Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 11

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 11
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 were modified, resulting in an additional loss of $41,930
and at June 11, 2024 the receivable was fully impaired due to a history of uncertain payments. The Company’s recognition of an
impairment loss due to the uncertainty of collection does not diminish its contractual rights to collect the full amounts due
pursuant to the contract. The Company intends to continue to vigorously pursue the payment of the amounts owed by available legal
means. See Note 4.

The risk of inflation, interest rate increases, tax
increases, recession, high energy prices, and supply-demand imbalances are expected to continue in 2025.

We anticipate that current cash and associated resources
without new inflows would be sufficient for us to execute our business plan for four years after the date these financial statements are
issued. The ultimate impact of the war in Ukraine, the  war in the Middle East, the post-election change in the U.S. federal government’s
administration, potential cyber-attacks, inflation, interest rate fluctuations, tax increases, tariff increases and a potential recession
on our business, results of operations, cybersecurity, financial condition, and cash flows are dependent on future developments, which
are uncertain and cannot be predicted at this time.

Segment reporting

Continuing operations

The Company has determined that there are currently
two reportable segments: 1) the historic residual operations segment and 2) the Company’s energy segment.

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.

    -11-

Note 2 - Summary of significant
accounting policies (continued)

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