Company: MNTR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021833
Chunk: 23

Company: Mentor Capital, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 23
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000,000 by entering into a Stock Purchase Agreement whereby the shareholders
of WCI sold all of the outstanding shares of stock to Ally Waste Services, LLC.

In
connection with the sale, the Company received net, after WCI debt payoff, $5,000,000
in cash on October 4, 2023 and a one-year unsecured, subordinated, promissory note in the initial principal face amount of $1,000,000.
The $1,000,000
initial principal face amount of the note plus accrued interest of $60,000
was paid by Ally on October 4, 2024.

At
December 31, 2023 we recognized a $4,805,389 gain on our sale of WCI.

Goodwill

Effective
October 4, 2023, on 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 as of October 4, 2023. Accordingly,
WCI was excluded from the Company