INUVO. Safe Harbor Statement / Non-Disclosure INUV (NYSE American) Investment Highlights Proven Client Performance The demand for Advertising Technology not dependent on identity and consumer data has fueled the 26% YOY growth in 2022. Balance Sheet Using Generative Artificial Intelligence based on a large language model to redefine how audiences are discovered & actioned for a privacy-first future. | --- | --- | --- | --- | |---------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Inuvo reported revenue of $16.7 million for Q2 2023, a decrease of $6 million from $22.7 million in Q2 2022, primarily due to the loss of a direct customer in the previous year [27] - Gross profit for Q2 2023 was $14.3 million, compared to $13.4 million in the same period last year, with a gross margin of 86% [28] - The company experienced a net loss of $3.4 million or $0.03 per basic share, compared to a net loss of $3.2 million or $0.03 per basic share in the same quarter last year [50] Business Line Data and Key Metrics Changes - Revenue mix shifted significantly, with 80% of revenue coming from indirect customers in Q2 2023, compared to 46% in the same quarter last year [27] - The company delivered approximately 80 revenue-generating campaigns, with 20 being new in the quarter, and performance against client KPIs remained strong [23] Market Data and Key Metrics Changes - The company added 10 new advertisers across various industries, including financial services, entertainment, government, and travel [43] - The advertising market continues to face pressure, but the demand for solutions addressing privacy concerns is expected to create ongoing opportunities for Inuvo [34] Company Strategy and Development Direction - Inuvo plans to continue investing in sales and marketing to capitalize on changing market demands driven by privacy concerns [32] - The company is focused on enhancing its technology and services to scale effectively, with a particular emphasis on AI capabilities [46] - The appointment of a new President, Barry Lowenthal, is aimed at strengthening the go-to-market strategy and execution [81] Management's Comments on Operating Environment and Future Outlook - Management indicated that trends in July and August showed improvement in revenue and adjusted EBITDA, suggesting a potential return to year-over-year growth in Q3 2023 [21][52] - The company is confident in its client retention rate, which is reportedly above 80%, and believes that its technology works effectively when clients are educated on its use [9] Other Important Information - Inuvo raised $4 million in gross proceeds during the quarter, strengthening its balance sheet with approximately $5 million in cash and no debt [41] - The company has adopted AI-based tools to enhance content and ad copy scalability, reducing resource requirements for delivering these capabilities [79] Q&A Session Summary Question: Can you provide details on the new and returning clients? - Management confirmed the addition of 10 new clients and two returning clients, with the returning clients citing the insights generated by AI as a key reason for their return [80][67] Question: How long does it take for new sales associates to achieve productivity? - It typically takes three months for training, with productivity expected to begin in the three to six-month period [6][7] Question: How is the advertising market pressure affecting sales cycles? - Sales cycles for direct clients are longer, while indirect clients typically take three to six months to close [55]

