Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 974

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 8
Chunk 974
---
 in the financial stability of our customers, we cannot guarantee
that our reserves will continue to be adequate.

As
of December 31, 2024 and 2023, we recorded an allowance for doubtful accounts of $44,752 and $16,107, respectively.

From
time to time, we may have a limited number of customers with individually large amounts due. Any unanticipated change in one of the customer’s
credit worthiness could have a material effect on the results of operations in the period in which such changes or events occurred.

As
of December 31, 2024, we had four customers whose balance represented 66% of total accounts receivable. As of December 31, 2023, we had
three customers whose balance represented 73% of total accounts receivable.

Goodwill
and Intangible Assets

Goodwill
is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing
a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying
value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to
its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered
impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating
results. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit.

We
conducted our annual impairment tests of goodwill as of December 31, 2024 and 2023. As a result of these tests, we had total impairment
charges of $0 in both as of December 31, 2024 and 2023, respectively

Intangible
assets consist of patents and trademarks, purchased customer contracts, purchased customer and merchant relationships, purchased trade
names, purchased technology, and non-compete agreements. Intangible assets are amortized over the period of estimated benefit using the
straight-line method and estimated useful lives ranging from one
1 to twenty
years. No significant residual value is estimated
for intangible assets. We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances
indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount
exceeds the undis