 LITTLE ROCK, Ark., Aug. 13, 2020 GLOBE NEWSWIRE -- Inuvo, Inc. NYSE AMERICAN: INUV Inuvo or the Company, a leading provider of marketing technology, powered by IntentKeyTM artificial intelligence that serves brands and agencies, today announced its financial results for the second quarter and first six months ending June 30, 2020. The IntentKey, Inuvos proprietary machine learning technology, accounted for 25.6 of 2020 second quarter revenue and 16.9 of the first six months revenue, generating 1.94 million and 3.8 million, respectively. Richard Howe, CEO of Inuvo, commented, Lower revenue through the first six months of the year was principally caused by decreased advertising budgets associated with COVID-19 and primarily within the ValidClick Platform with May as the lowest revenue month of the year and where June, July and now August have all trended sequentially higher. Despite the Pandemic, the IntentKey business has grown 17 through the first half of the year. Mr. Howe added, Although revenue has been challenged during COVID-19, both the Net Loss and Adjusted EBITDA improved year-over-year within the quarter.Financial Results for the Three and Six Months Ended June 30, 2020: Net revenue for the three and six months ended June 30, 2020 totaled 7.6 million and 22.5 million respectively down 46 and 24 year-over-year. Lower revenue throughout the period was principally the result of decreasing advertising budgets associated with COVID-19 within the ValidClick Platform.The IntentKey Platform revenue for the six months ended June 30, 2020 was up approximately 17 and flat year-over-year within the quarter. The ValidClick Platform revenue for the six months ended June 30, 2020 was down approximately 29 and down 53 year-over-year within the quarter.Gross profit for the three and six months ended June 30, 2020 totaled 6.5 million and 18.0 million, respectively, yielding gross profit margins during each period of 86 and 80, respectively.IntentKey gross margins were approximately 55 in the current quarter, up 125 from the 24 in the prior year.Operating expenses totaled 7.8 million in the quarter, down 26 from the 10.5 million in the prior year.Net loss for the three and six months ended June 30, 2020 improved 30 and 5 to 1.4 million and 4.2 million respectively.Adjusted EBITDA for the 2020 second quarter improved 84 to a loss of 140 thousand as compared to a loss of 854 thousand for the same period in 2019.At June 30, 2020 Inuvo had approximately 4.2 million in cash. On July 27, 2020 Inuvo closed a public offering for its common stock with gross proceeds of 10.75 million. The Company remains primarily focused on growing its AI technology, the IntentKey, where there is believed to be a technological and competitive advantage.Conference Call Details: Date: Thursday, August 13, 2020 Time: 4:30 p.m. Eastern Time Toll-free Dial-in Number: 1-800-263-0877 International Dial-in Number: 1-646-828-8143 Conference ID: 7887083 Participant Link: telephone replay will be available through August 27, 2020. To access the replay, please dial 1-844-512-2921 domestic or 1-412-317-6671 international. At the system prompt, enter the code 7887083 followed by the sign. You will then be prompted for your name, company and phone number. Playback will then automatically begin.About Inuvo Inuvo, Inc. NYSE American: INUV is a market leader in artificial intelligence, aligning and delivering consumer-oriented product brand messaging strategies online based on powerful, anonymous and proprietary consumer intent data for agencies, advertisers and partners. To learn more, visit the IntentKeyTM Inuvos IntentKeyTM is a patented, machine-learning technology designed to mirror the manner in which the human brain instantly associates ideas, emotions, places, people, and objects. It creates an accurate, high-definition picture of consumer intent and sentiment related to a particular topic or item. Inuvo harnesses the power of the IntentKeyTM to discover and reach high volumes of incremental in-market and relevant audiences that are hidden from typical marketing approaches. The IntentKeyTM enables pinpoint media execution