Inuvo (INUV) 10-K 29 Feb 24 2023 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Feb. 29, 2024	Jun. 30, 2023
Cover [Abstract]
Entity Registrant Name	INUVO, INC.
Entity Central Index Key	0000829323
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		139,220,784
Entity Public Float			$ 27.9
Document Annual 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
Icfr Auditor Attestation Flag	false
Auditor Name	EISNERAMPER LLP
Auditor Location	Iselin, New Jersey
Auditor Firm Id	274
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 ($)	Dec. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 4,440,454	$ 2,931,415
Marketable securities - short term	0	1,529,464
Accounts receivable, net of allowance for doubtful accounts of $1,645,045 and $1,440,678, respectively	9,226,956	11,119,892
Prepaid expenses and other current assets	1,076,121	798,977
Total current assets	14,743,531	16,379,748
Property and equipment, net	1,680,788	1,668,972
Other assets
Right of use assets - operating lease	805,786	310,162
Right of use assets - finance lease	72,560	168,750
Referral and support services agreement advance	500,000	800,000
Marketable securities - long term	0	660,126
Intangible assets, net of accumulated amortization	4,664,791	5,649,291
Goodwill	9,853,342	9,853,342
Other assets	53,346	66,919
Total other assets	15,949,825	17,508,590
Total assets	32,374,144	35,557,310
Current liabilities
Accounts payable	6,432,120	8,044,802
Accrued expenses and other current liabilities	7,926,479	5,162,458
Lease liability - operating lease	123,074	287,523
Lease liability - finance lease	50,801	101,003
Total current liabilities	14,532,474	13,595,786
Long-term liabilities
Deferred tax liability	89,238	107,000
Lease liability - operating lease	751,821	23,878
Lease liability - finance lease	18,209	70,597
Other long-term liabilities	216	10,733
Total long-term liabilities	859,484	212,208
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 137,983,918 and 120,137,124 respectively;	137,983	120,138
Additional paid-in capital	184,291,414	178,771,604
Accumulated other comprehensive income	0	(84,868)
Accumulated deficit	(167,447,211)	(157,057,558)
Total stockholders' equity	16,982,186	21,749,316
Total liabilities and stockholders' equity	$ 32,374,144	$ 35,557,310

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 1,645,045	$ 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)	137,983,918	120,137,124
Common stock shares outstanding (in shares)	137,983,918	120,137,124

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Net revenue	$ 73,911,528	$ 75,603,745
Cost of revenue	10,477,272	30,244,387
Gross profit	63,434,256	45,359,358
Operating expenses:
Marketing costs	51,982,572	36,921,139
Compensation	13,793,309	12,463,095
General and administrative	8,050,890	8,624,998
Total operating expenses	73,826,771	58,009,232
Operating loss	(10,392,515)	(12,649,874)
Income tax benefit (expense)	17,764	0
Financing, other	29,570	21,111
Other (expense)/income, net	14,668	(435,554)
Net loss	(10,389,653)	(13,106,539)
Other comprehensive income
Unrealized (loss)/gain on marketable securities	84,868	(138,605)
Comprehensive loss	$ (10,304,785)	$ (13,245,144)
Per common share data: Basic and diluted
Net loss, Basic and diluted	$ (0.08)	$ (0.11)
Weighted average shares:
Basic	131,116,370	119,826,036
Diluted	131,116,370	119,826,036

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 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	(13,106,539)	0	0	(13,106,539)	0
Unrealized loss on debt securities	(138,605)	0	0	0	(138,605)
Stock-based compensation	2,350,314	$ 0	2,350,314	0	0
Stock issued for vested restricted stock awards, shares		1,389,677
Stock issued for vested restricted stock awards, amount	0	$ 1,390	(1,390)	0	0
Shares withheld for taxes on vested restricted stock	(196,892)	$ 0	(196,892)	0	0
Stock warrants issued for referral agreement	33,043		33,043		0
Proceeds from sale of common stock, net of expenses, amount	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	(10,389,653)	0	0	(10,389,653)	0
Unrealized loss on debt securities	84,868	0	0	0	84,868
Stock-based compensation	1,986,296	$ 0	1,986,296	0	0
Stock issued for vested restricted stock awards, shares		1,673,236
Stock issued for vested restricted stock awards, amount	0	$ 1,671	(1,671)	0	0
Proceeds from sale of common stock, net of expenses, shares		16,000,000
Proceeds from sale of common stock, net of expenses, amount	3,665,000	$ 16,000	3,649,000
Shares withheld for taxes on vested restricted stock	(166,872)		(166,872)	0	0
AGP Closing of at-the-market sale of common stock, shares		173,558
AGP Closing of at-the-market sale of common stock, amount	61,136	$ 174	60,962
Change in fair value of warrants related to vesting	(7,905)	$ 0	(7,905)	0	0
Balance, shares at Dec. 31, 2023		137,983,918
Balance, amount at Dec. 31, 2023	$ 16,982,186	$ 137,983	$ 184,291,414	$ (167,447,211)	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating activities:
Net loss	$ (10,389,653)	$ (13,106,539)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,655,368	2,598,957
Amortization of Right of Use Assets-Finance Leases	96,190	103,926
Stock based compensation	1,986,296	2,350,314
(Gain) Loss on marketable securities	(14,668)	435,554
Amortization of financing fees	8,333	2,500
Provision for doubtful accounts	786,549	1,265,143
Stock warrant (income) expense	(7,905)	33,043
Deferred income tax benefit	(17,764)	0
Derecognition of contingencies and grant	0	(10,000)
Change in operating assets and liabilities:
Accounts receivable	1,106,387	(3,119,222)
Referral and support services agreement advance	300,000	300,000
Prepaid expenses, other current assets and other assets	(263,569)	578,009
Accounts payable	(1,612,682)	3,200,086
Accrued expenses and other liabilities	2,813,043	(205,762)
Net cash used in operating activities	(2,554,075)	(5,573,991)
Investing activities:
Purchases of equipment and capitalized development costs	(1,682,683)	(1,689,869)
Purchase of marketable securities	0	(1,693,963)
Proceeds from the sale of marketable securities	2,288,873	1,717,707
Net cash provided by (used in) investing activities	606,190	(1,666,125)
Financing activities:
Gross proceeds from line of credit	592,868	0
Repayments on line of credit	(592,868)	0
Proceeds from sale of common stock, net of expenses	3,665,000	0
Payments on finance/capital leases	(102,340)	(107,539)
Net taxes paid on RSU grants exercised	(166,872)	(196,894)
Proceeds from at-the-market sales	61,136	0
Net cash provided by/(used in) financing activities	3,456,924	(304,433)
Net change - cash	1,509,039	(7,544,549)
Cash, beginning of year	2,931,415	10,475,964
Cash, end of year	4,440,454	2,931,415
Supplemental information:
Interest paid	105,148	18,612
Non-cash investing and financing activities:
Assets purchased under finance lease obligations	0	70,774
Acquisition of right of use asset for operating lease liability	$ 1,105,148	$ 0

