Inuvo (INUV) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Entity Registrant Name	Inuvo, Inc.
Entity Central Index Key	0000829323
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		0
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-32442
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	87-0450450
Entity Address Address Line 1	500 President Clinton Ave.
Entity Address Address Line 2	Suite 300
Entity Address City Or Town	Little Rock
Entity Address State Or Province	AR
Entity Address Postal Zip Code	72201
City Area Code	501
Local Phone Number	205-8508
Security 12b Title	Common stock
Trading Symbol	INUV
Security Exchange Name	NYSEAMER
Entity Interactive Data Current	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 5,045,112	$ 2,931,415
Marketable securities - short term	0	1,529,464
Accounts receivable, net of allowance for doubtful accounts of $1,762,998 and $1,440,678, respectively.	10,795,658	11,119,892
Prepaid expenses and other current assets	828,601	798,977
Total current assets	16,669,371	16,379,748
Property and equipment, net	1,680,448	1,668,972
Other assets
Goodwill	9,853,342	9,853,342
Intangible assets, net of accumulated amortization	5,157,041	5,649,291
Referral and support services agreement advance	650,000	800,000
Marketable securities - long term	0	660,126
Right of use assets - operating lease	128,689	310,162
Right of use assets - finance lease	110,738	168,750
Other assets	35,170	66,919
Total other assets	15,934,980	17,508,590
Total assets	34,284,799	35,557,310
Current liabilities
Accounts payable	6,192,824	8,044,802
Accrued expenses and other current liabilities	8,241,372	5,162,458
Lease liability - operating lease	119,624	287,523
Lease liability - finance lease	74,097	101,003
Total current liabilities	14,627,917	13,595,786
Long-term liabilities
Deferred tax liability	107,000	107,000
Lease liability - operating lease	10,331	23,878
Lease liability - finance lease	33,344	70,597
Other long-term liabilities	3,555	10,733
Total long-term liabilities	154,230	212,208
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 137,817,253 and 120,137,124, respectively.	137,818	120,138
Additional paid-in capital	183,239,735	178,771,604
Accumulated other comprehensive loss	0	(84,868)
Accumulated deficit	(163,874,901)	(157,057,558)
Total stockholders' equity	19,502,652	21,749,316
Total liabilities and stockholders' equity	$ 34,284,799	$ 35,557,310

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 1,762,998	$ 1,440,678
Preferred stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	200,000,000	200,000,000
Common stock shares issued (in shares)	137,817,253	120,137,124
Common stock shares outstanding (in shares)	137,817,253	120,137,124

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
Net revenue	$ 16,651,405	$ 22,651,305	$ 28,498,845	$ 41,260,672
Cost of revenue	2,368,540	9,273,589	5,559,103	17,935,095
Gross profit	14,282,865	13,377,716	22,939,742	23,325,577
Operating expenses
Marketing costs	12,056,616	10,988,409	19,144,166	18,157,858
Compensation	3,253,416	3,215,890	6,676,257	6,373,596
General and administrative	2,311,885	2,011,237	3,893,774	3,737,909
Total operating expenses	17,621,917	16,215,536	29,714,197	28,269,363
Operating loss	(3,339,052)	(2,837,820)	(6,774,455)	(4,943,786)
Financing expense, net	(38,186)	3,070	(57,306)	2,071
Other income (expense), net	0	(395,177)	14,418	(377,475)
Net loss	(3,377,238)	(3,229,927)	(6,817,343)	(5,319,190)
Other comprehensive income
Unrealized gain (loss) on marketable securities	0	(124,253)	84,868	(222,409)
Comprehensive loss	$ (3,377,238)	$ (3,354,180)	$ (6,732,475)	$ (5,541,599)
Per common share data Basic and diluted:
Net loss per share (basic and diluted)	$ (0.03)	$ (0.03)	$ (0.05)	$ (0.04)
Weighted average shares
Basic	127,249,916	119,827,944	124,115,098	118,788,819
Diluted	127,249,916	119,827,944	124,115,098	118,788,819

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net loss	$ (6,817,343)	$ (5,319,190)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,317,203	1,308,776
Depreciation-Right of Use Assets - Financing	58,013	48,697
Stock based compensation	935,145	1,355,534
Amortization of financing fees	2,084	2,500
Provision (recovery) of doubtful accounts	322,320	20,086
Loss (gain) on marketable securities	(14,418)	377,475
Stock warrant expense	(8,598)	12,945
Derecognition of contingency and grant	0	(10,000)
Change in operating assets and liabilities:
Accounts receivable	1,913	(3,849,084)
Referral and support services agreement advance	150,000	150,000
Prepaid expenses, unbilled revenue and other assets	2,126	333,820
Accrued expenses and other liabilities	3,069,680	1,597,637
Accounts payable	(1,851,978)	1,401,820
Net cash used in operating activities	(2,833,853)	(2,568,984)
Investing activities:
Purchases of equipment and capitalized development costs	(836,428)	(911,443)
Purchase of marketable securities	0	(1,600,121)
Proceeds from the sale of marketable securities	2,288,873	1,155,912
Net cash provided by (used in) investing activities	1,452,445	(1,355,652)
Financing activities:
Gross proceeds from line of credit	592,868	0
Repayments on line of credit	(592,868)	0
Payments on finance lease obligations	(64,159)	(49,737)
Proceeds from at-the-market sales	61,136	0
Capital raise, net of issuance costs	3,665,000	0
Net taxes paid on restricted stock unit grants exercised	(166,872)	(128,521)
Net cash provided by/(used in) financing activities	3,495,105	(178,258)
Net change - cash	2,113,697	(4,102,894)
Cash and cash equivalent, beginning of year	2,931,415	10,475,964
Cash and cash equivalent, end of period	5,045,112	6,373,070
Supplemental information:
Interest paid	$ 67,532	$ 12,625

