Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 56

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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5 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
whether each deliverable represents a separate unit of accounting. Some customers are billed on a month-to-month basis with no contractual
term and fees are collected by credit card. Revenue is recognized at the time that the services are rendered, and the selling price is
fixed with a set range of plans. Cash received in advance of the performance of services is recorded as deferred revenue.

Accounting Standards Update (“ASU”) No.
2014-09, Revenue from Contracts with Customers (“ASC 606”), is a comprehensive revenue recognition standard that superseded
nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1,