Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | EisnerAmper, LLP |
Auditor Location | Iselin, NJ |
Auditor Firm ID | 274 |
Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 03, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-32442 | ||
Entity Registrant Name | INUVO, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 87-0450450 | ||
Entity Address, Address Line One | 500 President Clinton Ave. | ||
Entity Address, Address Line Two | 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 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | INUV | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 54.3 | ||
Entity Common Stock, Shares Outstanding (in shares) | 121,412,107 | ||
Documents Incorporated by Reference | List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980). The information required by Part III of this Annual Report, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Shareholders to be held in 2023, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report relates. | ||
Entity Central Index Key | 0000829323 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 2,931,415 | $ 10,475,964 |
Marketable securities - short term | 1,529,464 | 1,927,979 |
Accounts receivable, net of allowance for doubtful accounts of $1,440,678 and $202,904, respectively | 11,119,892 | 9,265,813 |
Prepaid expenses and other current assets | 798,977 | 1,408,186 |
Total current assets | 16,379,748 | 23,077,942 |
Property and equipment, net | 1,668,972 | 1,506,766 |
Other assets | ||
Right of use assets - operating lease | 310,162 | 641,306 |
Right of use assets - finance lease | 168,750 | 201,902 |
Referral and support services agreement advance | 800,000 | 1,100,000 |
Marketable securities - long term | 660,126 | 859,512 |
Intangible assets, net of accumulated amortization | 5,649,291 | 6,720,585 |
Goodwill | 9,853,342 | 9,853,342 |
Other assets | 66,919 | 35,720 |
Total other assets | 17,508,590 | 19,412,366 |
Total assets | 35,557,310 | 43,997,074 |
Current liabilities | ||
Accounts payable | 8,044,802 | 4,844,716 |
Accrued expenses and other current liabilities | 5,162,458 | 5,374,391 |
Lease liability - operating lease | 287,523 | 340,478 |
Lease liability - finance lease | 101,003 | 102,954 |
Total current liabilities | 13,595,786 | 10,662,539 |
Long-term liabilities | ||
Deferred tax liability | 107,000 | 107,000 |
Lease liability - operating lease | 23,878 | 300,827 |
Lease liability - finance lease | 70,597 | 105,411 |
Other long-term liabilities | 10,733 | 13,302 |
Total long-term liabilities | 212,208 | 526,540 |
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 120,137,124 and 118,747,447 respectively; | 120,138 | 118,748 |
Additional paid-in capital | 178,771,604 | 176,586,529 |
Accumulated other comprehensive income | (84,868) | 53,737 |
Accumulated deficit | (157,057,558) | (143,951,019) |
Total stockholders' equity | 21,749,316 | 32,807,995 |
Total liabilities and stockholders' equity | $ 35,557,310 | $ 43,997,074 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Allowance for doubtful accounts | $ 1,440,678 | $ 202,904 |
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) | 200,000,000 | 200,000,000 |
Common stock shares issued (in shares) | 120,137,124 | 120,137,124 |
Common stock shares outstanding (in shares) | 118,747,447 | 118,747,447 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Net revenue | $ 75,603,745 | $ 59,830,688 |
Cost of revenue | 30,244,387 | 15,925,837 |
Gross profit | 45,359,358 | 43,904,851 |
Operating expenses: | ||
Marketing costs | 36,921,139 | 33,096,000 |
Compensation | 12,463,095 | 11,381,279 |
General and administrative | 8,624,998 | 7,198,213 |
Total operating expenses | 58,009,232 | 51,675,492 |
Operating loss | (12,649,874) | (7,770,641) |
Financing, other | (21,111) | (86,983) |
Other (expense)/income, net | (435,554) | 256,975 |
Net loss | (13,106,539) | (7,600,649) |
Other comprehensive income | ||
Unrealized (loss)/gain on marketable securities | (138,605) | 53,737 |
Comprehensive loss | $ (13,245,144) | $ (7,546,912) |
Per common share data: | ||
Net loss, basic (in usd per share) | $ (0.11) | $ (0.06) |
Net loss, diluted (in usd per share) | $ (0.11) | $ (0.06) |
Weighted average shares: | ||
Basic (in shares) | 119,826,036 | 117,613,845 |
Diluted (in shares) | 119,826,036 | 117,613,845 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2020 | 98,035,829 | ||||
Beginning balance at Dec. 31, 2020 | $ 25,289,114 | $ 98,036 | $ 161,541,448 | $ (136,350,370) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (7,600,649) | (7,600,649) | |||
Unrealized gain (loss) on debt securities | 53,737 | 53,737 | |||
Stock-based compensation | 2,179,254 | 2,179,254 | |||
Proceeds from exercise of options | 1,569 | 1,569 | |||
Stock issued for vested restricted stock awards (in shares) | 1,696,467 | ||||
Stock issued for vested restricted stock awards | 0 | $ 1,696 | (1,696) | ||
Sale of common stock, net of issuance cost (in shares) | 19,015,151 | ||||
Sale of common stock, net of issuance cost | 13,137,500 | $ 19,016 | 13,118,484 | ||
Shares withheld for taxes on vested restricted stock | (272,049) | (272,049) | |||
Stock warrants issued for referral agreement | $ 19,519 | 19,519 | |||
Ending balance (in shares) at Dec. 31, 2021 | 118,747,447 | 118,747,447 | |||
Ending balance at Dec. 31, 2021 | $ 32,807,995 | $ 118,748 | 176,586,529 | (143,951,019) | 53,737 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (13,106,539) | (13,106,539) | |||
Unrealized gain (loss) on debt securities | (138,605) | (138,605) | |||
Stock-based compensation | 2,350,314 | 2,350,314 | |||
Stock issued for vested restricted stock awards (in shares) | 1,389,677 | ||||
Stock issued for vested restricted stock awards | 0 | $ 1,390 | (1,390) | ||
Shares withheld for taxes on vested restricted stock | (196,892) | (196,892) | |||
Stock warrants issued for referral agreement | $ 33,043 | 33,043 | |||
Ending balance (in shares) at Dec. 31, 2022 | 118,747,447 | 120,137,124 | |||
Ending balance at Dec. 31, 2022 | $ 21,749,316 | $ 120,138 | $ 178,771,604 | $ (157,057,558) | $ (84,868) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | ||
Net loss | $ (13,106,539) | $ (7,600,649) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,598,957 | 3,143,168 |
Amortization of Right of Use Assets-Finance Leases | 103,926 | 322,746 |
Stock based compensation | 2,350,314 | 2,179,254 |
Loss on marketable securities | 435,554 | 266,762 |
Amortization of financing fees | 2,500 | 12,500 |
Provision for doubtful accounts | 1,265,143 | 7,487 |
Stock warrant expense | 33,043 | 0 |
Derecognition of contingencies | (10,000) | (110,000) |
Third party rights agreement termination | 0 | (420,000) |
Change in operating assets and liabilities: | ||
Accounts receivable | (3,119,222) | (3,045,690) |
Referral and support services agreement advance | 300,000 | (1,100,000) |
Prepaid expenses, unbilled revenue and other assets | 578,009 | (992,978) |
Accounts payable | 3,200,086 | 796,456 |
Accrued expenses and other liabilities | (205,762) | 1,264,687 |
Net cash used in operating activities | (5,573,991) | (5,276,257) |
Investing activities: | ||
Purchases of equipment and capitalized development costs | (1,689,869) | (1,597,369) |
Purchase of marketable securities | (1,693,963) | (3,143,000) |
Proceeds from the sale of marketable securities | 1,717,707 | 142,484 |
Net cash used in investing activities | (1,666,125) | (4,597,885) |
Financing activities: | ||
Proceeds from sale of common stock, net of expenses | 0 | 13,137,500 |
Payments on finance/capital leases | (107,539) | (257,679) |
Net taxes paid on RSU grants exercised | (196,894) | (272,049) |
Proceeds from exercise of options | 0 | 1,569 |
SBA loan repayment | 0 | (149,900) |
Net cash (used in)/provided by financing activities | (304,433) | 12,459,441 |
Net change – cash | (7,544,549) | 2,585,299 |
Cash, beginning of year | 10,475,964 | 7,890,665 |
Cash, end of year | 2,931,415 | 10,475,964 |
Supplemental information: | ||
Interest paid | 18,612 | 55,476 |
Assets purchased under finance lease obligations | $ 70,774 | 125,825 |
Assets purchased under operating lease obligations | $ 344,311 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Company Overview Inuvo is a technology company that develops and sells information technology solutions for marketing and advertising. These solutions predictively identify and message online audiences for any product, service or brand across devices, formats, and channels including video, mobile, connected TV, linear TV, display, social, search and native. These solutions allow Inuvo’s clients to engage with their audiences in a manner that drives responsiveness. Inuvo facilitates the delivery of hundreds of millions of marketing messages to consumers every single month and counts among its clients numerous world-renowned names across industries. The Inuvo solution incorporates a proprietary form of artificial intelligence, or AI, branded the IntentKey. This patented machine learning technology uses interactions with Internet content as a source of information from which to predict consumer intent. The AI can identify and advertise to the reasons why consumers are purchasing products and services not to who those consumers are. In this regard, the technology is designed for a privacy conscious future and is focused on the components of the advertising value chain most responsible for return on advertising spend, the intelligence behind the advertising decision. Inuvo technology can be consumed both as a managed service and software-as-a-service. For clients, Inuvo has also developed a collection of proprietary websites collectively branded as Bonfire Publishing where content is created specifically to attract qualified consumer traffic for clients through the publication of information across a wide range of topics including health, finance, travel, careers, auto, education and lifestyle. These sites also provide the means to market test various Inuvo advertising technologies. Further, Inuvo also provides Search and Social advertising services through a proprietary set of technologies branded as CampSight. There are many barriers to entry associated with the Inuvo business model, including a proficiency in large scale information processing, predictive software development, marketing data products, analytics, artificial intelligence, integration to the internet of things ("IOT"), and the relationships required to execute