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance, shares at Dec. 31, 2021		118,747,447
Balance, amount at Dec. 31, 2021	$ 32,807,995	$ 118,748	$ 176,586,529	$ (143,951,019)	$ 53,737
Net loss	(2,089,263)			(2,089,263)
Unrealized loss on debt securities	(98,156)				(98,156)
Stock-based compensation	671,158		671,158
Stock issued for vested restricted stock awards, shares		1,059,755
Stock issued for vested restricted stock awards, amount	0	$ 1,060	(1,060)
Shares withheld for taxes on vested restricted stock	128,520		(128,520)
Stock warrants issued for referral agreement	12,483		12,483
Balance, shares at Mar. 31, 2022		119,807,202
Balance, amount at Mar. 31, 2022	31,175,697	$ 119,808	177,140,590	(146,040,282)	(44,419)
Balance, shares at Dec. 31, 2021		118,747,447
Balance, amount at Dec. 31, 2021	32,807,995	$ 118,748	176,586,529	(143,951,019)	53,737
Net loss	(5,319,190)
Unrealized loss on debt securities	(222,409)
Balance, shares at Jun. 30, 2022		119,873,868
Balance, amount at Jun. 30, 2022	28,506,355	$ 119,874	177,825,362	(149,270,209)	(168,672)
Balance, shares at Mar. 31, 2022		119,807,202
Balance, amount at Mar. 31, 2022	31,175,697	$ 119,808	177,140,590	(146,040,282)	(44,419)
Net loss	(3,229,927)			(3,229,927)
Unrealized loss on debt securities	(124,253)				(124,253)
Stock-based compensation	684,376		684,376
Stock issued for vested restricted stock awards, shares		66,666
Stock issued for vested restricted stock awards, amount	0	$ 66	(66)
Stock warrants issued for referral agreement	462		462
Balance, shares at Jun. 30, 2022		119,873,868
Balance, amount at Jun. 30, 2022	28,506,355	$ 119,874	177,825,362	(149,270,209)	(168,672)
Balance, shares at Dec. 31, 2022		120,137,124
Balance, amount at Dec. 31, 2022	21,749,316	$ 120,138	178,771,604	(157,057,558)	(84,868)
Net loss	(3,440,105)			(3,440,105)
Unrealized loss on debt securities	84,868				84,868
Stock-based compensation	432,084		432,084
Stock issued for vested restricted stock awards, shares		1,503,238
Stock issued for vested restricted stock awards, amount	0	$ 1,503	(1,503)
Shares withheld for taxes on vested restricted stock	(166,872)		(166,872)
Reversal of expense related to a change in warrant vesting	(9,874)		(9,874)
Balance, shares at Mar. 31, 2023		121,640,362
Balance, amount at Mar. 31, 2023	18,649,417	$ 121,641	179,025,439	(160,497,663)	0
Balance, shares at Dec. 31, 2022		120,137,124
Balance, amount at Dec. 31, 2022	21,749,316	$ 120,138	178,771,604	(157,057,558)	(84,868)
Net loss	(6,817,343)
Unrealized loss on debt securities	84,868
Balance, shares at Jun. 30, 2023		137,817,253
Balance, amount at Jun. 30, 2023	19,502,652	$ 137,818	183,239,735	(163,874,901)	0
Balance, shares at Mar. 31, 2023		121,640,362
Balance, amount at Mar. 31, 2023	18,649,417	$ 121,641	179,025,439	(160,497,663)	0
Net loss	(3,377,238)			(3,377,238)
Unrealized loss on debt securities	0
Stock-based compensation	503,061		503,061
Stock issued for vested restricted stock awards, shares		3,333
Stock issued for vested restricted stock awards, amount	0	$ 3	(3)
Stock warrants issued for referral agreement	1,276		1,276
Capital raise, net of issuance costs, shares		16,000,000
Capital raise, net of issuance costs, amount	3,665,000	$ 16,000	3,649,000
AGP Closing at-the-market sale, shares		173,558
AGP Closing at-the-market sale	61,136	$ 174	60,962
Balance, shares at Jun. 30, 2023		137,817,253
Balance, amount at Jun. 30, 2023	$ 19,502,652	$ 137,818	$ 183,239,735	$ (163,874,901)	$ 0

