Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 897

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 7A
Chunk 897
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) currency into US Dollars using the
year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic
830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange
rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative
translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity. Foreign currency
transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional
currency are included in the unaudited Condensed Consolidated Statements of Income and Comprehensive Income.

Derivative
Financial Instruments

We
do not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks.

We
review the terms of the common stock, 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