Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 148

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 148
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,857, respectively.

Foreign
Currency

The
Company’s financial results are impacted by volatility in the Canadian/U.S. Dollar exchange rate. The average U.S. Dollar exchange
rate for the year ended December 31, 2024 and 2023 was $1 Canadian equals $0.73 and $0.74 U.S. Dollars, respectively. The Company’s
functional or measurement currency is the U.S. Dollar. Based on a U.S. Dollar functional currency, the following are the key areas impacted
by foreign currency volatility:

    ●
    The
    Company sells products primarily in U.S. Dollars; therefore, reported revenues are not highly impacted by foreign currency volatility.

    ●
    A
    portion of the Company’s expenses are incurred in Canadian Dollars and therefore fluctuate in U.S. Dollars as the U.S. Dollar
    varies. A weaker U.S. Dollar results in an increase in translated expenses, and a stronger U.S. Dollar results in a decrease.

    ●
    Changes
    in foreign currency rates also impact the translated value of the Company’s working capital that is held in Canadian Dollars.
    Foreign exchange rate fluctuations result in foreign exchange gains or losses based upon movement in the translated value of Canadian
    working capital into U.S. Dollars.

The
change in foreign currency was a loss of $29 and a loss of $391 for the years ended December 31, 2024 and 2023, respectively.

-17-

Liquidity
and Capital Resources

We
have 1,261,240 of cash as of December 31, 2024. We had a net loss of $10.2 million for the year ended 2024, and we used $6.1
million of cash in our operating activities during 2024. We raised $6.9 million in cash Convertible Notes issued during 2024.

Our
additional cash from our convertible notes along with our expected cash flow from operations, may not be sufficient to fund our 12-month
plan of operations, and there can be no assurance that we will not require significant additional capital within 12 months.

If
our cash reserves prove insufficient to sustain operations, we plan to raise additional capital by offering additional convertible notes.
In addition we currently have an additional $126,875 available on our current line of credit. We may need additional financing thereafter
until we can achieve profitability. If we cannot, we will be forced to curtail our operations or possibly