Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1112

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1112
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 “Financial Instruments - Overall:
Recognition and Measurement of Financial Assets and Financial Liabilities,” the Company elected to report changes in the fair
value of equity investment in realized investment gains (losses), net and to report changes in the fair value of equity investments as
unrealized investment gains (losses) net.

Long
term investments

The
Company’s investments in entities where it is a minority owner and does not have the ability to exercise significant influence
are recorded at fair value if readily determinable. If the fair market value is not readily determinable, the investment is recorded
under the cost method. Under this method, the Company’s share of the earnings or losses of such investee company is not included
in the Company’s financial statements. The Company reviews the carrying value of its long-term investments for impairment each
reporting period.

Investments
in debt securities

At
December 31, 2024 and December 31, 2023, the Company held no investments in debt securities. The Company’s former investment in
debt securities consisted of two convertible notes receivable from NeuCourt, Inc. On July 15, 2022, all principal and accrued interest
on the notes were converted into a Simple Agreement for Future Equity (“SAFE”). At December 31, 2024 and 2023, the SAFE Purchase
Amount was $93,756. See Note 7.

Investment
in account receivable, net of discount

The
Company’s investments in accounts receivable is stated at face value, net of unamortized purchase discount. The discount is amortized
to interest income over the term of the exchange agreement. In the fourth quarter of 2020, we were notified that due to the effect of
COVID-19 on the estimated receivable, we may not receive the 2020 installment payment or the full 2021 installment payment. Due to a
reduction in expected collections, the collectability of our investment in account receivable was impaired by $116,430 on February 15,
2022 and the terms of the investment were modified, resulting in an additional loss of $41,930.

On
January 10, 2023, the Company received the 2023 annual installment payment of $117,000. Three additional $117,000 annual installment
payments were due in early 2024, 2025, and 2026. The 2024 annual installment payment has not been received. At June 11,