Inuvo (INUV) 10-Q 26 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
Document And Entity Information
Entity Registrant Name	Inuvo, Inc.
Entity Central Index Key	829,323
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		24,930,460

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 3,638,111	$ 4,257,204
Accounts receivable, net of allowance for doubtful accounts of $23,000 and $17,200, respectively	6,315,256	7,001,337
Unbilled revenue	10,999	16,154
Prepaid expenses and other current assets	383,752	345,752
Total current assets	10,348,118	11,620,447
Property and equipment, net	1,751,924	1,805,561
Other assets
Goodwill	5,760,808	5,760,808
Intangible assets, net of accumulated amortization	8,574,936	9,320,951
Other assets	29,229	224,759
Total other assets	14,364,973	15,306,518
Total assets	26,465,015	28,732,526
Current liabilities
Accounts payable	7,873,231	10,080,315
Accrued expenses and other current liabilities	2,804,056	3,169,445
Total current liabilities	10,677,287	13,249,760
Long-term liabilities
Deferred tax liability	3,799,600	3,799,600
Other long-term liabilities	330,008	722,722
Total long-term liabilities	4,129,608	4,522,322
Preferred stock:
Preferred stock, $.001 par value: Authorized shares 500,000, none issued and outstanding	0	0
Common stock:
Common stock, $.001 par value: Authorized shares 40,000,000; issued shares 25,212,884 and 24,752,408, respectively; outstanding shares 24,836,357 and 24,375,881, respectively	25,213	24,752
Additional paid-in capital	130,241,873	129,081,029
Accumulated deficit	(117,212,407)	(116,748,778)
Treasury stock, at cost - 376,527 shares	(1,396,559)	(1,396,559)
Total stockholders' equity	11,658,120	10,960,444
Total liabilities and stockholders' equity	$ 26,465,015	$ 28,732,526

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets
Allowance for Doubtful accounts	$ 23,000	$ 17,200
Stockholders Equity
Preferred stock par value (in usd 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 value (in usd per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	40,000,000	40,000,000
Common stock shares issued (in shares)	25,212,884	24,752,408
Common stock shares outstanding (in shares)	24,836,357	24,375,881
Treasury stock (in shares)	376,527	376,527

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net revenue	$ 17,485,087	$ 19,254,052	$ 51,864,448	$ 49,402,809
Cost of revenue	5,136,242	5,876,429	13,392,598	19,038,392
Gross profit	12,348,845	13,377,623	38,471,850	30,364,417
Operating expenses
Marketing costs	9,921,395	10,153,987	30,395,472	21,659,395
Compensation	1,650,474	1,540,730	4,973,192	4,073,240
Selling, general and administrative	1,229,177	1,047,808	3,759,225	3,214,113
Total operating expenses	12,801,046	12,742,525	39,127,889	28,946,748
Operating (loss) income	(452,201)	635,098	(656,039)	1,417,669
Interest expense, net	(25,729)	(23,101)	(71,784)	(111,674)
(Loss) income from continuing operations before taxes	(477,930)	611,997	(727,823)	1,305,995
Income tax benefit	43,013	7,332	91,999	379,085
Net (loss) income from continuing operations	(434,917)	619,329	(635,824)	1,685,080
Net income from discontinued operations	171,844	32,065	172,197	37,632
Net (loss) income	$ (263,073)	$ 651,394	$ (463,627)	$ 1,722,712
Per common share data: Basic and diluted
Net (loss) income from continuing operations (in usd per share)	$ (0.02)	$ 0.03	$ (0.03)	$ 0.07
Net income from discontinued operations (in usd per share)	0.01	0	0.01	0
Net (loss) income (in usd per share)	$ (0.01)	$ 0.03	$ (0.02)	$ 0.07
Weighted average shares
Basic (in shares)	24,694,566	24,271,895	24,571,271	24,209,667
Diluted (in shares)	24,694,566	24,788,469	24,571,271	24,549,072

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities:
Net (loss) income	$ (463,627)	$ 1,722,712
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Settlement of tax liability	0	(406,453)
Depreciation and amortization	1,658,352	1,306,729
Stock based compensation	1,002,044	385,818
Amortization of financing fees	19,200	13,404
Recovery (Provision) of doubtful accounts	5,800	(13,036)
Adjustment of European liabilities related to discontinued operations	(176,988)	(56,611)
Change in operating assets and liabilities:
Accounts receivable and unbilled revenue	685,436	(1,058,331)
Prepaid expenses and other assets	138,330	1,279
Accounts payable	(2,030,096)	3,239,004
Accrued expenses and other liabilities	(349,869)	63,275
Net cash provided by operating activities	488,582	5,197,790
Investing activities:
Purchases of equipment and capitalized development costs	(929,380)	(1,050,678)
Net cash used in investing activities	(929,380)	(1,050,678)
Financing activities:
Net proceeds (payments) on revolving line of credit	0	(1,793,275)
Net taxes paid on RSU grants exercised	(140,742)	(251,083)
Payments on term note payable and capital leases	(37,553)	(1,895,341)
Net cash used in financing activities	(178,295)	(3,939,699)
Net change – cash	(619,093)	207,413
Cash, beginning of year	4,257,204	3,714,525
Cash, end of period	3,638,111	3,921,938
Supplemental information:
Interest paid	55,085	102,969
Income taxes paid	26,000	97,483
Non-cash investing and financing activities:
Purchase of property and equipment under capital lease	0	103,609
Purchase of intangible assets through a contingent liability	0	715,874
Stock issuance for partial settlement of contingent liability	300,001	0
Write-down of domain names due to partial settlement of contingent liability	$ 46,367	$ 0

