Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 9

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 operations for the three
months ended March 31, 2025 are not necessarily indicative of the operating results for the full year ending December 31, 2024.

2. Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the
accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

    5

Use of Estimates

The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting
period. Management believes that these estimates are reasonable; however, actual results may differ from these estimates.

Reclassifications

Certain prior year amounts have been reclassified
to conform to the current year’s presentation. The reclassifications did not affect previously reported net losses.

Acquisitions

We account for acquired businesses using the purchase
method of accounting. Under the purchase method, our consolidated financial statements reflect the operations of an acquired business
starting from the completion of the acquisition. In addition, the assets acquired and liabilities assumed are recorded at the date of
acquisition at their respective estimated fair values, with any excess of the purchase price over the estimated fair values of the net
assets acquired recorded as goodwill.

Cash

We minimize our credit risk associated with cash by
periodically evaluating the credit quality of our primary financial institution. Our balances at times may exceed federally insured limits.
We have not experienced any losses on our cash accounts.

Accounts Receivable, Allowance for Doubtful Accounts and Concentrations

Accounts receivable are carried at their estimated
collectible amounts. We grant unsecured credit to substantially all of our customers. Ongoing credit evaluations are performed, and potential
credit losses are charged to operations at the time the account receivable is estimated to be uncollectible. Since we cannot necessarily
predict future changes in the financial stability of our customers, we cannot guarantee that our reserves will continue to be adequate.

As of March 31, 2025, and December 31, 2024 we recorded
an allowance for doubtful accounts of $6,872 and $44,752, respectively.

Goodwill and Intangible Assets

Goodwill is tested for impairment at a minimum on
an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine
whether it is more likely than