Inuvo, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Inuvo, Inc. filed its 2023 10-K, reporting $137.98M in assets and $120.14M in debt, with a net income of $9.85M.</b>

AI Summary

Inuvo, Inc. (INUV) filed a Annual Report (10-K) with the SEC on February 29, 2024. Inuvo, Inc. reported financial results for the fiscal year ending December 31, 2023. The company's total assets were $137,983,918 as of December 31, 2023. Total debt for Inuvo, Inc. was $120,137,124 as of December 31, 2023. Net income for the fiscal year 2023 was $9,853,342. Earnings per share (EPS) for fiscal year 2023 were $0.71.

Why It Matters

For investors and stakeholders tracking Inuvo, Inc., this filing contains several important signals. The filing provides a comprehensive overview of Inuvo's financial performance and position for the fiscal year 2023, including key balance sheet and income statement figures. Investors and stakeholders can use this report to assess the company's financial health, profitability, and strategic direction.

Risk Assessment

Risk Level: medium — Inuvo, Inc. shows moderate risk based on this filing. The company's debt-to-equity ratio, implied by total assets and total debt, suggests a significant leverage, which could pose financial risks if not managed effectively.

Analyst Insight

Monitor Inuvo's debt management strategies and revenue growth to assess its ability to service its debt obligations.

Financial Highlights

total Assets

137983918

total Debt

120137124

net Income

9853342

eps

0.71

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 137983918 — Total Assets (As of December 31, 2023)
• 120137124 — Total Debt (As of December 31, 2023)
• 9853342 — Net Income (For the fiscal year 2023)
• 0.71 — EPS (For the fiscal year 2023)

Key Players & Entities

• Inuvo, Inc. (company) — Filer name
• 7310 (industry_code) — Standard Industrial Classification
• NV (state) — State of Incorporation
• 501-205-8508 (phone) — Business Phone
• Hitachi Capital America Corp (company) — Mentioned in relation to debt covenants

FAQ

Industry Context

Inuvo, Inc. operates in the advertising services industry, providing technology and data solutions for advertisers and publishers.

Regulatory Implications

The filing is a standard Form 10-K, adhering to SEC regulations for annual financial reporting by public companies.

What Investors Should Do

1. Review the detailed financial statements in the 10-K for a deeper understanding of Inuvo's revenue streams and cost structure.
2. Analyze the company's debt covenants and any related agreements mentioned in the filing.
3. Compare Inuvo's 2023 performance against previous years to identify trends and assess growth.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-29: Filing Date — Date the 10-K was filed with the SEC.

Year-Over-Year Comparison

This 10-K filing provides the full annual financial picture for 2023, which would be compared against the previous year's 10-K for trend analysis.

Key Financial Figures

• $600 billion — with the potential to disrupt the over $600 billion dollars in annual worldwide digital med
• $10.3 million — rted an operating loss of approximately $10.3 million in 2023 as compared to an operating los
• $12.6 million — d to an operating loss of approximately $12.6 million in 2022. Though we have a credit facili
• $4.4 million — ecember 31, 2023, we have approximately $4.4 million in cash, cash equivalents and short-ter
• $211.1 thousand — securities. Our net working capital was $211.1 thousand. We have encountered recurring losses a
• $167.4 million — r 31, 2023, our accumulated deficit was $167.4 million. See Liquidity and Capital Resources un

Filing Documents

• inuvo_10k.htm (10-K) — 989KB
• inuvo_ex101.htm (EX-10.1) — 83KB
• inuvo_ex211.htm (EX-21.1) — 2KB
• inuvo_ex231.htm (EX-23.1) — 2KB
• inuvo_ex311.htm (EX-31.1) — 7KB
• inuvo_ex312.htm (EX-31.2) — 7KB
• inuvo_ex321.htm (EX-32.1) — 3KB
• inuvo_ex322.htm (EX-32.2) — 3KB
• inuvo_ex971.htm (EX-97.1) — 27KB
• inuvo_10kimg2.jpg (GRAPHIC) — 2KB
• inuvo_ex101img2.jpg (GRAPHIC) — 3KB
• 0001654954-24-002423.txt (&nbsp;) — 5348KB
• inuvo-20231231.xsd (EX-101.SCH) — 51KB
• inuvo-20231231_lab.xml (EX-101.LAB) — 364KB
• inuvo-20231231_cal.xml (EX-101.CAL) — 56KB
• inuvo-20231231_pre.xml (EX-101.PRE) — 280KB
• inuvo-20231231_def.xml (EX-101.DEF) — 133KB
• inuvo_10k_htm.xml (XML) — 743KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 16 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 22 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 22 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure. 22 Item 9A.