Organization and Business

Organization and Business	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Company Overview Inuvo, Inc. and subsidiaries ("we", "us" or "our") is an internet advertising technology and digital publishing company. We develop technology to deliver content and targeted advertisements over the internet. We generate revenue when an end user clicks on the advertisements we delivered. We manage our business as two segments, the Partner Network and the Owned and Operated Network. The Partner Network delivers advertisements to our partners' owned or managed websites and applications on desktop, tablet and mobile devices. We generate revenue in this segment when an advertisement we serve is clicked. At that time, we share a portion of the revenue we collect from the advertiser with the publishing partner where the click originated. Our proprietary technology platform allows for targeted distribution of advertisements at a scale that measures in the hundreds of millions of advertisements delivered monthly. The Owned and Operated Network designs, builds and markets consumer websites and applications. This segment consists of our mobile-ready ALOT websites and acquired web properties. The focus is on providing engaging content to our users. The majority of revenue generated by this segment is derived from clicks on advertisements delivered through web searches and advertisements displayed on the websites. We have taken several significant steps to position our business for long-term success including investments in ad serving technology, the development of adaptive, native advertising technology, the creation of proprietary content, the expansion of publishers within the Partner Network, the continued expansion of direct relationships with advertisers, and the optimization of overhead and operational costs all of which we expect will improve revenue and profitability. Our ALOT-branded websites and applications have a broad appeal focusing on popular topics such as health, local search, finance, careers, travel, living and education. These sites are content rich, searchable, mobile-ready web properties. We plan to continue the expansion of our website and mobile application business by expanding the ALOT brand and acquiring websites. Recently, we launched the ALOT Auto site that focuses on popular automotive topics. In 2015, we launched our proprietary native advertising solution for web publishers and application developers, "SearchLinks" ® . This is our entry product in the fast growing native advertising marketplace where ad copy seamlessly integrates with the content of the host website or application. SearchLinks was made available to the marketplace in the third quarter of 2015 and is included in the Partner Network. We expect it to be a contributor for the remainder of 2016 and 2017. Liquidity On September 27, 2016, we renewed our Business Financing Agreement with Western Alliance Bank ("Western Alliance Bank"), the parent company of Bridge Bank, N.A., our original lender (see Note 5, "Notes Payable"). The renewal provided continued access to the revolving line of credit up to $10 million through September 2018. As of September 30, 2016 , the balance of the revolving line of credit was zero and had approximately $5.7 million of available credit. During the first quarter of 2014, we filed an S-3 registration statement with the Securities and Exchange Commission ("SEC") to replace the existing, expiring S-3 “shelf” registration statement. Though the revolving line of credit and cash generated by operations is expected to provide sufficient cash for operations over the next twelve months, we may still elect to sell stock to the public or to selected investors, or borrow under the current or any replacement line of credit or other debt instruments in order to fund the development of our technologies, make acquisitions, pursue new business opportunities or grow existing businesses. Customer concentration We generate the majority of our revenue from two customers, Yahoo! and Google. At September 30, 2016 and December 31, 2015 , these two customers combined accounted for 98.5% and 98.6% , respectively, of our gross accounts receivable balance. For the three and nine months ended September 30, 2016 , these two customers combined accounted for 98.6% and 98.2% of net revenue, respectively. For the three and nine months ended September 30, 2015 , these two customers combined accounted for 97.8% and 98.1% of net revenue, respectively. We leverage the vast, direct relationships Yahoo! and Google have with advertisers as an alternative to going directly to advertisers ourselves. While this strategy creates a concentration risk, it also provides upside opportunities not the least of which include; access to hundreds of thousands of advertisers across geographies; the ability to scale our business across verticals; an avoidance of the sales costs associated with a direct to advertisers sales force; access to innovation; and macro level market insight.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements presented are for Inuvo, Inc. and its consolidated 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, 2015 , 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, 2015 , which was filed with the SEC on February 12, 2016. 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 allowances for doubtful accounts, accrued sales reserve, goodwill and purchased intangible asset valuations, lives of intangible assets, deferred income tax asset valuation allowances, contingent liabilities, including the Arkansas grant contingency, and stock compensation. 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 recognize revenue in accordance with Accounting Standards Codification (“ASC”) 605-10 Revenue Recognition. We recognize revenue when the following criteria have been met: persuasive evidence of an arrangement exists, the fees are fixed and determinable, no significant obligations remain and collection of the related receivable is reasonably assured. Most of our revenue is generated through clicks on advertisements presented on our properties or those of our partners. We recognize revenue from clicks in the period in which the click occurs. Payments to partners who display advertisements we serve are recognized as cost of revenue. Revenue from data sales and commissions is recognized in the period in which the transaction occurs and the other revenue recognition criteria are met. Recent accounting pronouncements I n May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Topic 605, “ Revenue Recognition ” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, which defers by one year the effective date of ASU 2014-09. Accordingly, this guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted for interim and annual periods beginning after December 15, 2016. The Company plans to adopt this guidance on January 1, 2018. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on the Company’s financial position, results of operations and cash flows. In November 2015, FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred income taxes. The amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of ASU 2015-17 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. We believe adoption of this standard will have an impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement or presentation of lease expenses within the consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) . This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The adoption of ASU 2016-09 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU 2016-15 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment The net carrying value of property and equipment was as follows as of: September 30, 2016 December 31, 2015 Furniture and fixtures $ 240,577 $ 230,637 Equipment 809,089 2,815,748 Software 5,949,792 9,856,947 Leasehold improvements 441,381 436,311 Subtotal 7,440,839 13,339,643 Less: accumulated depreciation and amortization (5,688,915 ) (11,534,082 ) Total $ 1,751,924 $ 1,805,561 During the three and nine months ended September 30, 2016 , depreciation expense was $325,236 and $958,704 , respectively. During the three and nine months ended September 30, 2015 , depreciation expense was $229,350 and $615,778 , respectively.