Organization and Business

Organization and Business	6 Months Ended
	Jun. 30, 2023
Organization and Business
Organization and Business	Note 1 – 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 client’s numerous world-renowned brands across industries. The Inuvo solution incorporates a proprietary form of artificial intelligence, or AI, branded the IntentKey. This patented technology is a model of the human language built from crawling public content on billions of webpages. The AI uses this model of the language to predict and action audiences based on the reasons why consumers are interested, not who the people are within those audiences. In this regard, the technology is designed for a consumer privacy conscious future while addressing 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 certain clients, Inuvo has also developed website services that have included proprietary digital properties collectively branded as Bonfire Publishing where content is created specifically to align with the audiences our clients are targeting. These publications provide information across a wide range of topics including health, finance, travel, careers, auto, education and lifestyle. These websites also provide the means to market test various Inuvo advertising technologies. Further, Inuvo provides campaign delivery services across all advertising platforms and channels. 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 As of June 30, 2023, we had approximately $5 million in cash and cash equivalents and our net working capital was approximately $2 million. We have encountered recurring losses and cash outflows from operations, which historically we have funded through equity offerings and debt facilities. In addition, our investment in internally developed software consists primarily of labor costs which are of a fixed nature. Through June 30, 2023, our accumulated deficit was $163.9 million. Our principal sources of liquidity are the sale of our common stock and our credit facility discussed in Note 6 - Bank Debt. On May 30, 2023, we raised $4.0 million in gross proceeds in a registered direct offering, before expenses, through the sale of an aggregate of 16,000,000 shares of our common stock The shares were offered pursuant to an effective shelf registration statement on Form S-3 (the “Shelf Registration Statement”) and a prospectus supplement relating to the offering was filed with the SEC on May 26, 2023. 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 June 30, 2023, our funds with the investment management company were approximately $467 thousand and were invested in cash and cash equivalent accounts. 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 $14,611,900. During the year ended December 31, 2021 and through March 31, 2023, we did not issue any shares of common stock or receive any aggregate proceeds under the ATM Program, and we did not pay any commissions to the Sales Agent. During the quarter ended June 30, 2023, we sold 173,558 shares for gross proceeds totaling $63,136 under the ATM Program and paid the Sales Agent a commission of $1,902. 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 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 market our collective multi-channel advertising capabilities differentiated by our AI technology, the IntentKey, where we have a technology 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. Management plans to support the Company’s future operations and capital expenditures primarily through cash raised from the sale of stock in May 2023, cash generated from future operations and borrowings from the 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. Customer concentration For the three-month period ending June 30, 2023, three customers accounted for 78.6% of our overall revenue at 54.0%, 16.9% and 7.7% and for the six-month period ending June 30, 2023, 73.5% of our overall revenue at 42.5%, 20.4% and 10.6%, respectively. Those same three customers accounted for 47.3% of our gross accounts receivable balance as of June 30, 2023. As of December 31, 2022, the same customers accounted for 23.9% of our gross accounts receivable balance.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements presented are for Inuvo and its subsidiaries. The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2022, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In our opinion, these consolidated financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 9, 2023. Use of estimates The preparation of financial statements, in accordance with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s regular evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. We regularly evaluate estimates and assumptions related to allowance for doubtful accounts, capitalized labor, goodwill and purchased intangible asset valuations and income tax valuation allowance. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. Revenue Recognition Revenue recognition - We generate revenue by identifying audiences and presenting advertisements on behalf of our customers. Ultimately, our customers are brands and merchants. We may contract directly with a brand or merchant, a Direct Customer or we may serve the ultimate customer through a contract with an agent, an Indirect Customer. Revenue is recognized when the contracted 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, cost per click ("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. The following table provides revenues for Direct Customers, Indirect Customers, and Consulting during the periods presented. For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Direct Customers $ 3,306,788 19.8 % $ 11,560,450 51.0 % $ 7,226,562 25.4 % $ 22,286,019 54.0 % Indirect Customers 13,317,899 80.0 % 11,046,215 48.8 % 21,231,089 74.5 % 18,885,325 45.8 % Consulting 26,718 0.2 % 44,640 0.2 % 41,194 0.1 % 89,328 0.2 % Total $ 16,651,405 100.0 % $ 22,651,305 100.0 % $ 28,498,845 100.0 % $ 41,260,672 100.0 % Recently Adopted Accounting Pronouncements On January 1, 2023, we adopted Accounting Standards Code (ASC) No. 326, Financial Instruments-Credit Losses

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Measurements
Fair Value Measurements	Note 3 – 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. Investment Assets at Fair Value Investment Assets at Fair Value As of June 30, 2023 As of December 31, 2022 Level 1 Total Level 1 Total Debt securities $ 936,563 $ 936,563 Equity securities $ 1,253,027 $ 1,253,027 Cash equivalents $ 467,384 $ 467,384 $ 801 $ 801 Total Investments at Fair Value $ 467,384 $ 467,384 $ 2,190,391 $ 2,190,391 The cost, gross unrealized gains (losses) and fair value of marketable securities by major security type were as follows: As of December 31 2022 Cost Unrealized Gain (Loss) Fair Value Marketable securities Debt securities $ 1,021,431 $ (84,868 ) $ 936,563 Equity securities 1,776,773 (523,746 ) 1,253,027 Total marketable securities $ 2,189,590

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2023
Property and Equipment
Property and Equipment	Note 4 – Property and Equipment The net carrying value of property and equipment was as follows as of: June 30, 2023 December 31, 2022 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,274,851 1,265,752 Capitalized internal use and purchased software 15,330,939 14,503,608 Leasehold improvements 458,885 458,885 Subtotal 17,357,827 16,521,397 Less: accumulated depreciation and amortization (15,677,379 ) (14,852,425 ) Total $ 1,680,448 $ 1,668,972 During the six months ended June 30, 2023 and June 30, 2022, depreciation expense was $824,954 and $729,732, respectively.

