Exhibit 99.2

Mobivity Holdings Corp.
Unaudited Pro Forma Condensed Consolidated Financial Statements

On May 20, 2013, Mobivity Holdings Corp. (the “Company”) completed its acquisition of substantially all of the assets of Front Door Insights LLC (“FDI”). The following unaudited pro forma condensed consolidated financial statements have been prepared to give effect to the completed acquisition, which was accounted for as a purchase.

The unaudited pro forma condensed consolidated balance sheet as of March 31, 2013, and the unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 2013 and the year ended December 31, 2012, are presented herein. The unaudited pro forma condensed consolidated balance sheet was prepared using the historical balance sheets of the Company and FDI as of March 31, 2013. The unaudited pro forma condensed consolidated statements of operations were prepared using the historical statements of operations of the Company and FDI for the three months ended March 31, 2013 and for the year ended December 31, 2012.

The unaudited pro forma condensed consolidated balance sheet gives effect to the acquisition as if it had been completed on March 31, 2013, and consolidates the unaudited condensed balance sheets of the Company and FDI. The unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 2013 and for the year ended December 31, 2012 give effect to the acquisition as if it had occurred on the first day of each respective period.

The unaudited pro forma condensed consolidated financial statements presented are based on the assumptions and adjustments described in the accompanying notes. The unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes and do not purport to represent what the financial position or results of operations actually would have been if the events described above occurred as of the dates indicated or what such financial position or results would be for any future periods. The unaudited pro forma condensed consolidated financial statements, and the accompanying notes, are based upon the respective historical consolidated financial statements of the Company and FDI, and should be read in conjunction with the Company’s historical financial statements and related notes, and the Company’s "Management's Discussion and Analysis of Financial Condition and Results of Operation" contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, and FDI’s financial statements presented herein.

 
-1-

 

Mobivity Holdings Corp.
 
Unaudited Pro Forma Condensed Consolidated Balance Sheets
 
As of March 31, 2013
 
                           
   
Mobivity
   
FDI
   
Pro forma adjustments
 
Pro forma combined
 
ASSETS
                         
Current assets
                         
Cash
  $ 44,182     $ 15,180     $ 100,000  
 (a)
  $ 49,682  
                      5,500  
 (b)
       
                      (100,000 )
 (b)
       
                      (15,180 )
 (c)
       
Other current assets
    496,142       32,207       27,467  
 (b)
    523,609  
                      (32,207 )
 (c)
       
Total current assets
    540,324       47,387       (14,420 )       573,291  
                                   
Goodwill
    2,259,624       -       1,574,325  
 (b)
    3,833,949  
Intangible assets, net
    412,155       -       1,055,000  
 (b)
    1,467,155  
Other assets
    46,055       -       -         46,055  
TOTAL ASSETS
  $ 3,258,158     $ 47,387     $ 2,614,905       $ 5,920,450  
                                   
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                                 
Current liabilities
                                 
Accounts payable
  $ 608,114     $ 40,702     $ 46,219  
 (b)
  $ 654,333  
                      (40,702 )
 (c)
       
Accrued interest
    429,399       -       -         429,399  
Convertible notes payable, net of discount
    4,237,633       -       1,400,885  
 (a)
    5,638,518  
Notes payable, net of discount
    171,984       202,501       (202,501 )
 (c)
    171,984  
Derivative liabilities
    4,194,373       -       64,211  
 (a)
    4,258,584  
Other current liabilities
    609,491       160,833       116,667  
 (b)
    726,158  
                      (160,833 )
 (c)
       
Total current liabilities
    10,250,994       404,036       1,223,946         11,878,976  
                                   
Commitments and Contingencies
                                 
Stockholders' equity (deficit)
                                 
Common Stock
    23,218               7,000  
 (b)
    30,218  
Common stock payable
    1,711,490               -         1,711,490  
Additional paid-in capital
    25,521,840       625,877       1,027,310  
 (b)
    26,549,150  
                      (625,877 )
 (c)
       
Accumulated deficit
    (34,249,384 )     (982,526 )     982,526  
 (c)
    (34,249,384 )
Total stockholders' equity (deficit)
    (6,992,836 )     (356,649 )     1,390,959         (5,958,526 )
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  $ 3,258,158     $ 47,387     $ 2,614,905       $ 5,920,450  
                                   
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.
 


