Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 44

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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Cost of revenues for the three months ended March
31, 2025, was $239,593, an increase of $194,659, or 433%, compared to $44,934 for the same period in 2024.

This increase is primarily due to an increase in Connected Rewards
revenue resulting in a higher cost of good sold. As revenue from SMS and MMS services grew, the associated direct costs of delivering these services also rose.

Bad Debt Expense

Bad Debt expense for the three months ended March
31, 2025 was $1692, an increase of $1,692, or 100%, compared to $0 for the three months ended March 31, 2024 . This increase is due to
additional invoices aged past 90 days.

General and Administrative

General and administrative expenses consist primarily
of salaries and personnel-related expenses, consulting costs, and other expenses.

General and administrative expenses increased $301,566,
or 89%, to $639,631, during the three months ended March 31, 2025, compared to $338,065 for the same period in 2024. The increase in general
and administrative expenses was primarily due to a decrease in legal and payroll expenses.

Sales and Marketing

Sales and marketing expenses consist primarily of
salaries and personnel-related expenses, stock-based compensation expenses, consulting costs, and other expenses.

Sales and marketing expenses increased $199,172, or
29%, to $880,654 during the three months ended March 31, 2025, compared to $681,482 for the same period in 2024. The increase is primarily
due to an increase in consulting fees and an increase in payroll expense.

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Engineering, Research & Development

Engineering, research & development costs include
salaries, stock-based compensation expenses, travel, consulting costs, and other expenses.

Engineering, research & development expenses decreased
$142,687, or 15%, to $804,448 during the three months ended March 31, 2025, compared to $947,135 for the same period in 2024. This decrease
is primarily due to a decrease in payroll expense.

Depreciation and Amortization

Depreciation and amortization expenses consist of
depreciation on our equipment and amortization of our intangible assets.

Depreciation and amortization expense
decreased $1,878, or 19%, to $8,031 during the three months ended March