Inuvo (INUV) 10-Q8 Nov 242024 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 01, 2024
Cover [Abstract]
Entity Registrant Name	Inuvo, Inc.
Entity Central Index Key	0000829323
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		140,499,799
Entity File Number	001-32442
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	87-0450450
Entity Address Address Line 1	500 President Clinton Ave
Entity Address Address Line 2	Suite 300
Entity Address City Or Town	Little Rock
Entity Address State Or Province	AR
Entity Address Postal Zip Code	72201
City Area Code	501
Local Phone Number	205-8508
Security 12b Title	Common stock
Trading Symbol	INUV
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2024	Dec. 31, 2023
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	0	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
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	0	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	0	0
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	16,982,186
Total liabilities and stockholders' equity	$ 28,983,725	$ 32,374,144

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 132,625	$ 1,645,045
Preferred stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	200,000,000	200,000,000
Common stock shares issued (in shares)	140,467,661	137,983,918
Common stock shares outstanding (in shares)	140,467,661	137,983,918

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
Net revenue	$ 22,371,153	$ 24,570,588	$ 57,603,935	$ 53,069,433
Cost of revenue	2,594,642	2,274,626	7,599,872	7,833,729
Gross profit	19,776,511	22,295,962	50,004,063	45,235,704
Operating expenses
Marketing costs	17,006,131	17,625,806	42,540,355	36,769,972
Compensation	3,106,384	3,525,943	9,362,474	10,202,200
General and administrative	1,607,258	2,335,295	3,835,162	6,229,069
Total operating expenses	21,719,773	23,487,044	55,737,991	53,201,241
Operating loss	(1,943,262)	(1,191,082)	(5,733,928)	(7,965,537)
Financing (expense), net of interest income	(101,031)	19,852	(163,862)	(37,454)
Other income	0	250	0	14,668
Income tax expense	0	0	(5,352)	0
Net loss	(2,044,293)	(1,170,980)	(5,903,142)	(7,988,323)
Other comprehensive income
Unrealized loss on marketable securities	0	0	0	84,868
Comprehensive loss	$ (2,044,293)	$ (1,170,980)	$ (5,903,142)	$ (7,903,455)
Per common share data
Basic and diluted: Net loss	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.06)
Weighted average shares
Basic	140,454,840	127,381,051	139,791,180	128,793,522
Diluted	140,454,840	127,381,051	139,791,180	128,793,522

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net loss	$ (5,903,142)	$ (7,988,323)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,951,196	1,984,139
Depreciation-Right of Use Assets - Financing	48,317	77,790
Stock based compensation	1,087,533	1,471,683
Derecognition of contingency and grant	(35,000)	0
Amortization of financing fees	20,000	5,833
Impairment and amortization of referral and support services agreement advance	800,000	225,000
Adjustment to expected losses on accounts receivable	(1,454,533)	747,772
Deferred income tax expense	5,352	0
Loss (gain) on marketable securities	0	(14,418)
Stock warrant expense	0	(8,130)
Change in operating assets and liabilities:
Accounts receivable	1,899,029	212,393
Right of use assets - operating lease	169,253	0
Prepaid expenses and other current assets, and other assets	(131,428)	(172,679)
Accrued expenses and other liabilities	940,076	3,279,560
Accounts payable	656,477	(278,336)
Lease liability - operating lease	(153,475)	0
Net cash used in operating activities	(100,345)	(457,716)
Investing activities:
Purchases of equipment and capitalized development costs	(1,409,762)	(1,259,217)
Proceeds from the sale of marketable securities	0	2,288,873
Net cash provided by (used in) investing activities	(1,409,762)	1,029,656
Financing activities:
Gross proceeds from line of credit	0	592,868
Repayments on line of credit	0	(592,868)
Principal payments on finance lease obligations	(44,766)	(84,138)
Proceeds from at-the-market sales	0	61,136
Capital raise, net of issuance costs	0	3,665,000
Net taxes paid on restricted stock unit grants exercised	(298,760)	(166,872)
Net cash provided by/(used in) financing activities	(343,526)	3,475,126
Net change - cash	(1,853,633)	4,047,066
Cash and cash equivalent, beginning of year	4,440,454	2,931,415
Cash and cash equivalent, end of period	2,586,821	6,978,481
Supplemental information:
Interest paid	221,534	85,488
Acquisition of right of use asset for operating lease liability	$ 335,286	$ 1,105,148
Issuance of restricted stock units for accrued incentive liability	535,119	0

