Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 240

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 240
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 determined that there are currently two reportable segments: 1) the historic residual operations segment and 2) the
Company’s energy segment.

Discontinued
Operation

On
October 4, 2023, the Company’s facilities operations segment was sold. Following the sale, the Company received no new income from
WCI, and had no further involvement or continuing influence over the operations of WCI. As a result, our facilities operations segment
was deconsolidated on the date of the sale, and our former facilities operations segment was reported as a discontinued operation. See
Note 3.

20

Use
of estimates

The
preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and
judgments that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the
date of our consolidated financial statements, and the reported amount of revenues and expenses during the reporting period.

Significant
estimates relied upon in preparing these consolidated financial statements include revenue recognition, accounts and notes receivable
reserves, expected future cash flows used to evaluate the recoverability of long-lived assets, estimated fair values of long-lived assets
used to record impairment charges related to investments, goodwill, amortization periods, accrued expenses, and recoverability of the
Company’s net deferred tax assets and any related valuation allowance.

Although
the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are
recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions
that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if past experience
or other assumptions do not turn out to be substantially accurate.

Recent
Accounting Standards

From
time to time, the FASB, or other standards-setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standard
Codifications (“ASCs”) are communicated through the issuance of an Accounting Standards Update (“ASU”). Unless
otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected
to have a material impact on our consolidated financial statements upon adoption.

Segment
Reporting: Improvements to Reportable Segment Disclosures - In November 2023, the FASB issued Accounting Standards Update ASU
2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment