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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2021

 

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ___________ to __________

 

Commission file number 000-53851

 

Mobivity Holdings Corp.

(Exact Name of Registrant as Specified in Its Charter)

 

Nevada

 

26-3439095

(State or Other Jurisdiction of

 

(I.R.S. Employer

Incorporation or Organization)

 

Identification No.)

 

3133 West Frye Road, # 215

Chandler, Arizona 85226

(Address of Principal Executive Offices & Zip Code)

 

(877) 282-7660

(Registrant’s Telephone Number)

N/A

(Former name, former address, and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

None

None

None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x

Smaller reporting company

x

 

 

Emerging Company

¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

 

As of November 15, 2021, the registrant had 55,410,695 shares of common stock, par value $0.001, of the registrant issued and outstanding. 



MOBIVITY HOLDINGS CORP.

 

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

1

Item 1. Financial Statements

1

Condensed Consolidated Balance Sheets

1

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

2

Condensed Consolidated Statement of Stockholders’ Equity (Deficit)

3

Condensed Consolidated Statements of Cash Flows

4

Notes to Condensed Consolidated Financial Statements

5

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

19

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

25

Item 4. Controls and Procedures.

26

PART II – OTHER INFORMATION

27

Item 6. Exhibits

27

SIGNATURES

28

 


PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Mobivity Holdings Corp.

Condensed Consolidated Balance Sheets

 

September 30,

December 31,

2021

2020

(Unaudited)

(Audited)

ASSETS

Current assets

Cash

$

568,896

$

3,282,820

Accounts receivable, net of allowance for doubtful accounts of $44,386 and $33,848, respectively

1,635,438

305,693

Contracts receivable, current

943,904

943,904

Other current assets

168,685

272,736

Total current assets

3,316,923

4,805,153

Goodwill

496,352

496,352

Right to use lease assets

1,242,264

57,482

Intangible assets, net

1,253,496

1,368,329

Contracts receivable, long term

707,928

1,415,856

Other assets

181,602

25,230

TOTAL ASSETS

$

7,198,565

$

8,168,402

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities

Accounts payable

$

3,303,438

$

1,935,411

Accrued interest

72,896

47,316

Accrued and deferred personnel compensation

483,804

224,881

Deferred revenue and customer deposits

495,287

606,597

Related party notes payable

333,333

80,000

Notes payable, net - current maturities

101,481

561,676

Operating lease liability

195,270

58,173

Other current liabilities

431,027

566,303

Total current liabilities

5,416,536

4,080,357

Non-current liabilities

Related party notes payable, net - long term

1,552,112

Notes payable, net - long term

78,623

1,499,001

Operating lease liability

1,247,395

13,296

Other long term liabilities

415,767

831,535

Total non-current liabilities

3,293,897

2,343,832

Total liabilities

8,710,433

6,424,189

Stockholders' equity (deficit)

Common stock, $0.001 par value; 100,000,000 shares authorized; 55,410,695 and 55,410,695, shares issued and outstanding

55,411

55,411

Equity payable

100,862

100,862

Additional paid-in capital

102,063,155

101,186,889

Accumulated other comprehensive income (loss)

(45,837)

(23,446)

Accumulated deficit

(103,685,459)

(99,575,503)

Total stockholders' equity (deficit)

(1,511,868)

1,744,213

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$

7,198,565

$

8,168,402

 

See accompanying notes to consolidated financial statements.

1


Mobivity Holdings Corp.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Revenues

Revenues

$

2,311,548

$

3,180,173

$

7,561,966

$

10,496,827

Cost of revenues

1,008,703

943,292

3,322,639

3,742,615

Gross profit

1,302,845

2,236,881

4,239,327

6,754,212

Operating expenses

General and administrative

1,245,085

889,032

3,491,855

3,138,744

Sales and marketing

978,968

445,273

2,987,411

1,748,892

Engineering, research, and development

678,209

621,442

2,076,194

2,820,525

Impairment of intangible asset

8,286

Depreciation and amortization

182,663

176,127

524,474

534,972

Total operating expenses

3,084,925

2,131,874

9,088,220

8,243,133

Income (loss) from operations

(1,782,080)

105,007

(4,848,893)

(1,488,921)

