4