Other Intangible Assets and Goo

Other Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2023
Other Intangible Assets and Goodwill
Other Intangible Assets and Goodwill	Note 5 – Other Intangible Assets and Goodwill The following is a schedule of intangible assets and goodwill as of June 30, 2023: Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value Year-to-date Amortization Customer list, Google 20 years $ 8,820,000 $ (4,998,000 ) $ 3,822,000 $ 220,500 Technology 5 years 3,600,000 (3,600,000 ) 0 0 Customer list, ReTargeter 5 years 1,931,250 (1,512,813 ) 418,437 193,125 Customer list, all other 10 years 1,610,000 (1,610,000 ) 0 0 Brand name, ReTargeter 5 years 643,750 (504,271 ) 139,479 64,375 Customer relationships 20 years 570,000 (182,875 ) 387,125 14,250 Trade names, web properties (1) - 390,000 390,000 0 Intangible assets classified as long-term $ 17,565,000 $ (12,407,959 ) $ 5,157,041 $ 492,250 Goodwill, total - $ 9,853,342 $ — $ 9,853,342 $ — (1) The trade names related to our web properties have an indefinite life, and as such are not amortized. Amortization expense over the next five years and thereafter is as follows: 2023 (remainder of year) $ 492,250 2024 769,917 2025 469,500 2026 469,500 2027 469,500 Thereafter 2,096,374 Total $ 4,767,041

Bank Debt

Bank Debt	6 Months Ended
	Jun. 30, 2023
Bank Debt
Bank Debt	Note 6 – Bank Debt On March 1, 2023, we entered into Amendment No. 1 to Loan and Security Agreement and Collateral Documents (“Agreement”) with Mitsubishi HC Capital America, Inc., f/k/a/ Hitachi Capital America Corp. (“MHCA”). Under the terms of the Agreement, MHCA 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 MHCA 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 terminate 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. The Loan and Security Agreement continues for an indefinite term. At June 30, 2023, there were no outstanding balances due under the Loan and Security Agreement.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2023
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	Note 7 – Accrued Expenses and Other Current Liabilities The accrued expenses and other current liabilities consist of the following as of: June 30, 2023 December 31, 2022 Accrued marketing costs $ 6,226,698 $ 3,321,598 Accrued payroll and commission liabilities 1,012,366 782,441 Accrued expenses and other 997,537 1,044,664 Arkansas grant contingency _ 10,000 Accrued taxes, current portion 4,771 3,755 Total $ 8,241,372 $ 5,162,458

Commitments

Commitments	6 Months Ended
	Jun. 30, 2023
Commitments
Commitments	Note 8 – Commitments On September 17, 2021, we signed a multi-year agreement with a business development partner to provide referral and support services to us. The agreement required an advance fee of $1.5 million with $300,000 recorded in other current assets. The advance is being amortized as marketing expenses over five years. As of June 30, 2023, $550,000 has been amortized and the balance is $650,000. As part of the agreement, we granted a warrant exercisable into 300,000 shares of our common stock, which vests over two years upon achieving certain performance metrics (see Note 11 - Stockholders' Equity). Additionally, we agreed to pay quarterly support fees upon reaching certain levels of operational activity. In April 2022, we agreed to Amendment No. 2 ("amendment") to the agreement. The amendment replaced the quarterly support fees with a commission on quarterly cumulative programmatic revenue. The amendment also revised the cumulative target media spend and the associated commission. The total amount of commission recognized for the six months ended June 30, 2023 and 2022 was approximately $40,000 and $394,000, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Taxes
Income Taxes	Note 9 – Income Taxes We have no current income tax expense and incur only the minimum state taxes which are included in operating expenses. We have deferred tax assets of $41,453,068. We believe it is more likely than not that essentially none of our deferred tax assets will be realized, and we have recorded a valuation allowance of $40,042,968 for the deferred tax assets that may not be realized as of June 30, 2023 and December 31, 2022. We also have deferred tax liabilities totaling $1,517,100 as of June 30, 2023, related to intangible assets acquired in March 2012 and February 2017. These balances are presented as a net deferred tax liability of $107,000 composed of indefinite lived intangible assets.

StockBased Compensation

StockBased Compensation	6 Months Ended
	Jun. 30, 2023
StockBased Compensation
Stock-Based Compensation	Note 10 – 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 2023 and 2022 periods, we granted restricted stock units ("RSUs") from the 2017 Equity Compensation Plan, as amended (“2017 ECP”). RSU vesting periods are generally up to three years and/or based upon achieving certain financial targets. 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 June 30, 2023, the total number of authorized shares of our common stock under the 2017 ECP was 24,550,000. Compensation Expense For the six months ended June 30, 2023 and June 30, 2022, we recorded stock-based compensation expense for all equity incentive plans of $935,145 and $1,355,534 respectively. Total compensation cost not yet recognized at June 30, 2023 was $2,588,400, which will be recognized over a weighted-average recognition period of approximately three years. The following table summarizes the stock grants outstanding under 2017 ECP for the three months ended June 30, 2023: Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Awards Authorized Total — 6,893,349 6,600,788 11,055,863 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 the activity of stock option awards for the six months ended June 30, 2023: Shares Subject to Options Outstanding Number of Shares Weighted A verage Exercise Price Outstanding, beginning of period 100,000 $ 0.52 Stock options canceled (100,000 ) $ 0.52 Outstanding, end of period — — The following table summarizes the activities for our RSUs for the six months ended June 30, 2023: RSUs Number of Shares Weighted Average Grant Date Fair Value Outstanding, beginning of period 4,913,339 $ 0.79 Granted 4,070,000 $ 0.31 Vested (2,039,989 ) $ 0.86 Cancelled (50,001 ) $ 0.54 Outstanding, end of period 6,893,349 $ 0.49