Organization and Business

Organization and Business	12 Months Ended
	Dec. 31, 2023
Organization and Business
Organization and Business	Note 1 – Organization and Business Company Overview Inuvo is an advertising technology and services business selling information technology solutions to brands, agencies and large consolidators of advertising demand (“Platforms”). Inuvo’s revenue is derived from the placement of digital advertising throughout devices, websites, applications and browsers across social, search and programmatic advertising channels. Inuvo facilitates, and gets paid, to deliver millions of advertising messages monthly and counts among its client's numerous world-renowned companies across industries. Inuvo’s primary mission is to disrupt the advertising industry with its proprietary and patented generative large language artificial intelligence (AI), a technology capable of identifying and targeting audiences without using a consumer’s identity or data. The AI was designed to replace the consumer data, analytics, segmentation and lookalike modeling technologies that have traditionally served the advertising industry as it transitions to a new paradigm where a consumer’s identity and data are no longer available for advertising decisions due to legislative and technological changes. Rather than targeting people, the AI targets the reasons behind why people are interested in products, services and brands. Inuvo’s AI technology solves this challenge and can be consumed by clients both as a managed service and software-as-a-service. For certain clients, Inuvo has also developed various proprietary technology and assets that include digital content, websites, automated campaigns, ad fraud detection, performance reporting and predictive media mix modeling. The Inuvo products and services use analytics, data and artificial intelligence in a manner that optimizes the purchase and placement of advertising in real time. These capabilities are typically sold with services both individually and in combination with each other based on client needs. These products and services include: · IntentKey · Bonfire: There are many barriers to entry associated with the Inuvo business model, including a proficiency in large language model based artificial intelligence, large scale information processing, software development, consumer data products, analytics, IOT (internet of things) integration and the relationships required to execute within the IOT. Inuvo’s intellectual property is protected by 19 issued and 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, 2023, we sold 173,558 shares of common stock for gross proceeds totaling $63,136 under the ATM Program and paid the Sales Agent a commission of $1,902, all of which occurred during the second quarter of 2023. 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. 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. We have focused our resources behind a plan to market our collective multi-channel advertising capabilities differentiated by our AI technology, the IntentKey, where we have a technological advantage and higher margins. If we are successful in implementing our plan, we expect to return to a positive cash flow from operations. However, there is no assurance that we will be able to achieve this objective. As of December 31, 2023, we have approximately $4.4 million in cash, and cash equivalents. Our net working capital was $211.1 thousand. 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, 2023 we had a net loss of $10.3 million and net cash outflows from operations of $2.6 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, 2023. Through December 31, 2023, our accumulated deficit was $167.4 million. Management plans to support the Company’s future operations and capital expenditures primarily through cash raised through 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. Our collection period is less than 30 days and can also be used to meet accrued obligations. We believe our current cash position and credit facility will be sufficient to sustain operations for at least the 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, 2023
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of presentation Cash and cash equivalents Investments Revenue recognition Our revenue is a function of the number of advertisements placed combined with the price we obtain (using our technologies) for the placements made on behalf of our clients. We assume the risk associated of finding placements at a cost below that for which it had been sold. We recognize revenue when control of the contracted services or product is transferred to our customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those services or products. We determine revenue recognition through (i) identification of a contract with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations in the contract, and (v) recognition of revenue when or as the performance obligations are satisfied. For Agencies and Brands, the terms of an agreement are captured in an Insertion Order ("IO") where revenue is recognized upon delivery of services during the period covered by the IO. For Platforms, terms are generally captured in multi-year master service agreements and revenue is recognized based on the number of advertisements placed or clicked on in the period they occur. We settle advertisement placement prices with our customers net of any adjustments for quality. In the year ended December 31, 2023, we generated $73,911,528 in revenue of which 79.1% was from Platforms, 20.9% from Agencies and Brands. In the year ended December 31, 2022, we generated $75,603,745 in revenue of which 51.7% was from Platforms, 48.3% from Agencies and Brands. Accounts receivable Accounts receivable consist 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 expected 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. The current expected credit loss (CECL) model under Accounting Standards Update (ASU) 2016-13 requires an estimation of expected credit losses over the life of a financial instrument, taking into consideration historical experience, current conditions, and reasonable and supportable forecasts. Management has reviewed comprehensive historical data, any relevant economic indicator, and estimated our estimated credit loss based off these probabilities. In the year ended December 31, 2023, 2022, and 2021, we recorded accounts receivable, net allowance for doubtful accounts of, $9,226,956, $11,119,892, and $9,265,813 respectively For the twelve months ended December 31, 2023 2022 2021 Balance at the end of the year $ 9,226,956 $ 11,119,892 $ 9,265,813 Cost of revenue Marketing costs Property and equipment Property and equipment are depreciated on a straight-line basis over three years for equipment, five to seven years for furniture and fixtures and two to three years for software. Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the remaining term of the lease. Depreciation expense was $1,670,868 and $1,527,663, respectively, for the years ended December 31, 2023 and 2022. Capitalized Software Costs ASC 350-40 Internal-Use Software Goodwill 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 2023 and 2022. See Note 6, Intangible Assets and Goodwill, for more information. Intangible Assets We recorded no impairment of intangible assets during 2023 or 2022. See Note 6, Intangible Assets and Goodwill, for more information. Income taxes ASC 740 Income Taxes 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 or interest for the years ended December 31, 2023 and 2022. Impairment of long-lived assets ASC 360 Property, Plant and Equipment Stock-based compensation ASC 718 Compensation – Stock Compensation, 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 As of December 31, 2023, there were 43 full-time employees in Arkansas, seven employees under the required 50. As such, we recorded a contingent liability of $35,000. As of December 31, 2022, there were 48 full-time employees in Arkansas, two employees under the required 50. As such, we recorded a contingent liability of $10,000. Earnings per share Operating segments ASC 280 - Segment reporting Concentration of credit risk Customer concentrations In 2022, we had three individual customers with revenue concentration greater than 10% of our total revenue accounting for 29.1%, 24.1%, and 12.9%, respectively. At December 31, 2022, we had two customers greater than 10% of our total accounts receivable balance accounting for 50.6% and 12.7%, respectively. Vendor concentrations In 2022, we had four individual vendors with cost of revenue concentration greater than 10% of our total cost of revenue accounting for 33.8%, 30.4%, 14.5% and 11.1%, of the total cost of revenue, respectively. Use of estimates Litigation and settlement costs ASC 450 Contingencies Recently Adopted Accounting Pronouncements On January 1, 2023, we adopted Accounting Standards Code (ASC) No. 326, Financial Instruments-Credit Losses. ASC 326 requires a financial asset (loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financials assets not excluded from scope) measured at amortized cost basis to be presented at the net amount expected to be collected. The adoption of this new standard did not have a material impact on our consolidated financial statements and primarily resulted in enhanced disclosures only.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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. The cost, gross unrealized gains (losses) and fair value of marketable securities by major security type as of December 31, 2023 and 2022 were as follows: Investment Assets at Fair Value Investment Assets at Fair Value As of December 31, 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 69,291 69,291 801 801 Total Investments at Fair Value $ 69,291 $ 69,291 $ 2,190,391 $ 2,190,391 As of December 31, 2023 As of December 31, 2022 Cost Unrealized Gain (Loss) Fair Value 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 The realized loss on the securities for the year ended December 31, 2023 was approximately $510,000.

