Company: MFON
Filing Date: 2025-09-09
Form Type: PRER14A
Source: 0001140361-25-034415
Chunk: 31

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-09-09
Form: PRER14A
Chunk 31
---
 Volume and Liquidity for Small Stockholdings . The Special Committee also believes that holders of small amounts of shares of our common stock may be deterred from selling their shares because of the lack of an active trading market and disproportionately high brokerage costs. Based on our review of a list of accounts that own our common stock as of July 31, 2025, we estimate that there are approximately 472 accounts holding fewer than 25,000 shares. The Reverse Stock Split will offer each of these accounts the opportunity to obtain cash for their shares without the cost of dealing with a broker. In addition, our common stock has been and continues to be thinly traded. The average daily trading volume of the stock from January 1, 2025 to June 30, 2025 was approximately 2,838 shares per day (or 0.01% of our total shares of common stock outstanding), and during that period there were 122 trading days on which our common stock did not trade a round lot during normal trading hours. The low volume of trading limits our common stock’s liquidity.

17

TABLE OF CONTENTS

This affects our ability to raise capital from the public markets. The Reverse Stock Split will also provide our stockholders of fewer than 25,000 shares with the ability to liquidate their holdings in us and receive a fair price in cash for their shares, without incurring brokerage commissions. Background of the Reverse Stock Split As a public reporting company, we expected to be able to leverage our public company equity to raise capital and pursue acquisitions to help grow our business and expand our operations. However, due to the consistently low-volume of our common stock, we have not been able to raise significant capital from the public markets. Accordingly, notwithstanding our long-standing active efforts to grow our scale and profitability through opportunistic acquisitions and/or strategic investments, we have been largely unable to do so or to otherwise create a more active and liquid market for our common stock. Therefore, we have concluded that our status as a public reporting company is not currently, and has not been, and will not be in the near future, an advantage to the Company and/or its stockholders. Rather, the Special Committee has concluded that the Company realizes few of the traditional benefits of such status, yet incurs all of the significant annual expenses and indirect costs associated with being a public reporting company. For perspective, consider that management has estimated the average direct costs of being public are about $1,000,000 annually, which is approximately 87% of the Company