Stockholders Equity

Stockholders Equity	6 Months Ended
	Jun. 30, 2023
Stockholders Equity
Stockholders' Equity	Note 11 – Stockholders' Equity Warrants On September 17, 2021, we signed an agreement with a marketing platform and consulting company to provide referral and support services to us for a period of five years (see Note 8 - Commitments). As part of that agreement, we granted a warrant exercisable into 300,000 shares of our common stock, at $0.72 per share, which vests in two tranches when certain performance metrics are achieved. The warrant was valued using the Black Scholes option pricing model at a total of $149,551 based on a seven-year term, an implied volatility of 100%, a risk-free equivalent yield of 1.17%, and a stock price of $0.71. The warrant is classified as equity and will be expensed over the vesting period of each tranche if the performance criteria are achieved. On August 31, 2022, 85,862 shares vested in accordance with the contracted performance criteria. For the second tranche, we recognized a credit of approximately $2,000 for the six-month period ended June 30, 2023 relating to a change in the probability of performance criteria being achieved. Earnings per Share For the three-month period ended June 30, 2023 and 2022, we generated a net loss from continuing operations and as a result, any potential common shares are anti-dilutive.

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases
Leases	Note 12 – Leases We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from three years to five years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on our consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments is also listed as separate line items on our consolidated balance sheets. As of June 30, 2023 and December 31, 2022, total operating and financed right-of-use assets were $128,689 and $110,738, and $310,162 and $168,750, respectively. For the six months ended June 30, 2023 and 2022, we recorded $58,013 and $48,697, respectively, 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 are as follows: For the Six Months Ended June 30, Cash paid for operating lease liabilities $ 104,276 Weighted-average remaining lease term 2.57 years Weighted-average discount rate 6.25 % Minimum future lease payments ended June 30, 2023 2023 (remainder of year) $ 110,260 2024 16,638 2025 5,653 2026 1,993 134,544 Less imputed interest (4,589 ) Total lease liabilities $ 129,955 Information related to our financed lease liabilities are as follows: For the Six Months Ended June 30, Cash paid for finance lease liabilities $ 36,103 Weighted-average remaining lease term 1.63 years Weighted-average discount rate 6.25 % Minimum future lease payments ended June 30, 2023 2023 (remainder of the year) $ 36,957 2024 56,180 2025 18,490 111,627 Less imputed interest (4,186 ) Total lease liabilities $ 107,441

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies
Basis of presentation	The consolidated financial statements presented are for Inuvo and its subsidiaries. The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2022, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In our opinion, these consolidated financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 9, 2023.
Use of estimates	The preparation of financial statements, in accordance with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s regular evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. We regularly evaluate estimates and assumptions related to allowance for doubtful accounts, capitalized labor, goodwill and purchased intangible asset valuations and income tax valuation allowance. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material.
Revenue Recognition	Revenue recognition - We generate revenue by identifying audiences and presenting advertisements on behalf of our customers. Ultimately, our customers are brands and merchants. We may contract directly with a brand or merchant, a Direct Customer or we may serve the ultimate customer through a contract with an agent, an Indirect Customer. Revenue is recognized when the contracted 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, cost per click ("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. The following table provides revenues for Direct Customers, Indirect Customers, and Consulting during the periods presented. For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Direct Customers $ 3,306,788 19.8 % $ 11,560,450 51.0 % $ 7,226,562 25.4 % $ 22,286,019 54.0 % Indirect Customers 13,317,899 80.0 % 11,046,215 48.8 % 21,231,089 74.5 % 18,885,325 45.8 % Consulting 26,718 0.2 % 44,640 0.2 % 41,194 0.1 % 89,328 0.2 % Total $ 16,651,405 100.0 % $ 22,651,305 100.0 % $ 28,498,845 100.0 % $ 41,260,672 100.0 %
Recently Adopted Accounting Pronouncements	On January 1, 2023, we adopted Accounting Standards Code (ASC) No. 326, Financial Instruments-Credit Losses

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies
Summary of Revenue from Products and Services	For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Direct Customers $ 3,306,788 19.8 % $ 11,560,450 51.0 % $ 7,226,562 25.4 % $ 22,286,019 54.0 % Indirect Customers 13,317,899 80.0 % 11,046,215 48.8 % 21,231,089 74.5 % 18,885,325 45.8 % Consulting 26,718 0.2 % 44,640 0.2 % 41,194 0.1 % 89,328 0.2 % Total $ 16,651,405 100.0 % $ 22,651,305 100.0 % $ 28,498,845 100.0 % $ 41,260,672 100.0 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Measurements
Schedule of Investments and Assets at Fair Value	Investment Assets at Fair Value Investment Assets at Fair Value As of June 30, 2023 As of December 31, 2022 Level 1 Total Level 1 Total Debt securities $ 936,563 $ 936,563 Equity securities $ 1,253,027 $ 1,253,027 Cash equivalents $ 467,384 $ 467,384 $ 801 $ 801 Total Investments at Fair Value $ 467,384 $ 467,384 $ 2,190,391 $ 2,190,391
Schedule of unrealized gains losses and fair value of marketable securities	As of December 31 2022 Cost Unrealized Gain (Loss) Fair Value Marketable securities Debt securities $ 1,021,431 $ (84,868 ) $ 936,563 Equity securities 1,776,773 (523,746 ) 1,253,027 Total marketable securities $ 2,189,590