Other Intangible Assets and Goo

Other Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets and Goodwill	Other Intangible Assets and Goodwill The following is a schedule of intangible assets as of September 30, 2016 : Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value Year-to-date Amortization Customer list, Google 20 years $ 8,820,000 $ (2,021,250 ) $ 6,798,750 $ 330,750 Customer list, all other 10 years 1,610,000 (737,935 ) 872,065 120,753 Trade names, ALOT (1) 5 years 960,000 (880,000 ) 80,000 144,000 Domain websites (2) 5 years 669,507 (235,386 ) 434,121 104,145 Trade names, web properties (1) - 390,000 — 390,000 — Intangible assets classified as long-term $ 12,449,507 $ (3,874,571 ) $ 8,574,936 $ 699,648 Goodwill, Partner Network $ 1,776,544 $ — $ 1,776,544 $ — Goodwill, Owned and Operated Network 3,984,264 — 3,984,264 — Goodwill, total $ 5,760,808 $ — $ 5,760,808 $ — (1) We have determined the ALOT trade names should be amortized over five years and the trade names related to our web properties have an indefinite life, and as such are not amortized. (2) On May 8, 2015, we purchased two domain websites with a fair value of $715,874 . We determined they should be amortized over five years (see Note 7). The carrying value was adjusted by approximately $46 thousand to reflect the lower price paid as compared to the contingent liability recorded as a result of the change in the price of Inuvo stock from the date of acquisition to the first contingent release of shares. Amortization expense over the next five years and thereafter is as follows: 2016 $ 231,060 2017 764,240 2018 732,240 2019 732,240 2020 612,858 Thereafter 5,112,298 Total $ 8,184,936

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	Notes Payable On March 1, 2012 we entered into a Business Financing Agreement with Bridge Bank, which is now owned by Western Alliance Bank. The agreement provided us with a $5 million term loan and access to a revolving credit line of up to $10 million which we use to help satisfy our working capital needs. We have provided Western Alliance Bank with a first priority perfected security interest in all of our accounts and personal property as collateral for the credit facility. Available funds under the revolving credit line are 80% of eligible accounts receivable balances plus $1 million , up to a limit of $10 million . Eligible accounts receivable is generally defined as those from United States based customers that are not more than 90 days from the date of invoice. We had approximately $5.7 million available under the revolving credit line as of September 30, 2016 . On September 27, 2016, the Company entered into the Sixth Business Financing Modification Agreement with Western Alliance Bank, the parent company of Bridge Bank, our original lender, that renewed the existing Agreement and modified some terms. The modified terms require a monthly quick ratio of not less than .75 to 1.00; quarterly consolidated revenue shall not negatively deviate more than 20% from projections; and quarterly consolidated Adjusted EBITDA shall not negatively deviate more than $500,000 from projections. The renewed agreement extended the revolving line of credit to September 2018. While we periodically utilize our line of credit for operating needs, as of September 30, 2016 , the balance of the revolving line of credit was zero . We were in compliance with all bank covenants as of September 30, 2016 .

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities The accrued expenses and other current liabilities consist of the following as of: September 30, 2016 December 31, 2015 Accrued marketing costs $ 2,060,206 $ 1,404,488 Accrued sales allowance 250,000 500,000 Contingent stock due for acquired domains, current portion 222,477 238,625 Accrued expenses and other 209,522 294,629 Capital leases, current portion 35,434 46,313 Deferred Arkansas grant, current portion 13,468 27,679 Accrued taxes 7,949 13,803 Accrued payroll and commission liabilities 5,000 643,908 Total $ 2,804,056 $ 3,169,445

Other Long-Term Liabilities

Other Long-Term Liabilities	9 Months Ended
	Sep. 30, 2016
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	Other Long-Term Liabilities Other long-term liabilities consist of the following as of: September 30, 2016 December 31, 2015 Deferred rent $ 172,604 $ 198,323 Contingent stock due for acquired domains, less current portion 147,029 477,249 Deferred Arkansas grant, less current portion 5,839 15,940 Capital leases, less current portion 4,536 31,210 Total $ 330,008 $ 722,722 On May 8, 2015, we purchased two domain websites with a fair value of $715,874 (see Note 4). The purchase consideration was our common stock and is contingent upon the seller attaining specific performance targets over three years. On May 8, 2016, the seller achieved the specific performance target for the first year and as a result, we issued 166,667 shares of common stock. The accrued contingent liability and the related intangible asset, domain websites, were adjusted by approximately $46 thousand to reflect the lower price paid as compared to the contingent liability recorded as a result of the change in the price of Inuvo stock from the date of acquisition to the first contingent release of shares.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We have a deferred tax liability of $3,799,600 as of September 30, 2016 , related to our intangible assets. We also have a net deferred tax asset of approximately $39,852,000 . 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 for the net deferred tax assets that may not be realized as of September 30, 2016 .

