Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 266

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 266
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 period. Significant estimates used are those related to stock-based compensation, asset
impairments, the valuation and useful lives of depreciable tangible and certain intangible assets, the fair value of common stock used
in acquisitions of businesses, the fair value of assets and liabilities acquired in acquisitions of businesses, the fair value of options
issued with related party debt, and the valuation allowance of deferred tax assets. Management believes that these estimates are reasonable;
however, actual results may differ from these estimates.

    -26-

Reclassifications

Certain
prior year amounts have been reclassified to conform to the current year’s presentation. The reclassifications had no effect on
previously reported net loss.

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
and Cash Equivalents

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 December 31, 2024 and 2023, we recorded an allowance for doubtful accounts of $44,752 and $16,107, respectively.

From
time to time, we may have a limited number of customers with individually large amounts due. Any unanticipated change in one of the customer’s
credit worthiness could have a material effect on the results of operations in the period in which such changes or events occurred.

As
of December 31, 2024, we had four customers whose balance represented 66% of total accounts receivable. As of December 31, 2023, we