Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 468

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 468
---
1 month to 48 months. Our fleet finance leases contain a residual
value guarantee which, based on past lease experience, is unlikely to result in a liability at the end of the lease. As most of our leases
do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in
determining the present value of lease payments.

Costs
associated with operating lease assets were recognized on a straight-line basis, over the term of the lease, within cost of goods sold
for vehicles used in direct servicing of discontinued operation customers and in operating expenses for costs associated with all other
operating leases. Finance lease assets were amortized within cost of goods sold for vehicles used in direct servicing of discontinued
operation customers and within operating expenses for all other finance lease assets, on a straight-line basis over the shorter of the
estimated useful lives of the assets or the lease term. The interest component of a finance lease is included in interest expense and
recognized using the effective interest method over the lease term. Our discontinued operation had agreements that contained both lease
and non-lease components. For vehicle fleet operating leases, we accounted for lease components together with non-lease components (e.g.,
maintenance fees).

Long-lived
assets impairment assessment

In
accordance with the FASB Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other,”
we regularly review the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally
and externally, that suggest impairment. The carrying value and ultimate realization of these assets are dependent upon our estimates
of future earnings and benefits that we expect to generate from their use. If our expectations of future results and cash flows are significantly
diminished, intangible assets and other long-lived assets may be impaired, and the resulting charge to operations may be material. When
we determine that the carrying value of intangibles or other long-lived assets may not be recoverable based upon the existence of one
or more indicators of impairment, we use the projected undiscounted cash flow method to determine whether an impairment exists and then
measure the impairment using discounted cash flows.

23

Goodwill

Goodwill
of $1,324,142 for our discontinued operation was derived from consolidating our discontinued operation effective January 1, 2014, and
$102,040 of goodwill was derived from our initial acquisition of a 50% interest in such discontinued operation.