Summary of Surg Pays Inc. Presentation Company Overview - Surg Pays Inc. is publicly traded on Nasdaq under the symbol SURG with a current market cap of $55 million and revenue guidance exceeding $200 million through April 2026 [4][3] Industry Insights - The US MVNO (Mobile Virtual Network Operator) market reached $30 billion last year and is projected to grow to nearly $53 billion by 2032 [6] - Approximately one-third of the US population utilizes prepaid products due to socioeconomic challenges, representing over 100 million Americans [6] Core Business Model - Surg Pays operates a derisked, non-seasonal model with high insider ownership at 30% and aims for profitability by the end of the year [5] - The company empowers over 9,000 retailers with prepaid services, positioning its network as significant distribution points for products and services [5][16] Revenue Streams - **LinkUp Mobile**: A prepaid brand offering plans starting at $10, focusing on expanding dealer footprint and upselling through existing stores [7] - **Torch**: A subsidized channel providing free wireless service to low-income individuals through the Lifeline program, which has generated hundreds of millions in revenue over the past 20 years [8][9] - **Hero Platform**: A mobile virtual network enabler (MVNE) that allows other companies to become wireless providers, with three partners onboarded and two more in the pipeline [10][12] Competitive Advantages - Ownership of a point-of-sale platform that turns checkout counters into profit centers, generating transactional revenue without requiring inventory [14] - A digital advertising solution integrated with store POS systems to enhance marketing efforts and customer engagement [15] - A bilingual call center with 120 representatives to support a growing customer base and expand into Hispanic product revenue channels [20] Financial Performance - Revenue from the prepaid channel increased from under $1 million per month to over $3.4 million within a year, with expectations to exceed $4 million per month by July [18][19] Future Outlook - The company is built to scale without plateauing, with a leadership team experienced in generating billions in revenue [20] - Surg Pays is positioned to dominate its sector, with a focus on integrating with third-party POS systems and leveraging credibility to push higher-margin products [17][19] Conclusion - Surg Pays Inc. is at a pivotal moment in its history, ready to scale and enhance shareholder value through strategic growth and market expansion [21]

Core Viewpoint - Surge Copper Corp. has successfully completed metallurgical testwork for its Berg Project, achieving over 90% recovery rates for copper and molybdenum, confirming the effectiveness of conventional flotation processes and the quality of final products [1][6][10]. Group 1: Testwork Overview - The metallurgical program was initiated following a successful Preliminary Economic Assessment (PEA) and involved over 1,350 kilograms of material to create three primary composites representing different mineral zones [3][7]. - The testwork aimed to improve recovery profiles and validate flotation performance across various lithologies, with 27 variability composites created to assess recovery correlations [4][5]. Group 2: Recovery Results - Locked cycle testing achieved up to 90.7% copper and 93.0% molybdenum recovery to a bulk concentrate grading 29.7% copper [7][13]. - Excellent copper-molybdenum separation was confirmed, with molybdenum recoveries of 94.6% and 95.6% from bulk concentrates across hypogene and supergene composites, respectively [7][15]. Group 3: Economic Implications - The results validate the flowsheet used in the PEA, indicating potential for higher expected metal recoveries compared to the conservative estimates of 80% for copper and 75% for molybdenum [9][10]. - The project is positioned as a technically robust, high-margin asset, with the testwork reinforcing the disconnect between the project's fundamental value and market perception [10][20]. Group 4: Future Plans - Surge plans to refine geometallurgical modeling of the Berg deposit to enhance recovery rates, particularly by better delineating supergene and hypogene mineralization [20]. - Additional testing will include optimization for precious metals and further exploration of flow sheet opportunities, such as HPGR and coarse particle flotation [22]. Group 5: Company Background - Surge Copper Corp. is advancing a critical metals district in British Columbia, owning multiple advanced porphyry deposits with compliant resources of copper, molybdenum, gold, and silver [26][27]. - The Berg Project is highlighted for its large-scale, long-life potential, with a base case NPV of C$2.1 billion and an IRR of 20% based on long-term commodity prices [27].

Core Insights - SurgePays, Inc. is set to present at the iAccess Alpha Virtual Best Ideas Summer Investment Conference on June 24 and 25, 2025, with CEO Brian Cox leading the presentation [1][2] Company Overview - SurgePays, Inc. operates as a wireless, fintech, and point-of-sale technology company, focusing on providing mobile connectivity and financial services to underserved communities [3] - The company functions as both a mobile virtual network operator (MVNO) and a mobile virtual network enabler (MVNE), managing its own wireless brand and offering back-end infrastructure services to other wireless providers [3] - SurgePays has developed a proprietary point-of-sale platform utilized in thousands of retail locations across the nation, facilitating SIM activations, top-ups, and digital financial services [3] - The company is strategically positioned for growth in both retail and wholesale wireless channels, indicating a scalable business model [3]

SurgePays, Inc. (SURG) came out with a quarterly loss of $0.38 per share versus the Zacks Consensus Estimate of a loss of $0.40. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5%. A quarter ago, it was expected that this company would post a loss of $0.27 per share when it actually produced a loss of $0.93, delivering a surprise of -244.44%.Over the last four quarters, the company has surpas ...

