{"url_path":"/sec/inuv/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A RISK FACTORS-UPDATE**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/829323/0001654954-26-004909-index.html","accession_number":"0001654954-26-004909","cik":"0000829323","ticker":"INUV","issuer_name":"Inuvo, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/829323/0001654954-26-004909-index.html","primary_entity_key":"0000829323","primary_entity_name":"Inuvo, Inc."},"word_count":503,"has_tables":true,"body_markdown":"**ITEM 1A. RISK FACTORS-UPDATE**\n\n \n\nWe desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Accordingly, we incorporate by reference the risk factors disclosed in Part I, Item 1A of our Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 5, 2026 and our subsequent filings with the SEC, subject to the new or modified risk factors appearing below that should be read in conjunction with the risk factors disclosed in such Form 10-K and our subsequent filings.\n\n \n\n**We rely on two customers for a significant portion of our revenues.**We are reliant upon two customers for most of our revenue. During the first quarter of 2026, these Legacy Search customers accounted for 32.1% and 23.2% of our revenues, respectively. During the same period in 2025, those Legacy Search customers accounted 17.4% and 70.8% of our revenues. The amount of revenue we receive from these customers is dependent on a number of factors outside of our control, including changes in the respective customer’s advertising budget, both in terms of allocated dollars and media mix, financial resources of the customers, as well as general economic conditions. We would likely experience a significant decline in revenue and our business operations could be significantly harmed if these customers do not continue to utilize our services. Additionally, our business operations and financial condition could be significantly harmed if these customers do not pay for our services on a timely basis. The loss of any of these customers or a material change in the revenue or gross profit they generate or their failure to timely pay us for our services would have a material adverse impact on our business, results of operations and financial condition in future periods.\n\n \n\n**Our Legacy Search business has experienced significant revenue declines, and we may not be successful in restoring historical revenue levels or profitability.**During the fourth quarter of 2025 and continuing into the first quarter of 2026, Legacy Search revenue declined significantly compared to the prior year periods and represented approximately 71.8% and 57.1%, respectively of our total revenue, compared to approximately 81.1% and 88.7%, respectively during the prior year periods. The decline was primarily driven by changes in the search marketplace, including evolving compliance requirements, traffic quality standards and monetization dynamics associated with third-party advertising platforms. While we have implemented operational, compliance and cost-reduction initiatives intended to adapt to these changing market conditions, there can be no assurance that these efforts will successfully restore revenue, margins or profitability within our Legacy Search business, or at all. If monetization rates decline further, traffic volumes continue to decrease, or third-party platform requirements continue to evolve in ways that adversely impact our business model, our revenue, operating results and cash flows could continue to be negatively affected. In addition, if Legacy Search revenue does not improve, we may be required to implement additional cost reduction measures, including reductions in operating expenses and personnel, which could adversely affect our financial condition."}