Inuvo Reports Q3 2024 Results: Net Loss and Growing Liabilities

TL;DR

Inuvo's liabilities ($140.5M) now exceed assets ($138M) and they posted a net loss last quarter. Uh oh.

AI Summary

Inuvo, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported total assets of $137,983,918 and total liabilities of $140,467,661 as of September 30, 2024. Revenue for the nine months ended September 30, 2024, was $48,715,800, with a net loss of $232,625 for the same period.

Why It Matters

The company's liabilities exceeding its assets and a net loss in the reported period could indicate financial strain and potential challenges in meeting its obligations.

Risk Assessment

Risk Level: high — The company's liabilities exceed its assets, and it reported a net loss, indicating significant financial risk.

Key Numbers

• $138.0B — Total Assets (As of September 30, 2024, indicating the company's resources.)
• $140.5B — Total Liabilities (As of September 30, 2024, showing the company's obligations.)
• $48.7M — Revenue (For the nine months ended September 30, 2024, reflecting sales performance.)
• $0.2M — Net Loss (For the nine months ended September 30, 2024, indicating profitability.)

Key Players & Entities

• Inuvo, Inc. (company) — Filer
• 2024-09-30 (date) — Reporting Period End Date
• $137,983,918 (dollar_amount) — Total Assets as of September 30, 2024
• $140,467,661 (dollar_amount) — Total Liabilities as of September 30, 2024
• $48,715,800 (dollar_amount) — Revenue for the nine months ended September 30, 2024
• $232,625 (dollar_amount) — Net Loss for the nine months ended September 30, 2024

FAQ

Filing Documents

• inuvo_10q.htm (10-Q) — 770KB
• inuvo_ex101.htm (EX-10.1) — 7KB
• inuvo_ex311.htm (EX-31.1) — 6KB
• inuvo_ex312.htm (EX-31.2) — 6KB
• inuvo_ex321.htm (EX-32.1) — 3KB
• inuvo_ex322.htm (EX-32.2) — 3KB
• inuvo_ex101img4.jpg (GRAPHIC) — 367KB
• inuvo_ex101img3.jpg (GRAPHIC) — 64KB
• inuvo_ex101img2.jpg (GRAPHIC) — 106KB
• inuvo_ex101img12.jpg (GRAPHIC) — 223KB
• inuvo_ex101img11.jpg (GRAPHIC) — 409KB
• inuvo_ex101img10.jpg (GRAPHIC) — 399KB
• inuvo_ex101img1.jpg (GRAPHIC) — 346KB
• inuvo_ex101img6.jpg (GRAPHIC) — 407KB
• inuvo_ex101img7.jpg (GRAPHIC) — 411KB
• inuvo_ex101img8.jpg (GRAPHIC) — 430KB
• inuvo_ex101img9.jpg (GRAPHIC) — 391KB
• inuvo_10qimg1.jpg (GRAPHIC) — 2KB
• inuvo_ex101img5.jpg (GRAPHIC) — 396KB
• 0001654954-24-013975.txt ( ) — 9393KB
• inuvo-20240930.xsd (EX-101.SCH) — 42KB
• inuvo-20240930_lab.xml (EX-101.LAB) — 276KB
• inuvo-20240930_cal.xml (EX-101.CAL) — 47KB
• inuvo-20240930_pre.xml (EX-101.PRE) — 216KB
• inuvo-20240930_def.xml (EX-101.DEF) — 95KB
• inuvo_10q_htm.xml (XML) — 511KB

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 September 30, 2024 (Unaudited) and December 31, 2023 September 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 2,586,821 $ 4,440,454 Accounts receivable, net of allowance for credit losses of $ 132,625 and $ 1,645,045 , respectively 8,782,460 9,226,956 Prepaid expenses and other current assets 882,550 1,076,121 Total current assets 12,251,831 14,743,531 Property and equipment, net 1,791,896 1,680,788 Other assets Goodwill 9,853,342 9,853,342 Intangible assets, net of accumulated amortization 4,012,249 4,664,791 Referral and support services agreement advance — 500,000 Right of use assets - operating lease 971,819 805,786 Right of use assets - finance lease 24,243 72,560 Other assets 78,345 53,346 Total other assets 14,939,998 15,949,825 Total assets $ 28,983,725 $ 32,374,144 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 7,088,597 $ 6,432,120 Accrued expenses and other current liabilities 8,316,652 7,926,479 Lease liability - operating lease 250,975 123,074 Lease liability - finance lease 23,321 50,801 Total current liabilities 15,679,545 14,532,474 Long-term liabilities Deferred tax liability 94,590 89,238 Lease liability - operating lease 805,731 751,821 Lease liability - finance lease 923 18,209 Other long-term liabilities — 216 Total long-term liabilities 901,244 859,484 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 140,467,661 and 137,983,918 , respectively. 140,467 137,983 Additional paid-in capital 185,612,822 184,291,414 Accumulated deficit ( 173,350,353 ) ( 167,447,211 ) Total stockholders' equity 12,402,936 16,

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 (collectively, "Agencies & Brands") 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

View Full Filing

View this 10-Q filing on SEC EDGAR