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) This section details Inuvo, Inc.'s unaudited consolidated financial statements for Q2 and the first half of 2023, along with management's discussion and analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Inuvo, Inc.'s unaudited consolidated financial statements as of June 30, 2023, and for the three and six-month periods then ended [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets were **$34.3 million**, total liabilities **$14.8 million**, and stockholders' equity **$19.5 million**, with cash increasing to **$5.0 million** Key Balance Sheet Items (as of June 30, 2023 vs. Dec 31, 2022) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,045,112 | $2,931,415 | | Total Current Assets | $16,669,371 | $16,379,748 | | Total Assets | $34,284,799 | $35,557,310 | | Total Current Liabilities | $14,627,917 | $13,595,786 | | Total Liabilities | $14,782,147 | $13,807,994 | | Total Stockholders' Equity | $19,502,652 | $21,749,316 | [Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2023 net revenue decreased **26.5%** year-over-year to **$16.7 million**, but gross profit rose **6.8%** to **$14.3 million**, resulting in a net loss of **$3.4 million** Q2 2023 vs Q2 2022 Performance | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Revenue | $16,651,405 | $22,651,305 | | Gross Profit | $14,282,865 | $13,377,716 | | Operating Loss | ($3,339,052) | ($2,837,820) | | Net Loss | ($3,377,238) | ($3,229,927) | | Net Loss Per Share | ($0.03) | ($0.03) | Six Months 2023 vs 2022 Performance | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Revenue | $28,498,845 | $41,260,672 | | Gross Profit | $22,939,742 | $23,325,577 | | Operating Loss | ($6,774,455) | ($4,943,786) | | Net Loss | ($6,817,343) | ($5,319,190) | | Net Loss Per Share | ($0.05) | ($0.04) | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2023, operating activities used **$2.8 million**, investing activities provided **$1.5 million**, and financing activities provided **$3.5 million**, leading to a **$2.1 million** cash increase Cash Flow Summary (Six Months Ended June 30) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,833,853) | ($2,568,984) | | Net cash provided by (used in) investing activities | $1,452,445 | ($1,355,652) | | Net cash provided by/(used in) financing activities | $3,495,105 | ($178,258) | | Net change in cash | $2,113,697 | ($4,102,894) | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to **$19.5 million** by June 30, 2023, primarily due to a **$6.8 million** net loss, partially offset by a **$3.7 million** capital raise - In Q2 2023, the company executed a capital raise, issuing **16,000,000 shares** for net proceeds of **$3,665,000**[27](index=27&type=chunk) [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's business, liquidity, accounting policies, and significant customer concentration, with three customers accounting for **78.6%** of Q2 2023 revenue - Inuvo is a technology company whose solutions, including the proprietary AI branded **IntentKey**, predictively identify and message online audiences for marketing and advertising[31](index=31&type=chunk)[32](index=32&type=chunk) - The company has a history of recurring losses and cash outflows, with an accumulated deficit of **$163.9 million** as of June 30, 2023, relying on equity offerings and debt facilities for liquidity[35](index=35&type=chunk) - In May 2023, the company raised **$4.0 million** in gross proceeds through a registered direct offering of **16,000,000 shares** of common stock[36](index=36&type=chunk) - For Q2 2023, three customers accounted for **78.6% of total revenue** (at **54.0%**, **16.9%**, and **7.7%** respectively), indicating significant customer concentration risk[41](index=41&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the **26.5%** quarterly revenue decline due to a lost customer, improved gross margin to **85.8%**, and liquidity reliance on a recent **$4.0 million** stock sale and credit facility [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Q2 2023 net revenue decreased **26.5%** year-over-year due to a lost customer, while gross margin improved to **85.8%** from a favorable revenue mix, despite rising operating expenses - The decline in revenue for Q2 and the first six months of 2023 was primarily attributable to the **loss of a Direct Customer** in the fourth quarter of 2022[80](index=80&type=chunk) - Gross margin improved significantly in Q2 2023 to **85.8%** from **59.1%** in Q2 2022, due to a change in revenue mix towards higher-margin Indirect Customers[81](index=81&type=chunk) - Marketing costs increased by **9.7%** in Q2 2023 compared to Q2 2022, driven by higher revenue from Indirect Customers which require more traffic acquisition spending[81](index=81&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company had **$5 million** in cash and **$2 million** in net working capital, relying on equity offerings and a credit facility for operations - As of June 30, 2023, the company held approximately **$5 million in cash and cash equivalents** and had net working capital of about **$2 million**[87](index=87&type=chunk) - Principal sources of liquidity are sales of common stock and a credit facility, with the company raising **$4.0 million** in gross proceeds from a stock sale on May 30, 2023[88](index=88&type=chunk) - Management believes the current cash position and credit facility will be sufficient to sustain operations for at least the next twelve months from the filing date[92](index=92&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a smaller reporting company, Inuvo is exempt from providing quantitative and qualitative disclosures about market risk - Not applicable to a smaller reporting company[101](index=101&type=chunk) [Item 4. Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes in internal control over financial reporting - As of June 30, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective**[104](index=104&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[106](index=106&type=chunk) [Part II - Other Information](index=23&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) This section covers other required disclosures, including legal proceedings, updated risk factors, and various corporate exhibits and certifications [Item 1. Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings.) The company reported no material pending legal proceedings during the period - None[108](index=108&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors.) This section updates risk factors, emphasizing significant customer concentration, with three customers accounting for **54.0%**, **16.9%**, and **7.7%** of Q2 2023 revenues - The company emphasizes its reliance on three customers for a significant portion of its revenue, which accounted for **54.0%**, **16.9%**, and **7.7% of revenues** in Q2 2023[110](index=110&type=chunk) - The loss of any of these major customers or their failure to pay on time would likely cause a significant decline in revenue and materially harm business operations and financial condition[110](index=110&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=23&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 - None[111](index=111&type=chunk) [Item 3. Defaults upon Senior Securities](index=23&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities.) The company reported no defaults upon senior securities during the period - None[112](index=112&type=chunk) [Item 4. Mine Safety and Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20and%20Disclosures.) This item is not applicable to the company's operations - Not applicable[113](index=113&type=chunk) [Item 5. Other Information](index=23&type=section&id=Item%205.%20Other%20Information.) The company reported no other information under this item - None[114](index=114&type=chunk) [Item 6. Exhibits](index=24&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the report, including corporate documents, service agreements, a securities purchase agreement, and officer certifications - Lists various corporate documents, amendments to service agreements with Google and Yahoo, a securities purchase agreement, and officer certifications required by the Sarbanes-Oxley Act[115](index=115&type=chunk)[116](index=116&type=chunk) [Signatures](index=25&type=section&id=Signatures) The report was duly signed and authorized by the Chief Executive Officer and Chief Financial Officer on August 10, 2023 - The report was signed on **August 10, 2023**, by Richard K. Howe (CEO) and Wallace D. Ruiz (CFO)[120](index=120&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices) (Zip Code) For the quarterly period ended March 31, 2023 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 registra ...

