Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 972

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 8
Chunk 972
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’s across more than 40,000 retail locations globally.

We’re
living in a data-driven economy. In fact, by 2003 — when the concept of “big data” became common vernacular in marketing
as much data was being created every two days as had been created in all of time prior to 2003. Today, Big Data has grown at such a rate
that 90% of the world’s data has been created in the past two years. Unfortunately, despite there being so much data accumulated,
only one percent of data is being utilized today by most businesses.

The
challenge for multi-unit retailers isn’t that they don’t have enough data; in fact, national retailers are collecting millions
of detailed transactions daily from thousands of points of sale around the world. The challenge is being able to make sense of this transaction
data, which is riddled with data entry errors, collected by multiple POS systems and complicated by a taxonomy compiled by thousands
of different franchisee owners. To normalize such an overwhelming amount of data into usable intelligence and then leverage it to optimize
media investment and promotion strategy requires numerous teams of data analysts and data scientists that many retailers and restaurant
operators simply don’t have. Which is why so many technology and data companies, that can help solve these challenges, have been
invested in and acquired by brands including, McDonald’s, Starbucks and Yum Brands.

On
September 25, 2024, the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with SMS Factory,
Inc., a Florida corporation (“SMS Factory”). Pursuant to the Asset Purchase Agreement, SMS Factory purchased all of the right,
title and interest in the Company’s SMS/MMS text messaging customer accounts, excluding certain Excluded Assets (as defined in
the Asset Purchase Agreement) utilized in the operation of the Company’s SMS/MMS text messaging platform business (the “Business
Assets”) effective as of September 25, 2024 (the “Closing Date”). Given that the effect of the Asset Purchase Agreement
meets all the initial criteria of ASC Topic 205-20, Presentation of Financial Statements – Discontinued Operations
for the classification of discontinued operations, the assets, liabilities, and operating results of Mobivity Holdings Corp have been
classified as discontinued operations as of December 31, 2024 and December 31, 2023 and for the twelve months ended December 31, 2024
and 2023. The consolidated financial statements for the prior periods have