| Revision of previously issued financial statements (unaudited) |
Note
20 – Revision of previously issued financial statements (unaudited)
During
the preparation of the Company’s consolidated financial statements for the year ended December 31, 2025, management identified
an error related to the valuation method used for its investment position in gold that affected certain previously issued interim unaudited
financial statements included in the Company’s quarterly reports on Form 10-Q for the periods ended March 31, 2025, June 30, 2025
and September 30, 2025. The error did not affect any previously issued audited annual financial statements because the Company did not
hold an investment position in gold prior to March 17, 2025.
The
Company evaluated the materiality of the error in accordance with the guidance in ASC 250, “Accounting Changes and Error Corrections,”
and Staff Accounting Bulletin No. 99, “Materiality,” and concluded that the impacts were not material, individually or in the aggregate, to our previously issued Consolidated Financial
Statements for any of the prior quarters in which they occurred for the periods ended for the periods ended March 31, 2025, June 30, 2025
and September 30, 2025, but that correcting the error in the current period would be material to our results of operations for fiscal
year 2025 if it was not corrected. Accordingly, the Company has corrected the error by revising the prior period financial information.
The
correction of this error had no impact on previously reported audited annual results, and therefore, the Company did not amend its previously
filed audited annual reports on Form 10-K. The impact of the revision on the following unaudited interim periods is summarized below.
Mentor
Capital, Inc.
Notes
to Consolidated Financial Statements
December
31, 2025 and 2024
Impact
of revision on previously reported unaudited interim periods:
Schedule
of Revision on Previously Reported
| |
|
As
Previously Reported |
|
|
Adjustment(1) |
|
|
As
Restated |
|
| Balance Sheet Impact - March
31, 2025 |
|
|
|
|
|
|
|
|
|
| Investment
position in gold |
|
|
302,371 |
|
|
|
(7,043 |
) |
|
|
295,328 |
|
| Total
current assets |
|
|
1,780,250 |
|
|
|
(7,043 |
) |
|
|
1,773,207 |
|
| Total
assets |
|
|
3,254,505 |
|
|
|
(7,043 |
) |
|
|
3,247,462 |
|
| Accumulated
deficit |
|
|
(9,232,027 |
) |
|
|
(7,043 |
) |
|
|
(9,239,070 |
) |
| Total
shareholders’ equity |
|
|
2,687,504 |
|
|
|
(7,043 |
) |
|
|
2,680,461 |
|
| Total
liabilities and shareholders’ equity |
|
|
3,254,505 |
|
|
|
(7,043 |
) |
|
|
3,247,462 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance Sheet Impact - June
30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment
position in gold |
|
|
319,368 |
|
|
|
(24,040 |
) |
|
|
295,328 |
|
| Total
current assets |
|
|
1,551,116 |
|
|
|
(24,040 |
) |
|
|
1,527,076 |
|
| Total
assets |
|
|
2,991,038 |
|
|
|
(24,040 |
) |
|
|
2,966,998 |
|
| Accumulated
deficit |
|
|
(9,448,732 |
) |
|
|
(24,040 |
) |
|
|
(9,472,772 |
) |
| Total
shareholders’ equity |
|
|
2,470,799 |
|
|
|
(24,040 |
) |
|
|
2,446,759 |
|
| Total
liabilities and shareholders’ equity |
|
|
2,991,038 |
|
|
|
(24,040 |
) |
|
|
2,966,998 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance Sheet Impact - September
30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment
position in gold |
|
|
612,328 |
|
|
|
(95,982 |
) |
|
|
516,346 |
|
| Total
current assets |
|
|
1,605,105 |
|
|
|
(95,982 |
) |
|
|
1,509,123 |
|
| Total
assets |
|
|
3,019,160 |
|
|
|
(95,982 |
) |
|
|
2,923,178 |
|
| Accumulated
deficit |
|
|
(9,446,057 |
) |
|
|
(95,982 |
) |
|
|
(9,542,039 |
) |
| Total
shareholders’ equity |
|
|
2,473,474 |
|
|
|
(95,982 |
) |
|
|
2,377,492 |
|
| Total
liabilities and shareholders’ equity |
|
|
3,019,160 |
|
|
|
(95,982 |
) |
|
|
2,923,178 |
|
|
(1) |
The
Adjustment is the result of the Company no longer recording its investment in gold at fair market value as a Level 1 investment, ASC
820 “Fair Value Measurement.” The Company’s gold investment was previously valued at fair market value, based
on the closing bid price at which it can sell its gold investment back to a broker, using a live quoted price as of March 31, 2025, June
30, 2025, and September 30, 2025. In contrast, the Company now classifies its gold investment as an indefinite-lived nonfinancial asset
and accounts for it under a cost model. See Note 2 and Note 11 for further description regarding the accounting treatment. |
| |
|
Quarter ended |
|
| |
|
March 31, 2025
|
|
|
June 30,
2025 |
|
|
September 30, 2025 |
|
| Income statement impact by quarter |
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized gain (loss) on investment in gold - as reported |
|
|
7,043 |
|
|
|
16,996 |
|
|
|
71,943 |
|
| Adjustment(1) (unrealized gain/loss) |
|
|
(7,043 |
) |
|
|
(16,996 |
) |
|
|
(71,943 |
) |
| Unrealized gain (loss) on investment in gold - restated |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income - as reported |
|
|
(204,715 |
) |
|
|
(216,705 |
) |
|
|
2,675 |
|
| Adjustment(1) (unrealized gain/loss) |
|
|
(7,043 |
) |
|
|
(16,996 |
) |
|
|
(71,943 |
) |
| Net income - restated |
|
|
(211,758 |
) |
|
|
(233,701 |
) |
|
|
(69,268 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share impact by quarter |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share - as reported |
|
|
(0.009 |
) |
|
|
(0.010 |
) |
|
|
0.000123 |
|
| Adjustment |
|
|
(0.001 |
) |
|
|
(0.001 |
) |
|
|
(0.00332 |
) |
| Basic earnings per share - restated |
|
|
(0.010 |
) |
|
|
(0.011 |
) |
|
|
(0.00319 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share - as reported |
|
|
(0.009 |
) |
|
|
(0.010 |
) |
|
|
0.000107 |
|
| Adjustment |
|
|
(0.001 |
) |
|
|
(0.001 |
) |
|
|
(0.00330 |
) |
| Diluted earnings per share - restated |
|
|
(0.010 |
) |
|
|
(0.011 |
) |
|
|
(0.00319 |
) |
|
(1) |
The
Adjustment is the result of the Company no longer recording its investment in gold at fair market value as a Level 1 investment, ASC
820 “Fair Value Measurement.” The Company’s gold investment was previously valued at fair market value, based
on the closing bid price at which it can sell its gold investment back to a broker, using a live quoted price as of March 31, 2025, June
30, 2025, and September 30, 2025. In contrast, the Company now classifies its gold investment as an indefinite-lived nonfinancial asset
and accounts for it under a cost model. See Note 2 and Note 11 for further description regarding the accounting treatment. |
|