Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 21

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 1
Chunk 21
---
During the three months ended March 31, 2025,
a total of $20,844
of accrued interest from equity payable was converted into 86,109
shares of common stock and a $6,645 loss
on settlement of debt was recorded. The shares were convertible and converted on the last day of the quarter, based on a 90-day
volume-weighted average price (VWAP) of $0.2514,
while the stock price on the conversion date was $0.4117,
leading to a loss. As of March 31, 2025, the Company had an outstanding principal balance of $271,875,
and accrued interest of $10,195
that was recorded to Equity Payable.

Secured Promissory Notes

On June 30, 2021, we entered into a Credit Facility
Agreement (the “Credit Agreement”) with Thomas Akin, one of the Company’s directors (the “Lender”). The
Credit Agreement was amended on November 11, 2022. The Company can borrow up to $6,000,000 under the Credit Agreement (“the “Credit
Facility”).

The Credit Facility is secured by all of our tangible
and intangible assets including intellectual property. This loan bears interest on the unpaid balance at the rate of fifteen percent (15%)
per annum. The Company may prepay this loan without notice, penalty, or charge. In consideration of the Lender’s agreement to provide
the Credit Facility, the Company issued warrants to purchase shares of its common stock at an exercise price of $1.67 per share in connection
with the issuance of funds under the Credit Agreement. The warrants are exercisable for a period commencing upon issuance of the corresponding
notes and ending 36 months after issuance of the financing. In addition, the Company has agreed to issue to the Lender additional warrants
entitling the Lender to purchase a number of shares of the Company’s common stock equal to twenty percent (20%) of the amount of
the advances made divided by the volume-weighted average price over the 30 trading days preceding the advance (the “VWAP”).
Each warrant will be exercisable over a three-year period at an exercise price equal to the VWAP.

Under the original terms of the Credit Agreement,
the Company was to begin repaying the principal amount, plus accrued interest, in 24 equal monthly installments commencing on June 30,
2022, and