Allowance for Credit Losses

Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2023
Allowance for Credit Losses
Allowance for Credit Losses	N ote 4 – Allowance for Credit Losses The activity in the allowance for doubtful accounts was as follows during the years ended December 31, 2023 and 2022: 2023 2022 Balance at the beginning of the year $ 1,440,678 $ 202,904 Provision for bad debts 786,549 1,265,143 Charge-offs (582,189 ) (27,369 ) Recoveries 7 — Balance at the end of the year $ 1,645,045 $ 1,440,678 The allowance for doubtful accounts at December 31, 2023 was $1,645,045, an increase of $204,367 from December 31, 2022. During 2022, we expanded our business in part by acquiring new customers with whom we contract directly. These customers typically require longer credit terms than traditional CPC based customers. One of these customers was a significant portion, 24.1% of our total 2022 revenue, and has stretched its payments to 120 days and beyond. Ultimately, we agreed to extended payments from the customer through September 2024. All amounts due from this customer have been fully reserved as of December 31, 2023.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2023
Property and Equipment
Property and Equipment	Note 5– Property and Equipment The net carrying value of property and equipment at December 31, 2023 and 2022 was as follows: 2023 2022 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,292,528 1,265,752 Capitalized software development costs 16,159,517 14,503,608 Leasehold improvements 458,885 458,885 Subtotal 18,204,082 16,521,397 Less: accumulated depreciation and amortization (16,523,294 ) (14,852,425 ) Total $ 1,680,788 $ 1,668,972 Depreciation expense was $1,670,868 and $1,527,663, respectively, for the years ended December 31, 2023 and 2022.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	12 Months Ended
	Dec. 31, 2023
Intangible Assets and Goodwill
Intangible Assets and Goodwill	Note 6 – Intangible Assets and Goodwill The following is a schedule of intangible assets and goodwill as of December 31, 2023: Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value 2023 Amortization Customer list, Google 20 years $ 8,820,000 $ (5,218,500 ) $ 3,601,500 $ 441,000 Technology 5 years 3,600,000 (3,600,000 ) — — Customer list, ReTargeter 5 years 1,931,250 (1,705,938 ) 225,312 386,250 Customer list, all other 10 years 1,610,000 (1,610,000 ) — — Brand name, ReTargeter 5 years 643,750 (568,646 ) 75,104 128,750 Customer relationships 20 years 570,000 (197,125 ) 372,875 28,500 Trade names, web properties - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (12,900,209 ) $ 4,664,791 $ 984,500 Goodwill, total $ 9,853,342 $ — $ 9,853,342 $ — The following is a schedule of intangible assets and goodwill as of December 31, 2022: Term Carrying Value Accumulated Amortization Net Carrying Value 2022 Amortization 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 (1) - 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 $ — ___________ (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: 2024 $ 769,917 2025 469,500 2026 469,500 2027 469,500 2028 469,500 Thereafter 1,626,874 Total $ 4,274,791

Bank Debt

Bank Debt	12 Months Ended
	Dec. 31, 2023
Bank Debt
Bank Debt	Note 7 - Bank Debt On March 12, 2020, we closed on the Loan and Security Agreement dated February 28, 2020 with Hitachi. We've undergone several amendments to this agreement. 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 December 31, 2023 and 2022, 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, 2023
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	Note 8 – Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following at December 31, 2023 and 2022: 2023 2022 Accrued marketing costs $ 5,717,983 $ 3,321,598 Accrued expenses and other 622,960 1,044,664 Accrued commissions and payroll 1,544,460 782,441 Arkansas grant contingency 35,000 10,000 Accrued taxes, current portion 6,076 3,755 Total $ 7,926,479 $ 5,162,458

