Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 19

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 19
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 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.

    -16-

Goodwill

On
October 4, 2023, the Company sold the entirety of its interest in Waste Consolidators, Inc. (“WCI”) for $6,000,000
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. The sale price exceeded the prior combined carrying value plus goodwill of WCI, with proceeds initially
recorded as $5,000,000
cash and a $1,000,000
one-year note receivable. Following the sale, the Company received no new income from WCI and had no further involvement or
continuing influence over its operations. Prior to the sale, goodwill of $1,324,142
was derived from consolidating WCI effective January 1, 2014, and $102,040
of goodwill was derived from the 2003 acquisition of a 50%
interest in WCI. In accordance with ASC 350, “Intangibles-Goodwill and Other,” goodwill and other intangible
assets with indefinite lives were no longer subject to amortization but were tested for impairment annually or whenever events or
changes in circumstances indicate that the asset might be impaired prior to the sale. Effective October 4, 2023, on the date of the
sale of our WCI shares, we 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. No
goodwill was reported in the Company’s condensed consolidated balance sheets at June 30, 2025 and December 31, 202