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance, shares at Dec. 31, 2022		120,137,124
Balance, amount at Dec. 31, 2022	$ 21,749,316	$ 120,138	$ 178,771,604	$ (157,057,558)	$ (84,868)
Net loss	(3,440,105)			(3,440,105)
Unrealized gain on debt securities	84,868				84,868
Stock-based compensation	432,084		432,084
Stock issued for vested restricted stock units, shares		1,503,238
Stock issued for vested restricted stock units, amount	0	$ 1,503	(1,503)
Shares withheld for taxes on vested restricted stock	(166,872)		(166,872)
Reversal of expense related to a change in warrant vesting	(9,874)		(9,874)
Balance, shares at Mar. 31, 2023		121,640,362
Balance, amount at Mar. 31, 2023	18,649,417	$ 121,641	179,025,439	(160,497,663)	0
Balance, shares at Dec. 31, 2022		120,137,124
Balance, amount at Dec. 31, 2022	21,749,316	$ 120,138	178,771,604	(157,057,558)	(84,868)
Net loss	(7,988,323)
Unrealized gain on debt securities	84,868
Stock-based compensation	1,471,683
Balance, shares at Sep. 30, 2023		137,983,918
Balance, amount at Sep. 30, 2023	18,868,678	$ 137,983	183,776,576	(165,045,881)	0
Balance, shares at Mar. 31, 2023		121,640,362
Balance, amount at Mar. 31, 2023	18,649,417	$ 121,641	179,025,439	(160,497,663)	0
Net loss	3,377,238			(3,377,238)
Unrealized gain on debt securities	0
Stock-based compensation	503,061		503,061
Stock issued for vested restricted stock units, shares		3,333
Stock issued for vested restricted stock units, amount	0	$ 3	(3)
Stock warrants issued for referral agreement	1,276		1,276
Capital raise, net of issuance costs, shares		16,000,000
Capital raise, net of issuance costs, amount	3,665,000	$ 16,000	3,649,000
AGP Closing at-the-market sale, shares		173,558
AGP Closing at-the-market sale, amount	61,136	$ 1,174	60,962
Balance, shares at Jun. 30, 2023		137,817,253
Balance, amount at Jun. 30, 2023	19,502,652	$ 137,818	183,239,735	(163,874,901)	0
Net loss	(1,170,980)			(1,170,980)
Unrealized gain on debt securities	0
Stock-based compensation	536,538		536,538
Stock issued for vested restricted stock units, shares		166,665
Stock issued for vested restricted stock units, amount	0	$ 165	(165)
Stock warrants issued for referral agreement	468		468
Balance, shares at Sep. 30, 2023		137,983,918
Balance, amount at Sep. 30, 2023	18,868,678	$ 137,983	183,776,576	(165,045,881)	$ 0
Balance, shares at Dec. 31, 2023		137,983,918
Balance, amount at Dec. 31, 2023	16,982,186	$ 137,983	184,291,414	(167,447,211)
Net loss	(2,111,658)			(2,111,658)
Stock-based compensation	396,312		396,312
Stock issued for vested restricted stock units, shares		1,444,866
Stock issued for vested restricted stock units, amount	0	$ 1,445	(1,445)
Shares withheld for taxes on vested restricted stock	(161,973)		(161,973)
Balance, shares at Mar. 31, 2024		139,428,784
Balance, amount at Mar. 31, 2024	15,104,867	$ 139,428	184,524,308	(169,558,869)
Balance, shares at Dec. 31, 2023		137,983,918
Balance, amount at Dec. 31, 2023	16,982,186	$ 137,983	184,291,414	(167,447,211)
Net loss	(5,903,142)
Unrealized gain on debt securities	0
Stock-based compensation	1,087,533
Balance, shares at Sep. 30, 2024		140,467,661
Balance, amount at Sep. 30, 2024	12,402,936	$ 140,467	185,612,822	(173,350,353)
Balance, shares at Mar. 31, 2024		139,428,784
Balance, amount at Mar. 31, 2024	15,104,867	$ 139,428	184,524,308	(169,558,869)
Net loss	(1,747,191)			(1,747,191)
Stock-based compensation	318,681		318,681
Stock issued for vested restricted stock units, shares		1,005,543
Stock issued for vested restricted stock units, amount	0	$ 1,006	(1,006)
Shares withheld for taxes on vested restricted stock	(136,787)		(136,787)
Balance, shares at Jun. 30, 2024		140,434,327
Balance, amount at Jun. 30, 2024	13,539,570	$ 140,434	184,705,196	(171,306,060)
Net loss	(2,044,293)			(2,044,293)
Unrealized gain on debt securities	0
Stock-based compensation	372,540		372,540
Stock issued for vested restricted stock units, shares		33,334
Stock issued for vested restricted stock units, amount	0	$ 33	(33)
Issuance of restricted stock units	535,119		535,119
Balance, shares at Sep. 30, 2024		140,467,661
Balance, amount at Sep. 30, 2024	$ 12,402,936	$ 140,467	$ 185,612,822	$ (173,350,353)

Organization and Business

Organization and Business	9 Months Ended
Organization and Business	Sep. 30, 2024
Organization and Business
Organization and Business	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 combination with each other based on client needs. These products and services include: · IntentKey · Bonfire There are many barriers to entry associated with the Inuvo business model, including a proficiency in large language model based artificial intelligence, large scale information processing, software development, consumer data products, analytics, IOT (internet of things) integration and the relationships required to execute within the IOT. Inuvo’s intellectual property is protected by 19 issued and six pending patents. Liquidity Our principal sources of liquidity are the sale of our common stock and our credit facility discussed in Note 5 - Bank Debt of our Consolidated Financial Statements. On May 30, 2023, we raised $4.0 million in gross proceeds in a registered direct offering, before expenses, through the sale of an aggregate of 16,000,000 shares of our common stock. The shares were offered pursuant to an effective shelf registration statement on Form S-3 (the “Shelf Registration Statement”) and a prospectus supplement relating to the offering was filed with the SEC on May 26, 2023. On May 7, 2024, we entered into an At The Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright & Co. LLC (“Wainwright”), to sell shares of our common stock, par value $0.001 per share, (the “Shares”), having an aggregate sales price of up to $15,000,000, from time to time, through an “at the market offering” program under which Wainwright will act as sales agent. The sales, if any, of the Shares made under the ATM Agreement will be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended. The Company will pay Wainwright a commission rate of up to 3.0% of the aggregate gross proceeds from each sale of Shares. For the nine-month period ended September 30, 2024, the Company has not sold any shares of common stock under the ATM Agreement. On July 31, 2024, we entered into a Financing and Security Agreement (the "Financing Agreement”) with SLR Digital Finance LLC ("SLR”), effective July 30, 2024. Pursuant to the terms of the Financing Agreement, SLR will finance up to $10 million dependent upon eligible receivables. See Note 5 – Bank Debt of our Consolidated Financial Statements. We have focused our resources behind a plan to market our collective multi-channel advertising capabilities differentiated by our AI technology, the IntentKey, where we have a technological advantage and higher margins. If we are successful in implementing our plan, we expect to return to positive cash flows from operations. However, there is no assurance that we will be able to achieve this objective. As of September 30, 2024, we have approximately $2.6 million in cash and cash equivalents. Our net working capital deficit was $3.4 million. We have encountered recurring losses and cash outflows from operations, which historically we have funded through equity offerings and debt facilities. In addition, our investment in internally developed software, which was $1,347,550 for the nine months ended September 30, 2024, consists primarily of labor costs which are of a fixed nature. Through September 30, 2024, our accumulated deficit was $173.4 million. Management plans to support the Company’s future operations and capital expenditures primarily through cash generated from its credit facility until such time as we reach profitability. The credit facility is due upon demand and therefore there can be no assurances that sufficient borrowings will be available to support future operations until profitability is reached. Our collection period is less than 30 days and can also be used to meet accrued obligations. We believe our current cash position and credit facility will be sufficient to sustain operations for at least the next twelve months from the date of this filing. If our plan to grow the IntentKey product is unsuccessful, we may need to fund operations through private or public sales of securities, debt financings or partnering/licensing transactions over the long term.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2024
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements presented are for Inuvo and its subsidiaries. The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2023, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In our opinion, these consolidated financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 29, 2024. Use of estimates The preparation of financial statements, in accordance with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s regular evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. We regularly evaluate estimates and assumptions related to capitalized labor, goodwill and purchased intangible asset valuations and income tax valuation allowance. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. Revenue Recognition We generate revenue by identifying audiences and presenting advertisements on behalf of our customers. We provide our products, technologies and services to Agencies & Brands and Platforms (large consolidators of advertising demand). Currently, revenue from our IntentKey products and services are primarily from Agencies & Brands, and revenue from our Bonfire products and services are primarily from Platforms. Our revenue is derived from the placements of advertisements across advertising channels, browsers, applications and devices. Pricing for those advertisement placements is typically either on a cost-per-click or cost per thousand impressions basis. Our revenue is a function of the number of advertisements placed combined with the price we obtain (using our technologies) for the placements made on behalf of our clients. We assume the risk associated of finding placements at a cost below that for which it had been sold. We recognize revenue when control of the contracted services or product is transferred to our customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those services or products. We determine revenue recognition through (i) identification of a contract with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations in the contract, and (v) recognition of revenue when or as the performance obligations are satisfied. For Agencies & Brands, the terms of an agreement are captured in an Insertion Order ("IO") where revenue is recognized upon delivery of services during the period covered by the IO. For Platforms, terms are generally captured in multi-year master service agreements and revenue is recognized based on the number of advertisements placed or clicked on in the period they occur. We settle advertisement placement prices with our customers net of any adjustments for quality. For the three-month period ended September 30, 2024, we generated $22,371,153 in revenue of which 82.8% was from Platforms and 17.2% from Agencies & Brands. For the three-month period ended September 30, 2023, we generated $24,570,588 in revenue of which 87.2% was from Platforms and 12.8% from Agencies & Brands. For the nine-month period ended September 30, 2024, we generated $57,603,935 in revenue of which 83.6% was from Platforms and 16.4% from Agencies & Brands. For the nine-month period ended September 30, 2023, we generated $53,069,433 in revenue of which 79.8% was from Platforms and 20.2% from Agencies & Brands. Customer concentration For the three-month period ending September 30, 2024, one customer accounted for 79.9% of our overall revenue, and for the nine-month period ended September 30, 2024, 76.5% of our overall revenue. That same customer accounted for 59.6% of our gross accounts receivable balance as of September 30, 2024. As of December 31, 2023, the same customer accounted for 50.5% of our gross accounts receivable balance. Recently Adopted Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Property and Equipment

