Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 246

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 246
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of future earnings and benefits that we expect to generate from their use. If our expectations of future results and cash flows are significantly
diminished, intangible assets and other long-lived assets may be impaired, and the resulting charge to operations may be material. When
we determine that the carrying value of intangibles or other long-lived assets may not be recoverable based upon the existence of one
or more indicators of impairment, we use the projected undiscounted cash flow method to determine whether an impairment exists and then
measure the impairment using discounted cash flows.

23

Goodwill

Goodwill
of $1,324,142 for our discontinued operation was derived from consolidating our discontinued operation effective January 1, 2014, and
$102,040 of goodwill was derived from our initial acquisition of a 50% interest in such discontinued operation. In accordance with ASC
350, “Intangibles-Goodwill and Other,” goodwill and other intangible assets with indefinite lives were no longer subject
to amortization but were tested for impairment annually or whenever events or changes in circumstances indicated that the asset might
be impaired.

The
Company reviews the goodwill allocated for possible impairment annually, and our policy is also to review goodwill whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. In the impairment test, the Company measured the recoverability
of goodwill by comparing a reporting unit’s carrying amount, including goodwill, to the estimated fair value of the reporting unit.
If the carrying amount of a reporting unit is in excess of its fair value, the Company would recognize an impairment charge equal to
the amount in excess. To estimate the fair value, management used valuation techniques, which included the discounted value of estimated
future cash flows. The evaluation of impairment requires the Company to make assumptions about future cash flows over the life of the
asset being evaluated. These assumptions required significant judgment and were subject to change as future events and circumstances
changed, as actual results may differ from assumed and estimated amounts.

Effective
October 4, 2023, the date of sale of our WCI interest, 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 in our consolidated financial statements.
As a result, goodwill in the aggregate amount of $1,426,