Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 486

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1C
Chunk 486
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 and our firm is managing the defense of the matter. We have not yet responded to
the complaint and no discovery has been conducted so we are unable to determine at this time whether it may result in a
“material” exposure as defined. The Company intends to seek an individual settlement of this matter and if one cannot be
reached it intends to vigorously defend the matter for its client.

Operating
Lease

We
entered into a new lease starting in February of 2021 for 8,898 square feet of office space located at 3133 W. Frye Road, Suite 215,
Chandler, Arizona. Monthly rental payments, excluding common area maintenance charges, will be $25,953 to $28,733. The first twelve months
of the lease included a 50% abatement period. As of December 31, 2024, we have an operating lease asset balance for this lease of $541,618
and an operating lease liability balance for this lease of $660,852 recorded in accordance with ASC 842.

14.
Employee Benefit Plan

The
Company has an employee savings plan (the “Plan”) pursuant to Section 401(k) of the Internal Revenue Code (the “Code”),
covering all of its employees. Participants in the Plan may contribute a percentage of compensation, but not in excess of the maximum
allowed under the Code. The Company may make contributions at the discretion of its Board of Directors. During the years ended December
31, 2024 and 2023, the Company made no contributions to the Plan.

    -44-

15.
Related Party Transactions

Related
Party Notes

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”). As of December 31, 2021, the Company had drawn a total of $3,478,125
including cash drawn in the amount of $3,206,250 and $271,875 of principal and accrued interest under the 2020 UP Note that was rolled
into the Credit Facility and had paid a total of $200,000 toward the principal balance of the loan,

The
Credit Facility is secured by all of