Property and Equipment	9 Months Ended
Property and Equipment	Sep. 30, 2024
Property and Equipment
Property and Equipment	Note 3 – Property and Equipment The net carrying value of property and equipment was as follows as of: September 30, 2024 December 31, 2023 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,178,367 1,292,528 Capitalized internal use and purchased software 17,507,067 16,159,517 Leasehold improvements 465,885 458,885 Subtotal 19,444,471 18,204,082 Less: accumulated depreciation and amortization (17,652,575 ) (16,523,294 ) Total $ 1,791,896 $ 1,680,788 During the three months ended September 30, 2024 and September 30, 2023, depreciation expense was $440,899 and $420,808, respectively. During the nine months ended September 30, 2024 and September 30, 2023, depreciation expense was $1,298,653 and $1,245,762, respectively. During the nine months ended September 30, 2024, we disposed of approximately $169,000 of fully depreciated equipment that was no longer in use. There was no cash inflow or outflow associated with this transaction, and no gain or loss was recorded.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
Intangible Assets and Goodwill	Sep. 30, 2024
Intangible Assets and Goodwill
Intangible Assets and Goodwill	Note 4 – Intangible Assets and Goodwill The following is a schedule of intangible assets and goodwill as of September 30, 2024: Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value Year-to-date Amortization Customer list, Google 20 years $ 8,820,000 $ (5,549,250 ) $ 3,270,750 $ 330,750 Customer list, ReTargeter 5 years 1,931,250 (1,931,250 ) — 225,313 Brand name, ReTargeter 5 years 643,750 (643,750 ) — 75,104 Customer relationships 20 years 570,000 (218,501 ) 351,499 21,376 Trade names, web properties (1) - 390,000 — 390,000 — Intangible assets classified as long-term $ 12,355,000 $ (8,342,751 ) $ 4,012,249 $ 652,543 Goodwill, total - $ 9,853,342 $ — $ 9,853,342 $ — (1) The trade names related to our web properties have an indefinite life, and as such are not amortized. Amortization expense over the next five years and thereafter is as follows: 2024 (remainder of year) $ 117,375 2025 469,500 2026 469,500 2027 469,500 2028 469,500 Thereafter 1,626,875 Total $ 3,622,250 The following is a schedule of intangible assets and goodwill as of December 31, 2023: Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value 2023 Amortization Customer list, Google 20 years $ 8,820,000 $ (5,218,500 ) $ 3,601,500 $ 441,000 Technology 5 years 3,600,000 (3,600,000 ) — — Customer list, ReTargeter 5 years 1,931,250 (1,705,938 ) 225,312 386,250 Customer list, all other 10 years 1,610,000 (1,610,000 ) — — Brand name, ReTargeter 5 years 643,750 (568,646 ) 75,104 128,750 Customer relationships 20 years 570,000 (197,125 ) 372,875 28,500 Trade names, web properties - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (12,900,209 ) $ 4,664,791 $ 984,500 Goodwill, total $ 9,853,342 $ — $ 9,853,342 $ —

