Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 152

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 152
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 settlement of debt
and foreign currency gain(loss)

-19-

Revenue
Recognition and Concentrations

Our
Recurrency platform is a hosted solution. We generate revenue from licensing our software to clients in our software as a service model,
per-message and per-minute transactional fees, and customized professional services. We recognize license/subscription fees over the
period of the contract, service fees as the services are performed, and per-message or per-minute transaction revenue when the transaction
takes place. Under ASC 606 (as defined below), revenue is recognized when control of the promised goods or services is transferred to
our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We consider
authoritative guidance on multiple deliverables in determining whether each deliverable represents a separate unit of accounting. Some
customers are billed on a month-to-month basis with no contractual term and are collected by credit card or electronic funds transfer.
Revenue is recognized at the time that the services are rendered, and the selling price is fixed with a set range of plans. Cash received
in advance of the performance of services is recorded as deferred revenue.

Accounting
Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification 606 (“ASC
606”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company
adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued
revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns.
Generally, the new standard results in earlier recognition of revenues.

We
determine revenue recognition through the following steps:

    ●
    identification
    of the contract, or contracts, with a customer;

    ●
    identification
    of the performance obligations in the contract;

    ●
    determination
    of the transaction price;

    ●
    allocation
    of the transaction price to the performance obligations in the contract; and

    ●
    recognition
    of revenue when, or as, we satisfy a performance obligation.

During
the years ended December 31, 2024 and 2023 two customers accounted for 57% and 55% of our revenues, respectively.

Share-based
compensation expense

Share-based
compensation cost is measured at the date of grant, based on the calculated fair value of