within the IOT. Inuvo’s intellectual property is protected by 19 issued and eight pending patents. Liquidity Our principal sources of liquidity are the sale of our common stock and our credit facility with Hitachi described in Note 7 to our Consolidated Financial Statements. On January 19, 2021, we raised $8 million in gross proceeds, before expenses, through the sale of our common stock, and on January 22, 2021, we raised an additional $6.25 million in gross proceeds, before expenses, through sales of our common stock. In March 2021, we contracted with an investment management company to manage our cash in excess of current operating needs. We placed $2 million in cash equivalent accounts and $10 million in an interest-bearing account. At December 31, 2022, our funds with the investment management company were approximately $2 million and were invested in cash equivalent accounts and marketable debt and equity securities. A detail of the activity is described in Note 3 to our Consolidated Financial Statements. On May 28, 2021, we entered into a Sales Agreement (the "Sales Agreement") with A.G.P./Alliance Global Partners, as sales agent (the "Sales Agent"), pursuant to which we may offer and sell through or to the Sales Agent shares of our common stock (the "ATM Program") up to an aggregate amount of gross proceeds of $35,000,000. During the year ended December 31, 2022, we did not issue any shares of common stock or receive any aggregate proceeds from the ATM Program, and we did not pay any commissions to the Sales Agent. Any shares of common stock offered and sold in the ATM Program will be issued pursuant to our universal shelf registration statement on Form S-3 (the “Shelf Registration Statement”). The ATM Program will terminate upon (a) the election of the Sales Agent upon the occurrence of certain adverse events, (b) 10 days’ advance notice from one party to the other, or (c) the sale of the balance available under our Shelf Registration Statement. Under the terms of the Sales Agreement, the Sales Agent is entitled to a commission at a fixed rate of 3.0% of the gross proceeds from each sale of shares under the Sales Agreement. We have focused our resources behind a plan to grow 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 a positive cash flow from operations. However, there is no assurance that we will be able to achieve this objective. As of December 31, 2022, we have approximately $4.5 million in cash, cash equivalents and short-term marketable securities. Our net working capital was $2.8 million. We have encountered recurring losses and cash outflows from operations, which historically we have funded through equity offerings and debt facilities. For the year ended December 31, 2022 we had a net loss of $13.1 million and net cash outflows from operations of $5.6 million. In addition, our investment in internally developed software consists primarily of labor costs which are of a fixed nature and amounted to approximately $1.7 million for the year ended December 31, 2022. Through December 31, 2022, our accumulated deficit was $157.1 million. Management plans to support the Company’s future operations and capital expenditures primarily through borrowings from the Hitachi credit facility, until reaching 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.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 | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation - The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Cash and cash equivalents - Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. Investments - We have classified debt securities as available for sale securities with unrealized gains and losses recorded as other comprehensive income. Equity securities are marked to market with changes recorded as other income on the income statement. Any interest income or dividends are recorded as interest income on the income statement. Revenue recognition - We generate revenue by identifying audiences and presenting advertisements on behalf of our customers. We may contract directly with a brand, a Direct Customer or we may serve a brand through a contract with an agency, an Indirect Customer. Revenue is recognized when services are provided to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those services. We charge our customers on a cents per thousand (CPM) basis, CPC basis, or as a specific dollar charge. Revenue billed as CPM is generally programmatic digital advertising and is performed under a contract known as an Insertion Order (“IO”). Programmatic digital advertising revenue is recognized in part or fully in the period the IO is partially or fully executed. Revenue earned from placing an ad or an impression on websites, some of which we own, may be on a CPM or CPC basis. We recognize revenue from ad placement and serving impressions in the period in which they occur. The Company settles ad placement and CPC transactions with its customers net of any adjustments for poor traffic quality. Payments to advertising exchanges that provide access to digital inventory and to a lesser extent, payments to website publishers and app developers that host advertisements we serve are recognized as cost of revenue. For the twelve months ended December 31, 2022 2021 Direct customers $ 36,226,223 $ 20,922,750 Indirect customers 39,248,224 38,492,280 Consulting Services and other 129,298 415,658 Total $ 75,603,745 $ 59,830,688 Accounts receivable - Accounts receivable consists of trade receivables from customers. We record accounts receivable at its net realizable value, recognizing an allowance for doubtful accounts based on our best estimate of probable credit losses on our existing accounts receivable. Balances are written off against the allowance after all means of collection have been exhausted and the possibility of recovery is considered remote. Marketing costs - Marketing costs are predominately traffic acquisition costs and include those expenses required to attract an audience to our owned and operated applications and websites. We expense these costs as incurred and present them as a separate line item in operating expenses in the consolidated statements of operations. Property and equipment - Property and equipment are stated at cost, net of accumulated depreciation and amortization. Major renewals and improvements are capitalized while maintenance and repairs which do not improve or extend the life of the respective assets are expensed as incurred. Costs of assets sold or retired and the related accumulated depreciation are eliminated from accounts and the net gain or loss is reflected as an operating expense in the consolidated statements of operations. Property and equipment are depreciated on a straight-line basis over three years for equipment, five two Capitalized Software Costs - We capitalize certain labor costs related to internally developed software and amortize these costs using the straight-line method over the estimated useful life of the software, generally two years. We do not sell internally developed software. Certain development costs not meeting the criteria for capitalization, in accordance with ASC 350-40 Internal-Use Software , are expensed as incurred. Goodwill - Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. We perform an impairment test annually as of December 31, 2022. As a result, we perform our annual goodwill impairment test by comparing the fair value of our reporting unit with its carrying amount. We generally determine the fair value of our reporting unit using the income approach methodology of valuation that includes the undiscounted cash flow method as well as other generally accepted valuation methodologies. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount it exceeds fair value is equivalent to the amount of impairment loss. We determined there was no impairment of goodwill during 2022 and 2021. See Note 6, Intangible Assets and Goodwill, for more information. Intangible Assets - We allocate a portion of the purchase price of acquisitions to identifiable intangible assets and we amortize definite-lived assets over their estimated useful lives. We consider our indefinite-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Trade names are not amortized as they are believed to have an indefinite life. Trade names are reviewed annually for impairment under ASC 350. We also acquire intangible assets outside of acquisitions and record them at their fair value and amortize them over their estimated useful lives. We recorded no impairment of intangible assets during 2022 or 2021. See Note 6, Intangible Assets and Goodwill, for more information. Income taxes - We utilize the liability method of accounting for income taxes as set forth in ASC 740 , Income Taxes (“ASC 740”). Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, we must project future levels of taxable income. We examine evidence related to the history of taxable losses or income, the economic conditions in which we operate, organizational characteristics, our forecasts and projections, as well as factors affecting liquidity. All our deferred tax assets and liabilities are recorded as long-term assets and liabilities in the consolidated balance sheets. 