Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1442

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 1442
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 change in legal factors or business climate that could affect the value of an asset, or
an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. For
purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level
of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying
value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition
of the intangible asset (asset group), the Company will write the carrying value down to the fair value in the period identified.

Lessee
Leases

We
determine whether an arrangement is a lease at inception under ASC 842 “Leases.” This includes general descriptions
of leases and various details regarding terms and conditions, such as the basis that variable lease payments are determined. Lessee leases
are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria
is 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
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