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	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. Currently, we grant options and restricted stock units ("RSUs") from the 2010 Equity Compensation Plan (“2010 ECP”). Option and RSUs vesting periods are generally up to three years. Compensation Expense For the three and nine months ended September 30, 2016 , we recorded stock-based compensation expense for all equity incentive plans of $315,596 and $1,002,044 , respectively. For the three and nine months ended September 30, 2015 , we recorded stock-based compensation expense for all equity incentive plans of $251,144 and $385,818 . Total compensation cost not yet recognized at September 30, 2016 was $1,902,574 to be recognized over a weighted-average recognition period of 1.3 years. Significant Grants and Cancellations On July 27, 2015 and August 4, 2015, we granted certain employees service and performance RSUs totaling 965,500 shares with a weighted average fair value of $3.03 per share. The service RSUs vest annually over a three year period, commencing in July 2016, at the rate of 25% of the grant in year one and year two and the remaining 50% of the grant vesting on the third anniversary of the grant date. The awarding of the performance RSUs is contingent upon achieving certain revenue and profit targets and vest annually, one-third upon each anniversary of the grant date. On July 27, 2016, August 4, 2016, and August 5, 2016, the first measurement period targets were achieved and the number of shares issued totaled 297,690 with a weighted average fair value of $1.32 . On April 1, 2016, we granted members of our board of directors a total of 63,160 RSUs with a weighted average fair value of $1.90 a share which fully vest on March 31, 2017. The following table summarizes the stock grants outstanding under our 2005 Long-Term Incentive Plan ("2005 LTIP") and 2010 ECP plans as of September 30, 2016 : Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total 2010 ECP 250,498 790,985 2,337,705 606,757 3,985,945 2005 LTIP (*) 13,748 114,972 835,113 — 963,833 Total 264,246 905,957 3,172,818 606,757 4,949,778 (*) Expired June 2015

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations Certain of our subsidiaries previously operated in the European Union ("EU"). Though our operations ceased in 2009, statutory requirements required a continued presence in the EU for varying terms until November 2015. Profits and losses generated from the remaining assets and liabilities are accounted for as discontinued operations. In the third quarter of 2016, our petition with the UK (United Kingdom) Companies House to strike off and dissolve the remaining subsidiary in the EU was approved. As a result, for the three and nine months ended September 30, 2016 , we recorded net income of $171,844 and $172,197 , respectively. The net income came primarily from the writing off of certain accrued liabilities originating in 2009 and earlier. For the three and nine months ended September 30, 2015 , we recorded net income of $32,065 and $37,632 largely due to adjustment of certain liabilities originating in 2009 and earlier and translation adjustments.

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share During the three and nine month periods ended September 30, 2016 , we generated a net loss from continuing operations and as a result, all of our shares are anti-dilutive. During the three and nine month periods ended September 30, 2015 , we generated net income from continuing operations. Accordingly, some of our outstanding stock options, warrants and restricted stock awards have a dilutive impact for the 2015 periods, illustrated in the following table. We generated basic and diluted earnings per share from net income of $0.03 for the three month period ending September 30, 2015 and $0.07 for the nine month period ending September 30, 2015 . For the Three Months Ended For the Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Weighted average shares outstanding for basic EPS 24,694,566 24,271,895 24,571,271 24,209,667 Effect of dilutive securities Options — 13,971 — 9,353 RSUs — 296,831 — 251,428 Warrants — 205,772 — 78,624 Weighted average shares outstanding for diluted EPS 24,694,566 24,788,469 24,571,271 24,549,072 In 2015, we had potentially dilutive options and restricted stock units. We had 308,925 outstanding stock options with a weighted average exercise price of $4.56 for the three months ended September 30, 2015 and 313,543 outstanding stock options with a weighted average price of $4.50 for the nine months ended September 30, 2015 . For the three months ended September 30, 2015 , we had 806,363 outstanding restricted stock units with a weighted average price of $3.82 . For the nine months ended September 30, 2015 , we had 1,097,442 restrictive stock units outstanding with a weighted average exercise price of $3.20 . All warrants were dilutive for the three and nine months ended September 30, 2015.

Leases

Leases	9 Months Ended
	Sep. 30, 2016
Leases [Abstract]
Leases	Leases We lease certain office space and equipment. As leases expire, it can be expected that they will be renewed or replaced in the normal course of business. Rent expense from continuing operations was $42,248 and $135,635 for the three and nine months ended September 30, 2016 , respectively and $21,997 and $34,897 for the three and nine months ended September 30, 2015 . Minimum future lease payments under non-cancelable operating leases as of September 30, 2016 are: 2016 $ 45,393 2017 182,456 2018 183,858 2019 184,852 2020 140,749 Total $ 737,308 In April 2015, we entered into a five year agreement to lease office space in Little Rock, Arkansas commencing October 1, 2015, to serve as our headquarters. The new lease is for 12,245 square feet and will cost approximately $171,000 during its first year. Thereafter, the lease payment will increase by 2% .

Litigation and Settlements

Litigation and Settlements	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Litigation and Settlements	Litigation and Settlements From time to time we may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. In addition, we are currently involved in the following litigation which is not incidental to its business: Oltean, et al. v. Think Partnership, Inc.; Edmonton, Alberta CA. On March 6, 2008, Kelly Oltean, Mike Baldock and Terry Schultz, former employees, filed a breach of employment claim against Inuvo in The Court of Queen's Bench of Alberta, Judicial District of Edmonton, Canada, claiming damages for wrongful dismissal in the amount of $200,000 for each of Kelly Oltean and Terry Schultz and $187,500 for Mike Baldock. On March 6, 2008, the same three plaintiffs filed a similar statement of claim against Vintacom Acquisition Company, ULC, a subsidiary of Inuvo, again for wrongful dismissal and claiming the same damages. In October 2009, the two actions were consolidated. On August 18, 2016, the case was dismissed by a Consent Order whereby the case was dismissed without costs to the Company.

