Financial Data and Key Metrics Changes - Inuvo reported revenue of $12.6 million for Q2 2021, representing a 66% year-over-year increase and a 19% sequential increase [5][24] - Adjusted EBITDA for the quarter was a loss of $965,000, roughly flat sequentially [5] - Gross margins decreased to 82% in Q2 2021 from 86% in the same quarter last year, primarily due to a shift in the cost of revenue [26] Business Line Data and Key Metrics Changes - The development platform contributed $9.7 million in revenue, up 72% year-over-year [6] - IntentKey platform revenue was approximately $2.9 million, growing 50% year-over-year and 37% sequentially [8] - ValidClick revenue exceeded the prior year by 72% [24] Market Data and Key Metrics Changes - The number of campaigns launched in Q2 2021 was 84, with a 56% increase in prospective client presentations and a 70% increase in deals won compared to the same period in 2020 [9][10] - ValidClick served ads into roughly 100 million page views, hitting an all-time monthly high [23] Company Strategy and Development Direction - The company is focusing on enhancing its AI capabilities and differentiating its advertising solutions from competitors, particularly in light of the upcoming deprecation of third-party cookies [13][14] - Inuvo is actively looking for M&A opportunities to support growth objectives, focusing on companies with strong client portfolios rather than technology acquisition [53] Management's Comments on Operating Environment and Future Outlook - Management expects strong continuing year-over-year and sequential revenue growth for both product lines in Q3 2021, projecting a 45% to 55% increase year-over-year [36] - The company maintains a strong balance sheet with over $18 million in cash and no debt, indicating no immediate need for additional capital [36] Other Important Information - Operating expenses increased to $12.8 million in Q2 2021 from $7.8 million in the previous year, primarily due to higher marketing costs [27] - The company has been enhancing its internal systems and processes to improve efficiency and scalability [15][16] Q&A Session Summary Question: Can you quantify how many customers you ran campaigns for in Q2 2021? - The company ran 84 campaigns in Q2 2021, which is significantly higher than the previous year [40] Question: How many clients are there compared to last year? - The number of clients has approximately doubled compared to last year [41] Question: Describe the evolution of a new customer. - New customers typically start with a small campaign and gradually increase their budget after successful tests [42][43] Question: How should we think about the introduction of the SaaS model from a P&L perspective? - The SaaS model will coexist with fully managed services, with higher margins expected for the SaaS version [46] Question: Is the market still in recovery for ValidClick? - The market for ValidClick is recovering strongly, with growth trajectories indicating a return to pre-pandemic levels [47] Question: Discuss the M&A landscape and strategy. - The company is actively looking for M&A opportunities to enhance growth, focusing on client portfolios rather than technology [52]

