Company: MFON
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001641172-25-002942
Chunk: 240

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 240
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common stock.

-11-

Our
common stock may be considered to be a “penny stock” and, as such, any market for our common
stock may be further limited by certain SEC rules applicable to penny stocks. To the extent the price of our common stock remains
below $5.00 per share or we have net tangible assets of $2,000,000 or less, our common shares will be subject to certain “penny
stock” rules promulgated by the SEC. Those rules impose certain sales practice requirements on brokers who sell penny stock to
persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals
with net worth in excess of $1,000,000). For transactions covered by the penny stock rules, the broker must make a special suitability
determination for the purchaser and receive the purchaser’s written consent to the transaction prior to the sale. Furthermore,
the penny stock rules generally require, among other things, that brokers engaged in secondary trading of penny stocks provide customers
with written disclosure documents, monthly statements of the market value of penny stocks, disclosure of the bid and asked prices and
disclosure of the compensation to the brokerage firm and disclosure of the salesperson working for the brokerage firm. These rules and
regulations adversely affect the ability of brokers to sell our common shares and limit the liquidity of our securities.

We
are a “smaller reporting company” and, as such are allowed to provide less disclosure than larger
public companies. We are currently a “smaller reporting company,” meaning that we are not an investment company,
an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a smaller reporting company and have a public
float of less than $75 million and annual revenues of less than $50 million during the most recently completed fiscal year. As a “smaller
reporting company”, we are able to provide simplified executive compensation disclosures in our SEC filings, are exempt from the
provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that independent registered public accounting firms provide an attestation
report on the effectiveness of internal control over financial reporting, and have certain other decreased disclosure obligations in
SEC filings, including, among other things, we are only required to provide two years of audited financial statements in annual reports.
Decreased disclosures in our SEC filings due to our status as a “smaller reporting company” may make it harder for