Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 362

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 362
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 resolution of related appeals or litigation processes. The second step
measures the tax benefit as the largest amount of more than 50% likely of being realized upon ultimate settlement. The Company did not
identify any material uncertain tax positions on returns that have been filed or that will be filed. The Company did not recognize any
interest or penalties for unrecognized tax provisions during the years ended December 31, 2024 and 2023, nor were any interest or penalties
accrued as of December 31, 2024 and 2023. To the extent the Company may accrue interest and penalties, it elects to recognize accrued
interest and penalties related to unrecognized tax provisions as a component of income tax expense.

Fair
value measurements

The
Company adopted ASC 820, “Fair Value Measurement,” which defines fair value as the exchange price that would be received
to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. The valuation techniques maximize the use of observable
inputs and minimize the use of unobservable inputs.

The
Fair Value Measurements and Disclosure Topic establishes a fair value hierarchy, which prioritizes the valuation inputs into three
broad levels. These three general valuation techniques that may be used to measure fair value are as follows: Market approach (Level
1) – which uses prices and other relevant information generated by market transactions involving identical or comparable
assets or liabilities. Prices may be indicated by pricing guides, sale transactions, market trades, or other sources. Cost approach
(Level 2) – which is based on the amount that currently would be required to replace the service capacity of an asset
(replacement cost); and the Income approach (Level 3) – which uses valuation techniques to convert future amounts to a single
present amount based on current market expectations about the future amounts (including present value techniques, and option-pricing
models). Net present value is an income approach where a stream of expected cash flows is discounted to a single current value at an
appropriate market interest rate.

25

The
carrying amounts of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, customer deposits, and other
accrued liabilities approximate their fair value due to the short-term nature of these instruments.

The
fair value of available-for-sale investment securities is based on quoted market prices in active markets.

The
fair value of the investment in account rece