Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 361

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1B
Chunk 361
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 integration documentation, or the completed and tested product design and
working model. Technological feasibility is evaluated on a project-by-project basis. Amounts related to software development that are
not capitalized are charged immediately to the appropriate expense account. Amounts that are considered ‘research and development’
that are not capitalized are immediately charged to engineering, research, and development expense.

Capitalized
costs for those products that are cancelled or abandoned are charged to impairment expense in the period of cancellation. Commencing
upon product release, capitalized software development costs are amortized to “Amortization Expense - Development” based
on the straight-line method over a twenty-four
24 month period.

The
Company evaluates the future recoverability of capitalized software development costs on an annual basis. For products that have been
released in prior years, the primary evaluation criterion is ongoing relations with the customer. The Company’s evaluation of its
capitalized software development asset resulted in impairment charges of $0 for the year ended December 31, 2024 and $0 for the year
ended December 31, 2023.

Impairment
of Long-Lived 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 undiscounted
future net cash flow the asset is expected to generate.

Foreign
Currency Translation

The
Company translates the financial statements of its foreign subsidiary from the local (functional) currency into US Dollars using the
year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic
830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange
rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative
translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity. Foreign currency
transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional
currency are included in the unaudited Condensed Consolidated Statements of Income and Comprehensive Income.

Derivative
Financial Instruments

We
do not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks.

We
review the terms of the common stock, warrants and convertible debt we issue to determine whether there are embedded derivative instruments,