Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 975

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 8
Chunk 975
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counted future net cash flow the asset is expected to generate.

The
Company’s evaluation of its long-lived assets resulted in $0 in both of intangible impairment expense during the years ended December
31, 2024 and December 31, 2023.

    -27-

Software
Development Costs

Software
development costs include direct costs incurred for internally developed products and payments made to independent software developers
and/or contract engineers. The Company accounts for software development costs in accordance with the FASB guidance for the costs of
computer software to be sold, leased, or otherwise marketed (“ASC Subtopic 985-20”). Software development costs are capitalized
once the technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility
of a product encompasses technical design documentation and 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