Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 843

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 843
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2) – which
is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost); and the Income
approach (Level 3) – which uses valuation techniques to convert future amounts to a single present amount based on current market
expectations about the future amounts (including present value techniques, and option-pricing models). Net present value is an income
approach where a stream of expected cash flows is discounted at an appropriate market interest rate, to a single current value.

The
carrying amounts of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, customer deposits, and other
accrued liabilities approximate their fair value due to the short-term nature of these instruments.

The
fair value of available-for-sale investment securities is based on quoted market prices in active markets.

The
fair value of the investment in account receivable is based on the net present value of calculated interest and principal payments. The
carrying value approximates fair value as interest rates charged are comparable to market rates for similar investments.

The
fair value of notes receivable is based on the net present value of calculated interest and principal payments. The carrying value approximates
fair value as interest rates charged are comparable to market rates for similar notes.

The
fair value of long-term notes payable is based on the net present value of calculated interest and principal payments. The carrying value
of long-term debt approximates fair value due to the fact that the interest rate on the debt is based on market rates.

Note
3 – Discontinued operation

Acquisition

Waste
Consolidators, Inc. (“WCI”) was a legacy investment that originated when the Company purchased 50% of the outstanding shares
of WCI on October 1, 2003, in a stock for stock exchange that was originally valued at $1,000,000 and was later reduced to a cost basis
of $79,200 on October 28, 2007, pursuant to a purchase price related addendum between WCI and the Company. Effective January 1, 2014,
the Company purchased an additional 1% of the outstanding shares of WCI for $25,000, which resulted in the Company owning a 51% controlling
interest in WCI and an amendment to our change in valuation of WCI due to our controlling interest. As a result, WCI was included in
the consolidated financial statements since January 1, 2014, and the Company