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property and Equipment
Net Carrying Value of Property and Equipment	June 30, 2023 December 31, 2022 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,274,851 1,265,752 Capitalized internal use and purchased software 15,330,939 14,503,608 Leasehold improvements 458,885 458,885 Subtotal 17,357,827 16,521,397 Less: accumulated depreciation and amortization (15,677,379 ) (14,852,425 ) Total $ 1,680,448 $ 1,668,972

Other Intangible Assets and G_2

Other Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2023
Other Intangible Assets and Goodwill
Schedule of Intangible Assets And Goodwill	Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value Year-to-date Amortization Customer list, Google 20 years $ 8,820,000 $ (4,998,000 ) $ 3,822,000 $ 220,500 Technology 5 years 3,600,000 (3,600,000 ) 0 0 Customer list, ReTargeter 5 years 1,931,250 (1,512,813 ) 418,437 193,125 Customer list, all other 10 years 1,610,000 (1,610,000 ) 0 0 Brand name, ReTargeter 5 years 643,750 (504,271 ) 139,479 64,375 Customer relationships 20 years 570,000 (182,875 ) 387,125 14,250 Trade names, web properties (1) - 390,000 390,000 0 Intangible assets classified as long-term $ 17,565,000 $ (12,407,959 ) $ 5,157,041 $ 492,250 Goodwill, total - $ 9,853,342 $ — $ 9,853,342 $ —
Schedule of Amortization Expense	2023 (remainder of year) $ 492,250 2024 769,917 2025 469,500 2026 469,500 2027 469,500 Thereafter 2,096,374 Total $ 4,767,041

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Accrued Expenses and Other Current Liabilities
Schedule of Accrued Expenses and Other Current Liabilities	June 30, 2023 December 31, 2022 Accrued marketing costs $ 6,226,698 $ 3,321,598 Accrued payroll and commission liabilities 1,012,366 782,441 Accrued expenses and other 997,537 1,044,664 Arkansas grant contingency _ 10,000 Accrued taxes, current portion 4,771 3,755 Total $ 8,241,372 $ 5,162,458

StockBased Compensation (Tables

StockBased Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
StockBased Compensation
Schedule of Stock Grants Outstanding	Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Awards Authorized Total — 6,893,349 6,600,788 11,055,863 24,550,000
Schedule of Stock Option Award Activity	Shares Subject to Options Outstanding Number of Shares Weighted A verage Exercise Price Outstanding, beginning of period 100,000 $ 0.52 Stock options canceled (100,000 ) $ 0.52 Outstanding, end of period — —
Schedule of Nonvested Restricted Stock Units Activity	RSUs Number of Shares Weighted Average Grant Date Fair Value Outstanding, beginning of period 4,913,339 $ 0.79 Granted 4,070,000 $ 0.31 Vested (2,039,989 ) $ 0.86 Cancelled (50,001 ) $ 0.54 Outstanding, end of period 6,893,349 $ 0.49

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases
Schedule of Operating Lease Liability	For the Six Months Ended June 30, Cash paid for operating lease liabilities $ 104,276 Weighted-average remaining lease term 2.57 years Weighted-average discount rate 6.25 % Minimum future lease payments ended June 30, 2023 2023 (remainder of year) $ 110,260 2024 16,638 2025 5,653 2026 1,993 134,544 Less imputed interest (4,589 ) Total lease liabilities $ 129,955
Schedule of Finance Lease Liability	For the Six Months Ended June 30, Cash paid for finance lease liabilities $ 36,103 Weighted-average remaining lease term 1.63 years Weighted-average discount rate 6.25 % Minimum future lease payments ended June 30, 2023 2023 (remainder of the year) $ 36,957 2024 56,180 2025 18,490 111,627 Less imputed interest (4,186 ) Total lease liabilities $ 107,441

