Annual report [Section 13 and 15(d), not S-K Item 405]

Discontinued operation (Tables)

Discontinued operation (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of property, plant and equipment

Property and equipment are comprised of the following at December 31, 2024 and 2023:

	2024			2023
Computers	$	33,626		$	33,626
Furniture and fixtures		14,613			14,613
Machinery and vehicles		-			-
Gross Property and equipment		48,239			48,239
Accumulated depreciation and amortization		(47,721	)		(46,648	)

Net Property and equipment	$	518		$	1,591

Discontinued Operations [Member]

Schedule of equity interest at the acquisition date fair value


Cash to acquire an additional 1% equity interest in WCI	$	25,000
Fair value of 50% interest (1)		1,250,000
Investment under the equity method		-
Total purchase price to be allocated	$	1,275,000

(1)	The estimated fair value of Mentor’s previously held equity interest in WCI was valued at 1.25 times WCI’s projected 2014 revenue.

Schedule of purchase price allocation

Purchase price allocation at 51% of WCI assets and liabilities:

Schedule of purchase price allocation


WCI assets and liabilities:
Current assets	$	327,238
Property and equipment		51,239
Other assets		816,952
Current liabilities		(112,810	)
Long-term debt		(1,178,977	)
Net deficit		(96,358	)
Mentor equity rate		51	%
Mentor portion of liabilities in excess of assets		(49,143	)
Goodwill		1,324,143
Net assets acquired	$	1,275,000

Schedule of gain on sale of WCI

Cost basis of WCI
Purchase price allocation at 51% WCI assets and liabilities		1,275,000
Net investment in 51% earnings		326,735
Net investment in distributions		(407,124	)
Total WCI Cost Basis	$	1,194,611

Sale price of WCI
Payment at Closing		5,000,000
Promissory Note Receivable		1,000,000
Total WCI Sale Price	$	6,000,000

Gain on sale of WCI
WCI sale price		6,000,000
Less WCI cost basis		(1,194,611	)
Total gain on sale of WCI	$	4,805,389

Schedule of balance sheet

The following is a summary of the assets and liabilities of our discontinued operation that were sold effective October 4, 2023:

Schedule of balance sheet

	October 4, 2023⁽¹⁾
ASSETS
Current assets:
Cash and cash equivalents	$	369,387
Accounts receivable		786,616
Other current assets		19,027
Total current assets sold - discontinued operation		1,169,030
Property and equipment		179,673
Goodwill⁽²⁾		102,040
Prepaid Admin Fee – Mentor		-
Security deposit		22,477
Right of use asset		1,884,632
Total noncurrent assets sold - discontinued operation		2,188,822
Total assets	$	3,357,852
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts -payable trade	$	38,530
Finance lease liability - current		419,073
Accrued expenses		597,217
Total current liabilities sold - discontinued operation		1,054,820
EIDL loan payable		51,796
Note payable - Mentor		-
Long term debt		-
Finance lease liability – long-term		1,069,810
Operating lease liability - long-term		256,071
Total noncurrent liabilities sold - discontinued operation		1,377,677
Total liabilities		2,432,497
Total net assets of discontinued operation	$	925,355

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

(2)	Effective upon the date of sale, October 4, 2023, we deconsolidated our discontinued operation and goodwill of $102,040 previously reported on our consolidated financials.

Schedule of disposal groups, including discontinued operations

The following is a reconciliation of the major classes of financial statement line items constituting net income (loss) from discontinued operations before tax from WCI, our discontinued operation, that is disclosed in the notes to the financial statements and presented in the consolidated statements of net (loss) income for fiscal year December 31, 2023, following our October 4, 2023 sale of WCI:

	December 31, 2023
Revenue	$	-
Cost of sales		-
Gross profit		-

Selling, general and administrative expenses		1,775,210

Operating income (loss)		(1,775,210	)

Total other income and (expense)⁽¹⁾		4,863,129

Income (loss) before provision for income taxes	$	3,087,919
Provision for income taxes		(8,160	)
Net income (loss) from continued operations		3,079,759

Net income (loss) from discontinued operations		77,899
Net income (loss)		3,157,658

Gain (loss) attributable to non-controlling interest		-
Net income (loss) attributable to Mentor		3,157,658

(1)	During fiscal year 2023, we recognized a $4,805,389 gain on the sale of our discontinued operations.

