Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 615

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 3
Chunk 615
---
 Rewards customers.

Cost
of Revenues

Cost
of revenues consist primarily of cloud-based software licensing fees, short code maintenance expenses, personnel related expenses, and
other expenses.

Cost
of revenues for the twelve months ended December 31, 2024 was $512,901, a decrease of $262,976, or 33.9%, compared to $775,877 for the
twelve months ended December 31, 2023. This decrease is primarily due to a decrease in cost associated with providing our Connected Rewards
programs.

The
gross profit margin was 55.0% and 27.0% for the twelve months ended December 31, 2024 and 2023, respectively. Higher gross profit margin
in 2024 is primarily due to adjustments made to rewards pricing.

Bad
Debt

Bad
Debt expense for the twelve months ended December 31, 2024 was a gain of $971 a decrease of $29,772, or 103.4%, compared to $28,801 for
the twelve months ended December 31, 2023. This decrease is due primarily to a decrease in the average bad debt in our Connected Rewards
business.

General
and Administrative

General
and administrative expenses consist primarily of administrative salaries and personnel related expenses, legal fees, stock-based compensation
expense, consulting costs and other expenses.

General
and administrative expenses for the twelve months ended December 31, 2024 were $1,337,644, a decrease of $2,984,680, or 69.1%, compared
to $4,322,324 for the twelve months ended December 31, 2023. The decrease in general and administrative expense was primarily due an decrease
in share based expense from the two warrant issuances during the previous year.

Sales
and Marketing Expense

Sales
and marketing expenses consist primarily of salaries and personnel related expenses, stock-based compensation expense, sales travel,
consulting costs and other expenses.

Sales
and marketing expenses for the twelve months ended December 31, 2024 were $2,772,216, an increase of $592,806, or 27.2%, compared to $2,179,410
for the twelve months ended December 31, 2023. The increase in 2024 was primarily due to an increase trade show and travel expense to
promote Connected Rewards.

Engineering,
Research, and Development Expense

Engineering,
research, and development expenses consist primarily