Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1448

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 1448
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Consolidators, Inc. (“WCI”) was a legacy investment that originated when the Company purchased 50% of the outstanding shares
of WCI on October 1, 2003, in a stock for stock exchange that was originally valued at $1,000,000 and was later reduced to a cost basis
of $79,200 on October 28, 2007, pursuant to a purchase price related addendum between WCI and the Company. Effective January 1, 2014,
the Company purchased an additional 1% of the outstanding shares of WCI for $25,000, which resulted in the Company owning a 51% controlling
interest in WCI and an amendment to our change in valuation of WCI due to our controlling interest. As a result, WCI was included in
the consolidated financial statements since January 1, 2014, and the Company recognized a fair value of $1,250,000 of non-cash gain on
the adjustment to the fair value of the investment in WCI. This resulted in a total of $1,275,000 investment in WCI in its audited financials
for the year ended December 31, 2014. Additionally, the Company recognized a ($47,216) effect of consolidating our interest in WCI that
was previously accounted for at cost prior to December 31, 2014.

    F-15

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Prior
to acquiring a controlling interest in WCI on January 1, 2014, Mentor accounted for the investment in WCI using the equity method based
on the ownership interest and the Company’s limited ability to exercise significant influence from December 31, 2003 to December
31, 2013. Accordingly, the investment was initially recorded at cost with adjustments to the carrying amount of the investment to recognize
our share of the earnings or losses of the investee each reporting period.

In
accordance with ASC 810-10, “Consolidation – Overall,” Mentor remeasured its previously held equity interest
in WCI at the acquisition-date fair value, which was reported at December 31, 2014 as follows:

 Schedule of equity interest at the acquisition date fair value

    Cash to acquire an additional 1% equity interest in WCI 
    $25,000 
  
    Fair