Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 470

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 470
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, large item removals, or similar services, on an as-needed
basis at an agreed-upon rate as requested by customers. All services of our discontinued operation were invoiced and recognized as revenue
in the month the agreed-on services were performed.

For
each finance lease, the Company recognized as a gain the amount equal to (i) the net investment in the finance lease less (ii) the net
book value of the equipment at the inception of the applicable lease. At lease inception, we capitalize the total minimum finance lease
payments receivable from the lessee, the estimated unguaranteed residual value of the equipment at lease termination, if any, and the
initial direct costs related to the lease, less unearned income. Unearned income is recognized as finance income over the term of the
lease using the effective interest rate method.

The
Company, through its subsidiaries, has been the lessor of manufacturing equipment subject to leases under master leasing agreements. The leases
contain an element of dealer profit and lessee bargain purchase options at prices substantially below the subject assets’ estimated
residual values at the exercise date for the options. Consequently, the Company classified the leases as sales-type leases (the “finance
leases”) for financial accounting purposes. For such finance leases, the Company reports the discounted present value of (i) future
minimum lease payments (including the bargain purchase option, if any) and (ii) any residual value not subject to a bargain purchase
option as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on
the interest rate inherent in the applicable lease over the term of the lease. For each finance lease, the Company recognized revenue
in an amount equal to the net investment in the lease and cost of sales equal to the net book value of the equipment at the inception
of the applicable lease.

24

Basic
and diluted income (loss) per common share

We
compute net income or loss per share in accordance with ASC 260, “Earnings Per Share.” Under the provisions of ASC
260, basic net income or loss per share includes no dilution and is computed by dividing the net income or loss available to common stockholders
for the period by the weighted average number of shares of Common Stock outstanding during the period. Diluted net income or loss per
share takes into consideration shares of Common Stock outstanding (computed under basic net income or loss per share) and potentially
dilutive securities that are