Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 469

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 469
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 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 indicated that the asset might
be impaired.

The
Company reviews the goodwill allocated for possible impairment annually, and our policy is also to review goodwill whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. In the impairment test, the Company measured the recoverability
of goodwill by comparing a reporting unit’s carrying amount, including goodwill, to the estimated fair value of the reporting unit.
If the carrying amount of a reporting unit is in excess of its fair value, the Company would recognize an impairment charge equal to
the amount in excess. To estimate the fair value, management used valuation techniques, which included the discounted value of estimated
future cash flows. The evaluation of impairment requires the Company to make assumptions about future cash flows over the life of the
asset being evaluated. These assumptions required significant judgment and were subject to change as future events and circumstances
changed, as actual results may differ from assumed and estimated amounts.

Effective
October 4, 2023, the date of sale of our WCI interest, 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 the aggregate amount of $1,426,182 was reduced to $0. No goodwill is reported in the Company’s condensed
consolidated balance sheets at December 31, 2024 and 2023.

Revenue
recognition

The
Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers,” and FASB ASC Topic
842, “Leases.” Revenue is recognized net of allowances for returns and any taxes collected from customers, which are
subsequently remitted to government authorities.

Our
discontinued operation worked with business park owners, governmental centers, and apartment complexes to reduce facilities-related costs.
Our discontinued operation performed monthly services pursuant to agreements with customers. Customer monthly service fees were based
on our discontinued operation’s assessment of the amount and frequency of monthly services requested by a customer. Our discontinued
operation also provided additional services, such as apartment cleanout services