Commitments

Commitments	12 Months Ended
	Dec. 31, 2023
Commitments
Commitments	Note 9 - 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 as a current asset. The advance is being amortized as marketing expenses over five years. As of December 31, 2023, $700,000 has been amortized and the total current and non-current balance is $800,000. 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 12 - 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 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. In addition, effective September 26, 2023, Inuvo and the business development partner entered into an Offset Agreement whereby the parties agreed that the commission due to the partner be offset against the outstanding receivable balances due to Inuvo. We offset approximately $960,852 in commissions due to the partner against the outstanding receivable of $642,202. The total amount of commission recognized, net of the $67K commission adjustment per our offset agreement, for the year ended December 31, 2023 was approximately $52K.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2023
Income Taxes
Income Taxes	Note 10 - Income Taxes The provision for income taxes consists of the following at December 31, 2023 and 2022: 2023 2022 Current tax provision $ — $ — Deferred tax benefit 17,764 — Total tax benefit $ 17,764 $ — A reconciliation of the expected Federal statutory rate to our actual rate as reported for each of the periods presented is as follows: 2023 2022 Federal statutory rate 21 % 21 % State income tax rate, net of federal benefit 1 % 3 % Permanent differences 4 % — % Change in valuation allowance (26 %) (24 %) — % — % 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. For the year ended December 31, 2023, we recognized a deferred tax benefit of approximately $17.8 thousand. 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 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, 2023 and 2022. The following is a schedule of the deferred tax assets and liabilities as of December 31, 2023 and 2022: 2023 2022 Deferred tax assets: Net operating loss carry forward $ 38,860,119 $ 36,506,618 Intangible assets 1,011,900 543,000 Accrued liabilities 541,200 287,600 Deferred rent 19,200 3,000 Allowance for doubtful accounts 461,000 403,800 Stock compensation expense 587,900 869,900 Unrecognized Income/Loss — 122,100 Other 403,500 373,100 Subtotal 41,884,819 39,109,118 Less valuation allowance (40,619,657 ) (37,976,018 ) Total 1,265,162 1,133,100 Deferred tax liabilities: Intangible assets and property and equipment 826,300 1,242,200 Other 528,100 (2,100 ) Total 1,354,400 1,240,100 Net deferred tax liabilities $ (89,238 ) $ (107,000 ) The net operating losses amounted to approximately $107,908,005 and expire beginning 2024 through 2037. Included in the federal net operating loss carryforwards are $30.7 million generated from 2018 to 2023 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, 2023, the Company has a net deferred tax liability of $89,238. 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, 2023 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, 2019 through 2022. 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.

StockBased Compensation

StockBased Compensation	12 Months Ended
	Dec. 31, 2023
StockBased Compensation
Stock-Based Compensation	Note 11 - 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 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, 2023, 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 $1,986,296 and $2,350,314 for the years ended December 31, 2023 and 2022, respectively. Total compensation cost not yet recognized at December 31, 2023 was $1,571,436 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, 2023: Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Total — 7,010,016 6,634,121 10,905,863 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 our stock option activity during 2023: Options Weighted Average Exercise Price Outstanding, beginning of year 100,000 $ 0.52 Stock options, granted — $ — Stock options exercised — $ — Stock options canceled 100,000 $ 0.52 Outstanding, end of year — $ — 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. There were no options granted in the period ended December 31, 2023. The following table summarizes our restricted stock unit activity for 2023: Restricted Stock Unit Weighted Average Fair Value Outstanding, beginning of year 4,913,339 $ 0.79 Granted 4,220,000 $ 0.31 Vested (2,073,322 ) $ 0.86 Forfeited (50,001 ) $ 0.55 Outstanding, end of year 7,010,016 $ 0.48

Stockholders Equity

Stockholders Equity	12 Months Ended
	Dec. 31, 2023
Stockholders Equity
Stockholders' Equity	Note 12 – Stockholders' Equity Common Stock 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. 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. On August 31, 2023, 21,136 shares vested. For the second tranche, we reversed approximately $7.9 thousand for the year ended December 31, 2023 due to a change in the probability of performance criteria being achieved. In accordance with our agreement, after the second anniversary of the Original Issue Date, any interests in Warrant shares that have not vested pursuant to the terms and conditions of the agreement shall be deemed forfeited and shall never become exercisable. At the period ended December 31, 2023, approximately 193 thousand shares have been forfeited. Earnings per Share During the 2023 and 2022, we generated a net loss from continuing operations and as a result, all of our shares are anti-dilutive.

Retirement Plan Costs

Retirement Plan Costs	12 Months Ended
	Dec. 31, 2023
Retirement Plan Costs
Retirement Plan Costs	Note 13 – 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 2023 and 2022 was $370,782 and $292,825, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2023
Leases
Leases	Note 14 – 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 six 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, 2023 and December 31, 2022, total operating and financed right-of-use assets were $805,786 and $72,560, and $310,162 and $168,750, respectively. For the years-ended December 31, 2023 and 2022, we recorded $96,190 and $103,926 in amortization expense related to finance leases. For the years-ended December 31, 2023 and 2022, we recorded $358,667 and $377,020, respectively, in rent expense related to operating leases. In May 2023, we entered into an agreement to lease 4,128 square feet of office space in San Jose, CA commencing on September 1, 2023. The lease has a term of sixty-five months with an abatement period of five months and will cost approximately $208,000 during its first year. Thereafter, the lease payments increase by 3%. 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, 2023 Cash paid for operating lease liabilities $ 338,497 Weighted-average remaining lease term 3.75 years Weighted-average discount rate 10.5 % Minimum future lease payments ended December 31, 2023 2024 $ 207,351 2025 219,608 2026 222,387 2027 226,834 2028 233,727 2029 19,526 1,129,433 Less imputed interest (254,537 ) Total lease liabilities $ 874,896 Information related to our financed lease liabilities are as follows: December 31, 2023 Cash paid for finance lease liabilities $ 117,369 Weighted-average remaining lease term 1.31 years Weighted-average discount rate 6.25 % Minimum future lease payments ended December 31, 2023 2024 52,626 2025 18,491 71,117 Less imputed interest (2,107 ) Total lease liabilities $ 69,010

Related Parties

Related Parties	12 Months Ended
	Dec. 31, 2023
Related Parties
Related Parties	Note 15 - Related Parties A 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 $0 and $2,189,590 as of December 31, 2023 and 2022, 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 $0 and $18.3 million for the years ended December 31, 2023 and 2022, respectively, and accounts receivable was approximately $1.2 million as of December 31, 2023. During August 2023, we entered into a referral agreement with a board member of the Company. An initial fee of $15,000 was agreed upon, payable upon the execution of the agreement. Subsequently, a monthly retainer of $5,000, paid in advance, was established, starting from September 1, 2023. Either party has the right to terminate this agreement at any time and for any reason. Termination requires fourteen (14) days written notice to be provided to the other party. For the twelve months ended December 31, 2023, we recognized approximately $35,000 in expense.

