Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 13

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 13
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“Income Statement: Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)” which adds
ASC 220-40 to expand disclosure requirements related to entity expenses. Upon adoption, entities will be required to disclose a disaggregation
of certain expense categories included within the expense captions on the face of the income statement within the notes to the financial
statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning
after December 15, 2027. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s
consolidated financial statements.

There were no accounting pronouncements issued during
the three months ended March 31, 2025 that are expected to have a material impact on the Company’s condensed consolidated financial
statements.

Concentrations of cash

The Company maintains its cash and cash equivalents
in money market and bank deposit accounts, which at times may exceed federally insured Federal Deposit Insurance Corporation limits. The
Company has not experienced any losses in such accounts, nor does the Company believe it is exposed to any significant credit risk on
cash and cash equivalents. The Company will continue to monitor its accounts and the banking sector for potential financial institution
risk.

    -12-

Note 2 - Summary of significant
accounting policies (continued)

Cash and cash equivalents

The Company considers all short-term debt securities
purchased with a maturity of three months or less to be cash equivalents. The Company had no short-term debt securities as of March 31,
2025 and December 31, 2024.

Accounts receivable

Accounts receivable consist of trade accounts arising
in the normal course of business and are classified as current assets and carried at original invoice amounts less an estimate for doubtful
receivables based on historical losses as a percent of revenue in conjunction with a review of outstanding balances on a quarterly basis.
The estimate of allowance for doubtful accounts is based on the Company’s bad debt experience, market conditions, and aging of accounts
receivable, among other factors. If the financial condition of the Company’s customers deteriorates, resulting in the customer’s
inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts will be required. At March
31, 2025 and December 31, 2024, the Company had no allowance for doubtful normal course receivables.

Investments