Segments

Segments	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segments	Segments We operate our business as two segments, Partner Network and Owned and Operated Network which are described in Note 1. Listed below is a presentation of net revenue and gross profit for all reportable segments for the three and nine months ended September 30, 2016 and 2015 . We currently only track certain assets at the segment level and therefore assets by segment are not presented below. Revenue by Segment For the Three Months Ended For the Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue Partner Network 6,165,769 35.3 % 7,241,441 37.6 % 16,187,174 31.2 % 24,098,859 48.8 % Owned and Operated Network 11,319,318 64.7 % 12,012,611 62.4 % 35,677,274 68.8 % 25,303,950 51.2 % Total net revenue 17,485,087 100.0 % 19,254,052 100.0 % 51,864,448 100.0 % 49,402,809 100.0 % Gross Profit by Segment For the Three Months Ended For the Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ Gross Profit % $ Gross Profit % $ Gross Profit % $ Gross Profit % Partner Network 1,050,256 17.0 % 1,381,134 19.1 % 2,870,589 17.7 % 5,111,050 21.2 % Owned and Operated Network 11,298,589 99.8 % 11,996,489 99.9 % 35,601,261 99.8 % 25,253,367 99.8 % Total gross profit 12,348,845 70.6 % 13,377,623 69.5 % 38,471,850 74.2 % 30,364,417 61.5 %

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of presentation	The consolidated financial statements presented are for Inuvo, Inc. and its consolidated 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, 2015 , 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.
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 allowances for doubtful accounts, accrued sales reserve, goodwill and purchased intangible asset valuations, lives of intangible assets, deferred income tax asset valuation allowances, contingent liabilities, including the Arkansas grant contingency, and stock compensation. 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 recognize revenue in accordance with Accounting Standards Codification (“ASC”) 605-10 Revenue Recognition. We recognize revenue when the following criteria have been met: persuasive evidence of an arrangement exists, the fees are fixed and determinable, no significant obligations remain and collection of the related receivable is reasonably assured. Most of our revenue is generated through clicks on advertisements presented on our properties or those of our partners. We recognize revenue from clicks in the period in which the click occurs. Payments to partners who display advertisements we serve are recognized as cost of revenue. Revenue from data sales and commissions is recognized in the period in which the transaction occurs and the other revenue recognition criteria are met.
Recent accounting pronouncements	I n May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Topic 605, “ Revenue Recognition ” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, which defers by one year the effective date of ASU 2014-09. Accordingly, this guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted for interim and annual periods beginning after December 15, 2016. The Company plans to adopt this guidance on January 1, 2018. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on the Company’s financial position, results of operations and cash flows. In November 2015, FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred income taxes. The amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of ASU 2015-17 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. We believe adoption of this standard will have an impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement or presentation of lease expenses within the consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) . This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The adoption of ASU 2016-09 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU 2016-15 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations.

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Net Carrying Value of Property and Equipment	The net carrying value of property and equipment was as follows as of: September 30, 2016 December 31, 2015 Furniture and fixtures $ 240,577 $ 230,637 Equipment 809,089 2,815,748 Software 5,949,792 9,856,947 Leasehold improvements 441,381 436,311 Subtotal 7,440,839 13,339,643 Less: accumulated depreciation and amortization (5,688,915 ) (11,534,082 ) Total $ 1,751,924 $ 1,805,561

Other Intangible Assets and G22

Other Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets from Continuing Operations	The following is a schedule of intangible assets as of September 30, 2016 : Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value Year-to-date Amortization Customer list, Google 20 years $ 8,820,000 $ (2,021,250 ) $ 6,798,750 $ 330,750 Customer list, all other 10 years 1,610,000 (737,935 ) 872,065 120,753 Trade names, ALOT (1) 5 years 960,000 (880,000 ) 80,000 144,000 Domain websites (2) 5 years 669,507 (235,386 ) 434,121 104,145 Trade names, web properties (1) - 390,000 — 390,000 — Intangible assets classified as long-term $ 12,449,507 $ (3,874,571 ) $ 8,574,936 $ 699,648 Goodwill, Partner Network $ 1,776,544 $ — $ 1,776,544 $ — Goodwill, Owned and Operated Network 3,984,264 — 3,984,264 — Goodwill, total $ 5,760,808 $ — $ 5,760,808 $ — (1) We have determined the ALOT trade names should be amortized over five years and the trade names related to our web properties have an indefinite life, and as such are not amortized. (2) On May 8, 2015, we purchased two domain websites with a fair value of $715,874 . We determined they should be amortized over five years (see Note 7). The carrying value was adjusted by approximately $46 thousand to reflect the lower price paid as compared to the contingent liability recorded as a result of the change in the price of Inuvo stock from the date of acquisition to the first contingent release of shares.
Schedule of Amortization Expense	Amortization expense over the next five years and thereafter is as follows: 2016 $ 231,060 2017 764,240 2018 732,240 2019 732,240 2020 612,858 Thereafter 5,112,298 Total $ 8,184,936

Accrued Expenses and Other Cu23

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and other Current Liabilities	The accrued expenses and other current liabilities consist of the following as of: September 30, 2016 December 31, 2015 Accrued marketing costs $ 2,060,206 $ 1,404,488 Accrued sales allowance 250,000 500,000 Contingent stock due for acquired domains, current portion 222,477 238,625 Accrued expenses and other 209,522 294,629 Capital leases, current portion 35,434 46,313 Deferred Arkansas grant, current portion 13,468 27,679 Accrued taxes 7,949 13,803 Accrued payroll and commission liabilities 5,000 643,908 Total $ 2,804,056 $ 3,169,445

