Note 5 – Restricted Cash

In connection with the Note Purchase Agreement, the $6.2 million proceeds from the B Note were deposited into a Lakeside Bank account owned by the Company's wholly-owned subsidiary, INUV Holdings, LLC, under  the DACA. Streeterville holds a first-position security interest in and control over the account, and funds are unavailable for general corporate purposes except as released via a Note Exchange.

The Company is entitled to the release of $1.2 million of restricted cash held pursuant to the DACA upon the completion of a Qualified Equity Offering on or before July 31, 2026. On July 1, 2026, the Company completed a registered direct offering generating gross proceeds of approximately $3.0 million, which satisfied the requirements for the release of the $1.2 million. Accordingly, $1.2 million of restricted cash has been classified as current as of June 30, 2026.

The remaining $5.0 million of restricted cash has been classified as non-current because its release is contingent upon future note exchanges under the Note Purchase Agreement, which are triggered by a $2.0 million reduction of the A-1 Note or any additional A Notes issued upon exchange from the B Note (the A-1 Note and any additional A Notes that are issued upon exchange from the B Note, collectively, the “A Notes”) through either Streeterville's monthly redemption right or a Company-elected prepayment. As of June 30, 2026, substantially all of the Company's restricted cash was held by the Company's wholly-owned subsidiary, INUV Holdings, LLC, and was restricted from being distributed, loaned, or advanced to the Company pursuant to the DACA.

The following table provides a reconciliation of cash and cash equivalents and restricted cash: