Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 665

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 3
Chunk 665
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The
Company has provided a valuation allowance against deferred tax assets recorded as of December 31, 2024 and 2023 due to uncertainties
regarding the realization of such assets.

The
net change in the total valuation allowance for the year ended December 31, 2024 was an increase of approximately $3,070,000. The net
change in the total valuation allowance for the year ended December 31, 2023 was an increase of approximately $4,854,000. In assessing
the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred
tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income
during periods in which those temporary differences become deductible. The Company considers projected future taxable income and planning
strategies in making this assessment. Based on the level of historical operating results and projections for the taxable income for the
future, the Company has determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the
Company has recorded a valuation allowance to reduce deferred tax assets to zero. There can be no assurance that the Company will ever
be able to realize the benefit of some or all of the federal and state loss carryforwards, either due to ongoing operating losses or
due to ownership changes, which limit the usefulness of the loss carryforwards.

As
of December 31, 2024, the Company has available net operating loss carryforwards of approximately $71,000,000 for federal income tax
purposes, which will start to expire in 2026. The net operating loss carryforwards for state purposes are approximately $71,000,000 and
will start to expire in 2028.

The
difference between the provision for income taxes and income taxes computed using the U.S. federal income tax rate for the years ended
December 31, 2024 and 2023 was as follows:

 Schedule
of Effective Income Tax Rate Reconciliation

    2024  
    2023 
  
    Computed expected tax expense 
    $(2,134,000) 
    $(2,533,000)
  
    State taxes, net of federal benefit 
     736,000  
     2,014,000 
  
    Expiration of NOL carryforwards 
     261,000  
     44,000