Financial Performance - For the three months ended June 30, 2021, net revenue was $12,635,583, a 66.5% increase from $7,590,187 in the same period of 2020[93]. - ValidClick revenue increased by 72% year-over-year for the second quarter of 2021, while IntentKey revenue grew by approximately 50% due to new customer acquisitions[94]. - Gross profit for the three months ended June 30, 2021, was $10,371,563, reflecting a 59.1% increase from $6,520,159 in the same quarter of 2020[93]. - Operating expenses for the three months ended June 30, 2021, totaled $12,770,247, a 64.6% increase compared to $7,756,827 in the same period of 2020[96]. - Marketing costs (TAC) for the three months ended June 30, 2021, were $8,213,140, up 112.9% from $3,857,395 in the same quarter of 2020[96]. - The company reported a net cash used in operating activities of $2,465,545 for the six months ended June 30, 2021, compared to $2,336,029 for the same period in 2020[109]. - The net loss for the six months ended June 30, 2021, was $4,529,395, which included non-cash expenses of $1,552,386 for depreciation and amortization[110]. - Net cash provided by financing activities increased to $12,710,562 in the first half of 2021, up from $6,702,072 in the same period of 2020, primarily from the sale of common stock[113]. Workforce and Operations - The company has 76 employees as of June 30, 2021, compared to 70 in the same period of 2020, indicating growth in workforce to support the IntentKey platform[97]. - The company implemented temporary compensation changes for senior officers and employees in response to the financial impact of COVID-19[108]. Financing and Capital - The company raised approximately $14.3 million in January 2021 through securities offerings, contributing to a positive net working capital of $15.4 million as of June 30, 2021[90]. - The company entered into a Sales Agreement allowing for the potential sale of up to $35 million in common stock, although no shares were issued during the three months ended June 30, 2021[105]. - The company may need to fund operations through private or public sales of securities or debt financings if the IntentKey product growth plan is unsuccessful[107]. Cash Flow and Investments - Cash used in investing activities was $788,670 for the six months ended June 30, 2021, compared to $557,818 in 2020, mainly for marketable securities and internal development costs[112]. - The change in operating assets and liabilities resulted in cash used in operations of $24,844, primarily due to the purchase of marketable securities[110]. Market Conditions - The company experienced a significant reduction in advertiser marketing budgets due to COVID-19, adversely impacting overall revenue throughout 2020[108]. - As of June 30, 2021, the company had no off-balance sheet arrangements that could materially affect its financial condition[114]. Future Plans - The company plans to focus resources on growing its AI technology, the IntentKey, which is expected to have higher margins[106]. - Other income for the three months ended June 30, 2021, was approximately $25,000, primarily from unrealized gains on trading securities[101]. - Interest expense, net, for the three months ended June 30, 2021, was approximately $8,000, a decrease from $73,000 in the same period of 2020[99][100].

Financial Data and Key Metrics Changes - Inuvo reported revenue of approximately $10.6 million for Q1 2021, down 18% sequentially and from $14.9 million in Q1 2020, primarily due to seasonality and lower ValidClick revenue [8][30] - ValidClick revenue was $8.5 million, a decrease of 35% year-over-year, while IntentKey revenue grew 15% year-over-year to $2.1 million, representing 20% of overall revenue [9][31] - Gross margins improved to 86% from 77% year-over-year, with adjusted EBITDA showing a loss of $878,000, an improvement of 36% compared to the previous year [11][33][40] Business Line Data and Key Metrics Changes - ValidClick's performance is recovering, with a 9% compounded monthly growth rate since its low in May 2020, and expected to return to its pre-pandemic average monthly revenue run rate of approximately $4.4 million within 2021 [9][10][25] - The IntentKey platform has shown strong performance, exceeding client goals by 48% on average, with a growing client base and a strong pipeline [13][19] - IntentKey gross margins were 42% in Q1 2021, with expectations for improvement as the SaaS version develops [34] Market Data and Key Metrics Changes - The company anticipates a strong second quarter with year-over-year revenue growth exceeding 50%, driven by both IntentKey and ValidClick platforms [12][44] - The shift towards cookie-less advertising is expected to benefit Inuvo, as its AI-driven approach focuses on the reasons behind purchases rather than consumer identity [23][24] Company Strategy and Development Direction - Inuvo is positioning itself to capitalize on the disruption caused by the elimination of third-party cookies, emphasizing its unique AI capabilities that do not rely on third-party data [23][24] - The company plans to utilize its strong cash position of $17.8 million for working capital and potential acquisitions in 2021 [41][45] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter is typically the softest due to advertisers delaying budget allocations, but expects a strong recovery in the second half of the year [8][12] - The company is optimistic about the post-pandemic economy leading to larger media budgets and believes it is well-positioned to gain market share as competitors struggle with the cookie-less transition [19][44] Other Important Information - Inuvo completed two public offerings in January, raising $14.25 million to support working capital and sales force expansion [42] - The company has no debt and a simple capital structure, which supports its financial stability [41] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a conclusion to the conference call without a detailed Q&A segment [47][48]

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 March 31, 2021 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 (S ...

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 ...