Subsequent Event

Subsequent Event	12 Months Ended
	Dec. 31, 2023
Subsequent Event
Subsequent Event	Note 16 - Subsequent Event On January 11, 2024, we amended and renewed our lease at our corporate headquarters in Little Rock, Arkansas. The lease was extended for thirty-six months commencing on February 1, 2024 and expiring on January 31, 2027 and will cost approximately $127,000 during its first year. Thereafter, the lease payments increase by 2% annually.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
Summary of Significant Accounting Policies
Basis of presentation	Basis of presentation
Cash and cash equivalents	Cash and cash equivalents
Investments	Investments
Revenue recognition	Revenue recognition Our revenue is a function of the number of advertisements placed combined with the price we obtain (using our technologies) for the placements made on behalf of our clients. We assume the risk associated of finding placements at a cost below that for which it had been sold. We recognize revenue when control of the contracted services or product is transferred to our customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those services or products. We determine revenue recognition through (i) identification of a contract with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations in the contract, and (v) recognition of revenue when or as the performance obligations are satisfied. For Agencies and Brands, the terms of an agreement are captured in an Insertion Order ("IO") where revenue is recognized upon delivery of services during the period covered by the IO. For Platforms, terms are generally captured in multi-year master service agreements and revenue is recognized based on the number of advertisements placed or clicked on in the period they occur. We settle advertisement placement prices with our customers net of any adjustments for quality. In the year ended December 31, 2023, we generated $73,911,528 in revenue of which 79.1% was from Platforms, 20.9% from Agencies and Brands. In the year ended December 31, 2022, we generated $75,603,745 in revenue of which 51.7% was from Platforms, 48.3% from Agencies and Brands.
Cost of revenue	Cost of revenue
Accounts receivable	Accounts receivable Accounts receivable consist 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 expected 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. The current expected credit loss (CECL) model under Accounting Standards Update (ASU) 2016-13 requires an estimation of expected credit losses over the life of a financial instrument, taking into consideration historical experience, current conditions, and reasonable and supportable forecasts. Management has reviewed comprehensive historical data, any relevant economic indicator, and estimated our estimated credit loss based off these probabilities. In the year ended December 31, 2023, 2022, and 2021, we recorded accounts receivable, net allowance for doubtful accounts of, $9,226,956, $11,119,892, and $9,265,813 respectively
Marketing costs	Marketing costs
Property and equipment	Property and equipment Property and equipment are depreciated on a straight-line basis over three years for equipment, five to seven years for furniture and fixtures and two to three years for software. Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the remaining term of the lease. Depreciation expense was $1,670,868 and $1,527,663, respectively, for the years ended December 31, 2023 and 2022.
Capitalized Software Costs	Capitalized Software Costs ASC 350-40 Internal-Use Software
Goodwill	Goodwill 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 2023 and 2022. See Note 6, Intangible Assets and Goodwill, for more information.
Intangible Assets	Intangible Assets We recorded no impairment of intangible assets during 2023 or 2022. See Note 6, Intangible Assets and Goodwill, for more information.
Income taxes	Income taxes ASC 740 Income Taxes 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 or interest for the years ended December 31, 2023 and 2022.
Impairment of long-lived assets	Impairment of long-lived assets ASC 360 Property, Plant and Equipment
Stock-based compensation	Stock-based compensation ASC 718 Compensation – Stock Compensation, 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	Government Grant As of December 31, 2023, there were 43 full-time employees in Arkansas, seven employees under the required 50. As such, we recorded a contingent liability of $35,000. As of December 31, 2022, there were 48 full-time employees in Arkansas, two employees under the required 50. As such, we recorded a contingent liability of $10,000.
Earnings per share	Earnings per share
Operating segments	Operating segments ASC 280 - Segment reporting
Concentration of credit risk	Concentration of credit risk
Customer concentrations	Customer concentrations In 2022, we had three individual customers with revenue concentration greater than 10% of our total revenue accounting for 29.1%, 24.1%, and 12.9%, respectively. At December 31, 2022, we had two customers greater than 10% of our total accounts receivable balance accounting for 50.6% and 12.7%, respectively.
Vendor concentrations	Vendor concentrations In 2022, we had four individual vendors with cost of revenue concentration greater than 10% of our total cost of revenue accounting for 33.8%, 30.4%, 14.5% and 11.1%, of the total cost of revenue, respectively.
Litigation and settlement costs	Litigation and settlement costs ASC 450 Contingencies
Use of estimates	Use of estimates
Recently Adopted Accounting Pronouncements	On January 1, 2023, we adopted Accounting Standards Code (ASC) No. 326, Financial Instruments-Credit Losses. ASC 326 requires a financial asset (loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financials assets not excluded from scope) measured at amortized cost basis to be presented at the net amount expected to be collected. The adoption of this new standard did not have a material impact on our consolidated financial statements and primarily resulted in enhanced disclosures only.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2023
Summary of Significant Accounting Policies
Summary of Account Receivable	For the twelve months ended December 31, 2023 2022 2021 Balance at the end of the year $ 9,226,956 $ 11,119,892 $ 9,265,813

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2023
Fair Value Measurements
Schedule of Investments and Assets at Fair Value	Investment Assets at Fair Value Investment Assets at Fair Value As of December 31, 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 69,291 69,291 801 801 Total Investments at Fair Value $ 69,291 $ 69,291 $ 2,190,391 $ 2,190,391 As of December 31, 2023 As of December 31, 2022 Cost Unrealized Gain (Loss) Fair Value 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

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	12 Months Ended
	Dec. 31, 2023
Allowance for Credit Losses
Schedule of doubtful accounts	2023 2022 Balance at the beginning of the year $ 1,440,678 $ 202,904 Provision for bad debts 786,549 1,265,143 Charge-offs (582,189 ) (27,369 ) Recoveries 7 — Balance at the end of the year $ 1,645,045 $ 1,440,678

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2023
Property and Equipment
Net Carrying Value of Property and Equipment	2023 2022 Furniture and fixtures $ 293,152 $ 293,152 Equipment 1,292,528 1,265,752 Capitalized software development costs 16,159,517 14,503,608 Leasehold improvements 458,885 458,885 Subtotal 18,204,082 16,521,397 Less: accumulated depreciation and amortization (16,523,294 ) (14,852,425 ) Total $ 1,680,788 $ 1,668,972

