Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 84

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 167,628 
  
    Payroll and Related Expense 
     1,484,142 
  
    Interest Expense 
     631,333 
  
    Other Expenses (1) 
     9,375 
  
    Customer Acquisition and Engagement segment Net Income 
    $(2,701,446)

    (1)
    Other
    Expense includes settlement losses and loss on disposal of fixed assets

13. Sales of Certain Contracts

Acquisition by SMS Factory

On September 25, 2024, the Company entered into an Asset Purchase Agreement
(the “Asset Purchase Agreement”) with SMS Factory, Inc., a Florida corporation (“SMS Factory”). Pursuant to the
Asset Purchase Agreement, SMS Factory purchased all of the right, title and interest in the Company’s SMS/MMS text messaging customer
accounts, excluding certain Excluded Assets (as defined in the Asset Purchase Agreement) utilized in the operation of the Company’s
SMS/MMS text messaging platform business (the “Business Assets”) effective as of September 25, 2024 (the “Closing Date”).

In consideration for the Business Assets, SMS Factory is expected to assume certain Performance Obligations and pay to the Company, for
a period of two years following the Closing Date, an Earn-Out Payment in an amount equal to two times the Gross Profit earned from each
Customer Account, including an upfront pre-payment of the Earn-Out Payment equal to $303,000.

The Asset Purchase Agreement includes customary representations, warranties and covenants by the parties.

14. Subsequent Events

Convertible Notes

During April 2025, the Company issued one Convertible Notes to Thomas
B. Akin for a total amount of $300,000.

During
May 2025, the Company issued one Convertible Notes to Thomas B. Akin for a total amount of $250,000.

22

Item 2. Management’s Discussion and Analysis of Financial Condition
and Results of Operations

This Quarterly Report on Form 10-Q contains “forward-looking
statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, in connection with the Private Securities Litigation Reform Act of 1995 that involve risks
and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially
and adversely from those expressed or implied by such forward