Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 1028

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 1028
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 is included in operations. The Company continually monitors events and changes in circumstances that
could indicate that the carrying balances of its property and equipment may not be recoverable in accordance with the provisions of ASC
360, “Property, Plant, and Equipment.” When such events or changes in circumstances are present, the Company assesses
the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted
expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes
an impairment loss based on the excess of the carrying amount over the fair value of the assets. See Note 6.

The
Company reviews intangible assets subject to amortization quarterly to determine if any adverse conditions exist or if a change in circumstances
has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include,
but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, or
an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. For
purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level
of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying
value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition
of the intangible asset (asset group), the Company will write the carrying value down to the fair value in the period identified.

Lessee
Leases

We
determine whether an arrangement is a lease at inception under ASC 842 “Leases.” This includes general descriptions
of leases and various details regarding terms and conditions, such as the basis that variable lease payments are determined. Lessee leases
are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria
is met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that
is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value
of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease
if