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	12 Months Ended
	Dec. 31, 2023
Intangible Assets and Goodwill
Schedule of Intangible Assets from Continuing Operations	Term Carrying Value Accumulated Amortization and Impairment Net Carrying Value 2023 Amortization Customer list, Google 20 years $ 8,820,000 $ (5,218,500 ) $ 3,601,500 $ 441,000 Technology 5 years 3,600,000 (3,600,000 ) — — Customer list, ReTargeter 5 years 1,931,250 (1,705,938 ) 225,312 386,250 Customer list, all other 10 years 1,610,000 (1,610,000 ) — — Brand name, ReTargeter 5 years 643,750 (568,646 ) 75,104 128,750 Customer relationships 20 years 570,000 (197,125 ) 372,875 28,500 Trade names, web properties - 390,000 — 390,000 — Intangible assets classified as long-term $ 17,565,000 $ (12,900,209 ) $ 4,664,791 $ 984,500 Goodwill, total $ 9,853,342 $ — $ 9,853,342 $ — Term Carrying Value Accumulated Amortization Net Carrying Value 2022 Amortization 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 (1) - 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 $ —
Schedule of Amortization Expense	2024 $ 769,917 2025 469,500 2026 469,500 2027 469,500 2028 469,500 Thereafter 1,626,874 Total $ 4,274,791

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2023
Accrued Expenses and Other Current Liabilities
Schedule of Accrued Expenses and Other Current Liabilities	2023 2022 Accrued marketing costs $ 5,717,983 $ 3,321,598 Accrued expenses and other 622,960 1,044,664 Accrued commissions and payroll 1,544,460 782,441 Arkansas grant contingency 35,000 10,000 Accrued taxes, current portion 6,076 3,755 Total $ 7,926,479 $ 5,162,458

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2023
Income Taxes
Schedule of Components of Income Tax Expense (Benefit)	2023 2022 Current tax provision $ — $ — Deferred tax benefit 17,764 — Total tax benefit $ 17,764 $ —
Schedule of Effective Income Tax Rate Reconciliation	2023 2022 Federal statutory rate 21 % 21 % State income tax rate, net of federal benefit 1 % 3 % Permanent differences 4 % — % Change in valuation allowance (26 %) (24 %) — % — %
Schedule of Deferred Tax Assets and Liabilities	2023 2022 Deferred tax assets: Net operating loss carry forward $ 38,860,119 $ 36,506,618 Intangible assets 1,011,900 543,000 Accrued liabilities 541,200 287,600 Deferred rent 19,200 3,000 Allowance for doubtful accounts 461,000 403,800 Stock compensation expense 587,900 869,900 Unrecognized Income/Loss — 122,100 Other 403,500 373,100 Subtotal 41,884,819 39,109,118 Less valuation allowance (40,619,657 ) (37,976,018 ) Total 1,265,162 1,133,100 Deferred tax liabilities: Intangible assets and property and equipment 826,300 1,242,200 Other 528,100 (2,100 ) Total 1,354,400 1,240,100 Net deferred tax liabilities $ (89,238 ) $ (107,000 )

StockBased Compensation (Tables

StockBased Compensation (Tables)	12 Months Ended
	Dec. 31, 2023
StockBased Compensation
Schedule of Stock Grants Outstanding	Options Outstanding RSUs Outstanding Options and RSUs Exercised Available Shares Total Total — 7,010,016 6,634,121 10,905,863 24,550,000
Schedule of Stock Option Award Activity	Options Weighted Average Exercise Price Outstanding, beginning of year 100,000 $ 0.52 Stock options, granted — $ — Stock options exercised — $ — Stock options canceled 100,000 $ 0.52 Outstanding, end of year — $ — Exercisable, end of year — $ —
Schedule of Nonvested Restricted Stock Units Activity	Restricted Stock Unit Weighted Average Fair Value Outstanding, beginning of year 4,913,339 $ 0.79 Granted 4,220,000 $ 0.31 Vested (2,073,322 ) $ 0.86 Forfeited (50,001 ) $ 0.55 Outstanding, end of year 7,010,016 $ 0.48

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2023
Leases
Schedule of Information Relating to Leases	December 31, 2023 Cash paid for operating lease liabilities $ 338,497 Weighted-average remaining lease term 3.75 years Weighted-average discount rate 10.5 %
Schedule of Operating Lease Maturity	Minimum future lease payments ended December 31, 2023 2024 $ 207,351 2025 219,608 2026 222,387 2027 226,834 2028 233,727 2029 19,526 1,129,433 Less imputed interest (254,537 ) Total lease liabilities $ 874,896 Minimum future lease payments ended December 31, 2023 2024 52,626 2025 18,491 71,117 Less imputed interest (2,107 ) Total lease liabilities $ 69,010
Schedule of Finance Lease Liability	December 31, 2023 Cash paid for finance lease liabilities $ 117,369 Weighted-average remaining lease term 1.31 years Weighted-average discount rate 6.25 %

Organization and Business (Deta

Organization and Business (Details Narrative)	1 Months Ended				12 Months Ended
	May 28, 2021	Mar. 31, 2021 USD ($)	Jan. 22, 2021 USD ($)	Jan. 19, 2021 USD ($)	Dec. 31, 2023 USD ($) integer	May 21, 2021 USD ($)
Patents Issued | integer					19
Pending Patents | integer					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					$ 4,400,000
Net working capital					211,100
Net loss					(10,300,000)
Net cash used in operating activities					(2,600,000)
Capitalized computer software, Net					1,700,000
Accumulated deficit					$ (167,400,000)
Sales Agreement [Member]
Sale of stock, consideration received on transaction, authorized amount						$ 35,000,000
Period for which advance notice is due to terminate agreement (days)	10 years
Commission fee, percent	3%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies
Accounts receivable, net of allowance for doubtful accounts	$ 9,226,956	$ 11,119,892	$ 9,265,813

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Narrative)	12 Months Ended
	Dec. 31, 2023 USD ($) integer	Dec. 31, 2022 USD ($) integer	Dec. 31, 2021 USD ($)
Net revenue | $	$ 73,911,528	$ 75,603,745
Depreciation expense | $	1,670,868	1,527,663
Accounts receivable, net of allowance for doubtful accounts | $	$ 9,226,956	$ 11,119,892	$ 9,265,813
Employees employed under grant | integer	48	48
Employees required to be employed | integer	2	2
Number Of Employees Required To Be Employed Under Grant | integer	50	50
Contingent liability | $	$ 35,000	$ 10,000
Number of Reportable Segments | integer	1
Cost of Revenue Net [Member]
Cost Of Revenue, Percentage	67.60%	15.30%
Customer Concentration Risk [Member]
Concentration Risk, Percentage	60.40%	29.10%
Sales Revenue Net [Member]
Concentration Risk, Percentage	10%	10%
second customer Concentration Risk [Member]
Concentration Risk, Percentage	12.80%	24.10%	12.90%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Recurring - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Debt securities	$ 0	$ 936,563
Equity securities	0	1,253,027
Cash equivalents	69,291	801
Total Investments at Fair Value	69,291	2,190,391
Level 1
Debt securities	0	936,563
Equity securities	0	1,253,027
Cash equivalents	69,291	801
Total Investments at Fair Value	$ 69,291	$ 2,190,391

Fair Value Measurements (Deta_2

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

Fair Value Measurements Narrati

Fair Value Measurements Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Fair Value Measurements
Realized loss on marketable securities	$ 510,000

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Allowance for Credit Losses
Balance at the beginning of the year	$ 1,440,678	$ 202,904
Provision for bad debts	786,549	1,265,143
Charge-offs	(582,189)	(27,369)
Recoveries	7	0
Balance at the end of the year	$ 1,645,045	$ 1,440,678

Allowance for Credit Losses (_2

Allowance for Credit Losses (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Allowance for Credit Losses
Concentration risk, percentage	24.10%
Allowance for doubtful accounts	$ 1,645,045	$ 1,440,678	$ 202,904
Increase Allowance for doubtful accounts	$ 204,367

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Subtotal	$ 18,204,082	$ 16,521,397
Less: accumulated depreciation and amortization	(16,523,294)	(14,852,425)
Total	1,680,788	1,668,972
Depreciation expense	1,670,868	1,527,663
Furniture and fixtures
Subtotal	293,152	293,152
Equipment
Subtotal	1,292,528	1,265,752
Capitalized internal use and purchased software
Subtotal	16,159,517	14,503,608
Leasehold improvements
Subtotal	$ 458,885	$ 458,885

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property and Equipment
Depreciation expense	$ 1,670,868	$ 1,527,663

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill total, Carrying Value	$ 9,853,342	$ 9,853,342
Goodwill total, Net Carrying Value	9,853,342	9,853,342
Intangible assets classified as long-term
Carrying Value	17,565,000	17,565,000
Accumulated Amortization and Impairment	(12,900,209)	(11,915,709)
Net Carrying Value	4,664,791	5,649,291
Net Carrying Value	4,274,791
Trade names, web properties
Intangible assets classified as long-term
Amortization of Intangible Assets	0	0
Carrying Value	390,000	390,000
Accumulated Amortization and Impairment	0	0
Net Carrying Value	390,000	390,000
Customer list, Google
Intangible assets classified as long-term
Amortization of Intangible Assets	$ 441,000	$ 441,000
Term	20 years	20 years
Carrying Value	$ 8,820,000	$ 8,820,000
Accumulated Amortization and Impairment	(5,218,500)	(4,777,500)
Net Carrying Value	3,601,500	4,042,500
Technology
Intangible assets classified as long-term
Amortization of Intangible Assets	$ 0	$ 60,000
Term	5 years	5 years
Carrying Value	$ 3,600,000	$ 3,600,000
Accumulated Amortization and Impairment	(3,600,000)	(3,600,000)
Net Carrying Value	0	0
Customer list, ReTargeter
Intangible assets classified as long-term
Amortization of Intangible Assets	$ 386,250	$ 386,250
Term	5 years	5 years
Carrying Value	$ 1,931,250	$ 1,931,250
Accumulated Amortization and Impairment	(1,705,938)	(1,319,688)
Net Carrying Value	$ 225,312	611,562
Customer list, all other
Intangible assets classified as long-term
Amortization of Intangible Assets		$ 26,794
Term	10 years	10 years
Carrying Value	$ 1,610,000	$ 1,610,000
Accumulated Amortization and Impairment	(1,610,000)	(1,610,000)
Net Carrying Value	0	0
Brand name, ReTargeter
Intangible assets classified as long-term
Amortization of Intangible Assets	$ 128,750	$ 128,750
Term	5 years	5 years
Carrying Value	$ 643,750	$ 643,750
Accumulated Amortization and Impairment	(568,646)	(439,896)
Net Carrying Value	75,104	203,854
Customer relationships
Intangible assets classified as long-term
Amortization of Intangible Assets	$ 28,500	$ 28,500
Term	20 years	20 years
Carrying Value	$ 570,000	$ 570,000
Accumulated Amortization and Impairment	(197,125)	(168,625)
Net Carrying Value	$ 372,875	$ 401,375

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 1)	Dec. 31, 2023 USD ($)
Intangible Assets and Goodwill
2024	$ 769,917
2025	469,500
2026	469,500
2027	469,500
2028	469,500
Thereafter	1,626,874
Net Carrying Value	$ 4,274,791

Bank Debt (Details Narrative)

Bank Debt (Details Narrative) - Hitachi Capital America Corp. - USD ($)	Mar. 01, 2023	Dec. 31, 2023
Amendment fee	$ 10,000
Annual commitment fee amount	$ 10,000
Quarterly service fee (as a percentage)	0.20%
Outstanding balance		$ 0
Loan and Security Agreement
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 | Maximum
Percentage of aggregate eligible accounts receivable	85%
Debt Covenant Period One
Exit fee	$ 50,000
Debt Covenant Period Two
Exit fee	$ 25,000

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Accrued Expenses and Other Current Liabilities
Accrued marketing costs	$ 5,717,983	$ 3,321,598
Accrued expenses and other	622,960	1,044,664
Accrued payroll and commission liabilities	1,544,460	782,441
Arkansas grant contingency	35,000	10,000
Accrued taxes, current portion	6,076	3,755
Total	$ 7,926,479	$ 5,162,458

Commitments (Details Narrative)

Commitments (Details Narrative) - USD ($)			1 Months Ended	12 Months Ended
	Sep. 17, 2021	Sep. 17, 2021	Sep. 26, 2023	Dec. 31, 2023	Dec. 31, 2022
Referral and support services agreement advance	$ 1,500,000	$ 1,500,000	$ 642,202	$ 800,000
Referral and support services agreement advance				500,000	$ 800,000
Referral agreement term	5 years	5 years
Amortization of referral agreement as marketing expense				700,000
Number of securities called by each warrant or right (in shares)	300,000	300,000
Vesting period		2 years
Reduction in commission expense				67,000
Commission expense			$ 960,852,000	$ 52,000
Other Current Assets
Referral and support services agreement advance	$ 300,000	$ 300,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Taxes
Deferred tax benefit	$ 17,764	$ 0
Current tax provision	0	0
Total tax benefit	$ 17,764	$ 0

