Inuvo, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Inuvo, Inc. has filed its Q1 2024 10-Q report.</b>

AI Summary

Inuvo, Inc. (INUV) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Inuvo, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company is incorporated in Nevada. The filing was made on May 7, 2024. The SIC code for Inuvo, Inc. is 7310 (Services-Advertising).

Why It Matters

For investors and stakeholders tracking Inuvo, Inc., this filing contains several important signals. This filing provides a quarterly update on the company's financial performance and operational status. Investors and analysts can use this report to assess Inuvo's financial health and future prospects.

Risk Assessment

Risk Level: — Inuvo, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not appear to contain any immediately alarming information, suggesting a low level of immediate risk based on this document alone.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Inuvo's Q1 2024 performance and outlook.

Key Numbers

• 2024-03-31 — Period End Date (Conformed Period of Report)
• 2024-05-07 — Filing Date (Filed As Of Date)
• 7310 — SIC Code (Services-Advertising)
• 001-32442 — SEC File Number (SEC File Number)

Key Players & Entities

• Inuvo, Inc. (company) — Filer
• 0000829323 (company) — Central Index Key
• NV (company) — State of Incorporation
• 7310 (company) — Standard Industrial Classification
• 501-205-8508 (company) — Business Phone
• 001-32442 (company) — SEC File Number
• 24923107 (company) — Film Number
• 20240331 (date) — Period of Report

FAQ

Industry Context

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

Regulatory Implications

The filing is a standard Form 10-Q, which is a quarterly report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into business performance and outlook.
3. Check for any new risk factors or significant legal/regulatory disclosures.

Key Dates

• 2024-03-31: Quarter End — Period covered by the 10-Q filing
• 2024-05-07: Filing Date — Date the 10-Q was filed with the SEC

Year-Over-Year Comparison

This is the first 10-Q filing for Inuvo in 2024, providing an update from previous filings.

Key Financial Figures

• $169.6 million — h 31, 2024, our accumulated deficit was $169.6 million. Management plans to support the Compa

Filing Documents

• inuvo_10q.htm (10-Q) — 608KB
• inuvo_ex11.htm (EX-1.1) — 212KB
• inuvo_ex51.htm (EX-5.1) — 11KB
• inuvo_ex231.htm (EX-23.1) — 9KB
• inuvo_ex311.htm (EX-31.1) — 8KB
• inuvo_ex312.htm (EX-31.2) — 8KB
• inuvo_ex321.htm (EX-32.1) — 5KB
• inuvo_ex322.htm (EX-32.2) — 5KB
• inuvo_ex231img1.jpg (GRAPHIC) — 2KB
• inuvo_10qimg2.jpg (GRAPHIC) — 2KB
• inuvo_ex51img10.jpg (GRAPHIC) — 2KB
• 0001654954-24-005713.txt (&nbsp;) — 3890KB
• inuvo-20240331.xsd (EX-101.SCH) — 40KB
• inuvo-20240331_lab.xml (EX-101.LAB) — 270KB
• inuvo-20240331_cal.xml (EX-101.CAL) — 44KB
• inuvo-20240331_pre.xml (EX-101.PRE) — 210KB
• inuvo-20240331_def.xml (EX-101.DEF) — 92KB
• inuvo_10q_htm.xml (XML) — 437KB

Financial Statements

Financial Statements. 4 Consolidated Balance Sheets 4 Consolidated Statements of Operations and Comprehensive Loss 5 Consolidated Statements of Cash Flows 6 Consolidated Statements of Stockholders' Equity 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 21 Item 4.

Controls and Procedures

Controls and Procedures. 21 Part II Item 1. Legal Proceedings. 23 Item 1A. Risk Factors. 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 23 Item 3. Defaults upon Senior Securities. 23 Item 4. Mine Safety and Disclosures. 23 Item 5. Other Information. 23 Item 6. Exhibits. 25

Signatures

Signatures 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 claims; publishers fabricating fraudulent clicks; the ability to continue to meet the NYSE American listing standards; the impact of quarterly results on our common stock price; dilution to our stockholders upon the exercise of outstanding restricted stock unit grants and warrants; and our ability to identify, fi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INUVO, INC. CONSOLIDATED BALANCE SHEETS March 31, 2024 (Unaudited) and December 31, 2023 March 31, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 2,431,957 $ 4,440,454 Accounts receivable, net of allowance for credit losses of $ 487,158 and $ 1,645,045 , respectively. 8,710,358 9,226,956 Prepaid expenses and other current assets 1,018,876 1,076,121 Total current assets 12,161,191 14,743,531 Property and equipment, net 1,725,938 1,680,788 Other assets Goodwill 9,853,342 9,853,342 Intangible assets, net of accumulated amortization 4,418,666 4,664,791 Referral and support services agreement advance 425,000 500,000 Right of use assets - operating lease 1,084,113 805,786 Right of use assets - finance lease 53,911 72,560 Other assets 53,346 53,346 Total other assets 15,888,378 15,949,825 Total assets $ 29,775,507 $ 32,374,144 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 5,330,807 $ 6,432,120 Accrued expenses and other current liabilities 8,030,395 7,926,479 Lease liability - operating lease 233,919 123,074 Lease liability - finance lease 38,186 50,801 Total current liabilities 13,633,307 14,532,474 Long-term liabilities Deferred tax liability 89,238 89,238 Lease liability - operating lease 935,977 751,821 Lease liability - finance lease 12,118 18,209 Other long-term liabilities — 216 Total long-term liabilities 1,037,333 859,484 Stockholders' equity Preferred stock, $ 0.001 par value: Authorized shares 500,000 , none issued and outstanding — — Common stock, $ 0.001 par value: Authorized shares 200,000,000 ; issued and outstanding shares 139,428,784 and 137,983,918 , respectively. 139,428 137,983 Additional paid-in capital 184,524,308 184,291,414 Accumulated other comprehensive loss — — Accumulated deficit ( 169,558,869 ) ( 167,4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1 – Organization and 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. Inuvo's AI technology solves this challenge and can be consumed by clients both as a managed service and software-as-a-service. For certain clients, Inuvo has also developed various proprietary technology and assets that include digital content, websites, automated campaigns, ad fraud detection, performance reporting and predictive media mix modeling. The Inuvo products and services use analytics, data and artificial intelligence in a manner that optimizes the purchase and placement of advertising in real time. These capabilities are typically sold with services both individually and in combination with each other based on

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View this 10-Q filing on SEC EDGAR