Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1245

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 1245
---

    Federal (1)
     -  
     - 
  
    State (1)
     -  
     5,783 
  
    Tax provision plus discontinued operations (1)
     15,329  
     13,943 

    Deferred tax asset: 

    Federal 
     98,300  
     (273,400)
  
    State 
     (156,600) 
     1,100 
  
    Change in valuation 
     58,300 
     (272,300)
  
    Total provision (benefit) 
    $15,329  
    $13,943 

    (1)
    We
    sold our entire ownership interest in WCI on October 4, 2023 and as a result WCI is excluded from our continuing operations and presented
    as discontinued operations. See Note 3.

The
Company has net deferred tax assets resulting from a timing difference in recognition of depreciation and reserves for uncollectible
accounts receivable and from net operating loss carryforwards.

    F-40

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

At
December 31, 2024, the Company had approximately $6,500,000 of federal net operating loss carryforwards, of which approximately $3,700,000
can be carried forward indefinitely, and the remaining $2,800,000 will begin to expire in 2034 and be fully expired by the year 2037.
The Company has a California net operating loss carryforward of approximately $7,100,000 that begins expiring in 2025. Mentor relocated
to Texas in September 2020, and the Company’s ability to utilize the California net operating loss carryforwards is dependent on
the future generation of California taxable income.

The
income tax provision (benefit) differs from the amount computed by applying the U.S. federal statutory corporate income tax rate of 21%
in 2024 and 2023, respectively, to net income (loss) before income taxes for the years ended December 31, 2024 and 2023 as a result of
the following:

 Schedule of income tax rate reconciliation

    2024  
    2023 
  
    Net income (loss) before income tax - continuing operations 
    $(824,176) 
    $3