Inuvo, Inc. Segments Disclosure
Note 12 – Segment Reporting
We operate 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 our 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
We report 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 year ended December 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Revenue |
| $ | 86,209,305 |
|
| $ | 83,793,859 |
|
Cost of Revenue |
|
| 21,995,153 |
|
|
| 12,033,777 |
|
Marketing |
|
| 51,890,162 |
|
|
| 59,663,061 |
|
Professional Fees |
|
| 1,985,125 |
|
|
| 1,821,837 |
|
IT Costs |
|
| 1,278,569 |
|
|
| 1,270,536 |
|
Changes of reserves for credit loss |
|
| (35,675 | ) |
|
| (1,442,533 | ) |
Depreciation and Amortization |
|
| 2,234,749 |
|
|
| 2,515,177 |
|
Other |
|
| 1,470,916 |
|
|
| 1,380,032 |
|
Compensation |
|
| 12,086,350 |
|
|
| 12,065,783 |
|
Segment Operating Profit (Loss) |
| $ | (6,696,044 | ) |
| $ | (5,513,811 | ) |
Other segment expenses include facilities costs, travel and entertainment expenses and various other corporate expenses.
Geographic Information
Our operations are based in the United States, and substantially all revenue is derived from U.S. clients.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2017 | Feb 8, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 12, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.