Organization and Business (Deta

Organization and Business (Details Narrative)	1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	May 28, 2021 USD ($)	Jun. 30, 2023 USD ($) shares	Jun. 30, 2023 USD ($) integer shares	Dec. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)
Number of patents issued | integer			19
Number of share sold | shares			16,000,000
Cash and cash equivalents		$ 5,000,000	$ 5,000,000		$ 2,000,000
Interest bearing account cash					$ 10,000,000
Net working capital		2,000,000	2,000,000
Accumulated deficit		$ 163,874,901	163,874,901	$ 157,057,558
Gross proceeds from credit facility from bank draft			4,000,000
Common Stocks [Member]
Sale of stock, consideration received on transaction, authorized amount	$ 14,611,900
Number of share sold | shares		173,558
Commission Fee, Percent	3%
Period For Which Advance Notice Is Due To Terminate Agreement	10 days
Number of share sold amount		$ 63,136
Agent commission		1,902
Investment Management Company [Member]
Cash and cash equivalents		$ 467,000	$ 467,000
Customer One, Two, and Three | Net Revenue | Customer Concentration Risk
Percentage of concentration risk		78.60%	73.50%
Customer One, Two, and Three | Accounts Receivable | Customer Concentration Risk
Percentage of concentration risk			47.30%	23.90%
Customer One | Net Revenue | Customer Concentration Risk
Percentage of concentration risk		54%	42.50%
Customer Two | Net Revenue | Customer Concentration Risk
Percentage of concentration risk		16.90%	20.40%
Customer Three | Net Revenue | Customer Concentration Risk
Percentage of concentration risk		7.70%	10.60%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net revenue	$ 16,651,405	$ 22,651,305	$ 28,498,845	$ 41,260,672
Percentage of total revenue	100%	100%	100%	100%
Consulting
Net revenue	$ 26,718	$ 44,640	$ 41,194	$ 89,328
Percentage of total revenue	0.20%	0.20%	0.10%	0.20%
Direct Customers
Net revenue	$ 3,306,788	$ 11,560,450	$ 7,226,562	$ 22,286,019
Percentage of total revenue	19.80%	51%	25.40%	54%
Indirect Customers
Net revenue	$ 13,317,899	$ 11,046,215	$ 21,231,089	$ 18,885,325
Percentage of total revenue	80%	48.80%	74.50%	45.80%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Recurring - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt securities	$ 0	$ 936,563
Equity securities	0	1,253,027
Cash equivalents	467,384	801
Total Investments at Fair Value	467,384	2,190,391
Level 1
Debt securities	0	936,563
Equity securities	0	1,253,027
Cash equivalents	467,384	801
Total Investments at Fair Value	$ 467,384	$ 2,190,391

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 1) - Fair Value, Recurring - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt securities, fair value	$ 0	$ 936,563
Equity securities, fair value	0	1,253,027
Level 1
Debt securities, cost		1,021,431
Debt securities, unrealized gain (loss)		(84,868)
Debt securities, fair value	0	936,563
Equity securities, cost		1,776,773
Equity securities, unrealized gain (loss)		(523,746)
Equity securities, fair value	$ 0	1,253,027
Total marketable securities		$ 2,189,590

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Subtotal	$ 17,357,827	$ 16,521,397
Less: accumulated depreciation and amortization	(15,677,379)	(14,852,425)
Total	1,680,448	1,668,972
Furniture and fixtures
Subtotal	293,152	293,152
Equipment
Subtotal	1,274,851	1,265,752
Capitalized internal use and purchased software
Subtotal	15,330,939	14,503,608
Leasehold improvements
Subtotal	$ 458,885	$ 458,885

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Property and Equipment
Depreciation expense	$ 824,954	$ 729,732

Other Intangible Assets and G_3

Other Intangible Assets and Goodwill (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Net Carrying Value	$ 4,767,041
Goodwill, Impaired, Accumulated Impairment Loss
Carrying Value	9,853,342
Net Carrying Value	9,853,342	$ 9,853,342
Trade names Web properties [Member]
Carrying Value	390,000
Net Carrying Value	390,000
Year-to-date Amortization	0
Intangible Assets Classified Long Term [Member]
Carrying Value	17,565,000
Accumulated Amortization and Impairment	(12,407,959)
Net Carrying Value	5,157,041
Year-to-date Amortization	$ 492,250
Customer list, Google
Term	20 years
Carrying Value	$ 8,820,000
Accumulated Amortization and Impairment	(4,998,000)
Net Carrying Value	3,822,000
Year-to-date Amortization	$ 220,500
Technology
Term	5 years
Carrying Value	$ 3,600,000
Accumulated Amortization and Impairment	(3,600,000)
Net Carrying Value	0
Year-to-date Amortization	$ 0
Customer list, ReTargeter
Term	5 years
Carrying Value	$ 1,931,250
Accumulated Amortization and Impairment	(1,512,813)
Net Carrying Value	418,437
Year-to-date Amortization	$ 193,125
Customer list, all other
Term	10 years
Carrying Value	$ 1,610,000
Accumulated Amortization and Impairment	(1,610,000)
Net Carrying Value	0
Year-to-date Amortization	$ 0
Brand name, ReTargeter
Term	5 years
Carrying Value	$ 643,750
Accumulated Amortization and Impairment	(504,271)
Net Carrying Value	139,479
Year-to-date Amortization	$ 64,375
Customer relationships
Term	20 years
Carrying Value	$ 570,000
Accumulated Amortization and Impairment	(182,875)
Net Carrying Value	387,125
Year-to-date Amortization	$ 14,250

Other Intangible Assets and G_4

Other Intangible Assets and Goodwill (Details 1)	Jun. 30, 2023 USD ($)
Other Intangible Assets and Goodwill
2023 (remainder of year)	$ 492,250
2024	769,917
2025	469,500
2026	469,500
2027	469,500
Thereafter	2,096,374
Net Carrying Value	$ 4,767,041

Bank Debt (Details Narrative)

Bank Debt (Details Narrative)	Mar. 01, 2023 USD ($)
Line of credit commitment	$ 5,000,000
Hitachi Capital America Corp.
Amendment fee	10,000
Annual commitment fee amount	$ 10,000
Quarterly service fee (as a percentage)	0.20%
Hitachi Capital America Corp. | Debt Covenant Period One
Exit fee	$ 50,000
Hitachi Capital America Corp. | Debt Covenant Period Two
Exit fee	25,000
Loan And Security Agreement | Hitachi Capital America Corp.
Line of credit facility, maximum borrowing capacity	$ 5,000,000
Percentage of aggregate eligible accounts receivable	80%
Stated interest rate	1.75%
Debt instrument, default interest rate	6%
Loan And Security Agreement | Hitachi Capital America Corp. | Maximum
Percentage of aggregate eligible accounts receivable	85%