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Other Liabilities Disclosure [Abstract]
Schedule of Other Long-Term Liabilities	Other long-term liabilities consist of the following as of: September 30, 2016 December 31, 2015 Deferred rent $ 172,604 $ 198,323 Contingent stock due for acquired domains, less current portion 147,029 477,249 Deferred Arkansas grant, less current portion 5,839 15,940 Capital leases, less current portion 4,536 31,210 Total $ 330,008 $ 722,722

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Based Compensation Grants	The following table summarizes the stock grants outstanding under our 2005 Long-Term Incentive Plan ("2005 LTIP") and 2010 ECP plans as of September 30, 2016 : Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total 2010 ECP 250,498 790,985 2,337,705 606,757 3,985,945 2005 LTIP (*) 13,748 114,972 835,113 — 963,833 Total 264,246 905,957 3,172,818 606,757 4,949,778 (*) Expired June 2015

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	For the Three Months Ended For the Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Weighted average shares outstanding for basic EPS 24,694,566 24,271,895 24,571,271 24,209,667 Effect of dilutive securities Options — 13,971 — 9,353 RSUs — 296,831 — 251,428 Warrants — 205,772 — 78,624 Weighted average shares outstanding for diluted EPS 24,694,566 24,788,469 24,571,271 24,549,072

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2016
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Minimum future lease payments under non-cancelable operating leases as of September 30, 2016 are: 2016 $ 45,393 2017 182,456 2018 183,858 2019 184,852 2020 140,749 Total $ 737,308

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of all reportable segments	Listed below is a presentation of net revenue and gross profit for all reportable segments for the three and nine months ended September 30, 2016 and 2015 . We currently only track certain assets at the segment level and therefore assets by segment are not presented below. Revenue by Segment For the Three Months Ended For the Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue Partner Network 6,165,769 35.3 % 7,241,441 37.6 % 16,187,174 31.2 % 24,098,859 48.8 % Owned and Operated Network 11,319,318 64.7 % 12,012,611 62.4 % 35,677,274 68.8 % 25,303,950 51.2 % Total net revenue 17,485,087 100.0 % 19,254,052 100.0 % 51,864,448 100.0 % 49,402,809 100.0 % Gross Profit by Segment For the Three Months Ended For the Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ Gross Profit % $ Gross Profit % $ Gross Profit % $ Gross Profit % Partner Network 1,050,256 17.0 % 1,381,134 19.1 % 2,870,589 17.7 % 5,111,050 21.2 % Owned and Operated Network 11,298,589 99.8 % 11,996,489 99.9 % 35,601,261 99.8 % 25,253,367 99.8 % Total gross profit 12,348,845 70.6 % 13,377,623 69.5 % 38,471,850 74.2 % 30,364,417 61.5 %

Organization and Business (Deta

Organization and Business (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015	Sep. 30, 2016USD ($)customeroperating_segment	Sep. 30, 2015	Dec. 31, 2015	Sep. 27, 2016USD ($)	Mar. 01, 2012USD ($)
Debt Instrument [Line Items]
Number of operating segments | operating_segment			2
Period of sufficient liquidity			12 months
Yahoo and Google
Debt Instrument [Line Items]
Number of customers that contribute to majority revenue | customer			2
Yahoo and Google | Accounts Receivable | Customer Concentration Risk
Debt Instrument [Line Items]
Percentage of concentration risk			98.50%		98.60%
Yahoo and Google | Net Revenue | Customer Concentration Risk
Debt Instrument [Line Items]
Percentage of concentration risk	98.60%	97.80%	98.20%	98.10%
Bridge Bank – Revolving Credit Line - March 1, 2012 | Bridge Bank, N.A. | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity						$ 10,000,000	$ 10,000,000
Term loan	$ 0		$ 0
Remaining borrowing capacity	5,700,000		5,700,000
Bridge Bank – Revolving Credit Line - March 1, 2012 | Bridge Bank, N.A. | Term Loan | Line of Credit
Debt Instrument [Line Items]
Term loan	$ 0		$ 0

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,440,839		$ 7,440,839		$ 13,339,643
Less: accumulated depreciation and amortization	(5,688,915)		(5,688,915)		(11,534,082)
Total	1,751,924		1,751,924		1,805,561
Depreciation expense	325,236	$ 229,350	958,704	$ 615,778
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	240,577		240,577		230,637
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	809,089		809,089		2,815,748
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,949,792		5,949,792		9,856,947
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 441,381		$ 441,381		$ 436,311

