Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 82

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 416,667 warrants to purchase shares of our common
stock at $.60 per share. Simple interest on the unpaid principal balance of this Note will accrue at the rate of 8.0% per annum. Accrual
of interest will commence on the date of this Note, will continue until this Note is fully paid, and will be payable in a single installment
at maturity three years from the date the Convertible Note was issued.

During the three months ended March 31, 2025 the company
recorded $454,912 of interest expense in connection with the related party convertible notes and $470,267 in amortized debt discount in
connections with related party convertible notes. As of March 31, 2025 the Convertible Notes issued to related parties had a principal
balance of $9,100,000 with a debt discount of $1,252,743 for a net principal balance of $7,847,257 and accrued interest of $647,732.

Related
Party Senior Secured Convertible Notes

During
the first quarter of 2025 the Company issued 7 Convertible Notes payable to related party investors for $1,575,000. Simple interest on
the unpaid principal balance of the Convertible Note will accrue at the rate of 15% per annum. and automatically convert into the same
equity securities issued for cash in the Qualified Financing, or at the option of the Investors, into the same equity securities issued
for cash in a Corporate Transaction, each as the Convertible Note. Interest on the Convertible Notes will be accreted and added to the
unpaid principal balance prior to conversion. The Convertible Notes are payable in one installment three years from the date of the Convertible
Note.

As
of March 31, 2025 the Convertible Notes had a principal balance of $1,575,000 and accrued interest balance of
$44,918.

For more details regarding the three related party
transactions, please refer to Note 7 - Notes Payable and Interest Expense.

12. Reportable Segments

The customer acquisition and engagement segment derives revenues from customers
by ways for customers to acquire new customers and in increase customer retention by email, text messaging and app interaction. the first
is The Company’s Connected Reward program that encourages engage by offering real life rewards through on of the many marketing
channels. In addition, we offer SMS messaging programs that allow the companies to send company updates, offers and promotions through