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 for a significant portion of the net deferred tax assets as of December 31, 2022 and 2021. We have adopted certain provisions of ASC 740. This statement clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. ASC 740 prescribes a recognition threshold of more likely than not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order to be recognized in the financial statements. We recognize interest and penalties related to income taxes in income tax expense. We have incurred no penalties and interest for the years ended December 31, 2022 and 2021 Impairment of long-lived assets - In accordance with ASC 360 , Property, Plant and Equipment , long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison of the carrying amount to future undiscounted cash flows the asset is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value. Stock-based compensation - We recognize stock compensation based on the recognition provisions ASC 718 , Compensation – Stock Compensation, which establishes accounting for stock-based awards exchanged for employee and non-employee services and requires companies to expense the estimated grant date fair value of stock awards over the requisite employee service period. The fair value of restricted stock awards is based on the market price of our common stock on the date of the grant. To value stock option awards, we use the Black-Scholes-Merton option pricing model. This model involves assumptions including the expected life of the option, stock price volatility, risk-free interest rate, dividend yield and exercise price. We recognize compensation expense in earnings over the requisite service period, applying a forfeiture rate to account for expected forfeitures of awards. See Note 11, Stock-Based Compensation, for further details on our stock awards. Government Grant - During the first quarter of 2013, we received a grant from the state of Arkansas to relocate our corporate headquarters to Conway, AR. We recognized the grant funds into income as a reduction of the related expense in the period in which those expenses were recognized. We deferred grant funds related to capitalized costs and classified them as current or long-term liabilities on the balance sheet according to the classification of the associated asset. As of December 31, 2022, there were 48 employees in Arkansas, two employees under the required 50. As such, we recorded a contingent liability $10,000. As of December 31, 2021, there were 41 employees in Arkansas, two employees under the required 43. As such, we recorded a contingent liability $10,000. Earnings per share - During the periods presented, we had securities that could potentially dilute basic earnings per share in the future, but were excluded from the computation of diluted net loss per share, as their effect would have been anti-dilutive. We reported a net loss for 2022 and 2021 and therefore, shares associated with stock options, restricted stock and convertible debt are not included because they are anti-dilutive. Basic and diluted net loss per share is the same for all periods presented. Operating segments - In accordance with ASC 280 - Segment reporting , segment information reported is built on the basis of internal management data used for performance analysis of businesses and for the allocation of resources. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker, our chief executive officer, reviews financial information presented on a consolidated basis and no expense or operating income is evaluated at a segment level. Given the consolidated level of review by the our chief executive officer, we operate as one reportable segment. Concentration of credit risk - We are exposed to concentrations of risk primarily in cash and accounts receivable, which are generally not collateralized. Our policy is to place our cash with high credit, quality financial institutions in order to limit the amount of credit exposure. Our cash deposits exceed FDIC limits. We do not require collateral from our customers, but our credit extension and collection policies include monitoring payments and aggressively pursuing delinquent accounts. We maintain allowances for potential credit losses. Customer concentrations - In 2022, we had three individual customers with revenue concentration greater than 10% of our total revenue combining for 66.1% of the total revenue. At December 31, 2022, we had two customers greater than 10% of our total accounts receivable balance combing for a total of 63.3%. In 2021, we had three individual customers with revenue concentration greater than 10% of our total revenue combining for 62.9% of the total revenue. At December 31, 2021, we had four customers greater than 10% of our total accounts receivable balance combining for a total of 56.7%. Use of estimates - The preparation of financial statements, in accordance with accounting principles generally accepted in the United States ("U.S. 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 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. Litigation and settlement costs - From time to time, we are involved in disputes, litigation and other legal actions. In accordance with ASC 450 , Contingencies , we record a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred as of the date of the consolidated financial statements and (ii) the range of loss can be reasonably estimated. Recent Accounting Pronouncements Not Yet Adopted In June 2016, (FASB) issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with a forward- looking expected credit loss model which will result in earlier recognition of credit losses. On November 15, 2019, the FASB delayed the effective date certain small public companies and other private companies. As amended, the effective date of ASC Topic 326 was delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts reported in the balance sheet for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term nature of these items. In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy prioritizes the inputs used to measure fair value as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following table summarizes our cash equivalents and marketable securities measured at fair value. Certain marketable securities consist of investments in debt and equity securities. We classify our cash equivalents and marketable securities within Level 1 because we use observable inputs that reflect quoted market prices for identical assets in active markets to determine their fair value. We have classified debt securities as available for sale securities with unrealized gains and losses recorded as other comprehensive income. We have classified equity securities as trading and are marked to market with changes recorded as other income on the income statement. Any interest income or dividends are recorded within financing expense, net on the income statement. The cost, gross unrealized gains (losses) and fair value of marketable securities by major security type as of December 31, 2022 and 2021 were as follows: Investment Assets at Fair Value Investment Assets at Fair Value As of December 31, 2022 As of December 31, 2021 Level 1 Total Level 1 Total Debt securities $ 936,563 $ 936,563 $ 959,207 $ 959,207 Equity securities 1,253,027 1,253,027 1,828,284 1,828,284 Cash equivalents 801 801 5,222,759 5,222,759 Total Investments at Fair Value $ 2,190,391 $ 2,190,391 $ 8,010,250 $ 8,010,250 As of December 31, 2022 As of December 31, 2021 Cost Unrealized Gain (Loss) Fair Value Cost Unrealized Gain (Loss) Fair Value Marketable securities Debt securities $ 1,021,431 $ (84,868) $ 936,563 $ 905,470 $ 53,737 $ 959,207 Equity securities 1,776,773 (523,746) 1,253,027 2,100,305 (272,021) 1,828,284 Total marketable securities $ 2,189,590 $ 2,787,491 The realized loss on the securities as of December 31, 2022 was approximately $181,000. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The activity in the allowance for doubtful accounts was as follows during the years ended December 31, 2022 and 2021: 2022 2021 Balance at the beginning of the year $ 202,904 $ 209,667 Provision for bad debts 1,265,143 7,487 Charge-offs (27,369) (16,154) Recoveries — 1,904 Balance at the end of the year $ 1,440,678 $ 202,904 During 2022, we expanded our Direct customer business by 73% due in part by acquiring new customers (see Note 2). These customers typically require longer credit terms than traditional CPC based customers. One of these Direct customers was a significant portion, 24.1% of our total revenue, and has stretched its payments to 120 days and beyond. Though the customer is paying amounts due and has significantly reduced the balance since year end, management believed it to be prudent to increase the allowance for doubtful accounts. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The net carrying value of property and equipment at December 31, 2022 and 2021 was as follows: 2022 2021 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,265,752 1,164,671 Capitalized labor 14,503,608 12,914,820 Leasehold improvements 458,885 458,885 Subtotal 16,521,397 14,831,528 Less: accumulated depreciation and amortization (14,852,425) (13,324,762) Total $ 1,668,972 $ 1,506,766 Depreciation expense was $1,527,663 and $1,277,664, respectively, for the years ended December 31, 2022 and 2021. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following is a schedule of intangible assets and goodwill as of December 31, 2022: Term Carrying Accumulated Amortization and Impairment Net Carrying Value 2022 Customer list, Google 20 years $ 8,820,000 $ (4,777,500) $ 4,042,500 $ 441,000 Technology 5 years 3,600,000 (3,600,000) — 60,000 Customer list, ReTargeter 5 years 1,931,250 (1,319,688) 611,562 386,250 Customer list, all other 10 years 1,610,000 (1,610,000) — 26,794 Brand name, ReTargeter 5 years 643,750 (439,896) 203,854 128,750 Customer relationships 20 years 570,000 (168,625) 401,375 28,500 Trade names, web properties - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (11,915,709) $ 5,649,291 $ 1,071,294 Goodwill, total $ 9,853,342 $ — $ 9,853,342 $ — The following is a schedule of intangible assets and goodwill as of December 31, 2021: Term Carrying Accumulated Amortization Net Carrying Value 2021 Customer list, Google 20 years $ 8,820,000 $ (4,336,500) $ 4,483,500 $ 441,000 Technology 5 years 3,600,000 (3,540,000) 60,000 720,000 Customer list, ReTargeter 5 years 1,931,250 (933,438) 997,812 386,250 Customer list, all other 10 years 1,610,000 (1,583,206) 26,794 161,004 Brand name, ReTargeter 5 years 643,750 (311,146) 332,604 128,750 Customer relationships 20 years 570,000 (140,125) 429,875 28,500 Tradenames, web properties (1) - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (10,844,415) $ 6,720,585 $ 1,865,504 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. Our amortization expense over the next five years and thereafter is as follows: 2023 $ 984,500 2024 769,917 2025 469,500 2026 469,500 2027 469,500 Thereafter 2,096,374 Total $ 5,259,291 |
Bank Debt
