Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1589

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 13
Chunk 1589
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 basis had the dilutive effect of 2,887,821 common shares.

Conversion
of Series Q Preferred Stock into Common Stock would be anti-dilutive as of December 31, 2024 and 2023 and is not included in calculating
the diluted weighted average number of shares outstanding.

Income
taxes

The
Company accounts for income taxes in accordance with accounting guidance now codified as FASB ASC 740, “Income Taxes,”
which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement
carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected
to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation
allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized.

The
Company applies the provisions of ASC Subtopic 740-10, “Accounting for Uncertainty in Income Taxes.” The ASC prescribes
a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest, and penalties, accounting
in interim periods, disclosure, and transition. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions
(tax contingencies). The first step evaluates the tax position for recognition by determining if the weight of available evidence indicates
it is more likely than not that we will sustain the position on audit, including 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