Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1029

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 1029
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 it does not meet any one of these criteria.

Our
discontinued operation’s operating leases were comprised of office space leases and office equipment. Fleet vehicle leases entered
into prior to January 1, 2019, were classified as operating leases based on an expected lease term of 4 years. Fleet vehicle leases entered
into beginning January 1, 2019, for which the lease was expected to be extended to 5 years, were classified as finance leases. Our discontinued
operation’s leases had remaining lease terms of 1 month to 48 months. Our discontinued operation’s fleet finance leases contained
a residual value guarantee. As most of our discontinued operation’s leases did not provide an implicit rate, we used our incremental
borrowing rate based on the information available at the commencement date to determine 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 our discontinued operation customers and in operating expenses for costs associated with all
other operating leases. Finance lease assets were amortized within the cost of goods sold for vehicles used in direct servicing of our
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 was 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).

    F-12

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Goodwill

On
October 4, 2023, the Company sold the entirety of its interest in Waste Consolidators, Inc. (“WCI”) for $6,000,000 by
entering into a Stock Purchase Agreement whereby the shareholders of WCI sold all of the outstanding shares of stock to Ally Waste
Services, LLC. The sale price exceeded the prior combined carrying value and goodwill of WCI, with proceeds initially recorded as $5,000,000
cash and a $1,000,000
one-year note receivable. Following the sale, the Company received no new income from WCI and had no further involvement or
continuing