Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 643

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 3
Chunk 643
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The
Company has capitalized certain costs for software developed or obtained for internal use during the application development stage as
it relates to specific contracts. The amounts capitalized include external direct costs of services used in developing internal-use software
and for payroll and payroll-related costs of employees directly associated with the development activities. The balance is included in
the net intangible assets on the balance sheet.

The
following table presents details of our software development costs for the years ended December 31, 2024 and 2023:

 Schedule of Software Development Costs

    December 31, 2024  
    December 31, 2023 
  
    Gross Carrying Amount  
    Accumulated Amortization  
    Net Carrying Amount  
    Weighted Average Useful Life (Years)  
    Gross Carrying Amount  
    Accumulated Amortization  
    Net Carrying Amount  
    Weighted Average Useful Life (Years) 
  
    $2,578,611  
    $(2,578,611) 
    $—  
     —  
    $2,578,611  
    $(2,574,105) 
    $4,506  
     1 
  
    $2,578,611  
    $(2,578,611) 
    $—  
        
    $2,578,611  
    $(2,574,105) 
    $4,506  

Software
development costs are being amortized on a straight-line basis over their estimated useful life of two years.

During
the years ended December 31, 2024 and 2023, we capitalized $0 and $0 respectively of software development. We recorded amortization expense
for software development costs of $4,506 and $98,828, respectively which is included in depreciation and amortization in the consolidated
statement of operations.

During
the years ended December 31, 2024 and 2023, we recorded impairment charges of $0 and $0, respectively related to our software development
costs.

    -31-

7.
Operating Lease Assets

Adoption
of Accounting Standards Codification (“ASC”) Topic 842, “Leases.” The Company adopted
Topic 842 on January 1, 2019, using the modified retrospective method and the optional transition method to record the adoption impact
through a cumulative adjustment to equity. Results for reporting periods beginning after January 1,