Inuvo, Inc. Q2 2024 10-Q: Assets $140.4M, Liabilities $137.9M

TL;DR

Inuvo's Q2 2024 10-Q shows $140.4M assets vs $137.9M liabilities, plus a new credit deal.

AI Summary

Inuvo, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $140.4 million and total liabilities of $137.9 million. A significant event disclosed is a subsequent event related to a loan and security credit agreement with SLR Digital Finance LLC, effective July 1, 2024, and finalized on July 30, 2024.

Why It Matters

This filing provides a snapshot of Inuvo's financial health, highlighting its asset and liability position, and details a recent credit agreement which could impact future operations and financing.

Risk Assessment

Risk Level: medium — The company has a narrow margin between assets and liabilities, and the disclosure of a new credit agreement suggests potential reliance on debt financing.

Key Numbers

• $140.4B — Total Assets (As of June 30, 2024, indicating the company's total resources.)
• $137.9B — Total Liabilities (As of June 30, 2024, representing the company's total obligations.)
• $2.45M — Net Assets (Calculated as Total Assets ($140.4M) minus Total Liabilities ($137.9M), showing a small positive equity.)

Key Players & Entities

• Inuvo, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• $140,434,327 (dollar_amount) — Total assets as of June 30, 2024
• $137,983,918 (dollar_amount) — Total liabilities as of June 30, 2024
• SLR Digital Finance LLC (company) — Party to a loan and security credit agreement
• 2024-07-01 (date) — Effective date of the credit agreement
• 2024-07-30 (date) — Finalization date of the credit agreement

FAQ

Key Financial Figures

• $0.001 — l shares of our common stock, par value $0.001 per share, (the "Shares"), having an ag

Filing Documents

• inuvo_10q.htm (10-Q) — 708KB
• inuvo_ex311.htm (EX-31.1) — 7KB
• inuvo_ex312.htm (EX-31.2) — 7KB
• inuvo_ex321.htm (EX-32.1) — 4KB
• inuvo_ex322.htm (EX-32.2) — 4KB
• inuvo_10qimg2.jpg (GRAPHIC) — 2KB
• 0001654954-24-010179.txt ( ) — 3849KB
• inuvo-20240630.xsd (EX-101.SCH) — 41KB
• inuvo-20240630_lab.xml (EX-101.LAB) — 274KB
• inuvo-20240630_cal.xml (EX-101.CAL) — 47KB
• inuvo-20240630_pre.xml (EX-101.PRE) — 220KB
• inuvo-20240630_def.xml (EX-101.DEF) — 102KB
• inuvo_10q_htm.xml (XML) — 490KB

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. 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 22 Item 4.

Controls and Procedures

Controls and Procedures. 22 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. 24

Signatures

Signatures 25 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; 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 who could fabricate 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, finance, complete and successfully integrate futur

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INUVO, INC. CONSOLIDATED BALANCE SHEETS June 30, 2024 (Unaudited) and December 31, 2023 June 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 2,011,904 $ 4,440,454 Accounts receivable, net of allowance for doubtful accounts of $ 232,625 and $ 1,645,045 , respectively. 8,081,326 9,226,956 Prepaid expenses and other current assets 1,038,038 1,076,121 Total current assets 11,131,268 14,743,531 Property and equipment, net 1,756,989 1,680,788 Other assets Goodwill 9,853,342 9,853,342 Intangible assets, net of accumulated amortization 4,172,541 4,664,791 Referral and support services agreement advance 350,000 500,000 Right of use assets - operating lease 1,029,164 805,786 Right of use assets - finance lease 36,449 72,560 Other assets 128,345 53,346 Total other assets 15,569,841 15,949,825 Total assets $ 28,458,098 $ 32,374,144 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 6,075,889 $ 6,432,120 Accrued expenses and other current liabilities 7,600,672 7,926,479 Lease liability - operating lease 242,324 123,074 Lease liability - finance lease 27,372 50,801 Total current liabilities 13,946,257 14,532,474 Long-term liabilities Deferred tax liability 94,589 89,238 Lease liability - operating lease 871,710 751,821 Lease liability - finance lease 5,972 18,209 Other long-term liabilities — 216 Total long-term liabilities 972,271 859,484 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 140,434,327 and 137,983,918 , respectively. 140,434 137,983 Additional paid-in capital 184,705,196 184,291,414 Accumulated deficit ( 171,306,060 ) ( 167,447,211 ) Total stockholders' equity 13,53

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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