Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1284

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9B
Chunk 1284
---
 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 influence over its operations. Prior to the sale, goodwill of $1,324,142
was derived from consolidating WCI effective January 1, 2014, and $102,040
of goodwill was derived from the 2003 acquisition of a 50%
interest in WCI. In accordance with ASC 350, “Intangibles-Goodwill and Other,” goodwill and other intangible
assets with indefinite lives were no longer subject to amortization but were tested for impairment annually or whenever events or
changes in circumstances indicate that the asset might be impaired prior to the sale. Effective October 4, 2023, on the date of the
sale of our WCI shares, we met the criteria outlined in ASC Topic 205-20 “Discontinued Operations,” for our
$1,426,182
goodwill to be reduced to $0
and the results of operations and assets and liabilities for our facilities operations segment were excluded from our continuing
operations and presented as a discontinued operation in our consolidated financial statements.