Schedule of lease liability maturities for operating and finance leases

Maturity of lease liabilities October 4, 2023⁽¹⁾	Finance leases			Operating leases
2024		419,073			67,804
2025		424,735			74,860
2026		388,723			82,475
2027		251,571			90,670
2028		4,781			8,066
Total		1,488,883			323,875

Less: Present value discount		(419,073	)		(67,804	)
Total lease liabilities	$	1,069,810		$	256,071

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of other receivable

Other receivable consisted of the following:

Schedule of other receivable

	October 4, 2023
Accrued sales tax receivable from customers*		20,374

Total other receivable	$	20,374

At December 31, 2022, our discontinued operation’s estimated accrued sales tax receivable was $237,243 out of the remaining $285,128 that our discontinued operation was entitled to collect at year-end. As of September 30, 2023, our discontinued operation received $206,671 from its customers, and estimated that an additional $20,374 in accrued sales tax would be received from its clients. Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of property, plant and equipment

Property and equipment for our discontinued operation were comprised of the following:

	October 4, 2023 ⁽¹⁾
Computers	$	-
Furniture and fixtures		12,761
Machinery and vehicles		380,077
Gross Property and equipment		392,838
Accumulated depreciation and amortization		(213,165	)

Net Property and equipment	$	179,673

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of lease costs recognized in consolidated statements of operations

Our discontinued operation’s lease costs were as follows:

	October 4, 2023 ⁽¹⁾
Operating lease cost included in cost of goods	$	-
Operating lease cost included in operating costs		60,256
Total operating lease cost ⁽¹⁾		60,256
Finance lease cost, included in cost of goods:
Amortization of lease assets		269,470
Interest on lease liabilities		56,450
Total finance lease cost		325,920
Short-term lease cost		-
Total lease cost	$	386,176

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of lease amounts of discontinued operations

Lease amounts of our discontinued operations were as follows:

	October 4, 2023 ⁽¹⁾
Weighted-average remaining lease term – operating leases		4.01 years
Weighted-average remaining lease term – finance leases		3.49 years
Weighted-average discount rate – operating leases		6.0	%
Weighted-average discount rate – finance leases		7.5	%

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of finance lease liabilities

Finance lease liabilities were as follows:

Schedule of finance lease liabilities

	October 4, 2023 ⁽¹⁾
Gross finance lease liabilities	$	1,696,301
Less: imputed interest		(207,418	)
Present value of finance lease liabilities		1,488,883
Less: current portion		(419,073	)
Long-term finance lease liabilities	$	1,069,810

(1)

Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of operating lease liabilities

Operating lease liabilities were as follows:

Schedule of operating lease liabilities

	October 4, 2023 ⁽¹⁾
Gross operating lease liabilities	$	366,918
Less: imputed interest		(43,043	)
Present value of operating lease liabilities		323,875
Less: current portion		(67,804	)
Long-term operating lease liabilities	$	256,071

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of lease maturities

Maturity of lease liabilities

Schedule of lease maturities

12 months ending October 4, 2023 ⁽¹⁾	Finance leases			Operating leases
2024	$	419,073		$	67,804
2025		424,735			74,860
2026		388,723			82,475
2027		251,571			90,670
2028		4,781			8,066
Total		1,488,883			323,875
Less: Current maturities		(419,073	)		(67,804	)
Long-term liability	$	1,069,810		$	256,071

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.

Schedule of segment information

Following is our discontinued operations segment information before income taxes as of October 4, 2023:

Schedule of segment information

		Discontinued Operation
October 4, 2023 ⁽¹⁾
Net sales	$	6,432,907
Operating income (loss)		178,854
Interest income		1
Interest expense		62,770
Interest and dividend income
Property additions		83,062
Fixed asset depreciation and amortization		49,260
Total Assets		3,357,852

Schedule of reconciliation of revenue from segments to consolidated

	October 4, 2023 ⁽¹⁾
Operating income (loss)	$	178,854

Gain (loss) on investments
Interest and dividend income
Interest income		1
Interest expense		(62,770	)
Gain (loss) on equipment disposals		-
Other income		20,060
Income before income taxes	$	136,145

(1)	Effective on the date of sale, October 4, 2023, we reported our discontinued operations financials as of September 30, 2023.