Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 22

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 22
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 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.

    -17-

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 in exchange for 757,059 shares of Mentor Common Stock obtained through the exercise of 757,059 Series
D warrants at $1.60 per share plus a $0.10 per warrant redemption price.

The Company valued the transaction based on the market
value of Company common shares exchanged in the transaction, resulting in a 17.87%