Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 898

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 7A
Chunk 898
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 our revenues, respectively.

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Comprehensive
Income (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 comprehensive loss. For the twelve months ended December
31, 2024 and 2023, the comprehensive loss was $10,015,863 and $12,117,067
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 Expenditures

Research
and development expenditures are expensed as incurred, and consist primarily of compensation costs, outside services, and expensed materials.

Advertising
Expense

Direct
advertising costs are expensed as incurred and consist primarily of E-commerce advertisements, sales enablement, content creation, and
other direct costs. Advertising expense was $185,596 and $304,296 for the years ended December 31, 2024 and 2023, respectively. We also
include the cost of attending trade shows under marketing expense. We recorded $174,544 and $63,969 of expense related to those activities
for the years ended December 31, 2024 and 2023, respectively.

Income
Taxes

We
account for income taxes using the assets and liability method, which recognizes deferred tax assets and liabilities determined based
on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to affect taxable income. Valuation allowances are established to reduce deferred tax assets when,
based on available objective evidence, it is more likely than not that the benefit of such assets will not be realized. We recognize
in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained.

Computation
of Net Loss per Common Share

Basic
net loss per share is based upon the weighted average number of common shares outstanding. Diluted