Inuvo, Inc. (NYSE:INUV) Q4 2020 Earnings Conference Call February 11, 2021 4:30 PM ET Company Participants Valter Pinto - Managing Director, KCSA Strategic Communications Richard Howe - Executive Chairman & Chief Executive Officer Wallace Ruiz - Chief Financial Officer & Secretary Conference Call Participants Brian Kinstlinger - Alliance Global Partners Operator Good day and welcome to the Inuvo Inc.'s 2020 Year End and Fourth Quarter Financial Results Conference Call. Today's conference is being recorded. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________________ Commission file number: 001-32442 INUVO, INC. (Exact name of registrant as specified in its charter) Nevada 87-0450450 ...

Inuvo, Inc. (NYSE:INUV) Q3 2020 Earnings Conference Call November 9, 2020 4:30 PM ET Company Participants Valter Pinto - Managing Director, KCSA Strategic Communications Richard Howe - Executive Chairman & CEO Wallace Ruiz - CFO & Secretary Conference Call Participants Jacob Engel - Alliance Global Partners Operator Good day, everyone, and welcome to the Inuvo, Inc. Third Quarter Financial Results Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Valt ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Inuvo, Inc. FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to ______________________ Commission file number: 001-32442 | Title of each ...

Part I [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) Inuvo, Inc.'s unaudited Q2 2020 financial statements show reduced assets, significantly lower liabilities, and a narrowed net loss despite a 46% revenue drop, with cash boosted by financing activities [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to $29.3 million, while cash significantly increased to $4.2 million due to financing, and total liabilities decreased to $11.3 million Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $4,181,214 | $372,989 | | Accounts receivable, net | $3,256,697 | $7,529,785 | | Total current assets | $7,681,048 | $8,146,662 | | Total assets | $29,342,669 | $30,690,928 | | **Liabilities & Equity** | | | | Accounts payable | $3,674,697 | $7,520,567 | | Total current liabilities | $8,878,497 | $15,678,327 | | Total liabilities | $11,268,137 | $16,237,378 | | Total stockholders' equity | $18,074,532 | $14,453,550 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2020 net revenue declined 46% to $7.6 million, but an 81% cost of revenue reduction narrowed the net loss to $1.36 million Statement of Operations Summary (Unaudited) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net revenue | $7,590,187 | $14,047,907 | | Gross profit | $6,520,159 | $8,373,547 | | Operating loss | $(1,236,668) | $(2,103,785) | | Net loss | $(1,359,288) | $(1,954,993) | | Net loss per share (Basic & Diluted) | $(0.02) | $(0.06) | Six-Month Performance Comparison (Unaudited) | Metric | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net revenue | $22,523,170 | $29,512,476 | | Gross profit | $18,013,641 | $17,157,488 | | Operating loss | $(3,769,086) | $(4,049,470) | | Net loss | $(4,184,524) | $(4,417,386) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations increased to $2.3 million, while financing activities provided $6.7 million, leading to a $3.8 million net cash increase Cash Flow Summary for Six Months Ended June 30 (Unaudited) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,336,029) | $(709,846) | | Net cash used in investing activities | $(557,818) | $(581,839) | | Net cash provided by financing activities | $6,702,072 | $2,058,196 | | **Net change – cash** | **$3,808,225** | **$766,511** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's AI-driven business, COVID-19 liquidity challenges, revenue concentration with Yahoo! and Google, and a subsequent stock offering - The company's business is centered on its proprietary AI technology, the IntentKey, which predicts consumer intent for marketing purposes. It is protected by **17 issued and eight pending patents**[28](index=28&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk) - The company is facing liquidity pressure due to a **23.7% revenue decline** in the first six months of 2020. To address this, it raised capital through multiple stock sales in March, April, and June 2020, and obtained a **$1.1 million PPP loan**[38](index=38&type=chunk)[40](index=40&type=chunk)[43](index=43&type=chunk) Customer Revenue Concentration | Customer | Q2 2020 | Q2 2019 | | :--- | :--- | :--- | | Yahoo! | 36.7% | 69.7% | | Google | 25.0% | 11.3% | | **Total** | **61.7%** | **81.0%** | - The COVID-19 pandemic caused a significant reduction in marketing budgets from some clients, a decrease in traffic from supply partners, and lower monetization rates, leading to a significant reduction in the company's revenue run rate starting in late April 2020[51](index=51&type=chunk) Revenue by Platform (Six Months Ended June 30) | Platform | 2020 Revenue | 2020 % | 2019 Revenue | 2019 % | | :--- | :--- | :--- | :--- | :--- | | ValidClick | $18,726,715 | 83.1% | $26,265,946 | 89.0% | | IntentKey | $3,796,455 | 16.9% | $3,246,530 | 11.0% | | **Total** | **$22,523,170** | **100.0%** | **$29,512,476** | **100.0%** | - Subsequent to the quarter end, on July 27, 2020, the company closed an underwritten public offering of **21.5 million shares** at **$0.50 per share**, for gross proceeds of **$10.75 million**[113](index=113&type=chunk) - The company identified a potential compliance issue with a previous amendment to increase its authorized shares from **60 million to 100 million** and is seeking stockholder ratification to resolve