Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 242

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 242
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ivables based on historical losses as a percent of revenue in conjunction with a review
of outstanding balances on a quarterly basis. The estimate of allowance for doubtful accounts is based on the Company’s bad debt
experience, market conditions, and aging of accounts receivable, among other factors. If the financial condition of the Company’s
customers deteriorates, resulting in the customer’s inability to pay the Company’s receivables as they come due, additional
allowances for doubtful accounts will be required. At December 31, 2024 and 2023, the Company had $0 allowance for doubtful receivables.

21

Investments
in securities at fair value

Investment
in securities consists of debt and equity securities reported at fair value. Under ASU 2016-01, “Financial Instruments - Overall:
Recognition and Measurement of Financial Assets and Financial Liabilities,” the Company elected to report changes in the fair
value of equity investment in realized investment gains (losses), net.

Note
receivable

The
Company had a one-year subordinated note receivable from Ally Waste Services, LLC that was recorded at the principal face amount of $1,000,000
plus accrued interest of $15,000 at December 31, 2023. The note matured on October 4, 2024, and bore interest at 6% per annum from October
4, 2023, to October 4, 2024, at which time the note was due and payable to Mentor. 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.

Long
term investments

The
Company’s investments in entities where it is a minority owner and does not have the ability to exercise significant influence
are recorded at fair value if readily determinable. If the fair market value is not readily determinable, the investment is recorded
under the cost method. Under this method, the Company’s share of the earnings or losses of such investee company is not included
in the Company’s financial statements. The Company reviews the carrying value of its long-term investments for impairment each
reporting period.

Finance
leases receivable

The
Company, through its subsidiaries, is the lessor of manufacturing equipment subject to leases under master leasing agreements. The leases
contain an element of dealer profit, and lessee bargain purchase options at prices substantially below the subject assets’ estimated
residual values