Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 530

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 2
Chunk 530
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    Customer Acquisition and Engagement segment 
    Revenue 
  
    Revenues 
    $1,143,535 
  
    Less: 

    Customer Acquisition Costs 
     512,901 
  
    Dues and Subscriptions 
     16,278 
  
    Legal and Accounting and Professional Fees 
     409,246 
  
    Travel Expense 
     79,003 
  
    Administrative Expenses 
     287,611 
  
    Advertising Expense 
     223,129 
  
    Payroll and Related Expense 
     6,741,575 
  
    Interest Expense 
     1,943,412 
  
    Other Expenses (1) 
     106,281 
  
    Customer Acquisition and Engagement segment Net Income 
    $(9,175,901)

(1) Other Expense includes loss on settlement of debt
and foreign currency gain(loss)

-19-

Revenue
Recognition and Concentrations

Our
Recurrency platform is a hosted solution. We generate revenue from licensing our software to clients in our software as a service model,
per-message and per-minute transactional fees, and customized professional services. We recognize license/subscription fees over the
period of the contract, service fees as the services are performed, and per-message or per-minute transaction revenue when the transaction
takes place. Under ASC 606 (as defined below), revenue is recognized when control of the promised goods or services is transferred to
our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We consider
authoritative guidance on multiple deliverables in determining whether each deliverable represents a separate unit of accounting. Some
customers are billed on a month-to-month basis with no contractual term and are collected by credit card or electronic funds transfer.
Revenue is recognized at the time that the services are rendered, and the selling price is fixed with a set range of plans. Cash received
in advance of the performance of services is recorded as deferred revenue.

Accounting
Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification 606 (“ASC
606”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company
adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued
revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns