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Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting  
Segment Reporting

Note 11 – Segment Reporting

 

Inuvo, Inc. (the "Company") operates as a single reportable segment that places digital advertising throughout devices, websites, applications and browsers across social, search and programmatic advertising channels, facilitating the delivery of millions of advertising messages monthly. The Chief Operating Decision Maker ("CODM"), identified as the Chief Executive Officer, evaluates the Company's financial performance and makes resource allocation decisions based on consolidated financial information.

 

Measure of Segment Profit or Loss

The CODM evaluates performance and allocates resources based on contribution margin, which is calculated as revenue after deducting marketing expenses, exchange fees, and publisher payments. Exchange fees and publisher payments are classified as cost of revenue. The resulting contribution margin covers Inuvo's fixed costs and profit.

 

Significant Segment Expenses

The Company reports total revenue and significant expenses provided to the CODM, which include cost of revenue, marketing, and compensation expenses. These expenses are regularly reviewed to assess operating performance. The following table presents these expenses: 

 

 

For the Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Revenue

 

$26,708,032

 

 

$17,023,777

 

Cost of Revenue

 

 

5,620,941

 

 

 

2,099,042

 

Marketing

 

 

17,512,994

 

 

 

13,102,644

 

Professional Fees

 

 

476,303

 

 

 

463,693

 

IT Costs

 

 

324,018

 

 

 

296,849

 

Provision/(reversal of provision) for bad debts

 

 

31,624

 

 

 

(1,100,000)

Depreciation and Amortization

 

 

568,042

 

 

 

673,203

 

Other

 

 

344,576

 

 

 

354,764

 

Compensation

 

 

3,599,321

 

 

 

3,224,860

 

Segment Operating Profit (Loss)

 

$(1,769,787)

 

$(2,091,278)

 

Other segment expenses include facilities costs, travel and entertainment expenses and various other corporate expenses.

 

Geographic Information

The Company's operations are based in the United States, and substantially all revenue is derived from U.S. clients.