Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 580

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 580
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 the period. Diluted net income or loss per
share takes into consideration shares of Common Stock outstanding (computed under basic net income or loss per share) and potentially
dilutive securities that are not anti-dilutive.

There
were 4,250,000 potentially dilutive outstanding warrants as of December 31, 2024 and 2023 that on a treasury stock basis would have the
dilutive effect of 3,128,628 common shares and had the dilutive effect of 2,887,821 common shares as of December 31, 2024 and 2023, respectively.
Earnings for the twelve months ended December 31, 2024 were negative and the inclusion of the computational effect of the 3,128,628 common
share equivalents from the warrants would be anti-dilutive, so no dilution effect was included for the period ending December 31, 2024,
for the 4,250,000 potentially dilutive warrants then outstanding.

Assumed
conversion of Series Q Preferred Stock into Common Stock would be anti-dilutive as of December 31, 2024 and 2023 and is not included
in calculating the diluted weighted average number of shares outstanding.

Income
taxes

The
Company accounts for income taxes in accordance with accounting guidance now codified as FASB ASC 740, “Income Taxes,”
which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement
carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected
to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation
allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized.

The
Company applies the provisions of ASC 740, “Accounting for Uncertainty in Income Taxes.” The ASC prescribes a recognition
threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be
taken in a tax return. The ASC provides guidance on de-recognition, classification, interest, and penalties, accounting in interim periods,
disclosure, and transition. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies).
The first step evaluates the tax position for recognition by determining if the weight of available evidence indicates it is more likely
than not that we will sustain