Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 123

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 123
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 reduced to $0. No goodwill is reported in the Company’s condensed
consolidated balance sheets at December 31, 2024 and 2023.

Revenue
recognition

The
Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers,” and FASB ASC Topic
842, “Leases.” Revenue is recognized net of allowances for returns and any taxes collected from customers, which are
subsequently remitted to government authorities.

Our
discontinued operation worked with business park owners, governmental centers, and apartment complexes to reduce facilities-related costs.
Our discontinued operation performed monthly services pursuant to agreements with customers. Customer monthly service fees were based
on our discontinued operation’s assessment of the amount and frequency of monthly services requested by a customer. Our discontinued
operation also provided additional services, such as apartment cleanout services, large item removals, or similar services, on an as-needed
basis at an agreed-upon rate as requested by customers. All services of our discontinued operation were invoiced and recognized as revenue
in the month the agreed-on services were performed.

For
each finance lease, the Company recognized as a gain the amount equal to (i) the net investment in the finance lease less (ii) the net
book value of the equipment at the inception of the applicable lease. At lease inception, we capitalize the total minimum finance lease
payments receivable from the lessee, the estimated unguaranteed residual value of the equipment at lease termination, if any, and the
initial direct costs related to the lease, less unearned income. Unearned income is recognized as finance income over the term of the
lease using the effective interest rate method.

The
Company, through its subsidiaries, has been the lessor of manufacturing equipment subject to leases under master leasing agreements. The leases
contain an element of dealer profit and lessee bargain purchase options at prices substantially below the subject assets’ estimated
residual values at the exercise date for the options. Consequently, the Company classified the leases as sales-type leases (the “finance
leases”) for financial accounting purposes. For such finance leases, the Company reports the discounted present value of (i) future
minimum lease payments (including the bargain purchase option, if any) and (ii) any residual value not subject to a bargain purchase
option as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on
the interest rate inherent in the applicable lease over the term of