Bank Debt

Bank Debt	9 Months Ended
Bank Debt	Sep. 30, 2024
Bank Debt
Bank Debt	Note 5 – Bank Debt On March 1, 2023, we entered into Amendment No. 1 to Loan and Security Agreement and Collateral Documents (“Agreement”) with Mitsubishi HC Capital America, Inc., f/k/a/ Hitachi Capital America Corp. (“MHCA”). Under the terms of the Agreement, MHCA provided us with a $5,000,000 line of credit commitment. We were permitted to borrow up to 85% of the aggregate Eligible Accounts Receivable, up to the maximum credit commitment of $5,000,000. We paid MHCA monthly interest at the rate of 1.75% in excess of the Wall Street Journal Prime Rate. We paid MHCA an amendment fee of $10,000 on issuance of the Agreement, and thereafter an annual commitment fee of $10,000. We also paid MHCA a quarterly service fee of 0.20% on the monthly unused amount of the maximum credit line. All obligations to MHCA have been satisfied and the Agreement was terminated on July 31, 2024. On July 30, 2024, we entered into a Financing and Security Agreement and Collateral Documents (“Financing Agreement”) with SLR Digital Finance LLC (“SLR”). Under the terms of the Financing Agreement, SLR has provided us with a $10,000,000 line of credit commitment. We are permitted to borrow up to 90% of eligible accounts receivable under the Financing Agreement, up to the maximum credit commitment of $10,000,000. We will pay SLR monthly interest at the rate of 1.0% in excess of the Prime Rate but not less than 7%. The Financing Agreement has a three year term. The Financing Agreement contains certain affirmative and negative covenants to which we are also subject. We agreed to pay SLR an annual facility fee of 0.80% of the maximum credit commitment. We also agreed to pay a minimum utilization amount of the interest rate multiplied by difference between $500,000 and the average daily outstanding loan during a month. We are obligated to pay SLR a monthly service fee of 0.15% on of the average net amount of outstanding loans during each month. If we terminate the Financing Agreement prior to the second anniversary of the Effective Date, an amount equal to 1.0% of the maximum credit commitment will be due as an early termination payment and if we terminate after the second anniversary of the Effective Date but prior to the end of the term, an amount equal to 0.25% of the maximum credit commitment will be due. Repayment of the financing agreement will be made through collections from eligible accounts receivable. At September 30, 2024, the outstanding balances due under the Financing Agreement was $0.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
Accrued Expenses and Other Current Liabilities	Sep. 30, 2024
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	Note 6 – Accrued Expenses and Other Current Liabilities The accrued expenses and other current liabilities consist of the following as of: September 30, 2024 December 31, 2023 Accrued marketing costs $ 6,227,976 $ 5,717,983 Accrued payroll and commission liabilities 990,751 1,544,460 Accrued expenses and other 1,085,684 622,960 Arkansas grant contingency — 35,000 Accrued taxes, current portion 12,241 6,076 Total $ 8,316,652 $ 7,926,479

Commitments

Commitments	9 Months Ended
Commitments	Sep. 30, 2024
Commitments
Commitments	Note 7 – Commitments On September 17, 2021, we signed a multi-year agreement with a business development partner to provide referral and support services to us. The agreement required an advance fee of $1.5 million. The advance was being amortized as marketing expenses over five years. As of September 30, 2024, we recorded an impairment to the asset bringing the balance to $0, as no significant revenue has been realized within 2024 and therefore management determined future revenue under this arrangement is uncertain. As of December 31, 2023, $700,000 had been amortized and the balance was $800,000. As part of the agreement, we granted a warrant exercisable into 300,000 shares of our common stock, which vested over two years upon achieving certain performance metrics (see Note 10 - Stockholders' Equity).

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Taxes
Income Taxes	Note 8 – Income Taxes As of September 30, 2024, we have $5,352 deferred income tax expense and incur only the minimum state taxes which are included in operating expenses. We have deferred tax assets of $42,619,514. We believe it is more likely than not that essentially none of our deferred tax assets will be realized, and we have recorded a valuation allowance of $41,543,303 for the deferred tax assets that may not be realized as of September 30, 2024. We also have deferred tax liabilities totaling $1,170,800 as of September 30, 2024, related to intangible assets acquired in March 2012 and February 2017. These balances are presented as a net deferred tax liability of $94,589 composed of indefinite lived intangible assets. As of December 31, 2023, the Company has a net deferred tax liability of $89,238. The net deferred tax liability is due to goodwill and trade name that are amortized for tax purposes both of which are not being amortized for book purposes.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
Stock Based Compensation	Sep. 30, 2024
Stock Based Compensation
Stock-Based Compensation	Note 9 – Stock-Based Compensation We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. During the 2024 and 2023 periods, we granted restricted stock units ("RSUs") from the 2017 Equity Compensation Plan, as amended (“2017 ECP”). RSU vesting periods are generally up to three years and/or based upon achieving certain financial targets. As of September 30, 2024, the total number of authorized shares of our common stock under the 2017 ECP was 24,550,000. Compensation Expense For the three and nine months ended September 30, 2024, we recorded stock-based compensation expense for all equity incentive plans of $463,189 and $1,178,182, respectively. For the three and nine months ended September 30, 2023, we recorded stock-based compensation expense for all equity incentive plans of $536,538 and $1,471,683, respectively. Total compensation cost not yet recognized at September 30, 2024 was $3,015,515 which will be recognized over the next three years. The following table summarizes the stock grants outstanding under 2017 ECP as of September 30, 2024: Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Awards Authorized Total — 11,684,052 9,964,117 2,901,831 24,550,000 The fair value of RSUs is determined using market value of the common stock on the date of the grant. The fair value of stock options is determined using the Black-Scholes-Merton valuation model. The use of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense and include the expected life of the option, stock price volatility, risk-free interest rate, dividend yield, exercise price, and forfeiture rate. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. The forfeiture rate, which is estimated at a weighted average of 0% of unvested options outstanding, is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. The following table summarizes the activities for our RSUs for the nine months ended September 30, 2024: RSUs Number of Shares Weighted Average Grant Date Fair Value Outstanding, beginning of period 7,010,016 $ 0.48 Granted 8,087,366 $ 0.33 Vested (3,329,996 ) $ 0.64 Cancelled (83,334 ) $ 0.52 Outstanding, end of period 11,684,052 $ 0.33 During the nine months ended September 30, 2024, the Company awarded RSUs to employees to settle accrued compensation obligations as of December 31, 2023. The RSUs have a one-year vesting period, and there was no incremental expense associated with the award. $535,119 was reclassified from accrued liabilities to additional paid in capital.