Other Intangible Assets and G31

Other Intangible Assets and Goodwill - Schedule of Goodwill and Intangible Assets (Details)		May 08, 2015USD ($)website	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Net Carrying Value			$ 8,184,936
Year-to-date Amortization			699,648
Intangible assets classified as long-term
Carrying Value			12,449,507
Accumulated Amortization and Impairment			(3,874,571)
Net Carrying Value			8,574,936	$ 9,320,951
Goodwill, Impaired, Accumulated Impairment Loss
Carrying Value			5,760,808
Net Carrying Value			5,760,808	$ 5,760,808
Partner Network
Goodwill, Impaired, Accumulated Impairment Loss
Carrying Value			1,776,544
Net Carrying Value			1,776,544
Owned and Operated Network
Goodwill, Impaired, Accumulated Impairment Loss
Carrying Value			3,984,264
Net Carrying Value			3,984,264
Trade names, web properties
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Carrying value, indefinite-lived	[1]		390,000
Net carrying value, indefinite-lived	[1]		$ 390,000
Customer list, Google
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Term			20 years
Carrying Value			$ 8,820,000
Accumulated Amortization and Impairment			(2,021,250)
Net Carrying Value			6,798,750
Year-to-date Amortization			$ 330,750
Customer list, all other
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Term			10 years
Carrying Value			$ 1,610,000
Accumulated Amortization and Impairment			(737,935)
Net Carrying Value			872,065
Year-to-date Amortization			$ 120,753
Trade names, ALOT
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Term	[1]		5 years
Carrying Value	[1]		$ 960,000
Accumulated Amortization and Impairment	[1]		(880,000)
Net Carrying Value	[1]		80,000
Year-to-date Amortization	[1]		$ 144,000
Domain websites
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Term	[2]		5 years
Carrying Value	[2]	$ 715,874	$ 669,507
Accumulated Amortization and Impairment	[2]		(235,386)
Net Carrying Value	[2]		434,121
Year-to-date Amortization	[2]		$ 104,145
Goodwill, Impaired, Accumulated Impairment Loss
Number of finite-lived intangible assets purchased | website		2
Impairment of finite-lived intangible assets		$ 46,000
[1]	We have determined the ALOT trade names should be amortized over five years and the trade names related to our web properties have an indefinite life, and as such are not amortized.
[2]	On May 8, 2015, we purchased two domain websites with a fair value of $715,874. We determined they should be amortized over five years (see Note 7). The carrying value was adjusted by approximately $46 thousand to reflect the lower price paid as compared to the contingent liability recorded as a result of the change in the price of Inuvo stock from the date of acquisition to the first contingent release of shares.

Other Intangible Assets and G32

Other Intangible Assets and Goodwill - Amortization Expense (Details)	Sep. 30, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,016	$ 231,060
2,017	764,240
2,018	732,240
2,019	732,240
2,020	612,858
Thereafter	5,112,298
Net Carrying Value	$ 8,184,936

Notes Payable (Details)

Notes Payable (Details)	Sep. 27, 2016USD ($)	Mar. 01, 2012USD ($)	Sep. 30, 2016USD ($)
Bridge Bank – Term Note Payable - March 1, 2012 | Bridge Bank, N.A. | Term Note Payable
Debt Instrument [Line Items]
Debt instrument, face amount		$ 5,000,000
Bridge Bank – Revolving Credit Line - March 1, 2012 | Bridge Bank, N.A. | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10,000,000	$ 10,000,000
Debt instrument, allowable borrowings, percentage of eligible accounts receivable		80.00%
Debt instrument, additional borrowing maximum, over eligible accounts receivable limit		$ 1,000,000
Period for eligible accounts receivable		90 days
Remaining borrowing capacity			$ 5,700,000
Debt balance			0
Sixth Business Financing Modification Agreement with Western Alliance Bank | Secured Debt
Debt Instrument [Line Items]
Quick ratio (not less than)	0.75
Maximum percentage of decline in revenue from projected amount	20.00%
Maximum decline in AEBITDA from projected amount	$ 500,000
Bridge Bank – Term Note Payable - September 10, 2017 | Term Note Payable
Debt Instrument [Line Items]
Debt balance			$ 0

Accrued Expenses and Other Cu34

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued marketing costs	$ 2,060,206	$ 1,404,488
Accrued sales allowance	250,000	500,000
Contingent stock due for acquired domains, current portion	222,477	238,625
Accrued expenses and other	209,522	294,629
Capital leases, current portion	35,434	46,313
Deferred Arkansas grant, current portion	13,468	27,679
Accrued taxes	7,949	13,803
Accrued payroll and commission liabilities	5,000	643,908
Total	$ 2,804,056	$ 3,169,445

Other Long-Term Liabilities - C

Other Long-Term Liabilities - Components of Other Long-Term Liabilities(Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Deferred rent	$ 172,604	$ 198,323
Contingent stock due for acquired domains, less current portion	147,029	477,249
Deferred Arkansas grant, less current portion	5,839	15,940
Capital leases, less current portion	4,536	31,210
Total	$ 330,008	$ 722,722

Other Long-Term Liabilities - N

Other Long-Term Liabilities - Narrative (Details)		May 08, 2016shares	May 08, 2015USD ($)website	Sep. 30, 2016USD ($)
Performance shares | Common stock
Finite-Lived Intangible Assets [Line Items]
Number of shares issued for performance target achievement | shares		166,667
Domain websites
Finite-Lived Intangible Assets [Line Items]
Number of finite-lived intangible assets purchased | website			2
Carrying value	[1]		$ 715,874	$ 669,507
Contingency accrual, payment period			3 years
Impairment of finite-lived intangible assets			$ 46,000
[1]	On May 8, 2015, we purchased two domain websites with a fair value of $715,874. We determined they should be amortized over five years (see Note 7). The carrying value was adjusted by approximately $46 thousand to reflect the lower price paid as compared to the contingent liability recorded as a result of the change in the price of Inuvo stock from the date of acquisition to the first contingent release of shares.

