Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 124

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 124
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 ●
    
    Resellers.
    We sell our services via wholesale pricing of licensing and transactional fees to various resellers who market and sell the Mobivity
    services under their own brand.

    ●
    
    Agents.
    We also engage independent agents to market and sell our services under the Mobivity brand in return for payment of a commission
    or revenue share for customers they introduce to us.

    ●
    In
    addition to our direct and indirect sales channels, we also market our services online through our website, Facebook, Twitter, LinkedIn,
    and other online channels. We also participate in various trade and industry events to build awareness and promote exposure to our
    services and brand.

Our
traditional loyalty marketing services are predominantly marketed and sold in the form of a recurring software licensing fee that is
determined by desired features and the number of physical locations our customers would like to deploy the services in. For example,
a customer who exclusively utilizes our SMS/MMS feature for one location will pay a much lower recurring licensing fee than a marketer
who desires our full breadth of product features and needs to drive localized marketing campaigns across 500 locations in various cities
or locales. Our Connected Rewards services are marketed and sold on unique fee-for action contracts such as a fee for downloading an
app, or a fee for achieving a certain action in a digital app, or acquiring a loyalty member.

-4-

Research
and Development

We
have developed an internal and external software development team with many years of experience in the mobile advertising and marketing
industries. Our research and development activities are focused on enhancements to our platform, including extending our technology into
payment processing, location-based services, application analytics, and other technical opportunities in the evolving mobile industry.

Our
total engineering, research and development expenditures in 2024 and 2023 were $1,048,464 and $438,455, respectively.

Competition

Combining
POS data, cognitive computing, and various marketing applications is relatively new. The majority of our competitors are start-ups or
early stage growth companies helping to pioneer the technology necessary to power digital marketing in new, valuable, and attributable
channels.

We
believe that the key competitive factors that differentiate us from our competitors include:

    ●
    
    Intellectual
    Property. We currently own nine patents that cover various approaches to facilitating SMS/MMS text messaging solutions and manipulating
    receipt content.

 Customers

During
the years ended December 31, 2024 and