Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 952

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 952
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1,194,611 

    Sale price of WCI 

    Payment at Closing 
     5,000,000 
  
    Promissory Note Receivable 
     1,000,000 
  
    Total WCI Sale Price 
    $6,000,000 

    Gain on sale of WCI 

    WCI sale price 
     6,000,000 
  
    Less WCI cost basis 
     (1,194,611)
  
    Total gain on sale of WCI 
    $4,805,389 

Effective
October 4, 2023, on the date of the sale of WCI, 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. As a result, goodwill in an aggregate
amount of $1,426,182 was reduced to $0.

Consolidation
and deconsolidation

Consolidation

As
a result of the acquisition of our 51% ownership interest in WCI on January 1, 2014, in accordance with ASC 810-10, “Consolidation
– Overall,” we included WCI in our consolidated financial statements and eliminated all significant intercompany balances
and transactions. Net income (loss) attributable to our 49% non-controlling interest in WCI was excluded from net income (loss) attributable
to Mentor Capital, Inc. in prior annual reports on Form 10-K for and between the years ended December 31, 2014 to December 31, 2022.

    F-17

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Deconsolidation

In
accordance with ASC Topic 810-10-40, “Consolidation — Overall – Derecognition - Deconsolidation of a Subsidiary
or Derecognition of a Group of Assets,” a parent company must deconsolidate a subsidiary as of the date the parent ceases to
have a controlling interest in that subsidiary and recognize a gain or loss in net income at that time. As a result, we deconsolidated
WCI from our consolidated financial statements on October