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Deferred tax liability	$ 3,799,600	$ 3,799,600
Deferred tax asset	$ 39,852,000

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($)	Aug. 05, 2016	Apr. 01, 2016	Aug. 04, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option and restricted stock unit vesting period (up to)						3 years
Stock based compensation				$ 315,596	$ 251,144	$ 1,002,044	$ 385,818
Compensation cost related to non vested awards not yet recognized				$ 1,902,574		$ 1,902,574
Average remaining expense recognition period						1 year 3 months
Restricted Stock Units (RSUs) and Performance Restricted Stock Units (RSUs) | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, grants in period (in shares)			965,500
Grants in period, weighted average grant date fair value (in usd per share)			$ 3.03
Issued in period (in shares)	297,690
Issued in period, weighted average grant date fair value (in usd per share)	$ 1.32
Restricted Stock Units- Service Based | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option and restricted stock unit vesting period (up to)			3 years
Restricted Stock Units- Service Based | Employee | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			25.00%
Restricted Stock Units- Service Based | Employee | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			25.00%
Restricted Stock Units- Service Based | Employee | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			50.00%
Restricted Stock Units | Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, grants in period (in shares)		63,160
Grants in period, weighted average grant date fair value (in usd per share)		$ 1.90
Restricted Stock Units- Performance Based | Employee | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			33.33%
Restricted Stock Units- Performance Based | Employee | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			33.33%
Restricted Stock Units- Performance Based | Employee | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			33.33%

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Grants (Details)	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding (in shares)	264,246
RSUs Outstanding (in shares)	905,957
Options and RSUs Exercised (in shares)	3,172,818
Available Shares (in shares)	606,757
Total (in shares)	4,949,778
2010 ECP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding (in shares)	250,498
RSUs Outstanding (in shares)	790,985
Options and RSUs Exercised (in shares)	2,337,705
Available Shares (in shares)	606,757
Total (in shares)	3,985,945
2005 LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding (in shares)	13,748
RSUs Outstanding (in shares)	114,972
Options and RSUs Exercised (in shares)	835,113
Available Shares (in shares)	0
Total (in shares)	963,833

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Net income (loss) from discontinued operations	$ 171,844	$ 32,065	$ 172,197	$ 37,632

Earnings per Share (Details)

Earnings per Share (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net income (in usd per share)	$ (0.01)	$ 0.03	$ (0.02)	$ 0.07
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS (in shares)	24,694,566	24,271,895	24,571,271	24,209,667
Effect of dilutive securities
Warrants (in shares)	0	205,772	0	78,624
Weighted average shares outstanding for diluted EPS (in shares)	24,694,566	24,788,469	24,571,271	24,549,072
Options
Effect of dilutive securities
Share-based payment arrangements (in shares)	0	13,971	0	9,353
Options outstanding (in shares)		308,925		313,543
Options, outstanding, weighted average exercise price during period (in USD per share)		$ 4.56		$ 4.50
RSUs
Effect of dilutive securities
Share-based payment arrangements (in shares)	0	296,831	0	251,428
Options outstanding (in shares)		806,363		1,097,442
Equity instruments other than options, outstanding, weighted average exercise price during period (in USD per share)		$ 3.82		$ 3.20

Leases (Details)

Leases (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2015USD ($)ft²	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Related Party Transaction [Line Items]
Rent expense, operating leases (credits)		$ 42,248	$ 21,997	$ 135,635	$ 34,897
Lease Payments
2,016		45,393		45,393
2,017		182,456		182,456
2,018		183,858		183,858
2,019		184,852		184,852
2,020		140,749		140,749
Total		$ 737,308		$ 737,308
Arkansas Democrat-Gazette, Inc.
Lease Payments
Lessee leasing arrangements, term of contract	5 years
Number of square feet | ft²	12,245
Operating leases, future minimum payments due, next twelve months	$ 171,000
Annual lease payment increase, percentage	2.00%

Litigation and Settlements (Det

Litigation and Settlements (Details) - Pending Litigation	Mar. 06, 2008USD ($)plaintiff	Oct. 31, 2009legal_action
Loss Contingencies [Line Items]
Number of plaintiffs | plaintiff	3
Number of actions consolidated | legal_action		2
Oltean, et al. (Kelly Oltean) v. Think Partnership, Inc.
Loss Contingencies [Line Items]
Damages sought	$ 200,000
Oltean, et al. (Terry Schultz) v. Think Partnership, Inc.
Loss Contingencies [Line Items]
Damages sought	200,000
Oltean, et al. (Mike Baldock) v. Think Partnership, Inc.
Loss Contingencies [Line Items]
Damages sought	$ 187,500

Segments - Schedule of Net Reve

Segments - Schedule of Net Revenue (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 30, 2015USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			2
Segment Reporting Information [Line Items]
Net revenue	$ 17,485,087	$ 19,254,052	$ 51,864,448	$ 49,402,809
Percent of revenue	100.00%	100.00%	100.00%	100.00%
Partner Network
Segment Reporting Information [Line Items]
Net revenue	$ 6,165,769	$ 7,241,441	$ 16,187,174	$ 24,098,859
Percent of revenue	35.30%	37.60%	31.20%	48.80%
Owned and Operated Network
Segment Reporting Information [Line Items]
Net revenue	$ 11,319,318	$ 12,012,611	$ 35,677,274	$ 25,303,950
Percent of revenue	64.70%	62.40%	68.80%	51.20%

Segments - Schedule of Gross Pr

Segments - Schedule of Gross Profit (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Gross Profit	$ 12,348,845	$ 13,377,623	$ 38,471,850	$ 30,364,417
Percent of Gross Profit	70.60%	69.50%	74.20%	61.50%
Partner Network
Segment Reporting Information [Line Items]
Gross Profit	$ 1,050,256	$ 1,381,134	$ 2,870,589	$ 5,111,050
Percent of Gross Profit	17.00%	19.10%	17.70%	21.20%
Owned and Operated Network
Segment Reporting Information [Line Items]
Gross Profit	$ 11,298,589	$ 11,996,489	$ 35,601,261	$ 25,253,367
Percent of Gross Profit	99.80%	99.90%	99.80%	99.80%