Income Taxes (Details 1)

Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Taxes
Federal statutory rate	21%	21%
Permanent differences	4%
State income tax rate, net of federal benefit	1%	3%
Change in valuation allowance	(26.00%)	(24.00%)

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carry forward	$ 38,860,119	$ 36,506,618
Intangible assets	1,011,900	543,000
Accrued liabilities	541,200	287,600
Deferred rent	19,200	3,000
Allowance for doubtful accounts	461,000	403,800
Stock compensation expense	587,900	869,900
Unrecognized Income/Loss	0	122,100
Other	403,500	373,100
Subtotal	41,884,819	39,109,118
Less valuation allowance	40,619,657	37,976,018
Total	1,265,162	1,133,100
Deferred tax liabilities:
Intangible assets and property and equipment	826,300	1,242,200
Other	528,100	2,100
Total	1,354,400	1,240,100
Net deferred tax liabilities	$ (89,238)	$ (107,000)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Taxes
Operating loss carryforwards	$ 107,908,005
Federal net operating loss carryforwards	$ 30,700,000
Federal net operating loss carryforwards, percentage rate	80%
Net operating losses expired period	expire beginning 2024 through 2037
Deferred tax liability relating to goodwill offset percenatge	80%
Net deferred tax liabilities	$ 89,238	$ 107,000
Deferred tax benefit	$ 17,800

Stock Based Compensation (Detai

Stock Based Compensation (Details) - shares	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
StockBased Compensation
Options Outstanding	100,000	0	100,000
RSUs Outstanding	7,010,016
Options and RSUs Exercised	6,634,121
Available Shares	10,905,863
Total Awards Authorized	24,550,000

Stock Based Compensation (Det_2

Stock Based Compensation (Details 1) - $ / shares	Dec. 31, 2023	Sep. 30, 2023
StockBased Compensation
Outstanding beginning balance	0	100,000
Outstanding ending balance	100,000	0
Outstanding beginning balance	$ 0	$ 0.52
Outstanding ending balance	$ 0.52	$ 0

Stock Based Compensation (Det_3

Stock Based Compensation (Details 2)	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Forfeited	(193,000)
Outstanding, end of period	7,010,016
Restricted Stock Units
Outstanding, beginning of period	4,913,339
Granted	4,220,000
Vested	(2,073,322)
Forfeited	(50,001)
Outstanding, end of period	7,010,016
Weighted Average Grant Date Fair Value
Weighted Average Fair Value, Outstanding, beginning of year | $ / shares	$ 0.79
Weighted Average Fair Value, Granted | $ / shares	0.31
Weighted Average Fair Value, Vested | $ / shares	0.86
Weighted Average Fair Value, Forfeited | $ / shares	0.55
Weighted Average Fair Value, Outstanding, end of year | $ / shares	$ 0.48

Stock Based Compensation (Det_4

Stock Based Compensation (Details Narrative)	12 Months Ended
	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($)
StockBased Compensation
Option and restricted stock unit vesting period (up to)	3 years
Number of shares reserved for issuance (in shares) | shares	24,550,000
Stock based compensation	$ 1,986,296	$ 2,350,314
Compensation cost related to non vested awards not yet recognized	$ 1,571,436
Average remaining expense recognition period	3 years
Weighted average forfeiture rate	0

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($)					12 Months Ended
	Aug. 31, 2023	Aug. 31, 2022	Sep. 17, 2021	Sep. 17, 2021	Dec. 31, 2023
Referral agreement term			5 years	5 years
Class of warrant or right, granted in period (in shares)			300,000
Exercise price of warrant (in usd per share)			$ 0.71	$ 0.71
Warrants outstanding (in shares)			$ 149,551	$ 149,551
Warrants outstanding, term			7 years
Shares vested (in shares)	21,136	85,862
Stock warrant credit					$ (7,900)
Forfeited (in shares)					193,000
Maximum
Referral agreement term			5 years
Measurement Input, Implied Volatility
Warrants outstanding, measurement input			100%	100%
Measurement Input, Risk-free Yield
Warrants outstanding, measurement input			1.17%	1.17%
Measurement Input, Share Price
Warrants outstanding, measurement input			$ 0.71	$ 0.71

Retirement Plan Costs (Details

Retirement Plan Costs (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Retirement Plan Costs
Employer matching contribution amount	$ 370,782	$ 292,825
Maximum annual contribution per employee, percent	4%

Leases Operating Leases (Detail

Leases Operating Leases (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)
Operating lease liabilities [Member]
Cash paid for operating lease liabilities	$ 338,497
Weighted-average remaining lease term	3 years 9 months
Weighted-average discount rate	10.50%
Finance lease liabilities [Member]
Cash paid for operating lease liabilities	$ 117,369
Weighted-average remaining lease term	1 year 3 months 21 days
Weighted-average discount rate	6.25%
Minimum future lease payments ended December 31, 2023 One
2024	$ 52,626
2025	18,491
Payments due	71,117
Less imputed interest	(2,107)
Total lease liabilities	69,010
Minimum future lease payments ended December 31, 2023
2024	207,351
2025	219,608
2026	222,387
2027	226,834
2028	233,727
2029	19,526
Payments due	1,129,433
Less imputed interest	(254,537)
Total lease liabilities	$ 874,896

Leases Narrative (Details Narra

Leases Narrative (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 01, 2023
Right of use assets - operating lease	$ 805,786	$ 310,162
Right of use assets - finance lease	72,560	168,750
Expected lease expense for first year			$ 208,000
Annual percentage increase in lease payments			3%
Rent expense related to operating leases	358,667	377,020
Amortization expense related to finance leases	$ 96,190	$ 103,926
Maximum
Term of contract	6 years
Minimum
Term of contract	3 years

Related Parties (Details Narrat

Related Parties (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Paid in advance	$ 1,076,121	$ 798,977
Board Members [Member]
Marketable securities	0	2,189,590
Revenue from customers	0	$ 18,300,000
Accounts receivable	1,200,000
Initial fee expense	15,000
Expense	35,000
Paid in advance	$ 5,000

Subsequent Event (Details Narra

Subsequent Event (Details Narrative) - Subsequent Event [Member]	Jan. 11, 2024 USD ($)
Lease cost	$ 127,000
Lease payments percentage increased	2%
Lease period expired	commencing on February 1, 2024 and expiring on January 31, 2027