Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1517

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 1517
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 revenue in the month the agreed-on services were performed. Our discontinued operation
was deconsolidated and presented as a “discontinued operation” at December 31, 2023 and at December 31, 2022 in the
Company’s Form 10-K filed with the Securities and Exchange Commission on April 1, 2024. Our discontinued operation is
deconsolidated throughout this report and it is presented as a “discontinued operation” at December 31, 2024 and
2023 , respectively.

For
each finance lease, the Company recognized as a gain the amount equal to (i) the net investment in the finance lease less (ii) the net
book value of the equipment at the inception of the applicable lease. At lease inception, we capitalized the total minimum finance lease
payments receivable from the lessee, the estimated unguaranteed residual value of the equipment at lease termination, if any, and the
initial direct costs related to the lease, less unearned income. Unearned income was recognized as finance income over the term of the
lease using the effective interest rate method.

The
Company, through its subsidiaries Mentor Partner I, LLC 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