Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 23

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 23
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 the date of the sale of WCI, the Company met the criteria outlined in ASC Topic 205-20 “Discontinued
Operations,” for our $1,426,182
goodwill to be reduced to $0
and the results of operations and assets and liabilities for our facilities operations segment were excluded from our continuing
operations and presented as a discontinued operation in our consolidated financial statements. As a result, goodwill in an aggregate
amount of $1,426,182
was reduced to $0
at December 31, 2023.

Deconsolidation

In
accordance with ASC Topic 810-10-40, “Consolidation — Overall – Derecognition - Deconsolidation of a Subsidiary
or Derecognition of a Group of Assets,” a parent company must deconsolidate a subsidiary as of the date the parent ceases to
have a controlling interest in that subsidiary and recognize a gain or loss in net income at that time. As a result, we deconsolidated
WCI from our consolidated financial statements on October 4, 2023 and recognized a gain on the disposal of discontinued operations totaling
$4,805,389. The $4,805,389 gain on disposal of discontinued operation represented the amount of our purchase price allocation at 51%
WCI assets and liabilities, net investment in 51% of WCI earnings, and net investment in WCI distributions offset by the sale price as
of the disposal date of October 4, 2023. We have eliminated WCI from our consolidated financials on October 4, 2023. Accordingly, WCI
was excluded from the Company’s continuing operations on December 31, 2023, and prior periods of comparison and WCI’s financial
results were presented as a discontinued operation in the Company’s consolidated financial statements at such time. See Note 3
in the Company’s Annual Report for the year ended December 31, 2023 on Form 10-K as filed with the Securities and Exchange Commission
on April 1, 2024 for further discussion regarding the Company’s former interest in WCI.

    -18-

Note
4 – Investment in account receivable

On
April 10, 2015, the Company entered into an exchange agreement whereby the Company received an investment in an account receivable with
annual installment payments of $117,000 for 11 years through 2026, totaling $1,287,000