Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 524

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 2
Chunk 524
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,850,000 with a debt discount of $1,331,375 for a net principal balance
of $7,518,625 and accrued interest of $479,156.

Results
of Operations and Financial Conditions

Year
Ended December 31, 2024 Compared to Year Ended December 31, 2023

Revenues

Revenues
consist primarily of a suite of products under the Recurrency platform. The Recurrency platform is comprised of POS Data Capture, Analytics,
Offers and Promotions, Predictive Offers, Personalized Receipt Promotions, Customized Mobile Messaging, Belly Loyalty, and other revenues.

-15-

Revenues
for the twelve months ended December 31, 2024 were $1,143,535, an increase of $75,863, or 7.1%, compared to $1,067,672 for the twelve
months ended December 31, 2023. This increase is primarily due an increase in Connected Rewards customers.

Cost
of Revenues

Cost
of revenues consist primarily of cloud-based software licensing fees, short code maintenance expenses, personnel related expenses, and
other expenses.

Cost
of revenues for the twelve months ended December 31, 2024 was $512,901, a decrease of $262,976, or 33.9%, compared to $775,877 for the
twelve months ended December 31, 2023. This decrease is primarily due to a decrease in cost associated with providing our Connected Rewards
programs.

The
gross profit margin was 55.0% and 27.0% for the twelve months ended December 31, 2024 and 2023, respectively. Higher gross profit margin
in 2024 is primarily due to adjustments made to rewards pricing.

Bad
Debt

Bad
Debt expense for the twelve months ended December 31, 2024 was a gain of $971 a decrease of $29,772, or 103.4%, compared to $28,801 for
the twelve months ended December 31, 2023. This decrease is due primarily to a decrease in the average bad debt in our Connected Rewards
business.

General
and Administrative

General
and administrative expenses consist primarily of administrative salaries and personnel related expenses, legal fees, stock-based compensation
expense, consulting costs and other expenses.

General
and administrative expenses for the twelve months ended December 31, 2024 were $1,337,644, a decrease