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Accrued Expenses and Other Current Liabilities
Accrued marketing costs	$ 6,226,698	$ 3,321,598
Accrued payroll and commission liabilities	1,012,366	782,441
Accrued expenses and other	997,537	1,044,664
Arkansas grant contingency	0	10,000
Accrued taxes, current portion	4,771	3,755
Total	$ 8,241,372	$ 5,162,458

Commitments (Details Narrative)

Commitments (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Sep. 17, 2021	Jun. 30, 2023	Jun. 30, 2022
Referral and support services agreement advance	$ 1,500,000	$ 650,000
Referral agreement term	five years
Amortization of referral agreement as marketing expense		550,000
Number of securities called by each warrant or right (in shares)	300,000
Vesting period	two years
Commission recognized		$ 40,000	$ 394,000
Other Current Assets
Referral and support services agreement advance	$ 300,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Income Taxes
Deferred tax asset	$ 41,453,068
Valuation allowance	40,042,968	$ 40,042,968
Deferred tax liability	1,517,100
Net deferred tax liability composed of indefinite lived intangible assets	$ 107,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - shares	Jun. 30, 2023	Dec. 31, 2022
StockBased Compensation
Options Outstanding (in shares)	0	100,000
RSUs Outstanding (in shares)	6,893,349
Options and RSUs Exercised (in shares)	6,600,788
Available Shares (in shares)	11,055,863
Total Awards Authorized	24,550,000

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details 1)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
StockBased Compensation
Outstanding beginning balance (in shares) | shares	100,000
Stock options canceled (in shares) | shares	(100,000)
Outstanding ending balance (in shares) | shares	0
Outstanding beginning balance (in usd per share) | $ / shares	$ 0.52
Stock options canceled (in usd per share) | $ / shares	0.52
Outstanding ending balance (in usd per share) | $ / shares	$ 0

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details 2)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Outstanding, end of period (in shares)	6,893,349
Restricted Stock Units
Outstanding, beginning of period (in shares)	4,913,339
Granted (in shares)	4,070,000
Vested (in shares)	(2,039,989)
Cancelled (in shares)	(50,001)
Outstanding, end of period (in shares)	6,893,349
Outstanding, beginning of year (in usd per share) | $ / shares	$ 0.79
Grants (in usd per share) | $ / shares	0.31
Vested (in usd per share) | $ / shares	0.86
Cancelled (in usd per share) | $ / shares	0.54
Outstanding, end of period (in shares) | $ / shares | $ / shares	$ 0.49

Stock-Based Compensation (Det_4

Stock-Based Compensation (Details Narrative)	1 Months Ended	6 Months Ended
	Jun. 16, 2022 shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)
StockBased Compensation
Increase in shares of common stock reserved for grants (in shares) | shares	15,000,000	150,000
Number of shares reserved for issuance (in shares) | shares		24,550,000
Stock based compensation | $		$ 935,145	$ 1,355,534
Compensation cost related to non vested awards not yet recognized | $		$ 2,588,400
Average remaining expense recognition period		3 years
Weighted average forfeiture rate in percentage		0

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended
	Aug. 31, 2022	Sep. 17, 2021	Jun. 30, 2023	Jun. 30, 2022
Referral agreement term		five years
Class of warrant or right, granted in period (in shares)		300,000
Exercise price of warrant (in usd per share)		$ 0.72
Number of tranches		two tranches
Warrants outstanding		$ 149,551
Shares vested (in shares)	85,862
Stock warrant expense			$ (8,598)	$ 12,945
Measurement Input, Share Price
Exercise price of warrant (in usd per share)		$ 0.71
Measurement Input, Risk-free Yield
Warrants outstanding, measurement input		1.17%
Measurement Input, Implied Volatility
Volatility percentage		100%
Tranche [Member]
Stock warrant expense			$ 2,000

Leases (Details)

Leases (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
Leases
Cash paid for operating lease liabilities	$ 104,276
Weighted-average remaining lease term	2 years 6 months 25 days
Weighted-average discount rate	6.25%
Minimum future lease payments ended March 31, 2023
2023 (remainder of year)	$ 110,260
2024	16,638
2025	5,653
2026	1,993
Payments due	134,544
Less imputed interest	(4,589)
Total lease liabilities	$ 129,955

Leases (Details 1)

Leases (Details 1)	6 Months Ended
	Jun. 30, 2023 USD ($)
Leases
Cash paid for finance lease liabilities	$ 36,103
Weighted-average remaining lease term	1 year 7 months 17 days
Weighted-average discount rate	6.25%
Minimum future lease payments ended March 31, 2023
2023 (remainder of the year)	$ 36,957
2024	56,180
2025	18,490
Payments due	111,627
Less imputed interest	(4,186)
Total lease liabilities	$ 107,441

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Right of use assets - operating lease	$ 128,689		$ 310,162
Right of use assets - finance lease	110,738		$ 168,750
Finance lease amortization expense	$ 58,013	$ 48,697
Minimum
Term of contract	three years
Maximum
Term of contract	five years