Bank Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Bank Debt | Bank Debt On March 12, 2020, we closed on the Loan and Security Agreement dated February 28, 2020 with Hitachi. Under the terms of the Loan and Security Agreement, Hitachi has provided us with a $5,000,000 line of credit commitment. We are permitted to borrow (i) 90% of the aggregate Eligible Accounts Receivable, plus (i) the lesser of 75% of the aggregate Unbilled Accounts Receivable or 50% of the amount available to borrow under (i), up to the maximum credit commitment. The amount available to borrow as of December 31, 2022 was approximately $4.8 million. The interest rate of 2% in excess of the Wall Street Journal Prime Rate, with a minimum rate of 6.75% per annum, on outstanding amounts. The principal and all accrued but unpaid interest are due on demand. We agreed to pay Hitachi a commitment fee of $50,000, with one half due upon the execution of the agreement and the balance due six months thereafter. Thereafter, we are obligated to pay Hitachi a commitment fee of $15,000 annually. We are also obligated to pay Hitachi a quarterly service fee of 0.30% on the monthly unused amount of the maximum credit line. In addition to a $2,000 document fee we have paid to Hitachi, if we had exited our relationship with Hitachi before March 1, 2022, we were obligated to pay Hitachi an exit fee of $50,000. On March 12, 2020, we drew $5,000,000 under this agreement, using $2,959,573 of these proceeds to satisfy existing debt obligations and the balance was used for working capital. At December 31, 2022 and 2021, there were no outstanding balances due under the Loan and Security Agreement. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following at December 31, 2022 and 2021: 2022 2021 Accrued marketing costs $ 3,321,598 $ 4,267,980 Accrued expenses and other 1,044,664 956,998 Accrued commissions and payroll 782,441 121,533 Arkansas grant contingency 10,000 10,000 Accrued taxes, current portion 3,755 17,880 Total $ 5,162,458 $ 5,374,391 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | CommitmentsOn 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 with $300,000 recorded as a current asset. The advance is being amortized as marketing expenses over five |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following at December 31, 2022 and 2021: 2022 2021 Current tax provision $ — $ — Deferred tax benefit — — Total tax benefit $ — $ — A reconciliation of the expected Federal statutory rate to our actual rate as reported for each of the periods presented is as follows: 2022 2021 Federal statutory rate 21 % 21 % State income tax rate, net of federal benefit 3 % 2 % Permanent differences — % 2 % Change in valuation allowance (24 %) (25 %) — % — % Deferred Income Taxes Deferred income taxes are the result of temporary differences between book and tax basis of certain assets and liabilities, timing of income and expense recognition of certain items and net operating loss carry-forwards. When required, we record a liability for unrecognized tax positions, defined as the aggregate tax effect of differences between positions taken on tax returns and the benefits recognized in the financial statements. Tax positions are measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. No tax benefits are recognized for positions that do not meet this threshold. We have no uncertain tax positions that require the us to record a liability. Our federal income tax returns are subject to examination by the IRS, generally for three years after they are filed. We assess temporary differences resulting from different treatments of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are recorded in the consolidated balance sheets. We evaluate the realizability of our deferred tax assets on a regular basis, an exercise that requires significant judgment. In the course of this evaluation we considered our recent history of tax losses, the economic conditions in which we operate, recent organizational changes and our forecasts and projections. 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 a significant portion of the net deferred tax assets that may not be realized as of December 31, 2022 and 2021. The following is a schedule of the deferred tax assets and liabilities as of December 31, 2022 and 2021: 2022 2021 Deferred tax assets: Net operating loss carry forward $ 36,506,618 $ 33,727,960 Intangible assets 543,000 585,500 Accrued expense 287,600 239,800 Deferred rent 3,000 3,800 Allowance for doubtful accounts 403,800 56,900 Stock compensation expense 869,900 610,900 Unrecognized Income/Loss 122,100 — Other 373,100 351,500 Subtotal 39,109,118 35,576,360 Less valuation allowance (37,976,018) (33,988,760) Total 1,133,100 1,587,600 Deferred tax liabilities: Intangible assets and property and equipment 1,242,200 1,373,300 Other (2,100) 321,300 Total 1,240,100 1,694,600 Total deferred tax liabilities $ (107,000) $ (107,000) The net operating losses amounted to approximately $101,260,617 and expire beginning 2023 through 2037. Included in the federal net operating loss carryforwards are $22.5 million generated from 2018 to 2022 that will not expire and are limited to offset 80% of our taxable income for years beginning after December 31, 2020. As of December 31, 2022, the Company has a net deferred tax liability of $107,000. The net deferred tax liability is due to goodwill that is amortized for tax purposes and a trade name that has an indefinite life, of which both are not being amortized for book purposes. The deferred tax liability relating to goodwill can only be offset up to 80% by NOLs generated in tax years ending December 31, 2018 and beyond, as well as NOLs available after consideration of IRC Section 382 limitation. The remaining portion that cannot be used remains as a liability. In future years, if the deferred tax assets are determined by management to be “more likely than not” to be realized, the recognized tax benefits relating to the reversal of the valuation allowance as of December 31, 2022 will be recorded. Under the provisions of the Internal Revenue Code, the net operating loss carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. Net operating loss carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code, respectively, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has not conducted a study to assess whether a change of control has occurred or whether there have been multiple changes of control since inception due to the significant complexity and cost associated with such a study. If the Company has experienced a change of control, as defined by Section 382, at any time since inception, utilization of the net operating loss carryforwards would be subject to an annual limitation under Section 382, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term tax-exempt rate, and then could be subject to additional adjustments, as required. Any limitation may result in expiration of a portion of the net operating loss carryforwards before utilization. Further, until a study is completed by the Company and any limitation is known, no amounts are being presented as an uncertain tax position. The Company remains open to examination by the Internal Revenue Service for the years ending December 31, 2018 through 2021. Carryforward attributes generated in all years since inception remain subject to adjustment. Our state income tax returns are open to audit under the statute of limitations for the same periods. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [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. During the 2022 and 2021 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 achieving certain financial targets. On January 1, 2022, in accordance with the plan provisions, the number of shares available for issuance under the 2017 ECP was increased by 150,000 shares. On June 16, 2022, our stockholders approved an amendment to the 2017 ECP increasing the number of shares of our common stock reserved for issuance by 15,000,000 shares. As of December 31, 2022, the total number of shares of our common stock reserved for issuance under the 2017 ECP was 24,550,000. Compensation Expense We recorded stock-based compensation expense for all equity incentive plans of $2,350,314 and $2,179,254 for the years ended December 31, 2022 and 2021, respectively. Total compensation cost not yet recognized at December 31, 2022 was $2,323,398 to be recognized over a weighted-average recognition period of one year. The following table summarizes the stock grants outstanding under our 2017 ECP plan as of December 31, 2022: Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Total 100,000 4,913,339 4,560,799 14,975,862 24,550,000 The fair value of restricted stock units 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 our stock option activity during 2022: Options Weighted Average Exercise Price Outstanding, beginning of year 1,500 $ 0.56 Stock options, granted 100,000 $ 0.52 Stock options exercised — $ — Stock options canceled 1,500 $ 0.56 Outstanding, end of year 100,000 $ 0.52 Exercisable, end of year — $ — Expected volatility is based on the historical volatility of our common stock over the period commensurate with or longer than the expected life of the options. The expected life of the options is based on the vesting schedule of the option in relation to the overall term of the option. The risk free interest rate is based on the market yield of the U.S. Treasury Bill with a term equal to the expected term of the option awarded. We do not anticipate paying any dividends so the dividend yield in the model is zero. The following table summarizes the weighted average assumptions for our granted options and RSUs. Options RSUs Award/Strike Price $ 0.52 $ — Market Price $ 0.52 $ 0.41 Volatility 107 % — % Dividend Yield — % — % Expected Life 5.5 years 0 years Risk Free Rate 3 % — % The following table summarizes our restricted stock unit activity for 2022: Restricted Stock Unit Weighted Average Fair Value Outstanding, beginning of year 3,960,001 $ 1.33 Granted 2,960,000 $ 0.41 Vested (1,826,661) $ 1.34 Forfeited (180,001) $ 0.95 Outstanding, end of year 4,913,339 $ 0.79 |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders Equity | Stockholders' Equity Common Stock On January 19, 2021, we raised $8 million in gross proceeds, before expenses, through the sale of our common stock, and on January 22, 2021, we raised $6.25 million in gross proceeds, before expenses, through sales of our common stock. 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 9 - Commitments). As part of that agreement, we granted a warrant exercisable into 300,000 shares of our common stock, 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 on a ratable basis over the vesting period of each tranche. On August 31, 2022, 85,862 shares vested in accordance with the contracted performance criteria. For the twelve months ended December 31, 2022, we recognized approximately $33 thousand in expense. Earnings per Share |
Retirement Plan Costs
