Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1451

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 1451
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 our 49% non-controlling interest in WCI was excluded from net income (loss) attributable
to Mentor Capital, Inc. in prior annual reports on Form 10-K for and between the years ended December 31, 2014 to December 31, 2022.

    F-17

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 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 eliminated WCI from our consolidated financials on October 4, 2023. Accordingly, WCI was
excluded from the Company’s continuing operations in the Company’s Annual Report for the period ended December 31, 2023 on
Form 10-K as filed with the Securities and Exchange Commission on April 1, 2024 and the prior period of comparison, and WCI’s financial
results are presented as a discontinued operation in the Company’s consolidated financial statements.

Discontinued
operation financial statement presentation and disclosures

Financial
statement presentation

Due
to the sale of our entire ownership interest in WCI on October 4, 2023, our facilities operation segment was eliminated. Following our
sale of WCI, the Company received no new income from WCI and had no further involvement or continuing influence over its operations.
Consequently, we determined that the results from operations and assets and liabilities associated with our facilities operation segment
were to be excluded from our continuing operations and we presented WCI as a discontinued operation in our December 31,