Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 944

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 944
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 leases
are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria
is met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that
is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value
of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease
if it does not meet any one of these criteria.

Our
discontinued operation’s operating leases were comprised of office space leases and office equipment. Fleet vehicle leases entered
into prior to January 1, 2019, were classified as operating leases based on an expected lease term of 4 years. Fleet vehicle leases entered
into beginning January 1, 2019, for which the lease was expected to be extended to 5 years, were classified as finance leases. Our discontinued
operation’s leases had remaining lease terms of 1 month to 48 months. Our discontinued operation’s fleet finance leases contained
a residual value guarantee. As most of our discontinued operation’s leases did not provide an implicit rate, we used our incremental
borrowing rate based on the information available at the commencement date to determine the present value of lease payments.

Costs
associated with operating lease assets were recognized on a straight-line basis over the term of the lease, within cost of goods sold
for vehicles used in direct servicing of our discontinued operation customers and in operating expenses for costs associated with all
other operating leases. Finance lease assets were amortized within the cost of goods sold for vehicles used in direct servicing of our
discontinued operation customers and within operating expenses for all other finance lease assets on a straight-line basis over the shorter
of the estimated useful lives of the assets or the lease term. The interest component of a finance lease was included in interest expense
and recognized using the effective interest method over the lease term. Our discontinued operation had agreements that contained both
lease and non-lease components. For vehicle fleet operating leases, we accounted for lease components together with non-lease components
(e.g., maintenance fees).

    F-12

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Goodwill

On
October 4, 2023, the Company sold the entirety of its interest in Waste