Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 12

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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whether each deliverable represents a separate unit of accounting. Some customers are billed on a month-to-month basis with no contractual
term and fees are collected by credit card. 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2014-09, Revenue from Contracts with Customers (“ASC 606”), is a comprehensive revenue recognition standard that superseded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.

    7

We determine revenue recognition under ASC 606 through
the following steps:

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

    ●
    identification of the performance obligations in the contract;

    ●
    identification 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 three months ended March 31, 2025
and 2024, two customers accounted for 85%
and 59%
of our revenues, respectively.

Comprehensive Loss

Comprehensive loss is defined as the change in equity
during a period from transactions and other events and circumstances from non-owner sources. We are required to record all components
of comprehensive loss in the consolidated financial statements in the period in which they are recognized. Net loss and other comprehensive
loss, including foreign currency translation adjustments and unrealized gains and losses on investments, are reported, net of their related
tax effect, to arrive at a comprehensive loss. For the three months ended March 31, 2025 and 2024, the comprehensive loss was $2,591,012,
and $2,036,313 respectively.

Stock-based Compensation

We primarily issue stock-based awards to employees
in the form of stock options. We determine compensation expense associated with stock options based on the estimated grant date fair value
method using the Black-Scholes valuation model. We recognize compensation expense using a straight-line amortization method over the respective
vesting period.

Research and Development Ex