Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 11

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 costs for those products that are canceled
or abandoned are charged to product development expenses 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-month24
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 assets resulted
in no impairment charges for the three months ended March 31, 2025 and 2024, respectively.

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 ASC 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.

Revenue Recognition and Concentrations

Our Recurrency platform is a hosted solution. We generate
revenue from licensing our software to clients in our software as a service model, per-message and per-minute transactional fees, and
customized professional services. We recognize license/subscription fees over the period of the contract, service fees as the services
are performed, and per-message or per-minute transaction revenue when the transaction takes place. Under ASC 606, revenue is recognized
when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect
to be entitled to in exchange for those goods or services. We consider authoritative guidance on multiple deliverables in determining