Stockholders Equity

Stockholders Equity	9 Months Ended
Stockholders Equity	Sep. 30, 2024
Stockholders Equity
Stockholders' Equity	Note 10 – Stockholders' Equity Warrants On September 17, 2021, we signed an agreement with a marketing platform and consulting company to provide referral and support services to us for a period of five years (see Note 7 - Commitments). As part of that agreement, we granted a seven year warrant exercisable into 300,000 shares of our common stock, at $0.72 per share, which vests in two tranches when certain performance metrics are achieved. The warrant was valued using the Black Scholes option pricing model at a total of $149,551 based on a seven-year term, an implied volatility of 100%, a risk-free equivalent yield of 1.17%, and a stock price of $0.71. The warrant is classified as equity and will be expensed over the vesting period of each tranche if the performance criteria are achieved. On August 31, 2022, 85,862 shares vested in accordance with the contracted performance criteria. On August 31, 2023, 21,136 shares vested. For the second tranche, we reversed approximately $7,900 for the year ended December 31, 2023 due to a change in the probability of performance criteria being achieved. In accordance with our agreement, after the second anniversary of the original issue date of the warrants, any interests in warrant shares that have not vested pursuant to the terms and conditions of the agreement were deemed forfeited and shall never become exercisable. At the period ended September 30, 2024, approximately 193,000 shares underlying the warrant have been forfeited. As of the period ended September 30, 2024, there are 107,000 vested shares underlying the warrant. Earnings per share For the three-month and nine-month period ended September 30, 2024 and 2023, we generated a net loss from continuing operations and as a result, any potential common shares issuance would be anti-dilutive.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2024
Leases
Leases	Note 11 – Leases We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from three years to five years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on our consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments is also listed as separate line items on our consolidated balance sheets. As of September 30, 2024 and December 31, 2023, total operating and financed right-of-use assets were $971,819 and $24,243, and $805,786 and $72,560, respectively. For the nine months ended September 30, 2024 and 2023, we recorded $48,317 and $77,790, respectively, in amortization expense related to finance leases. For the nine months ended September 30, 2024 and 2023, we recorded $250,541 and $274,707, respectively, in rent expense related to operating leases. In May 2023, we entered into an agreement to lease 4,128 square feet of office space in San Jose, CA commencing on September 1, 2023. The lease has a term of sixty-five months with an abatement period of five months and cost approximately $208,000 during its first year. Thereafter, the lease payments increase by 3%. In January 2024, we amended and renewed our lease at our corporate headquarters in Little Rock, Arkansas. The lease was extended for thirty-six months commencing on February 1, 2024 and expiring on January 31, 2027 and will cost approximately $127,000 during its first year. Thereafter, the lease payments increase by 2% annually. Whenever the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments. Information related to our operating lease liabilities for the period ended September 30, 2024 are as follows: For the Three Months Ended September 30, 2024 For the Nine Months Ended September 30, 2024 Cash paid for operating lease liabilities $ 91,727 $ 239,999 Minimum future lease payments ended September 30, 2024 2024 (remainder of year) 85,240 2025 349,194 2026 354,565 2027 237,867 2028 233,727 Thereafter 19,525 1,280,118 Less imputed interest (223,412 ) Total lease liabilities $ 1,056,706 Weighted-average remaining lease term 2.98 years Weighted-average discount rate 10.5 % Information related to our financed lease liabilities for the period ended September 30, 2024 are as follows: For the Three Months Ended September 30, 2024 For the Nine Months Ended September 30, 2024 Cash paid for finance lease liabilities $ 13,102 $ 44,766 Minimum future lease payments ended September 30, 2024 2024 (remainder of the year) 6,240 2025 18,491 24,731 Less imputed interest (487 ) Total lease liabilities $ 24,244 Weighted-average remaining lease term 1 year Weighted-average discount rate 6.25 %

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
Allowance for Credit Losses	Sep. 30, 2024
Allowance for Credit Losses
Allowance for Credit Losses	Note 12 – Allowance for Credit Losses The activity in the allowance for doubtful accounts was as follows during the nine-month period ended September 30, 2024 and the year ended December 31, 2023: 2024 2023 Balance at the beginning of the year $ 1,645,045 $ 1,440,678 Adjustment to expected losses on accounts receivable (1,454,533 ) 786,549 Charge-offs (62,587 ) (582,189 ) Recoveries 4,700 7 Ending Balance $ 132,625 $ 1,645,045 The allowance for doubtful accounts at September 30, 2024 was $132,625, a decrease of $1,512,420, from December 31, 2023. During 2024, we made an adjustment to the allowance for expected credit losses for a balance due from a former client in 2022. The client has since paid off their full outstanding balance and no longer has any obligation to us as of September 30, 2024.

Related Party Transactions

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2024
Related Party Transactions
Related Party Transactions	Note 13 – Related Party Transactions During the nine-month period ended September 30, 2024, the Company engaged in a transaction with First Orion Corp., a company in which one of our directors holds a significant interest. The transaction involved the sale of services amounting to approximately $35,000. These transactions were conducted in the ordinary course of business.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2024
Summary of Significant Accounting Policies
Basis of presentation	The consolidated financial statements presented are for Inuvo and its subsidiaries. The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2023, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In our opinion, these consolidated financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 29, 2024.
Use of estimates	The preparation of financial statements, in accordance with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s regular evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. We regularly evaluate estimates and assumptions related to capitalized labor, goodwill and purchased intangible asset valuations and income tax valuation allowance. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material.
Revenue recognition	We generate revenue by identifying audiences and presenting advertisements on behalf of our customers. We provide our products, technologies and services to Agencies & Brands and Platforms (large consolidators of advertising demand). Currently, revenue from our IntentKey products and services are primarily from Agencies & Brands, and revenue from our Bonfire products and services are primarily from Platforms. Our revenue is derived from the placements of advertisements across advertising channels, browsers, applications and devices. Pricing for those advertisement placements is typically either on a cost-per-click or cost per thousand impressions basis. Our revenue is a function of the number of advertisements placed combined with the price we obtain (using our technologies) for the placements made on behalf of our clients. We assume the risk associated of finding placements at a cost below that for which it had been sold. We recognize revenue when control of the contracted services or product is transferred to our customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those services or products. We determine revenue recognition through (i) identification of a contract with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations in the contract, and (v) recognition of revenue when or as the performance obligations are satisfied. For Agencies & Brands, the terms of an agreement are captured in an Insertion Order ("IO") where revenue is recognized upon delivery of services during the period covered by the IO. For Platforms, terms are generally captured in multi-year master service agreements and revenue is recognized based on the number of advertisements placed or clicked on in the period they occur. We settle advertisement placement prices with our customers net of any adjustments for quality. For the three-month period ended September 30, 2024, we generated $22,371,153 in revenue of which 82.8% was from Platforms and 17.2% from Agencies & Brands. For the three-month period ended September 30, 2023, we generated $24,570,588 in revenue of which 87.2% was from Platforms and 12.8% from Agencies & Brands. For the nine-month period ended September 30, 2024, we generated $57,603,935 in revenue of which 83.6% was from Platforms and 16.4% from Agencies & Brands. For the nine-month period ended September 30, 2023, we generated $53,069,433 in revenue of which 79.8% was from Platforms and 20.2% from Agencies & Brands.
Customer concentration	For the three-month period ending September 30, 2024, one customer accounted for 79.9% of our overall revenue, and for the nine-month period ended September 30, 2024, 76.5% of our overall revenue. That same customer accounted for 59.6% of our gross accounts receivable balance as of September 30, 2024. As of December 31, 2023, the same customer accounted for 50.5% of our gross accounts receivable balance.
Recently Adopted Accounting Pronouncements	In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
Property and Equipment (Tables)	Sep. 30, 2024
Property and Equipment
Net Carrying Value of Property and Equipment	September 30, 2024 December 31, 2023 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,178,367 1,292,528 Capitalized internal use and purchased software 17,507,067 16,159,517 Leasehold improvements 465,885 458,885 Subtotal 19,444,471 18,204,082 Less: accumulated depreciation and amortization (17,652,575 ) (16,523,294 ) Total $ 1,791,896 $ 1,680,788

