Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 265

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 265
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 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 been adjusted to reflect comparable information.

We
generate revenue by charging the resellers, brands and enterprises a per-message transactional fee, or through fixed or variable software
licensing fees.

2.
Summary of Significant Accounting Policies

Principles
of Consolidation

The
consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, LiveLenz Inc. All significant
intercompany balances and transactions have been eliminated.

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of expenses during the reporting