Retirement Plan Costs | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plan Costs | Retirement Plan Costs We provide a 401(k) plan to help our employees prepare for retirement where we matched each employee's contributions to the plan up to the first four of the employee's annual salary. The matching contribution for the years ended 2022 and 2021 was $292,825 and $260,540, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from two years to four 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 obligations to make lease payments are also listed as separate line items on our consolidated balance sheets. As of December 31, 2022 and December 31, 2021, total operating and financed right-of-use assets were $310,162 and $168,750, and $641,306 and $201,902, respectively. For the years-ended December 31, 2022 and 2021, we recorded $103,926 and $322,747 in amortization expense related to finance leases. Because 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 are as follows: December 31, 2022 Cash paid for operating lease liabilities $ 427,565 Weighted-average remaining lease term 2.97 years Weighted-average discount rate 6.25 % Minimum future lease payments ended December 31, 2022 2023 $ 303,172 2024 16,236 2025 5,251 2026 1,590 326,249 Less imputed interest (14,848) Total lease liabilities $ 311,401 Information related to our financed lease liabilities are as follows: December 31, 2022 Cash paid for finance lease liabilities $ 146,586 Weighted-average remaining lease term 2.0 years Weighted-average discount rate 6.25 % Minimum future lease payments ended December 31, 2022 2023 $ 105,655 2024 56,180 2025 18,491 180,326 Less imputed interest (8,726) Total lease liabilities $ 171,600 |
Leases | Leases We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from two years to four 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 obligations to make lease payments are also listed as separate line items on our consolidated balance sheets. As of December 31, 2022 and December 31, 2021, total operating and financed right-of-use assets were $310,162 and $168,750, and $641,306 and $201,902, respectively. For the years-ended December 31, 2022 and 2021, we recorded $103,926 and $322,747 in amortization expense related to finance leases. Because 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 are as follows: December 31, 2022 Cash paid for operating lease liabilities $ 427,565 Weighted-average remaining lease term 2.97 years Weighted-average discount rate 6.25 % Minimum future lease payments ended December 31, 2022 2023 $ 303,172 2024 16,236 2025 5,251 2026 1,590 326,249 Less imputed interest (14,848) Total lease liabilities $ 311,401 Information related to our financed lease liabilities are as follows: December 31, 2022 Cash paid for finance lease liabilities $ 146,586 Weighted-average remaining lease term 2.0 years Weighted-average discount rate 6.25 % Minimum future lease payments ended December 31, 2022 2023 $ 105,655 2024 56,180 2025 18,491 180,326 Less imputed interest (8,726) Total lease liabilities $ 171,600 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | Related PartiesA board member of the Company is employed by the investment company that is the financial advisor and custodian of the Company’s marketable securities. Marketable securities were $2,189,590 and $2,787,491 as of December 31, 2022 and 2021, respectively. The fees paid to the financial advisor were not material.In addition, a board member of the Company is also a minority shareholder and consultant to one of the Company’s largest customers during 2022. Revenue from this customer was approximately $18.3 million and $5.7 million for the years ended December 31, 2022 and 2021, respectively, and accounts receivable was approximately $6.7 million as of December 31, 2022. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On March 1, 2023, Inuvo, Inc. (“Inuvo”) entered into Amendment No. 1 to Loan and Security Agreement and Collateral Documents (hereinafter referred to, as amended, as the “Agreement”) with Mitsubishi HC Capital America, Inc., f/k/a/ Hitachi Capital America Corp. (“MHCA”). Under the terms of the Agreement, MHCA has provided us with a $5,000,000 line of credit commitment. We are permitted to borrow up to 80% of the aggregate Eligible Accounts Receivable (which may increase to 85% if certain conditions are met), up to the maximum credit commitment of $5,000,000. We will pay Hitachi monthly interest at the rate of 1.75% in excess of the Wall Street Journal Prime Rate. The principal and all accrued but unpaid interest are due on demand. In the event of a default under the terms of the Loan and Security Agreement, the interest rate increases to 6% greater than the interest rate in effect from time to time prior to a default. The Agreement contains certain affirmative and negative covenants to which we are also subject. We agreed to pay MHCA an amendment fee of $10,000 on issuance of the Agreement, and thereafter an annual commitment fee of $10,000. We are also obligated to pay MHCA a quarterly service fee of 0.20% on the monthly unused amount of the maximum credit line. If we should repay the amounts due under the Agreement (i) before February 28, 2024, we are obligated to pay MHCA an exit fee of $50,000, or (ii) after February 28, 2024 but before February 28, 2025, we are obligated to pay MHCA an exit fee of $25,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation - The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash and cash equivalents | Cash and cash equivalents - Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. |
Investments | Investments - We have classified debt securities as available for sale securities with unrealized gains and losses recorded as other comprehensive income. Equity securities are marked to market with changes recorded as other income on the income statement. Any interest income or dividends are recorded as interest income on the income statement. |
Revenue recognition | Revenue recognition - We generate revenue by identifying audiences and presenting advertisements on behalf of our customers. We may contract directly with a brand, a Direct Customer or we may serve a brand through a contract with an agency, an Indirect Customer. Revenue is recognized when services are provided to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those services. We charge our customers on a cents per thousand (CPM) basis, CPC basis, or as a specific dollar charge. Revenue billed as CPM is generally programmatic digital advertising and is performed under a contract known as an Insertion Order (“IO”). Programmatic digital advertising revenue is recognized in part or fully in the period the IO is partially or fully executed. Revenue earned from placing an ad or an impression on websites, some of which we own, may be on a CPM or CPC basis. We recognize revenue from ad placement and serving impressions in the period in which they occur. The Company settles ad placement and CPC transactions with its customers net of any adjustments for poor traffic quality. Payments to advertising exchanges that provide access to digital inventory and to a lesser extent, payments to website publishers and app developers that host advertisements we serve are recognized as cost of revenue. |
Accounts receivable | Accounts receivable - Accounts receivable consists of trade receivables from customers. We record accounts receivable at its net realizable value, recognizing an allowance for doubtful accounts based on our best estimate of probable credit losses on our existing accounts receivable. Balances are written off against the allowance after all means of collection have been exhausted and the possibility of recovery is considered remote. |
Marketing costs | Marketing costs - Marketing costs are predominately traffic acquisition costs and include those expenses required to attract an audience to our owned and operated applications and websites. We expense these costs as incurred and present them as a separate line item in operating expenses in the consolidated statements of operations. |
Property and equipment | Property and equipment - Property and equipment are stated at cost, net of accumulated depreciation and amortization. Major renewals and improvements are capitalized while maintenance and repairs which do not improve or extend the life of the respective assets are expensed as incurred. Costs of assets sold or retired and the related accumulated depreciation are eliminated from accounts and the net gain or loss is reflected as an operating expense in the consolidated statements of operations. five two |
Capitalized Software Costs | Capitalized Software Costs - We capitalize certain labor costs related to internally developed software and amortize these costs using the straight-line method over the estimated useful life of the software, generally two years. We do not sell internally developed software. Certain development costs not meeting the criteria for capitalization, in accordance with ASC 350-40 Internal-Use Software , are expensed as incurred. |
Goodwill | Goodwill - Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. We perform an impairment test annually as of December 31, 2022. As a result, we perform our annual goodwill impairment test by comparing the fair value of our reporting unit with its carrying amount. We generally determine the fair value of our reporting unit using the income approach methodology of valuation that includes the undiscounted cash flow method as well as other generally accepted valuation methodologies. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount it exceeds fair value is equivalent to the amount of impairment loss. |
Intangible Assets | Intangible Assets - We allocate a portion of the purchase price of acquisitions to identifiable intangible assets and we amortize definite-lived assets over their estimated useful lives. We consider our indefinite-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Trade names are not amortized as they are believed to have an indefinite life. Trade names are reviewed annually for impairment under ASC 350. We also acquire intangible assets outside of acquisitions and record them at their fair value and amortize them over their estimated useful lives. |
