Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 360

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1B
Chunk 360
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Goodwill
and Intangible Assets

Goodwill
is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing
a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying
value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to
its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered
impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating
results. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit.

We
conducted our annual impairment tests of goodwill as of December 31, 2024 and 2023. As a result of these tests, we had total impairment
charges of $0 in both as of December 31, 2024 and 2023, respectively

Intangible
assets consist of patents and trademarks, purchased customer contracts, purchased customer and merchant relationships, purchased trade
names, purchased technology, and non-compete agreements. Intangible assets are amortized over the period of estimated benefit using the
straight-line method and estimated useful lives ranging from one
1 to twenty
years. No significant residual value is estimated
for intangible assets. We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances
indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount
exceeds the undiscounted future net cash flow the asset is expected to generate.

The
Company’s evaluation of its long-lived assets resulted in $0 in both of intangible impairment expense during the years ended December
31, 2024 and December 31, 2023.

    -27-

Software
Development Costs

Software
development costs include direct costs incurred for internally developed products and payments made to independent software developers
and/or contract engineers. The Company accounts for software development costs in accordance with the FASB guidance for the costs of
computer software to be sold, leased, or otherwise marketed (“ASC Subtopic 985-20”). Software development costs are capitalized
once the technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility
of a product encompasses technical design documentation and