 
-2-

 
 
Mobivity Holdings Corp.
 
Unaudited Pro Forma Condensed Consolidated Statement of Operations
 
For the three months ended March 31, 2013
 
                           
   
Mobivity
   
FDI
   
Pro forma adjustments
 
Pro forma combined
 
Revenues
                         
Revenues
  $ 1,027,993     $ 104,084     $ -       $ 1,132,077  
Cost of revenues
    284,622       37,260       -         321,882  
Gross margin
    743,371       66,824       -         810,195  
                                   
Operating expenses
                                 
General and administrative
    532,628       37,892       -         570,520  
Sales and marketing
    362,896       3,687       1,175,425  
(e)
    1,542,008  
Engineering, research, and development
    94,055       61,414       -         155,469  
Depreciation and amortization
    33,813       -       44,016  
(f)
    77,829  
Total operating expenses
    1,023,392       102,993       1,219,441         2,345,826  
                                   
Loss from operations
    (280,021 )     (36,169 )     (1,219,441 )       (1,535,631 )
                                   
Other income/(expense)
                                 
Interest income
    3       -       -         3  
Interest expense
    (1,447,359 )     (3,674 )     (92,408 )
(d))
    (1,543,441 )
Change in fair value of derivative liabilities
    (1,001,550 )     -       -         (1,001,550 )
Gain on adjustment in contingent consideration
    305,712       -       -         305,712  
Total other income/(expense)
    (2,143,194 )     (3,674 )     (92,408 )       (2,239,276 )
                                   
Loss before income taxes
    (2,423,215 )     (39,843 )     (1,311,849 )       (3,774,907 )
                                   
Income tax expense
    -       -       -         -  
                                   
Net loss
  $ (2,423,215 )   $ (39,843 )   $ (1,311,849 )     $ (3,774,907 )
                                   
Net loss per share - basic and diluted
  $ (0.10 )                     $ (0.12 )
                                   
Weighted average number of shares
                                 
    during the period - basic and diluted
    23,218,117                         30,218,117  
                                   
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.
 
 
 
-3-

 

Mobivity Holdings Corp.
 
Unaudited Pro Forma Condensed Consolidated Statement of Operations
 
For the year ended December 31, 2012
 
                           
   
Mobivity
   
FDI
   
Pro forma adjustments
     
Pro forma combined
 
Revenues
                         
Revenues
  $ 4,079,745     $ 347,797     $ -       $ 4,427,542  
Cost of revenues
    1,300,325       183,819       -         1,484,144  
Gross margin
    2,779,420       163,978       -         2,943,398  
                                   
Operating expenses
                                 
General and administrative
    2,984,531       155,568       -         3,140,099  
Sales and marketing
    1,562,520       45,292       1,541,050  
(e)
    3,148,862  
Engineering, research, and development
    562,459       199,953       -         762,412  
Depreciation and amortization
    549,151       -       -         549,151  
Goodwill impairment
    742,446       -       -         742,446  
Intangible asset impairment
    145,396       -       178,509  
(f)
    323,905  
Total operating expenses
    6,546,503       400,813       1,719,559         8,666,875  
                                   
Loss from operations
    (3,767,083 )     (236,835 )     (1,719,559 )       (5,723,477 )
                                   
Other income/(expense)
                                 
Interest income
    2,833       -       -         2,833  
Interest expense
    (4,559,564 )     (4,105 )     (234,115 )
(d)
    (4,797,784 )
Change in fair value of derivative liabilities
    359,530       -       -         359,530  
Gain on adjustment in contingent consideration
    625,357       -       -         625,357  
Total other income/(expense)
    (3,571,844 )     (4,105 )     (234,115 )       (3,810,064 )
                                   