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
Intangible Assets and Goodwill (Tables)	Sep. 30, 2024
Intangible Assets and Goodwill
Schedule of intangible assets and goodwill	Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value Year-to-date Amortization Customer list, Google 20 years $ 8,820,000 $ (5,549,250 ) $ 3,270,750 $ 330,750 Customer list, ReTargeter 5 years 1,931,250 (1,931,250 ) — 225,313 Brand name, ReTargeter 5 years 643,750 (643,750 ) — 75,104 Customer relationships 20 years 570,000 (218,501 ) 351,499 21,376 Trade names, web properties (1) - 390,000 — 390,000 — Intangible assets classified as long-term $ 12,355,000 $ (8,342,751 ) $ 4,012,249 $ 652,543 Goodwill, total - $ 9,853,342 $ — $ 9,853,342 $ — Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value 2023 Amortization Customer list, Google 20 years $ 8,820,000 $ (5,218,500 ) $ 3,601,500 $ 441,000 Technology 5 years 3,600,000 (3,600,000 ) — — Customer list, ReTargeter 5 years 1,931,250 (1,705,938 ) 225,312 386,250 Customer list, all other 10 years 1,610,000 (1,610,000 ) — — Brand name, ReTargeter 5 years 643,750 (568,646 ) 75,104 128,750 Customer relationships 20 years 570,000 (197,125 ) 372,875 28,500 Trade names, web properties - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (12,900,209 ) $ 4,664,791 $ 984,500 Goodwill, total $ 9,853,342 $ — $ 9,853,342 $ —
Schedule of Amortization Expense	2024 (remainder of year) $ 117,375 2025 469,500 2026 469,500 2027 469,500 2028 469,500 Thereafter 1,626,875 Total $ 3,622,250

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
Accrued Expenses and Other Current Liabilities (Tables)	Sep. 30, 2024
Accrued Expenses and Other Current Liabilities
Schedule of Accrued Expenses and Other Current Liabilities	September 30, 2024 December 31, 2023 Accrued marketing costs $ 6,227,976 $ 5,717,983 Accrued payroll and commission liabilities 990,751 1,544,460 Accrued expenses and other 1,085,684 622,960 Arkansas grant contingency — 35,000 Accrued taxes, current portion 12,241 6,076 Total $ 8,316,652 $ 7,926,479

StockBased Compensation (Tables

StockBased Compensation (Tables)	9 Months Ended
StockBased Compensation (Tables)	Sep. 30, 2024
Stock Based Compensation
Schedule of Stock Grants Outstanding	Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Awards Authorized Total — 11,684,052 9,964,117 2,901,831 24,550,000
Schedule of Stock Option Award Activity	RSUs Number of Shares Weighted Average Grant Date Fair Value Outstanding, beginning of period 7,010,016 $ 0.48 Granted 8,087,366 $ 0.33 Vested (3,329,996 ) $ 0.64 Cancelled (83,334 ) $ 0.52 Outstanding, end of period 11,684,052 $ 0.33

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2024
Leases
Schedule of Operating Lease Liability	For the Three Months Ended September 30, 2024 For the Nine Months Ended September 30, 2024 Cash paid for operating lease liabilities $ 91,727 $ 239,999 Minimum future lease payments ended September 30, 2024 2024 (remainder of year) 85,240 2025 349,194 2026 354,565 2027 237,867 2028 233,727 Thereafter 19,525 1,280,118 Less imputed interest (223,412 ) Total lease liabilities $ 1,056,706 Weighted-average remaining lease term 2.98 years Weighted-average discount rate 10.5 %
Schedule of Finance Lease Liability	For the Three Months Ended September 30, 2024 For the Nine Months Ended September 30, 2024 Cash paid for finance lease liabilities $ 13,102 $ 44,766 Minimum future lease payments ended September 30, 2024 2024 (remainder of the year) 6,240 2025 18,491 24,731 Less imputed interest (487 ) Total lease liabilities $ 24,244 Weighted-average remaining lease term 1 year Weighted-average discount rate 6.25 %

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
Allowance for Credit Losses (Tables)	Sep. 30, 2024
Allowance for Credit Losses
Schedule of doubtful accounts	2024 2023 Balance at the beginning of the year $ 1,645,045 $ 1,440,678 Adjustment to expected losses on accounts receivable (1,454,533 ) 786,549 Charge-offs (62,587 ) (582,189 ) Recoveries 4,700 7 Ending Balance $ 132,625 $ 1,645,045

Organization and Business (Deta

Organization and Business (Details Narrative) - USD ($)		1 Months Ended	9 Months Ended
Organization and Business (Details Narrative) - USD ($)	May 07, 2024	May 30, 2023	Sep. 30, 2024	Jul. 31, 2024	Dec. 31, 2023
Common stock, par value			$ 0.001		$ 0.001
Net working capital deficit			$ 3,400,000
Sales Agreement [Member]
Sale of stock, consideration received on transaction, authorized amount	$ 15,000,000
Common stock, par value	$ 0.001
Commission fee, percentage	3%
Registered Direct Offering [Member]
Consideration received on transaction		$ 4,000,000
Shares issued in registered direct offering (in shares) \| shares		16,000,000
Cash, cash equivalents, and short-term marketable securities			2,600,000
Accumulated deficit			(173,400,000)
Software Development Costs			$ 1,347,550
SLR Digital Finance LLC [Member] \| Debt Covenant Period One [Member]
Line of credit facility, maximum borrowing capacity				$ 10,000,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Net revenue	$ 22,371,153	$ 24,570,588	$ 57,603,935	$ 53,069,433
Customer One [Member] \| Customer Concentration Risk [Member] \| Sales Revenue Net [Member]
Percentage of concentration risk	79.90%		76.50%
Customer One [Member] \| Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Percentage of concentration risk	59.60%		59.60%		50.50%
Platforms [Member]
Percentage of revenue	82.80%	87.20%	83.60%	79.80%
Agencies & Brands [Member]
Percentage of revenue	17.20%	12.80%	16.40%	20.20%

