Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 252

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 252
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 policies listed in the summary of significant accounting policies.

The
chief operating decision maker (“CODM”) of the Company is our President who assesses performance of our single operating
segment and decides how to allocate resources based on consolidated net loss that is reported on the consolidated statement of operations,
as well as through other performance measures. The CODM considers consolidated net loss in deciding how to allocate resources into
the Company based on net income that also is reported on the income statement as consolidated net income.

The
measure of segment assets is reported on the balance sheet as total consolidated assets.

The
CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits
into the customer acquisition and engagement or into other parts of the entity, such as for acquisitions or to pay dividends. Net income
is used to monitor budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors.
The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment
and in establishing management’s compensation.

The
Company has one reportable segment: customer acquisition and engagement. The customer acquisition and engagement segment
provides customer with the ability to engage customers though email, SMS/MMS messaging and through our unique fee-for
action contracts such as a fee for downloading an app, or a fee for achieving a certain action in a digital app, or acquiring a
loyalty member. The Company derives revenue primarily in North America and manages the business activities on a consolidated
basis. All revenue is derived using our Recurrency platform which is designed to leverage point-of-sale data, along with
cognitive computing, to increase visits, spend, and loyalty from consumers.

The
following table shows net sales by operating segment:

    Customer Acquisition and Engagement segment 
    Revenue 
  
    Revenues 
    $1,143,535 
  
    Less: 

    Customer Acquisition Costs 
     512,901 
  
    Dues and Subscriptions 
     16,278 
  
    Legal and Accounting and Professional Fees 
     409,246 
  
    Travel Expense 
     79,003 
  
    Administrative Expenses 
     287,611 
  
    Advertising Expense 
     223,129 
  
    Payroll and Related Expense 
     6,741,575 
  
    Interest Expense 
     1,943,412