Income taxes | Income taxes - We utilize the liability method of accounting for income taxes as set forth in ASC 740 , Income Taxes (“ASC 740”). Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, we must project future levels of taxable income. We examine evidence related to the history of taxable losses or income, the economic conditions in which we operate, organizational characteristics, our forecasts and projections, as well as factors affecting liquidity. All our deferred tax assets and liabilities are recorded as long-term assets and liabilities in the consolidated balance sheets. 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 for a significant portion of the net deferred tax assets as of December 31, 2022 and 2021. |
Impairment of long-lived assets | Impairment of long-lived assets - In accordance with ASC 360 , Property, Plant and Equipment |
Stock-based compensation | Stock-based compensation - We recognize stock compensation based on the recognition provisions ASC 718 , Compensation – Stock Compensation, which establishes accounting for stock-based awards exchanged for employee and non-employee services and requires companies to expense the estimated grant date fair value of stock awards over the requisite employee service period. The fair value of restricted stock awards is based on the market price of our common stock on the date of the grant. To value stock option awards, we use the Black-Scholes-Merton option pricing model. This model involves assumptions including the expected life of the option, stock price volatility, risk-free interest rate, dividend yield and exercise price. We recognize compensation expense in earnings over the requisite service period, applying a forfeiture rate to account for expected forfeitures of awards. |
Government Grant | Government Grant- During the first quarter of 2013, we received a grant from the state of Arkansas to relocate our corporate headquarters to Conway, AR. We recognized the grant funds into income as a reduction of the related expense in the period in which those expenses were recognized. We deferred grant funds related to capitalized costs and classified them as current or long-term liabilities on the balance sheet according to the classification of the associated asset. |
Earnings per share | Earnings per share - During the periods presented, we had securities that could potentially dilute basic earnings per share in the future, but were excluded from the computation of diluted net loss per share, as their effect would have been anti-dilutive. We reported a net loss for 2022 and 2021 and therefore, shares associated with stock options, restricted stock and convertible debt are not included because they are anti-dilutive. Basic and diluted net loss per share is the same for all periods presented. |
Operating segments | Operating segments - In accordance with ASC 280 - Segment reporting |
Concentration of credit risk | Concentration of credit risk - We are exposed to concentrations of risk primarily in cash and accounts receivable, which are generally not collateralized. Our policy is to place our cash with high credit, quality financial institutions in order to limit the amount of credit exposure. Our cash deposits exceed FDIC limits. We do not require collateral from our customers, but our credit extension and collection policies include monitoring payments and aggressively pursuing delinquent accounts. We maintain allowances for potential credit losses. |
Use of estimates | Use of estimates - The preparation of financial statements, in accordance with accounting principles generally accepted in the United States ("U.S. 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 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. |
Litigation and settlement costs | Litigation and settlement costs - From time to time, we are involved in disputes, litigation and other legal actions. In accordance with ASC 450 , Contingencies |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In June 2016, (FASB) issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with a forward- looking expected credit loss model which will result in earlier recognition of credit losses. On November 15, 2019, the FASB delayed the effective date certain small public companies and other private companies. As amended, the effective date of ASC Topic 326 was delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | For the twelve months ended December 31, 2022 2021 Direct customers $ 36,226,223 $ 20,922,750 Indirect customers 39,248,224 38,492,280 Consulting Services and other 129,298 415,658 Total $ 75,603,745 $ 59,830,688 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The cost, gross unrealized gains (losses) and fair value of marketable securities by major security type as of December 31, 2022 and 2021 were as follows: Investment Assets at Fair Value Investment Assets at Fair Value As of December 31, 2022 As of December 31, 2021 Level 1 Total Level 1 Total Debt securities $ 936,563 $ 936,563 $ 959,207 $ 959,207 Equity securities 1,253,027 1,253,027 1,828,284 1,828,284 Cash equivalents 801 801 5,222,759 5,222,759 Total Investments at Fair Value $ 2,190,391 $ 2,190,391 $ 8,010,250 $ 8,010,250 As of December 31, 2022 As of December 31, 2021 Cost Unrealized Gain (Loss) Fair Value Cost Unrealized Gain (Loss) Fair Value Marketable securities Debt securities $ 1,021,431 $ (84,868) $ 936,563 $ 905,470 $ 53,737 $ 959,207 Equity securities 1,776,773 (523,746) 1,253,027 2,100,305 (272,021) 1,828,284 Total marketable securities $ 2,189,590 $ 2,787,491 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for Doubtful Accounts [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The activity in the allowance for doubtful accounts was as follows during the years ended December 31, 2022 and 2021: 2022 2021 Balance at the beginning of the year $ 202,904 $ 209,667 Provision for bad debts 1,265,143 7,487 Charge-offs (27,369) (16,154) Recoveries — 1,904 Balance at the end of the year $ 1,440,678 $ 202,904 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Net Carrying value of Property and Equipment | The net carrying value of property and equipment at December 31, 2022 and 2021 was as follows: 2022 2021 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,265,752 1,164,671 Capitalized labor 14,503,608 12,914,820 Leasehold improvements 458,885 458,885 Subtotal 16,521,397 14,831,528 Less: accumulated depreciation and amortization (14,852,425) (13,324,762) Total $ 1,668,972 $ 1,506,766 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets from Continuing Operations | The following is a schedule of intangible assets and goodwill as of December 31, 2022: Term Carrying Accumulated Amortization and Impairment Net Carrying Value 2022 Customer list, Google 20 years $ 8,820,000 $ (4,777,500) $ 4,042,500 $ 441,000 Technology 5 years 3,600,000 (3,600,000) — 60,000 Customer list, ReTargeter 5 years 1,931,250 (1,319,688) 611,562 386,250 Customer list, all other 10 years 1,610,000 (1,610,000) — 26,794 Brand name, ReTargeter 5 years 643,750 (439,896) 203,854 128,750 Customer relationships 20 years 570,000 (168,625) 401,375 28,500 Trade names, web properties - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (11,915,709) $ 5,649,291 $ 1,071,294 Goodwill, total $ 9,853,342 $ — $ 9,853,342 $ — The following is a schedule of intangible assets and goodwill as of December 31, 2021: Term Carrying Accumulated Amortization Net Carrying Value 2021 Customer list, Google 20 years $ 8,820,000 $ (4,336,500) $ 4,483,500 $ 441,000 Technology 5 years 3,600,000 (3,540,000) 60,000 720,000 Customer list, ReTargeter 5 years 1,931,250 (933,438) 997,812 386,250 Customer list, all other 10 years 1,610,000 (1,583,206) 26,794 161,004 Brand name, ReTargeter 5 years 643,750 (311,146) 332,604 128,750 Customer relationships 20 years 570,000 (140,125) 429,875 28,500 Tradenames, web properties (1) - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (10,844,415) $ 6,720,585 $ 1,865,504 Goodwill, total $ 9,853,342 $ — $ 9,853,342 $ — ___________ |
Schedule of Amortization Expense | Our amortization expense over the next five years and thereafter is as follows: 2023 $ 984,500 2024 769,917 2025 469,500 2026 469,500 2027 469,500 Thereafter 2,096,374 Total $ 5,259,291 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following at December 31, 2022 and 2021: 2022 2021 Accrued marketing costs $ 3,321,598 $ 4,267,980 Accrued expenses and other 1,044,664 956,998 Accrued commissions and payroll 782,441 121,533 Arkansas grant contingency 10,000 10,000 Accrued taxes, current portion 3,755 17,880 Total $ 5,162,458 $ 5,374,391 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following at December 31, 2022 and 2021: 2022 2021 Current tax provision $ — $ — Deferred tax benefit — — Total tax benefit $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the expected Federal statutory rate to our actual rate as reported for each of the periods presented is as follows: 2022 2021 Federal statutory rate 21 % 21 % State income tax rate, net of federal benefit 3 % 2 % Permanent differences — % 2 % Change in valuation allowance (24 %) (25 %) — % — % |
Schedule of Deferred Tax Assets and Liabilities | The following is a schedule of the deferred tax assets and liabilities as of December 31, 2022 and 2021: 2022 2021 Deferred tax assets: Net operating loss carry forward $ 36,506,618 $ 33,727,960 Intangible assets 543,000 585,500 Accrued expense 287,600 239,800 Deferred rent 3,000 3,800 Allowance for doubtful accounts 403,800 56,900 Stock compensation expense 869,900 610,900 Unrecognized Income/Loss 122,100 — Other 373,100 351,500 Subtotal 39,109,118 35,576,360 Less valuation allowance (37,976,018) (33,988,760) Total 1,133,100 1,587,600 Deferred tax liabilities: Intangible assets and property and equipment 1,242,200 1,373,300 Other (2,100) 321,300 Total 1,240,100 1,694,600 Total deferred tax liabilities $ (107,000) $ (107,000) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Grants | The following table summarizes the stock grants outstanding under our 2017 ECP plan as of December 31, 2022: Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Total 100,000 4,913,339 4,560,799 14,975,862 24,550,000 |
Schedule of Stock Options | The following table summarizes our stock option activity during 2022: Options Weighted Average Exercise Price Outstanding, beginning of year 1,500 $ 0.56 Stock options, granted 100,000 $ 0.52 Stock options exercised — $ — Stock options canceled 1,500 $ 0.56 Outstanding, end of year 100,000 $ 0.52 Exercisable, end of year — $ — |
Schedule of Stock Options and Restricted Stock Unit Weighted Average Assumptions | The following table summarizes the weighted average assumptions for our granted options and RSUs. Options RSUs Award/Strike Price $ 0.52 $ — Market Price $ 0.52 $ 0.41 Volatility 107 % — % Dividend Yield — % — % Expected Life 5.5 years 0 years Risk Free Rate 3 % — % |
