Company: MFON
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001641172-25-014006
Chunk: 13

Company: MOBIVITY HOLDINGS CORP.
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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penditures

Research and development expenditures are expensed
as incurred, and consist primarily of compensation costs, outside services, and expensed materials.

Advertising Expense

Direct advertising costs are expensed as incurred
and consist primarily of trade shows, sales enablement, content creation, paid engagement and other direct costs. Advertising expense
was $167,628 and $93,430 for the three months ended March 31, 2025 and 2024, respectively.

Income Taxes

We account for income taxes using the assets and liability
method, which recognizes deferred tax assets and liabilities determined based on the difference between the financial statement and tax
basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable
income. Valuation allowances are established to reduce deferred tax assets when, based on available objective evidence, it is more likely
than not that the benefit of such assets will not be realized. We recognize in the consolidated financial statements only those tax positions
determined to be more likely than not of being sustained.

Reportable
Segments

The
customer acquisition and engagement segment derives revenues from customers by creating ways for customers to acquire new customers and
in increase customer retention by email, text messaging and app interaction. the first is The Company’s Connected Reward program
that encourages engage by offering real life rewards through on of the many marketing channels. In addition, we offer SMS messaging programs
that allow the companies to send company updates, offers and promotions through email and SMS/MMS messaging. The accounting policies
are the same as the policies listed in the summary of significant accounting policies.

The
chief operating decision maker (“CODM”) of the Company is our President who assesses performance of our single operating
segment and decides how to allocate resources based on consolidated net loss that is reported on the consolidated statement of operations,
as well as through other performance measures. The CODM considers consolidated net loss in deciding how to allocate resources into the
Company based on net income that also is reported on the income statement as consolidated net income.

The
CODM is provided quarterly with reports on cash and accounts receivable to make decisions regarding resource allocation.
The measure of segment assets is reported on the balance sheet as total consolidated assets.

The
CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into
the customer acquisition and engagement or into other parts of the entity, such as for acquisitions or to pay dividends. Net income is
used to