any uncertainty[114](index=114&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes the 46% Q2 2020 revenue decline to COVID-19, primarily impacting ValidClick, while IntentKey grew 16% in H1, and gross profit increased 5% due to cost reductions Q2 and H1 2020 vs 2019 Performance | Metric | Q2 2020 vs Q2 2019 Change | H1 2020 vs H1 2019 Change | | :--- | :--- | :--- | | Net Revenue | -46.0% | -23.7% | | Cost of Revenue | -81.1% | -63.5% | | Gross Profit | -22.1% | +5.0% | - The decline in revenue was most pronounced in the ValidClick business, while the higher-margin IntentKey business saw revenue remain flat in Q2 and grow **16%** in H1 2020 compared to the prior year[130](index=130&type=chunk) - Marketing costs (TAC) decreased **40.9%** in Q2 2020 due to lower revenue and renegotiated partner payments. SG&A costs were down **19.5%** in Q2, primarily due to the absence of legal fees related to the terminated merger from the previous year[131](index=131&type=chunk)[134](index=134&type=chunk) - The company's liquidity strategy involves focusing resources on growing the AI-powered IntentKey platform. Despite negative working capital of **$1.2 million** as of June 30, 2020, the company raised approximately **$5.7 million** from security sales in Q2 and an additional **$10.8 million** in July 2020[122](index=122&type=chunk)[138](index=138&type=chunk) - In response to COVID-19, the company curtailed expenses, implemented a work-from-home policy, and temporarily reduced compensation for senior officers and employees with salaries over **$100,000**[124](index=124&type=chunk)[140](index=140&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is not applicable as the company qualifies as a smaller reporting company - The company has not provided this disclosure as it is not applicable to a smaller reporting company[149](index=149&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls were ineffective due to a material weakness in deferred tax asset accounting, with remedial actions underway - An error was identified in the accounting for the deferred tax asset valuation allowance, originating in 2012. While deemed not material to previously issued financial statements, it indicated a material weakness in internal controls[154](index=154&type=chunk) - As a result of the identified material weakness, the CEO and CFO concluded that disclosure controls and procedures were not effective as of the end of the reporting period[155](index=155&type=chunk) - The company has started to undertake remedial actions to ensure future tax provisions are accounted for correctly in accordance with ASC 740[155](index=155&type=chunk)[156](index=156&type=chunk) Part II [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings.) The company reported no legal proceedings during the period - There are no legal proceedings to report[159](index=159&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors.) Key risks include heavy reliance on Yahoo! and Google for revenue and the potential failure of stockholders to ratify an increase in authorized shares - The company relies heavily on two customers, Yahoo! and Google, which accounted for **36.7%** and **25.0%** of revenues, respectively, in Q2 2020. The loss of either customer would materially harm the business[161](index=161&type=chunk) - A potential defect in the 2019 amendment to increase authorized shares from **60 million to 100 million** requires stockholder ratification. Failure to obtain this ratification could invalidate past share issuances and limit future capital raising, posing a significant risk to liquidity[162](index=162&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company reported no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities to report for the period[163](index=163&type=chunk) [Defaults upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities.) The company reported no defaults upon senior securities - There were no defaults upon senior securities[164](index=164&type=chunk) [Mine Safety and Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20and%20Disclosures.) This section is not applicable to the company - This item is not applicable[166](index=166&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information.) The company reported no other information - There is no other information to report[167](index=167&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the quarterly report, including financing agreements, corporate governance documents, and certifications - Exhibits filed include agreements related to recent financing activities, corporate governance documents, and required SEC certifications[169](index=169&type=chunk)

Inuvo, Inc (NYSE:INUV) Q2 2020 Results Conference Call August 13, 2020 4:30 PM ET Company Participants Valter Pinto - Investor Relations Richard Howe - Chief Executive Officer Wallace Ruiz - Chief Financial Officer Conference Call Participants Brian Kinstlinger - Alliance Global Partners Ryan Meyers - Lake Street Capital Markets Operator Good day, and welcome to the Inuvo Inc 2020 Second Quarter Financial Results Conference Call. Today’s conference is being recorded. At this time, I would like to turn the c ...

FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to ______________________ Commission file number: 001-32442 Inuvo, Inc. (Exact name of registrant as specified in its charter) (State or other juri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________________ Commission file number: 001-32442 INUVO, INC. (Exact name of registrant as specified in its charter) Nevada 87-0450450 ...