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Subtotal	$ 19,444,471	$ 18,204,082
Less: accumulated depreciation and amortization	(17,652,575)	(16,523,294)
Total	1,791,896	1,680,788
Capitalized internal use and purchased software [Member]
Subtotal	17,507,067	16,159,517
Equipment [Member]
Subtotal	1,178,367	1,292,528
Furniture and fixtures [Member]
Subtotal	293,152	293,152
Leasehold improvements [Member]
Subtotal	$ 465,885	$ 458,885

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property and Equipment
Depreciation expense	$ 440,899	$ 420,808	$ 1,298,653	$ 1,245,762
Disposed depricated equipment			$ 169,000

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($)	9 Months Ended	12 Months Ended
Intangible Assets and Goodwill (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Goodwill total, Carrying Value	$ 9,853,342	$ 9,853,342
Goodwill total, Net Carrying Value	9,853,342	9,853,342
Intangible assets classified as long-term
Carrying Value	12,355,000	17,565,000
Accumulated Amortization and Impairment	(8,342,751)	(12,900,209)
Net Carrying Value	4,012,249	4,664,791
Amortization of Intangible Assets	652,543	984,500
Brand name, ReTargeter [Member]
Intangible assets classified as long-term
Carrying Value	643,750	643,750
Net Carrying Value	0	75,104
Amortization of Intangible Assets	$ 75,104	$ 128,750
Term	5 years	5 years
Accumulated Amortization and Impairment	$ (643,750)	$ (568,646)
Accumulated Amortization and Impairment	(643,750)	(568,646)
Trade names, web properties [Member]
Intangible assets classified as long-term
Carrying Value	390,000	390,000
Net Carrying Value	390,000	390,000
Amortization of Intangible Assets	0	0
Accumulated Amortization and Impairment	0	0
Accumulated Amortization and Impairment	0	0
Customer relationships [Member]
Intangible assets classified as long-term
Carrying Value	570,000	570,000
Net Carrying Value	351,499	372,875
Amortization of Intangible Assets	$ 21,376	$ 28,500
Term	20 years	20 years
Accumulated Amortization and Impairment	$ (218,501)	$ (197,125)
Accumulated Amortization and Impairment	(218,501)	(197,125)
Customer list, Google [Member]
Intangible assets classified as long-term
Carrying Value	8,820,000	8,820,000
Net Carrying Value	3,270,750	3,601,500
Amortization of Intangible Assets	$ 330,750	$ 441,000
Term	20 years	20 years
Accumulated Amortization and Impairment	$ (5,549,250)	$ (5,218,500)
Accumulated Amortization and Impairment	(5,549,250)	(5,218,500)
Customer list, ReTargeter [Member]
Intangible assets classified as long-term
Carrying Value	1,931,250	1,931,250
Net Carrying Value	0	225,312
Amortization of Intangible Assets	$ 225,313	$ 386,250
Term	5 years	5 years
Accumulated Amortization and Impairment	$ (1,931,250)	$ (1,705,938)
Accumulated Amortization and Impairment	$ (1,931,250)	(1,705,938)
Technology [Member]
Intangible assets classified as long-term
Carrying Value		3,600,000
Net Carrying Value		0
Amortization of Intangible Assets		$ 0
Term		5 years
Accumulated Amortization and Impairment		$ (3,600,000)
Accumulated Amortization and Impairment		(3,600,000)
Customer List All Other [Member]
Intangible assets classified as long-term
Carrying Value		1,610,000
Net Carrying Value		0
Amortization of Intangible Assets		$ 0
Term		10 years
Accumulated Amortization and Impairment		$ (1,610,000)
Accumulated Amortization and Impairment		$ (1,610,000)

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 1)	Sep. 30, 2024 USD ($)
Intangible Assets and Goodwill
2024 (remainder of year)	$ 117,375
2025	469,500
2026	469,500
2027	469,500
2028	469,500
Thereafter	1,626,875
Total	$ 3,622,250

Bank Debt (Details Narrative)

Bank Debt (Details Narrative) - USD ($)		1 Months Ended
Bank Debt (Details Narrative) - USD ($)	Mar. 01, 2023	Jul. 30, 2024	Sep. 30, 2024
Outstanding balance			$ 0
SLR Digital Finance LLC [Member] \| Debt Covenant Period One [Member]
Line of credit facility, maximum borrowing capacity		$ 10,000,000
SLR Digital Finance LLC [Member] \| Loan and Security Agreement [Member]
Line of credit facility, borrowing capacity		$ 10,000,000
Percentage of aggregate eligible accounts receivable		90%
Outstanding loan amount		$ 500,000
Quarterly service fee (as a percentage)		0.80%
Interest rate Description		SLR monthly interest at the rate of 1.0% in excess of the Prime Rate but not less than 7%
Monthly service fee (as a percentage)		0.15%
Hitachi Capital America Corp. [Member]
Amendment fee			10,000
Annual commitment fee amount	$ 10,000
Quarterly service fee (as a percentage)	0.20%
Hitachi Capital America Corp. [Member] \| Loan and Security Agreement [Member]
Line of credit facility, maximum borrowing capacity	$ 5,000,000
Stated interest rate	1.75%
Maximum [Member] \| Hitachi Capital America Corp. [Member] \| Loan and Security Agreement [Member]
Line of credit facility, maximum borrowing capacity			$ 5,000,000
Percentage of aggregate eligible accounts receivable	85%

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Accrued Expenses and Other Current Liabilities
Accrued marketing costs	$ 6,227,976	$ 5,717,983
Accrued payroll and commission liabilities	990,751	1,544,460
Accrued expenses and other	1,085,684	622,960
Arkansas grant contingency	0	35,000
Accrued taxes, current portion	12,241	6,076
Total	$ 8,316,652	$ 7,926,479

Commitments (Details Narrative)

