Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 706

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 4
Chunk 706
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 decrease
in share based expense from the two warrant issuances during the previous year.

Sales
and Marketing Expense

Sales
and marketing expenses consist primarily of salaries and personnel related expenses, stock-based compensation expense, sales travel,
consulting costs and other expenses.

Sales
and marketing expenses for the twelve months ended December 31, 2024 were $2,772,216, an increase of $592,806, or 27.2%, compared to $2,179,410
for the twelve months ended December 31, 2023. The increase in 2024 was primarily due to an increase trade show and travel expense to
promote Connected Rewards.

Engineering,
Research, and Development Expense

Engineering,
research, and development expenses consist primarily of salaries and personnel related expenses, stock-based compensation expense, consulting
costs and other expenses.

Engineering,
research, and development expenses for the twelve months ended December 31, 2024, were $3,596,761, an increase of $498,500 or 16.1%,
compared to $3,098,261 for the twelve months ended December 31, 2023. The increase in 2024 was primarily due to an increase in engineering
payroll dedicated to Connected Rewards.

Depreciation
and Amortization Expense

Depreciation
and amortization expense consist of depreciation on our equipment and amortization of our intangible assets.

Depreciation
and amortization expenses for the twelve months ended December 31, 2024, were $51,192 a decrease of $2,768, or 5.1%, compared to $53,960
for the twelve months ended December 31, 2023. This decrease is primarily attributable to the decrease in amortized assets.

-16-

Interest
Expense

Interest
expense consists of stated or implied interest expense on our notes payable, amortization of note discounts, and amortization of deferred
financing costs.

Interest
expense for the twelve months ended December 31, 2024 was $1,943,412, an increase of $915,730, or 89.1%, compared to $1,027,682 for the
twelve months ended December 31, 2023. The increase is primarily attributable to the increased principal on short- and long-term borrowings
during the year.

Settlement
Losses

Settlement
losses consist of legal settlement for TCPA settlements.

Settlement
losses