Company: MFON
Filing Date: 2025-09-09
Form Type: PRER14A
Source: 0001140361-25-034415
Chunk: 29

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-09-09
Form: PRER14A
Chunk 29
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banes-Oxley Act, and other accounting, legal, printing and other miscellaneous costs associated with being a publicly traded company, are approximately $1,000,000 per year. Following the Reverse Stock Split, we currently intend to continue to have our financial statements audited by a public accounting firm to the extent required by the Company’s contractual agreements, but we do not intend to make such financial statements available to our stockholders, unless required by law or otherwise agreed to by the Company. |

The determination to undertake the Reverse Stock Split at this time, as opposed to another time, was driven by the following factors: The Board of Directors and management have for some time believed the Company’s public float was too small to attract interest from institutional investors or market analysts, and therefore have been an obstacle to enhancing enterprise value. As a public reporting company, we expected to be able to leverage our public company equity to raise capital and pursue acquisitions to help grow our business and expand our operations. However, due to the consistently low-volume trading of our common stock, we have not been able to raise significant capital from the public markets. The costs of remaining a public company are significant, recurring and certain. For perspective, consider that management has estimated the average direct costs of being public to be approximately $1,000,000 annually, which is approximately 87% of the Company’s revenue during the last fiscal year. Without these costs, in the view of the Special Committee, the Company would be stronger and better able to enhance enterprise value over the long term.

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Lastly, our determination to move forward with the Reverse Stock Split at this time also reflects the specific objective of completing the Reverse Stock Split in a timely manner so as to avoid incurrence of costs associated with the preparation and filing of SEC filings. Reduced Costs and Expenses . We incur both direct and indirect costs to comply with the filing and reporting requirements imposed on us as a result of being an SEC reporting company. Professional fees of lawyers and accountants, director fees, printing, mailing, and other costs incurred by us in complying with SEC reporting and compliance requirements are substantial. We also incur direct and indirect costs in complying with the Sarbanes-Oxley Act. Compliance with these requirements requires significant expenditures, as well as a significant investment of time and energy by our management and employees. If our SEC reporting obligations cease, we would not incur a substantial amount of these expenses. Our estimated total costs in different expense categories should we remain an SEC reporting company are described in greater