Company: MFON
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0001641172-25-026202
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Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-09-02
Form: 10-Q
Item: Part II, Item 1
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As
of the date of this report, the company has one pending legal proceeding related to alleged violations of the TCPA (Telephone Consumer
Protection Act) Violation. This proceeding is a putative class action complaint alleging that Defendant initiated telephone solicitations
through text messages in violation of the Telephone Consumer Protection Act, 47 U.S.C § 227 et al. (“TCPA”). We are
unable to determine at this time whether it may result in a “material” exposure as defined.

In
addition, a settlement was reached and signed on April 9, 2025 in a previously active TCPA case, a putative class action complaint alleging
that Defendant initiated telephone solicitations through text messages to Plaintiff and members of a putative class in violation of the
TCPA. A settlement was reached and a settlement loss of $2,500 was accrued during the 3 months ended June 30, 2025.

Item
1A. Risk Factors.

In
addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed
in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”), which
could materially affect our business, financial condition or future results. There have been no material changes from the risk factors
previously disclosed in the Form 10-K except as stated below:

The
Company has filed a Rule 13e-3 Transaction Statement on Schedule 13E-3 and a preliminary proxy statement to stockholders, both of which
are under the review of and subject to comments of the staff of the SEC, to effect a reverse stock split as part of a plan to deregister
the Company’s common stock under the Exchange Act, which could negatively affect the liquidity and trading prices
of our common stock and result in less disclosure about the Company, without the Company’s stockholders having the
protections provided by the liability provisions of the Exchange Act and the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”).

On
July 31, 2025, a Special Committee of the Board consisting entirely of independent and disinterested directors, approved a transaction
whereby the Company would effect a reverse stock split of the Company’s shares of common stock, in conjunction with terminating
the Company’s public company reporting obligations, subject to obtaining the requisite approval of