Financial Data and Key Metrics Changes - For Q4 2019, the company reported revenue of $18.2 million, a sequential increase of 32% and a year-over-year increase of 7% [9] - Full year revenue was $61.5 million, down approximately 16% year-over-year [9] - Gross profit for Q4 increased by roughly 42%, while full year gross profit decreased by 11% [12] - Adjusted EBITDA for Q4 was $47,000, up from a loss of $1.2 million year-over-year; full year adjusted EBITDA was a loss of $2.3 million compared to a loss of $1.4 million year-over-year [13] Business Line Data and Key Metrics Changes - ValidClick revenue for Q4 was approximately $15.5 million, a year-over-year increase of about 4%; full year revenue was down roughly $11.2 million [11] - IntentKey revenue for Q4 was $2.7 million, with full year revenue at $8.5 million, showing significant growth [9][17] - IntentKey gross margins improved from 10% in January 2019 to 46% in December 2019 [17] Market Data and Key Metrics Changes - The company noted a modest reduction in Q1 2020 revenue expectations due to the impact of COVID-19, with a forecast of flat year-over-year performance [25] - The company experienced a reduction in costs associated with the IntentKey business due to increased website traffic during quarantine [24] Company Strategy and Development Direction - The company aims to improve gross margins and capitalize on growth opportunities within ValidClick [15] - IntentKey is expected to double its business year-over-year, with a focus on expanding its client base across various industries [20][18] - The company is taking a just-in-time approach to management in light of the economic contraction caused by COVID-19 [26] Management Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the long-term impacts of COVID-19 on the business, noting that it is too early to predict outcomes [22] - The company is proactively managing its balance sheet and exploring ways to reduce operating expenses [28] - Management indicated that marketing budgets typically decline during economic downturns, but the current situation is unprecedented [26] Other Important Information - The company closed a loan agreement providing a $5 million line of credit to enhance working capital [45] - Insider purchases of stock totaled approximately $688,000, indicating confidence from management and the board [27] Q&A Session Summary Question: Outlook for Q1 and impact of new clients - Management confirmed that the revised expectation for IntentKey revenue growth to 48% was due to two new clients pausing their campaigns [51][53] Question: ValidClick traffic issues - Management indicated that the impact on ValidClick was traffic-related, with publishers facing challenges due to workforce issues [54][56] Question: Operating expenses and hiring strategy - Management stated that hiring has been paused across the company, with a focus on assessing market conditions before proceeding [64] Question: Cash situation and share count - Management projected cash to remain relatively flat exiting Q1, with an estimated share count of about 57 million [67]

Financial Data and Key Metrics Changes - For Q3 2019, the company reported revenue of $13.8 million, a decrease from $14 million in Q2 2019 and $16.8 million in Q3 2018 [6][20] - For the nine months ended September 30, 2019, revenue was $43.3 million, down from $56.3 million in the same period of 2018 [6][20] - Gross margins for Q3 2019 were approximately 64%, compared to 63% in the same quarter last year [23] Business Line Data and Key Metrics Changes - ValidClick revenue streams generated $11.2 million in Q3 2019, down from approximately $12 million in Q2 2019 [10] - IntentKey revenue was $2.6 million in Q3 2019, representing a 30% sequential growth [13][22] - The publishing component of the business generated approximately $320,000 in revenue, which is being deemed less strategic [11] Market Data and Key Metrics Changes - ValidClick revenue for July, August, and September was $3.2 million, $3.7 million, and $4.3 million respectively, with unaudited October revenue around $5.2 million [12][34] - IntentKey's client base has been growing at roughly 20% month-over-month, with performance results averaging over 30% above client expectations [16] Company Strategy and Development Direction - The company aims to manage towards stable revenue sources that can deliver roughly $50 million annually with improving gross margins [9] - There is a focus on hiring sales professionals for the IntentKey business, with plans to hire 10 by June 2020 [14] - The company is exploring the potential sale of the publishing component of its business as resources shift towards IntentKey [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro-level trends in media, marketing, and data are favorable, as third-party data providers face increasing pressure [34] - The company expects to burn an average of $100,000 per month starting in January 2020 until Q3 2020, when gross margins from new IntentKey revenue are anticipated to outpace sales costs [32] Other Important Information - The company reported a net income of approximately $800,000 for Q3 2019, positively impacted by other income associated with the termination of a merger [8][29] - Cash and cash equivalents at September 30 were $714,000, with outstanding bank debt of $2.4 million [30] Q&A Session Summary Question: Guidance on IntentKey revenue - Management acknowledged a downward adjustment in guidance for IntentKey revenue due to a client pushing their budget to Q1 2020, but noted potential for higher revenues [36][38] Question: Sales hiring plans - The target number of IntentKey sales representatives was reduced from 14 to 10 based on reassessment of needs to meet 2020 goals [39][40] Question: Connected TV capabilities - The company confirmed that it has integrated Connected TV media inventory into its offerings through the IntentCloud, enhancing targeting capabilities for clients [42][43]