Other income/(expense)

Interest income

309

5

1,220

Other Income

891,103

891,103

Interest expense

(88,331)

(62,621)

(144,714)

(207,899)

Impairment of intangible assets

(3,481)

(3,481)

Loss on disposal of fixed assets

(880)

(3,935)

Foreign currency gain (loss)

(4,329)

247

(6,577)

1,345

Total other income/(expense)

798,443

(65,546)

738,937

(212,750)

Income (loss) before income taxes

(983,637)

39,461

(4,109,956)

(1,701,671)

Income tax expense

Net income (loss)

(983,637)

39,461

(4,109,956)

(1,701,671)

Other comprehensive Income (loss), net of income tax

Foreign currency translation adjustments

(13,150)

30,145

(22,391)

(9,072)

Comprehensive Income (loss)

$

(996,787)

$

69,606

$

(4,132,347)

$

(1,710,743)

Net loss per share:

Basic

$

(0.02)

$

$

(0.07)

$

(0.03)

Diluted

$

(0.02)

$

$

(0.07)

$

(0.03)

Weighted average number of shares:

Basic

55,410,695

51,617,612

55,410,695

51,555,837

Diluted

55,410,695

61,106,633

55,410,695

51,555,837

 

See accompanying notes to consolidated financial statements (unaudited). 

 

2


Mobivity Holdings Corp.

Condensed Consolidated Statement of Stockholders’ Equity (Deficit)

(Unaudited)

 

Common Stock

Equity

Additional

Accumulated Other

Accumulated

Total Stockholders'

Shares

Dollars

Payable

Paid-in Capital

Comprehensive Loss

Deficit

Equity (Deficit)

Balance, December 31, 2019

51,380,969

$

51,381

$

100,862

$

94,781,738

$

8,780

$

(96,657,106)

$

(1,714,345)

Issuance of common stock for options exercised

1,556,459

1,556

1,932,411

1,933,967

Issuance of common stock for warrants exercised

1,359,500

1,360

1,639,448

1,640,808

Issuance of common stock for debt settlement

1,113,767

1,114

2,059,354

2,060,468

Stock based compensation

773,938

773,938

Foreign currency translation adjustment

(32,226)

(32,226)

Net loss

(2,918,397)

(2,918,397)

Balance, December 31, 2020

55,410,695

$

55,411

$

100,862

$

101,186,889

$

(23,446)

$

(99,575,503)

$

1,744,213

Fair value of options issued with related party debt

124,388

124,388

Stock based compensation

751,878

751,878

Foreign currency translation adjustment

(22,391)

(22,391)

Net loss

(4,109,956)

(4,109,956)

Balance, September 30, 2021

55,410,695

$

55,411

$

100,862

$

102,063,155

$

(45,837)

$

(103,685,459)

$

(1,511,868)

See accompanying notes to consolidated financial statements (unaudited).  


3


Mobivity Holdings Corp.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended

September 30,

2021

2020

OPERATING ACTIVITIES

Net loss

$

(4,109,956)

$

(1,701,671)

Adjustments to reconcile net loss to net cash used in operating activities:

Bad debt expense

72,773

27,819

Stock-based compensation

751,878

509,214

Amortization of Debt Discount

9,833

Loss on disposal of fixed assets

880

3,935

Intangible asset impairment

8,286

3,481

Gain on Forgiveness of Debt

(891,103)

Depreciation and amortization expense

448,062

534,972

Increase (decrease) in cash resulting from changes in:

Accounts receivable

(1,402,518)

(592,951)

Other current assets

99,614

419,701

Operating lease assets/liabilities

76,414

Contracts receivable, long-term

707,928

(325,943)

Other assets

4,475

2,209

Accounts payable

1,368,027

288,417

Accrued interest

69,330

146,966

Accrued and deferred personnel compensation

258,916

30,309

Right to use leases

(415,767)

(11,678)

Other liabilities - current

(135,273)

(35,089)

Deferred revenue and customer deposits

(111,310)

199,567

Net cash used in operating activities

(3,189,511)

(500,742)

INVESTING ACTIVITIES

Purchases of equipment

(78,217)

(8,044)

Cash paid for patent activities

(8,755)

Capitalized software development costs

(310,546)