Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 39

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 1
Chunk 39
---
, along
with cognitive computing, to increase visits, spend, and loyalty from consumers.

The following table shows net sales by operating segment:

 Schedule
of Net Sales by Operating Segment

    Customer Acquisition and Engagement segment
  
    Revenues 
    $513,311 
  
    Less: 

    Customer Acquisition Costs 
     239,593 
  
    Dues and Subscriptions 
     22,415 
  
    Legal and Accounting and Professional Fees 
     121,828 
  
    Travel Expense 
     14,280 
  
    Administrative Expenses 
     524,163 
  
    Advertising Expense 
     167,628 
  
    Payroll and Related Expense 
     1,484,142 
  
    Interest Expense 
     631,333 
  
    Other Expenses (1) 
     9,375 
  
    Customer Acquisition and Engagement segment Net Income 
    $(2,701,446)

    (1)
    Other
    Expense includes settlement losses and loss on disposal of fixed assets

13. Sales of Certain Contracts

Acquisition by SMS Factory

On September 25, 2024, the Company entered into an Asset Purchase Agreement
(the “Asset Purchase Agreement”) with SMS Factory, Inc., a Florida corporation (“SMS Factory”). Pursuant to the
Asset Purchase Agreement, SMS Factory purchased all of the right, title and interest in the Company’s SMS/MMS text messaging customer
accounts, excluding certain Excluded Assets (as defined in the Asset Purchase Agreement) utilized in the operation of the Company’s
SMS/MMS text messaging platform business (the “Business Assets”) effective as of September 25, 2024 (the “Closing Date”).

In consideration for the Business Assets, SMS Factory is expected to assume certain Performance Obligations and pay to the Company, for
a period of two years following the Closing Date, an Earn-Out Payment in an amount equal to two times the Gross Profit earned from each
Customer Account, including an upfront pre-payment of the Earn-Out Payment equal to $303,000.

The Asset Purchase Agreement includes customary representations, warranties and covenants by the parties.

14. Subsequent Events

Convertible Notes

During April 2025, the Company issued one Convertible Notes to Thomas
B. Akin for a total amount of $300,000.

During
May 2025, the Company issued one Convertible Notes to Thomas B. Akin for a total amount of $250,000.

22

Item