Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 13

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 13
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, respectively.

Discontinued
operation

On
October 4, 2023, the Company’s facilities operations segment was sold for $6,000,000. Following the sale, the Company received
no new income from the discontinued operation, and it had no further involvement or continuing influence over its operations. As a result,
our facilities operations segment was deconsolidated on the date of the sale, and our former facilities operations segment is reported
as a discontinued operation. See Note 3.

    -12-

Use
of estimates

The
preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions,
and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the
date of our consolidated financial statements, and the reported amount of revenues and expenses during the reporting period.

Significant
estimates relied upon in preparing these consolidated financial statements include revenue recognition, accounts and notes receivable
reserves, expected future cash flows used to evaluate the recoverability of long-lived assets, estimated fair values of long-lived assets
used to record impairment charges related to investments, goodwill, intangible assets, amortization periods, accrued expenses, and recoverability
of the Company’s net deferred tax assets and any related valuation allowance.

Although
the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are
recorded in the period in which they become known. Acquisitions and divestitures are not announced until certain. The Company bases its
estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results
may differ from management’s estimates if past experience or other assumptions do not turn out to lead to substantially accurate
predictions.

Recent
Accounting Standards

From
time to time, the Financial Standards Accounting Board (“FASB”) or other standards-setting bodies issue new accounting pronouncements.
Updates to the FASB Accounting Standard Codifications (“ASCs”) are communicated through the issuance of an Accounting Standards
Update (“ASU”). Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to
be adopted in the future, is not expected to have a material impact on our consolidated financial statements upon adoption.

Segment
Reporting: Improvements to Reportable Segment Disclosures - In November 2023, the FASB issued Accounting Standards Update ASU
2023-07, “Segment Reporting (Topic 280): Improvements to