Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 69

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 2027. The Company
determined that the change in repayment terms should be accounted for as a modification as opposed to a complete extinguishment of debt,
based on the guidance in ASU 470-50. The key components of this determination were as follows: (a) the changes in the structure of the
debt was not deemed significant; and (b) the modification of terms were not deemed substantial enough to be treated as an extinguishment,
since the present value of the new note terms did not exceeded the present value of the prior note terms by more than 10%.

During the three months ended March 31, 2025,
a total of $450,272
of accrued interest from equity payable was converted into 1,860,123
shares of common stock and a $143,554 loss
on settlement of debt was recorded. The shares were convertible and converted on the last day of the quarter, based on a
90-day volume-weighted average price (VWAP) of $0.2514,
while the stock price on the conversion date was $0.4117,
leading to a loss. As of March 31, 2025, the Company had a principal total of $5,873,125,
a debt discount balance of $160,868
for a net principal balance of $5,712,257
and accrued interest of $220,242
that was recorded to equity payable.

Related Party Convertible Notes

The Convertible Note and all accrued interest
thereon are convertible and converted into shares of our common stock, from time to time, at the option of the holder thereof, at a
conversion price per share equal to the larger of either $0.50
or of the volume-weighted average price of our common stock quoted on the OTCQB ® Venture Market operated by OTC Markets Group
Inc. over the thirty (30) trading days immediately preceding such date (the “Conversion Price”).

Related Party Convertible Notes issued in
prior periods at the beginning of 2024 had a balance of  $2,000,000 in principal. As an inducement we issued 3,333,332
warrants to purchase shares of our common stock at $.60
per share. Simple interest on the unpaid principal balance of this Note will accrue at the rate of 8.0%
per annum. Accrual of interest will commence on the date of this Note, will continue until this