Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 18

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 18
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 cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), the
Company will write the carrying value down to the fair value in the period identified.

Goodwill

On October 4, 2023, the Company sold the entirety
of its interest in Waste Consolidators, Inc. (“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. The sale price exceeded the prior combined
carrying value and goodwill of WCI, with proceeds initially recorded as $5,000,000 cash and a $1,000,000 one-year note receivable. Following
the sale, the Company received no new income from WCI and had no further involvement or continuing influence over its operations. Prior
to the sale, goodwill of $1,324,142 was derived from consolidating WCI effective January 1, 2014, and $102,040 of goodwill was derived
from the 2003 acquisition of a 50% interest in WCI. In accordance with ASC 350, “Intangibles-Goodwill and Other,” goodwill
and other intangible assets with indefinite lives were no longer subject to amortization but were tested for impairment annually or whenever
events or changes in circumstances indicate that the asset might be impaired prior to the sale. Effective October 4, 2023, on the date
of the sale of our WCI shares, we met the criteria outlined in ASC Topic 205-20 “Discontinued Operations,” for our
$1,426,182 goodwill to be reduced to $0 and the results of operations and assets and liabilities for our facilities operations segment
were excluded from our continuing operations and presented as a discontinued operation in our consolidated financial statements. As a
result, goodwill in an aggregate amount of $1,426,182 was reduced to $0. No goodwill was reported in the Company’s condensed consolidated
balance sheets at March 31, 2025 and December 31, 2024. See Note 3.

    -15-

Note 2 - Summary of significant
accounting policies (continued)

Revenue recognition

The Company recognizes revenue in accordance with
ASC 606, “Revenue from Contracts with Customers,” and FASB ASC Topic 842, “Leases.” Revenue for
our former discontinued operation was recognized net of allowances for returns and any taxes collected from customers,