Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 101

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 101
---
9,909 for the same period in 2024.
This decrease is primarily due to decrease intangible and fixed assets.

Interest Expense

Interest expense increased $233,861, or 59%, to $631,333
during the three months ended March 31, 2025, compared to $397,472 in the same period in 2023. This increase in interest expense is primarily
related to the increased balance on related party notes payable and the issuance of Convertible Notes.

Settlement Losses

Settlement losses consist of legal settlement for TCPA settlements.

Settlement losses for the three months ended March
31, 2025 and 2024 were $2,500 and $0 , respectively.

Loss on Disposal of Fixed Assets

Loss on disposal of fixed assets consists of an asset
being disposed of for less than its carrying value.

Loss on disposal of fixed assets for three
months ended March 31, 2025 and 2024 was $6,875 and $$0 , respectively

26

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 three months ended March 31, 2025,
was $1 Canadian equals $0.70 U.S. Dollars, respectively. This compares to an average rate of $1 Canadian equals $0.74 during the same
period in 2024. 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 $1,321
and a gain of $217,929 for the three months ended March 31, 202