Schedule of Restricted Stock Unit Activity | The following table summarizes our restricted stock unit activity for 2022: Restricted Stock Unit Weighted Average Fair Value Outstanding, beginning of year 3,960,001 $ 1.33 Granted 2,960,000 $ 0.41 Vested (1,826,661) $ 1.34 Forfeited (180,001) $ 0.95 Outstanding, end of year 4,913,339 $ 0.79 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Information Relating to Leases | Information related to our operating lease liabilities for are as follows: December 31, 2022 Cash paid for operating lease liabilities $ 427,565 Weighted-average remaining lease term 2.97 years Weighted-average discount rate 6.25 % Information related to our financed lease liabilities are as follows: December 31, 2022 Cash paid for finance lease liabilities $ 146,586 Weighted-average remaining lease term 2.0 years Weighted-average discount rate 6.25 % |
Schedule of Operating Lease Maturity | Minimum future lease payments ended December 31, 2022 2023 $ 303,172 2024 16,236 2025 5,251 2026 1,590 326,249 Less imputed interest (14,848) Total lease liabilities $ 311,401 |
Schedule of Finance Lease Liability | Minimum future lease payments ended December 31, 2022 2023 $ 105,655 2024 56,180 2025 18,491 180,326 Less imputed interest (8,726) Total lease liabilities $ 171,600 |
Organization and Business (Deta
Organization and Business (Details) | 1 Months Ended | 12 Months Ended | ||||
Jan. 22, 2021 USD ($) | Jan. 19, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) patent | Dec. 31, 2021 USD ($) | May 28, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Patents issued | patent | 19 | |||||
Pending patents | patent | 8 | |||||
Consideration received on transaction | $ 6,250,000 | $ 8,000,000 | ||||
Payments to acquire investments | $ 2,000,000 | |||||
Cash deposited, interest-bearing | $ 10,000,000 | |||||
Cash, cash equivalents, and short-term marketable securities | $ 4,500,000 | |||||
Working capital, net | 2,800,000 | |||||
Net loss | 13,106,539 | $ 7,600,649 | ||||
Net cash outflows from operations | 5,573,991 | 5,276,257 | ||||
Labor costs related to internally developed software | 1,700,000 | |||||
Accumulated deficit | 157,057,558 | $ 143,951,019 | ||||
Sales Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Sale of stock, consideration received on transaction, authorized amount | $ 35,000,000 | |||||
Period for which advance notice is due to terminate agreement (days) | 10 days | |||||
Commission fee, percent | 3% | |||||
Money Market Funds And Marketable Debt And Equity Securities | ||||||
Debt Instrument [Line Items] | ||||||
Investment in cash equivalents and marketable debt and equity securities | $ 2,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 75,603,745 | $ 59,830,688 |
Consulting Services and other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 129,298 | 415,658 |
Direct customers | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 36,226,223 | 20,922,750 |
Indirect customers | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 39,248,224 | $ 38,492,280 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | Dec. 31, 2022 USD ($) segment employee | Dec. 31, 2021 USD ($) employee | |
Schedule of Significant Accounting Policies [Line Items] | ||||
Depreciation | $ 1,527,663 | $ 1,277,664 | ||
Impairment of goodwill | 0 | 0 | ||
Impairment of finite-lived intangible assets | 0 | 0 | ||
Income tax penalties and interest expense | $ 0 | $ 0 | ||
Employees employed under grant | employee | 48 | 41 | 48 | 41 |
Employees under required amount | employee | 2 | 2 | ||
Employees required to be employed | employee | 50 | 43 | 50 | 43 |
Arkansas grant contingency | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 |
Number of reportable segments | segment | 1 | |||
Customer Concentration Risk | Net Revenue | Three Largest Customers | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 66.10% | 62.90% | ||
Customer Concentration Risk | Accounts Receivable | Two Largest Customers | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 63.30% | |||
Customer Concentration Risk | Accounts Receivable | Four Largest Customers | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 56.70% | |||
Equipment | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Furniture and fixtures | Minimum | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
Furniture and fixtures | Maximum | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
Capitalized labor | Minimum | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 2 years | |||
Capitalized labor | Maximum | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Software Development | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 2 years |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments at Fair Value (Details) - Fair Value, Recurring - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 936,563 | $ 959,207 |
Equity securities | 1,253,027 | 1,828,284 |
Cash equivalents | 801 | 5,222,759 |
Total Investments at Fair Value | 2,190,391 | 8,010,250 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 936,563 | 959,207 |
Equity securities | 1,253,027 | 1,828,284 |
Cash equivalents | 801 | 5,222,759 |
Total Investments at Fair Value | $ 2,190,391 | $ 8,010,250 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Cash Equivalents and Marketable Securities (Details) - Fair Value, Recurring - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | $ 936,563 | $ 959,207 |
Equity securities, fair value | 1,253,027 | 1,828,284 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, cost | 1,021,431 | 905,470 |
Debt securities, unrealized gain (loss) | (84,868) | 53,737 |
Debt securities, fair value | 936,563 | 959,207 |
Equity securities, cost | 1,776,773 | 2,100,305 |
Equity securities, unrealized gain (loss) | (523,746) | (272,021) |
Equity securities, fair value | 1,253,027 | 1,828,284 |
Total marketable securities | $ 2,189,590 | $ 2,787,491 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Realized loss on marketable securities | $ 181,000 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts - Schedule of Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at the beginning of the year | $ 202,904 | $ 209,667 |
Provision for bad debts | 1,265,143 | 7,487 |
Charge-offs | (27,369) | (16,154) |
Recoveries | 0 | 1,904 |
Balance at the end of the year | $ 1,440,678 | $ 202,904 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Direct customers | |
Disaggregation of Revenue [Line Items] | |
Increase in revenue from Direct customer business | 0.73 |
Largest Customer | Net Revenue | Customer Concentration Risk | |
Disaggregation of Revenue [Line Items] | |
Concentration risk, percentage | 24.10% |
Property and Equipment - Schedu
Property and Equipment - Schedule of Carrying Value (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 16,521,397 | $ 14,831,528 |
Less: accumulated depreciation and amortization | (14,852,425) | (13,324,762) |
Total | 1,668,972 | 1,506,766 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 293,152 | 293,152 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,265,752 | 1,164,671 |
Capitalized labor | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,503,608 | 12,914,820 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 458,885 | $ 458,885 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,527,663 | $ 1,277,664 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Net Carrying Value | $ 5,259,291 | |
Intangible assets classified as long-term | ||
Carrying Value | 17,565,000 | $ 17,565,000 |
Accumulated Amortization and Impairment | (11,915,709) | (10,844,415) |
Net Carrying Value | 5,649,291 | 6,720,585 |
Amortization | 1,071,294 | 1,865,504 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Carrying Value | 9,853,342 | 9,853,342 |
Accumulated Amortization and Impairment | 0 | 0 |
Goodwill | 9,853,342 | 9,853,342 |
Trade names, web properties | ||
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Trade names, web properties | $ 390,000 | $ 390,000 |
Customer list, Google | ||
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Term | 20 years | 20 years |
Carrying Value | $ 8,820,000 | $ 8,820,000 |
Accumulated Amortization and Impairment | (4,777,500) | (4,336,500) |
Net Carrying Value | 4,042,500 | 4,483,500 |
Amortization | $ 441,000 | $ 441,000 |
Technology | ||
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Term | 5 years | 5 years |
Carrying Value | $ 3,600,000 | $ 3,600,000 |
Accumulated Amortization and Impairment | (3,600,000) | (3,540,000) |
Net Carrying Value | 0 | 60,000 |
Amortization | $ 60,000 | $ 720,000 |
Customer list, ReTargeter | ||
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Term | 5 years | 5 years |
Carrying Value | $ 1,931,250 | $ 1,931,250 |
Accumulated Amortization and Impairment | (1,319,688) | (933,438) |
Net Carrying Value | 611,562 | 997,812 |
Amortization | $ 386,250 | $ 386,250 |
Customer list, all other | ||
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Term | 10 years | 10 years |
Carrying Value | $ 1,610,000 | $ 1,610,000 |
Accumulated Amortization and Impairment | (1,610,000) | (1,583,206) |
Net Carrying Value | 0 | 26,794 |
Amortization | $ 26,794 | $ 161,004 |
Brand name, ReTargeter | ||
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Term | 5 years | 5 years |
Carrying Value | $ 643,750 | $ 643,750 |
Accumulated Amortization and Impairment | (439,896) | (311,146) |
Net Carrying Value | 203,854 | 332,604 |
Amortization | $ 128,750 | $ 128,750 |
Customer relationships | ||
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items] | ||
Term | 20 years | 20 years |
Carrying Value | $ 570,000 | $ 570,000 |
Accumulated Amortization and Impairment | (168,625) | (140,125) |
Net Carrying Value | 401,375 | 429,875 |
Amortization | $ 28,500 | $ 28,500 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Amortization Expense (Details) | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 984,500 |
2024 | 769,917 |
2025 | 469,500 |
2026 | 469,500 |
2027 | 469,500 |
Thereafter | 2,096,374 |
Net Carrying Value | $ 5,259,291 |
Bank Debt - Narrative (Details)
Bank Debt - Narrative (Details) - USD ($) | Mar. 12, 2020 | Feb. 28, 2020 | Dec. 31, 2022 | Dec. 31, 2021 |
Hitachi Capital America Corp. | ||||
Debt Instrument [Line Items] | ||||
Commitment fee amount | $ 50,000 | |||