Controls and Procedures

Controls and Procedures. 22 Item 9B. Other Information. 23 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 23 Part III Item 10. Directors, Executive Officers and Corporate Governance. 24 Item 11.

Executive Compensation

Executive Compensation. 24 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 24 Item 13. Certain Relationships and Related Transactions, and Director Independence. 24 Item 14. Principal Accountants Fees and Services. 24 Part IV Item 15. Exhibits, Financial Statement Schedules. 25 Item 16. Form 10-K Summary 26 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "will," "should," "intend," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," or "continue," or the negative of such terms or other comparable terminology. This report includes, among others, statements regarding our risks associated with: a decline in general economic conditions; decreased market demand for our products and services; customer revenue concentration; risks associated with customer collections; seasonality impacts on financial results and cash availability; dependence on advertising suppliers; the ability to acquire traffic in a profitable manner; the ability to attract and retain talented employees; failure to keep pace with technological changes; interruptions within our information technology infrastructure; dependence on key personnel; regulatory and legal uncertainties; failure to comply with privacy and data security laws and regulations; third party infringement

BUSINESS

ITEM 1. BUSINESS. Company Overview Inuvo is an advertising technology and services business selling information technology solutions to brands, agencies and large consolidators of advertising demand ("Platforms"). Inuvo's revenue is derived from the placement of digital advertising throughout devices, websites, applications and browsers across social, search and programmatic advertising channels. Inuvo facilitates, and gets paid, to deliver millions of advertising messages monthly and counts among its client's numerous world-renowned companies across industries. Inuvo's primary mission is to disrupt the advertising industry with its proprietary and patented generative large language artificial intelligence (AI), a technology capable of identifying and targeting audiences without using a consumer's identity or data. The AI was designed to replace the consumer data, analytics, segmentation and lookalike modeling technologies that have traditionally served the advertising industry as it transitions to a new paradigm where a consumer's identity and data are no longer available for advertising decisions due to legislative and technological changes. Rather than targeting people, the AI targets the reasons behind why people are interested in products, services and brands. The advertising industry Inuvo serves is going through an unprecedented change the likes of which has never occurred with the potential to disrupt the over $600 billion dollars in annual worldwide digital media spend that supports the internet. The cornerstone of the change revolves around the use of a consumer's identity and data for ad-targeting. While there are many ways to identify consumers, the principal method that has evolved within the browsers has been the cookie, which is the location within the browser where a consumer's identity gets stored. When the cookie is no longer available, the means to lookup a consumer's personal information in a database is no longer possible. No Cookie. No D

RISK FACTORS

ITEM 1A. RISK FACTORS. An investment in our common stock involves a significant degree of risk. Many of the risk factors are, and will continue to be, exacerbated by any worsening of the economic environment. You should not invest in our common stock unless you can afford to lose your entire investment. You should consider carefully the following risk factors and other information in this report before deciding to invest in our common stock. If any of the following risks and uncertainties develops into actual events, our business, financial condition or results of operations could be materially adversely affected and you could lose your entire investment in our Company. 7 Table of Contents Business Risks We have a history of losses. We cannot anticipate with any degree of certainty what our revenues will be in future periods. While our revenues decreased approximately 2.2% in 2023 as compared to 2022, our gross profit margin increased to 85.8% in 2023 from 60.0% in 2022. We reported an operating loss of approximately $10.3 million in 2023 as compared to an operating loss of approximately $12.6 million in 2022. Though we have a credit facility dependent upon receivables, the negative cash flows generated from operating activities introduces potential risk of an interruption to operating activities. As of December 31, 2023, we have approximately $4.4 million in cash, cash equivalents and short-term marketable securities. Our net working capital was $211.1 thousand. We have encountered recurring losses and cash outflows from operations, which historically we have funded through equity offerings and debt facilities. In addition, our investment in internally developed software consists primarily of labor costs which are of a fixed nature. Through December 31, 2023, our accumulated deficit was $167.4 million. See Liquidity and Capital Resources under ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS for a more thorough

View Full Filing

View this 10-K filing on SEC EDGAR