Loss before income taxes
    (7,338,927 )     (240,940 )     (1,953,674 )       (9,533,541 )
                                   
Income tax expense
    -       -       -         -  
                                   
Net loss
  $ (7,338,927 )   $ (240,940 )   $ (1,953,674 )     $ (9,533,541 )
                                   
Net loss per share - basic and diluted
  $ (0.32 )                     $ (0.32 )
                                   
Weighted average number of shares
                                 
    during the period - basic and diluted
    23,069,669                         30,069,669  
                                   
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.
 


 
-4-

 

Mobivity Holdings Corp.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

Note 1.                      Basis of Presentation

The unaudited pro forma condensed consolidated statements of operations of Mobivity Holdings Corp. (the “Company”) for the three months ended March 31, 2013 and the year ended December 31, 2012 give effect to the acquisition of substantially all of the assets of Front Door Insights LLC (“FDI”) as if the transaction had been completed on the first day of each respective period. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2013 gives effect to the acquisition of substantially all of the assets of FDI as if the transaction had occurred on March 31, 2013.
 
The unaudited pro forma condensed consolidated statements of operations and unaudited pro forma condensed consolidated balance sheet were derived by adjusting the Company’s historical financial statements for the acquisition of substantially all of the assets of FDI. The unaudited pro forma condensed consolidated balance sheet and unaudited pro forma condensed consolidated statement of operations are provided for informational purposes only and should not be construed to be indicative of the Company’s financial position or results of operations had the transaction been consummated on the dates indicated and do not project the Company’s financial position or results of operations for any future period or date.
 
The unaudited pro forma condensed consolidated balance sheet and unaudited condensed consolidated statements of operations and accompanying notes should be read in conjunction with the Company’s historical financial statements and related notes, and the Company’s “Management’s Discussion and Analysis of Financial Condition and Results of Operation” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, and FDI’s financial statements presented herein.

Note 2.                      Purchase Price Allocation

The unaudited pro forma condensed consolidated financial statements reflect a purchase price of $2,499,406. The Company paid $100,000 of the purchase price in cash, paid $1,400,000 of the purchase price with the issuance of a non-interest bearing note payable, and paid the remainder of the purchase price through the issuance of 7,000,000 shares of the Company’s common stock valued at $0.17, which was the closing price per share of such common stock on May 20, 2013.

The purchase price allocation as of March 31, 2013 is as follows:

Cash
  $ 5,500  
Accounts receivable
    27,467  
Contracts
    813,000  
Customer relationships
    22,000  
Developed technology
    96,000  
Non-compete agreement
    124,000  
Goodwill
    1,574,325  
  Total assets acquired
    2,662,292  
Liabilities assumed
    (162,886 )
  Net assets acquired
  $ 2,499,406  

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired. Contracts are being amortized on a straight-line basis over seven years. Customer relationships are being amortized on a straight-line basis over twelve years. Developed technology is being amortized on a straight-line basis over five years. The non-compete agreement is being amortized on a straight-line basis over three years.
 
 
-5-

 

Note 3.                      Pro Forma Adjustments
 
The following pro forma adjustments are based upon the value of the tangible and intangible assets acquired as determined by an outside, independent valuation firm.

(a)  
Represents additional financing obtained by the Company to complete the acquisition transaction.
(b)  
Represents the purchase price and allocation of the purchase price to the assets and liabilities acquired in the transaction, as if the transaction had occurred March 31, 2013.
(c)  
Represents the elimination of FDI’s assets, liabilities and deficit not acquired in the transaction.
(d)  
Represents interest expense and note discount amortization for notes payable issued in conjunction with the transaction.
(e)  
Represents salary, bonus and stock based compensation for headcount added in conjunction with the transaction.
(f)  
Represents amortization of intangible assets for the period.
 
 
- 6 -