Inuvo, Inc. (NYSE:INUV) Q4 2022 Results Conference Call March 9, 2023 4:15 PM ET Company Participants Natalya Rudman - IR Richard Howe - CEO Wally Ruiz - CFO Conference Call Participants Jack Vander Aarde - Maxim Group Operator Greetings, and welcome to the Inuvo, Inc. Fourth Quarter and Full Year 2022 financial results. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is ...

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, 2022 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 2022 Results Conference Call November 15, 2022 10:00 AM ET Company Participants Natalya Rudman - Crescendo Communications Richard Howe - CEO Wallace Ruiz - CFO Conference Call Participants Jack Codera - Maxim Group Operator Good day, ladies and gentlemen, and welcome to the INUVO, Inc. Third Quarter 2022 Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Natalya Rudman. Please go ahead. Natalya Rudman Tha ...

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to ______________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 September 30, 2022 OR 500 President Clinton Ave., Suite 300 Little Rock, AR 72201 (Address of principal executive offices) (Zip Code) (501) ...

For the quarterly period ended June 30, 2022 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ 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 (St ...

Inuvo, Inc. (NYSE:INUV) Q2 2022 Earnings Conference Call August 15, 2022 10:00 AM ET Company Participants Natalya Rudman - Crescendo Communications Richard Howe - CEO Wallace Ruiz - CFO Conference Call Participants Brian Kinstlinger - Alliance Global Partners Jack Vander Aarde - Maxim Operator Good day, everyone, and welcome to the Inuvo, Incorporated Second Quarter 2022 Financial Results Conference Call. Today's call is being recorded. And now at this time, I'd like to turn the call over to Natalya Rudman ...