Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 269

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 269
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, warrants and convertible debt we issue to determine whether there are embedded derivative instruments,
including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments.
In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that
is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.

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 Topic 606, 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. 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.

During
the years ended December 31, 2024 and 2023, three customers accounted for 58% and 66% of 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