reaching consumers throughout the purchasing funnel all the way to conversion.Safe Harbor Forward-Looking Statements Disclosures This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation, statements made with respect to expectations with respect to the results of revenues from IntentKey in future periods, our lack of profitable operating history, changes in our business, potential need for additional capital, the ultimate impact of the COVID-19 pandemic on our industry in general and our business in particular, and other risks detailed from time to time in our filings with the Securities and Exchange Commission the SEC, and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading Risk Factors in Inuvo, Inc.s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as filed on May 12, 2020 and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Inuvo, Inc. and are difficult to predict. The information, which appears on our websites and our social media platforms is not part of this press release.Inuvo Company Contact: Wally Ruiz Chief Financial Officer Tel 501 205-8397 Contact: KCSA Strategic Communications Valter Pinto, Managing Director Tel 212 896-1254 INUVO, INC. CONDENSED CONSOLIDATED BALANCE SHEET Unaudited June 30 December 31, 2020 2019 Assets Cash 4,181,214 372,989 Accounts receivable, net 3,256,697 7,529,785 Prepaid expenses and other current assets 243,137 243,888 Total current assets 7,681,048 8,146,662 Property and equipment, net 1,213,937 1,374,152 Goodwill 9,853,342 9,853,342 Intangible assets, net 9,518,841 10,451,593 Other assets 1,075,501 865,178 Total other assets 20,447,684 21,170,113 Total assets 29,342,669 30,690,927 Liabilities and Stockholders Equity Accounts payable 3,674,697 7,520,567 Accrued expenses and other current liabilities 3,045,357 4,057,340 Financed receivables 2,158,443 3,381,364 Convertible promissory notes net 0 536,806 Derivative liability 0 182,250 Total current liabilities 8,878,497 15,678,327 Deferred tax liability 107,000 107,000 Other long-term liabilities 2,282,640 452,051 Total long-term liabilities 2,389,640 559,051 Total stockholders equity 18,074,532 14,453,549 Total liabilities and stockholders equity 29,342,669 30,690,927 INUVO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Months Ended Six Months Ended June 30 June 30 June 30 June 30 2020 2019 2020 2019 Net revenue 7,590,187 14,047,907 22,523,170 29,512,476 Cost of revenue 1,070,028 5,674,360 4,509,529 12,354,988 Gross profit 6,520,159 8,373,547 18,013,641 17,157,488 Operating expenses Marketing costs 3,857,395 6,528,336 13,480,218 13,072,345 Compensation 2,118,311 1,735,489 4,462,546 3,544,045 Selling, general and administrative 1,781,121 2,213,507 3,839,963 4,590,568 Total operating expenses 7,756,827 10,477,332 21,782,727 21,206,958 Operating loss 1,236,668 2,103,785 3,769,086 4,049,470 Interest expense income, net 72,681 148,792 225,192 367,916 Other expense, net 49,939 - 190,246 - Net loss 1,359,288 1,954,993 4,184,524 4,417,386 Earnings per share, basic and diluted Net loss income 0.02 0.06 0.07 0.14 Weighted average shares outstanding Basic 66,023,317 32,570,866 59,835,925 32,484,878 Diluted 66,023,317 32,570,866 59,835,925 32,484,878 RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA unaudited Three Months Ended Six Months Ended June 30 June 30 June 30 June 30 2020 2019 2020 2019 Loss from continuing operations before taxes 1,359,288 1,954,993 4,184,524 4,417,386 Interest expense income, net 72,681 148,792 225,192 367,916 Depreciation and amortization 925,206 813,510 1,866,632 1,637,275 EBITDA 361,401 1,290,275 2,092,700 2,412,195 Stock-based compensation 193,288 49,823 402,185 146,694 Non-recurring expense: Costs incurred during the Terminated Merger - 386,000 - 887,000 Adjustment to derivative liability accounts 28,057 168,364 Adjusted EBITDA 140,056 854,452 1,522,151 1,378,501 Reconciliation of Loss from Continuing Operations before Taxes to EBITDA and Adjusted EBITDAWe present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as net loss from continuing operations before taxes plus i interest expense, net, ii depreciation, and iii amortization. 