Commitments (Details Narrative) - USD ($)	Sep. 17, 2021	Sep. 30, 2024	Dec. 31, 2023
Referral and support services agreement advance	$ 1,500,000	$ 0	$ 500,000
Referral agreement term	five years
Amortization of referral agreement as marketing expense			700,000
Impairment Assets		$ 0
Number of securities called by each warrant or right (in shares)	300,000
Vesting period	two years
Other Current Assets [Member]
Referral and support services agreement advance			$ 800,000,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Income Taxes
Deferred income tax expense	$ 5,352,000
Deferred tax asset	42,619,514
Valuation allowance	41,543,303
Deferred tax liability	1,170,800
Net deferred tax liability composed of indefinite lived intangible assets	$ 94,589	$ 89,238

Stock Based Compensation (Detai

Stock Based Compensation (Details) - shares	Sep. 30, 2024	Dec. 31, 2023
Stock Based Compensation
Options Outstanding	0
RSUs Outstanding	11,684,052	7,010,016
Options and RSUs Exercised	9,964,117
Available Shares	2,901,831
Total Awards Authorized	24,550,000

Stock Based Compensation (Det_2

Stock Based Compensation (Details 1)	9 Months Ended
Stock Based Compensation (Details 1)	Sep. 30, 2024 $ / shares shares
Stock Based Compensation
Outstanding beginning balance \| shares	7,010,016
Granted \| shares	8,087,366
Vested \| shares	(3,329,996)
Cancelled \| shares	(83,334)
Outstanding ending balance \| shares	11,684,052
Weighted Average Grant Date Fair Value, beginning balance \| $ / shares	$ 0.48
Weighted Average Grant Date Fair Value, Granted \| $ / shares	0.33
Weighted Average Grant Date Fair Value, Vested \| $ / shares	0.64
Weighted Average Grant Date Fair Value, Cancelled \| $ / shares	0.52
Weighted Average Grant Date Fair Value, ending balance \| $ / shares	$ 0.33

Stock Based Compensation (Det_3

Stock Based Compensation (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Stock Based Compensation (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Stock Based Compensation
Number of shares reserved for issuance (in shares)	24,550,000		24,550,000
Stock based compensation expence	$ 463,189	$ 536,538	$ 1,178,182	$ 1,471,683
Compensation cost related to non vested awards not yet recognized	$ 3,015,515		$ 3,015,515
Weighted average forfeiture rate			0%
Incremental expense			$ 535,119

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($)		1 Months Ended		9 Months Ended	12 Months Ended
Stockholders Equity (Details Narrative) - USD ($)	Sep. 17, 2021	Aug. 31, 2023	Aug. 31, 2022	Sep. 30, 2024	Dec. 31, 2023
Referral agreement term	five years
Class of warrant or right, term	seven-year
Class of warrant or right, granted in period (in shares)	300,000
Exercise price of warrant (in usd per share)	$ 0.72
Number of tranches	two tranches
Warrants outstanding (in shares)	$ 149,551
Shares vested reversed due hange in the probability of performance criteria					$ 7,900
Forfeited (in shares)				193,000
Shares vested		21,136	85,862	107,000
Measurement Input, Implied Volatility [Member]
Warrants outstanding, measurement input	100%
Measurement Input, Risk-free Yield [Member]
Warrants outstanding, measurement input	1.17%
Measurement Input, Share Price [Member]
Warrants outstanding, measurement input	$ 0.71

Leases (Details)

Leases (Details)	3 Months Ended	9 Months Ended
Leases (Details)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Leases
Cash paid for operating lease liabilities	$ 91,727	$ 239,999
Weighted-average discount rate	10.50%	10.50%
Weighted-average remaining lease term		2 years 11 months 23 days
Minimum future lease payments ended September 30, 2024
2024 (remainder of year)	$ 85,240	$ 85,240
2025	349,194	349,194
2026	354,565	354,565
2027	237,867	237,867
2028	233,727	233,727
Thereafter	19,525	19,525
Payments due	1,280,118	1,280,118
Less imputed interest	(223,412)	(223,412)
Total lease liabilities	$ 1,056,706	$ 1,056,706

Leases (Details 1)

Leases (Details 1)	3 Months Ended	9 Months Ended
Leases (Details 1)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Leases
Cash paid for finance lease liabilities	$ 13,102	$ 44,766
Weighted-average remaining lease terms		1 year
Weighted-average discount rate	6.25%	6.25%
Minimum future lease payments ended September 30, 2023
2024 (remainder of the year)	$ 6,240	$ 6,240
2025	18,491	18,491
Payments due	24,731	24,731
Less imputed interest	(487)	(487)
Total lease liabilities	$ 24,244	$ 24,244

Leases (Details Narrative)

Leases (Details Narrative)			9 Months Ended
Leases (Details Narrative)	Feb. 02, 2024	Sep. 01, 2023 USD ($) ft²	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Feb. 01, 2024 USD ($)	Dec. 31, 2023 USD ($)
Right of use assets - operating lease			$ 971,819		$ 971,819		$ 805,786
Right of use assets - finance lease			24,243		$ 24,243		$ 72,560
Office space (square feet) \| ft²		4,128
Lease term	thirty-six months	sixty-five months
Abatement period		five months
Rent expense related to operating leases			$ 250,541	$ 274,707
Date of expiry			Jan. 31, 2027
Expected lease expense for first year		$ 208,000				$ 127,000
Annual percentage increase in lease payments		3%				2%
Depreciation-Right of Use Assets - Financing			$ 48,317	$ 77,790
Minimum [Member]
Term of contract			three years
Maximum [Member]
Term of contract			five years

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($)	9 Months Ended	12 Months Ended
Allowance for Credit Losses (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Allowance for Credit Losses
Balance at the beginning of the year	$ 1,645,045	$ 1,440,678
Adjustment to expected losses on accounts receivable	(1,454,533)	786,549
Charge-offs	(62,587)	(582,189)
Recoveries	4,700	7
Balance at the end of the year	$ 132,625	$ 1,645,045

Allowance for Credit Losses (_2

Allowance for Credit Losses (Details Narrative) - USD ($)	12 Months Ended
Allowance for Credit Losses (Details Narrative) - USD ($)	Dec. 31, 2023	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2022	Dec. 31, 2021
Allowance for Credit Losses
Decrease Allowance for doubtful accounts	$ 1,512,420
Allowance for doubtful accounts	$ 1,645,045	$ 132,625	$ 232,625	$ 487,158	$ 1,440,678	$ 202,904

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	9 Months Ended
Related Party Transactions (Details Narrative)	Sep. 30, 2024 USD ($)
Related Party Transactions
Sale of services	$ 35,000