Term of balance due | 6 months | |||
Annual commitment fee amount | $ 15,000 | |||
Quarterly service fee | 0.30% | |||
Amendment fee | $ 2,000 | |||
Exit fee | 50,000 | |||
Outstanding balances due under line of credit | $ 0 | $ 0 | ||
Percentage due upon execution | 50% | |||
Loan And Security Credit Agreement | Hitachi Capital America Corp. | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 5,000,000 | |||
Percentage of aggregate Eligible Accounts Receivable | 90% | |||
Percentage of aggregate Unbilled Accounts Receivable | 75% | |||
Percentage of amount available to borrow under maximum credit commitment | 50% | |||
Available borrowing capacity | $ 4,800,000 | |||
Stated interest rate | 6.75% | |||
Loan And Security Credit Agreement | Monthly Interest | Hitachi Capital America Corp. | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2% | |||
Credit Agreement | Western Alliance Bank | ||||
Debt Instrument [Line Items] | ||||
Extinguishment of debt | $ 2,959,573 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued marketing costs | $ 3,321,598 | $ 4,267,980 |
Accrued expenses and other | 1,044,664 | 956,998 |
Accrued commissions and payroll | 782,441 | 121,533 |
Arkansas grant contingency | 10,000 | 10,000 |
Accrued taxes, current portion | 3,755 | 17,880 |
Total | $ 5,162,458 | $ 5,374,391 |
Commitments (Details)
Commitments (Details) - USD ($) | 12 Months Ended | ||
Sep. 17, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||
Referral and support services agreement advance | $ 1,500,000 | $ 800,000 | $ 1,100,000 |
Referral agreement, term | 5 years | ||
Referral agreement amortized as marketing expense | 400,000 | ||
Class of warrant or right, granted in period | 300,000 | ||
Class of warrant or right, vesting period | 2 years | ||
Commission recognized | $ 645,000 | ||
Current Asset | |||
Other Commitments [Line Items] | |||
Referral and support services agreement advance | $ 300,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current tax provision | $ 0 | $ 0 |
Deferred tax benefit | 0 | 0 |
Total tax benefit | $ 0 | $ 0 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21% | 21% |
State income tax rate, net of federal benefit | 3% | 2% |
Permanent differences | 0% | 2% |
Change in valuation allowance | (24.00%) | (25.00%) |
Effective income tax rate | 0% | 0% |
Income Taxes - Schedule of the
Income Taxes - Schedule of the Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carry forward | $ 36,506,618 | $ 33,727,960 |
Intangible assets | 543,000 | 585,500 |
Accrued expense | 287,600 | 239,800 |
Deferred rent | 3,000 | 3,800 |
Allowance for doubtful accounts | 403,800 | 56,900 |
Stock compensation expense | 869,900 | 610,900 |
Unrecognized Income/Loss | 122,100 | 0 |
Other | 373,100 | 351,500 |
Subtotal | 39,109,118 | 35,576,360 |
Less valuation allowance | (37,976,018) | (33,988,760) |
Total | 1,133,100 | 1,587,600 |
Deferred tax liabilities: | ||
Intangible assets and property and equipment | 1,242,200 | 1,373,300 |
Other | (2,100) | 321,300 |
Total | 1,240,100 | 1,694,600 |
Total deferred tax liabilities | $ (107,000) | $ (107,000) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | $ 101,260,617 | |
Operating loss carryforwards, not subject to expiration | 22,500,000 | |
Net deferred tax liabilities | $ 107,000 | $ 107,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jun. 16, 2022 | Jan. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation Expense | ||||
Award vesting period | 3 years | |||
Number of shares reserved for issuance (in shares) | 24,550,000 | |||
Stock based compensation | $ 2,350,314 | $ 2,179,254 | ||
Compensation cost related to non vested awards not yet recognized | $ 2,323,398 | |||
Average remaining expense recognition period | 1 year | |||
Number of options exercisable (in shares) | 0 | |||
Weighted average exercise price (in usd per share) | $ 0 | |||
Granted in period | 100,000 | |||
Dividend Yield | 0% | |||
2017 ECP | ||||
Compensation Expense | ||||
Increase in number of shares (in shares) | 15,000,000 | 150,000 | ||
Number of shares reserved for issuance (in shares) | 24,550,000 | |||
Options | ||||
Compensation Expense | ||||
Expected forfeiture rate | 0% | |||
Dividend Yield | 0% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Grants (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share-Based Payment Arrangement [Abstract] | ||
Options Outstanding (in shares) | 100,000 | 1,500 |
RSUs Outstanding (in shares) | 4,913,339 | |
Options and RSUs Exercised (in shares) | 4,560,799 | |
Available Shares (in shares) | 14,975,862 | |
Total (in shares) | 24,550,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Options | |
Outstanding, beginning of year (in shares) | shares | 1,500 |
Stock options granted (in shares) | shares | 100,000 |
Stock options exercised (in shares) | shares | 0 |
Stock options canceled (in shares) | shares | 1,500 |
Outstanding, end of year (in shares) | shares | 100,000 |
Exercisable, end of year (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Outstanding, beginning of year (in usd per share) | $ / shares | $ 0.56 |
Stock options granted (in usd per share) | $ / shares | 0.52 |
Stock options exercised (in usd per share) | $ / shares | 0 |
Stock options canceled (in usd per share) | $ / shares | 0.56 |
Outstanding, end of year (in usd per share) | $ / shares | 0.52 |
Exercisable, end of year (in usd per share) | $ / shares | $ 0 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Award/Strike Price (in usd per share) | $ 0.52 |
Dividend Yield | 0% |
Options | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Award/Strike Price (in usd per share) | $ 0.52 |
Market Price | $ 0.52 |
Volatility | 107% |
Dividend Yield | 0% |
Expected Life (in years) | 5 years 6 months |
Risk Free Rate | 3% |
RSUs | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Market Price | $ 0.41 |
Volatility | 0% |
Dividend Yield | 0% |
Expected Life (in years) | 0 years |
Risk Free Rate | 0% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Award Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Restricted Stock Unit | |
Outstanding, end of year (in shares) | 4,913,339 |
Restricted Stock Units | |
Restricted Stock Unit | |
Outstanding, beginning of year (in shares) | 3,960,001 |
Granted (in shares) | 2,960,000 |
Vested (in shares) | (1,826,661) |
Forfeited (in shares) | (180,001) |
Outstanding, end of year (in shares) | 4,913,339 |
Weighted Average Fair Value | |
Outstanding, beginning of year (in usd per share) | $ / shares | $ 1.33 |
Granted (in usd per share) | $ / shares | 0.41 |
Vested (in usd per share) | $ / shares | 1.34 |
Forfeited (in usd per share) | $ / shares | 0.95 |
Outstanding, end of year (in usd per share) | $ / shares | $ 0.79 |
Stockholders Equity (Details)
Stockholders Equity (Details) | 12 Months Ended | ||||
Sep. 17, 2021 USD ($) $ / shares shares | Jan. 22, 2021 USD ($) | Jan. 19, 2021 USD ($) | Dec. 31, 2022 USD ($) | Aug. 31, 2022 shares | |
Class of Warrant or Right [Line Items] | |||||
Consideration received on transaction | $ 6,250,000 | $ 8,000,000 | |||
Referral agreement, term | 5 years | ||||
Class of warrant or right, granted in period | shares | 300,000 | ||||
Warrants and rights outstanding | $ 149,551 | ||||
Warrants and rights outstanding, term | 7 years | ||||
Warrants vested | shares | 85,862 | ||||
Fair value adjustment of warrants | $ 33,000 | ||||
Measurement Input, Implied Volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and rights outstanding, measurement input | 1 | ||||
Measurement Input, Risk-free Yield | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and rights outstanding, measurement input | 0.0117 | ||||
Measurement Input, Share Price | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and rights outstanding, measurement input | $ / shares | 0.71 | ||||
Maximum | |||||
Class of Warrant or Right [Line Items] | |||||
Referral agreement, term | 5 years |
Retirement Plan Costs (Details)
Retirement Plan Costs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Maximum annual contribution per employee, percent | 4% | |
Employer matching contribution amount | $ 292,825 | $ 260,540 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Right of use assets - operating lease | $ 310,162 | $ 641,306 |
Right of use assets - finance lease | 168,750 | 201,902 |
Finance lease right-of-use asset, amortization | $ 103,926 | $ 322,747 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 2 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 4 years |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities | $ 427,565 |
Weighted-average remaining lease term | 2 years 11 months 19 days |
Weighted-average discount rate | 6.25% |
Minimum future lease payments ended December 31, 2022 | |
2023 | $ 303,172 |
2024 | 16,236 |
2025 | 5,251 |
2026 | 1,590 |
Payments due | 326,249 |
Less imputed interest | (14,848) |
Total lease liabilities | $ 311,401 |
Leases - Finance Leases (Detail
Leases - Finance Leases (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Cash paid for finance lease liabilities | $ 146,586 |
Weighted-average remaining lease term | 2 years |
Weighted-average discount rate | 6.25% |
Minimum future lease payments ended December 31, 2022 | |
2023 | $ 105,655 |
2024 | 56,180 |
2025 | 18,491 |
Payments due | 180,326 |
Less imputed interest | (8,726) |
Total lease liabilities | $ 171,600 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Marketable securities, related party | $ 2,189,590 | $ 2,787,491 |
Revenue received from related party | 18,300,000 | $ 5,700,000 |
Accounts receivable, related parties | $ 6,700,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - Mitsubishi HC Capital America, Inc. $ in Thousands | Mar. 01, 2023 USD ($) |
Subsequent Event [Line Items] | |
Amendment fee | $ 10 |
Annual commitment fee amount | $ 10 |
Quarterly service fee | 0.20% |
Before February 28, 2024 | |
Subsequent Event [Line Items] | |
Exit fee | $ 50 |
After February 28, 2024 but before February 28, 2025 | |
Subsequent Event [Line Items] | |
Exit fee | 25 |
Loan And Security Credit Agreement | |
Subsequent Event [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 5,000 |
Percentage of aggregate Eligible Accounts Receivable | 80% |
Monthly interest rate in excess of Wall Street Journal Prime Rate | 1.75% |
Debt instrument, default interest rate | 0.06 |
Maximum | Loan And Security Credit Agreement | |
Subsequent Event [Line Items] | |
Percentage of aggregate Eligible Accounts Receivable | 85% |