Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 20

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 20
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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.
As a result, goodwill in an aggregate amount of $1,426,182 was reduced to $0. No goodwill was reported in the Company’s condensed
consolidated balance sheets at September 30, 2025 and December 31, 2024. See Note 3.

Revenue
recognition

The
Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers,” and FASB ASC Topic
842, “Leases.” Revenue for our former discontinued operation was recognized net of allowances for returns and any
taxes collected from customers, which are subsequently remitted to government authorities.

The
discontinued operation that we sold on October 4, 2023, worked with business park owners, governmental centers, and apartment complexes
to reduce facilities-related costs. Our discontinued operation performed monthly services pursuant to agreements with customers. Customer
monthly service fees were based on our discontinued operation’s assessment of the amount and frequency of monthly services requested
by a customer. Our discontinued operation may have also provided additional services, such as apartment cleanout services, large item
removals, or similar services, on an as-needed basis at an agreed-upon rate as requested by customers. All services were invoiced and
recognized as revenue in the month the agreed-on services were performed.

    -16-

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 subsidiary Mentor Partner I, LLC, was the lessor of manufacturing equipment subject to leases under master leasing
agreements. The leases contained an