Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 121

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 121
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 criteria are met: the lease transfers ownership of the asset by
the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term
is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially
all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. Our operating
leases are comprised of office space leases, and office equipment. Fleet vehicle leases entered into prior to January 1, 2019, under
ASC 840 guidelines, are classified as operating leases. Fleet vehicle leases entered into beginning January 1, 2019, under ASC 842 guidelines,
are classified as finance leases. Our leases have remaining lease terms of 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