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $10.6 million, a decrease from $31.4 million in Q1 2024, primarily due to the shutdown of the ACP federal funding [18][20] - Gross profit was a loss of $2.9 million in Q1 2025 compared to a gross profit of $8.2 million in Q1 2024, largely due to the cessation of ACP funding [19][20] - The net loss for Q1 2025 was $7.6 million, translating to a loss per share of negative $0.38, significantly impacted by the end of federally funded ACP [20] Business Line Data and Key Metrics Changes - Platform service revenue grew to $8.3 million in Q1 2025 from $2.5 million in Q1 2024, attributed to the hiring of a new sales director [18][19] - The company has onboarded three MVNOs with two more in the integration pipeline, collectively serving hundreds of thousands of subscribers [11][26] Market Data and Key Metrics Changes - The company shipped over 210,000 SIM cards to customers and retail partners, with an additional 290,000 in inventory and 250,000 more expected before May [8][9] - The distribution model includes over 9,000 community-focused stores nationwide, enhancing local engagement and transaction efficiency [9] Company Strategy and Development Direction - The company aims to target $200 million in revenue for the twelve-month period ending April 2026 and expects to be operating cash flow positive by the end of 2025 [6][17] - A strategic partnership with AT&T was launched, providing access to a reliable network and enabling the company to offer backend telecom infrastructure to MVNOs [7][10] - The company is focused on scaling its distribution network to 100,000 locations by the end of 2026, leveraging various product offerings to penetrate the market [46][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of the recent financing to support expansion efforts [16][23] - The management noted that economic conditions may enhance the demand for their services, particularly among underserved communities [39][40] - There is optimism regarding potential enhancements to the Lifeline program, which could increase revenue opportunities [52][53] Other Important Information - The company closed a $6 million financing deal, which is expected to provide flexibility for rapid execution of growth plans [16][20] - SG&A expenses decreased by 28.6% year-over-year to $4.4 million in Q1 2025, reflecting cost management efforts [19] Q&A Session Summary Question: Timeline for MVNE revenue - Management indicated that revenue from MVNE partners should start appearing in Q2 as they activate and transition to new SIM card inventory [26] Question: Distribution of SIM cards - The distribution strategy involves a triage approach to ensure inventory is available for various channels, including government subsidized programs and retail networks [28][29] Question: Economics of MVNE partnerships - Management noted that the revenue model varies by MVNO type, making it challenging to provide a one-size-fits-all revenue projection [31][32] Question: Economic outlook for convenience store owners - Management observed that economic downturns often increase demand for their services, as underserved communities seek value alternatives [38][39] Question: Strategy to reach 100,000 locations - Management confirmed visibility into achieving the goal through various partnerships and product offerings, with a target timeline by the end of 2026 [46][49]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $10.6 million, a decrease from $31.4 million in Q1 2024, primarily due to the shutdown of the ACP federal funding [18] - Gross profit was a loss of $2.9 million in Q1 2025 compared to a gross profit of $8.2 million in Q1 2024, largely due to the cessation of ACP funding [19] - The net loss for Q1 2025 was $7.6 million, translating to a loss per share of negative $0.38, significantly impacted by the end of federally funded ACP [20] Business Line Data and Key Metrics Changes - Platform service revenue grew to $8.3 million in Q1 2025 from $2.5 million in Q1 2024, attributed to the hiring of a new sales director [18] - The company has onboarded three MVNOs with two more in the integration pipeline, collectively serving hundreds of thousands of subscribers [11] Market Data and Key Metrics Changes - The company shipped over 210,000 SIM cards to customers and retail partners since the soft launch, with an additional 290,000 SIMs in inventory [7] - The company aims to reach a target of 800,000 SIM cards distributed or in inventory by June 2025 [26] Company Strategy and Development Direction - The company is transitioning from a reseller to a platform and from a distributor to a telecom partner, focusing on high growth and high impact [17] - A new product, "Phone in a Box," was launched, allowing convenience stores to sell and activate wireless service easily, which is expected to enhance revenue for both the stores and the company [12][13] - The company is targeting a near-term goal of 100,000 locations operating on its platform, currently at about 9,000 locations [14][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and long-term value creation, emphasizing a disciplined approach to growth [23] - The company believes that economic challenges may increase demand for its services, as underserved customers look for more affordable wireless options [39][40] - Management is optimistic about the potential for an enhanced Lifeline product, which could increase revenue opportunities [50] Other Important Information - The company closed a $6 million financing deal, which is expected to provide the flexibility to execute its growth strategy without diluting shareholder equity [16][20] - SG&A expenses decreased by 28.6% year-over-year to $4.4 million in Q1 2025, reflecting cost management efforts [19] Q&A Session Summary Question: Timeline for MVNE revenue from partners - Revenue from MVNE partners is expected to start flowing in Q2 2025 as they activate and transition to the company's SIM cards [25] Question: Distribution of SIM cards among subscribers - SIM cards will be distributed across various channels, including government subsidized programs, retail networks, and new MVNE partners [27][28] Question: Economics of MVNE subscribers - The economics vary by MVNO type, and while it's challenging to model exact revenue per subscriber, the company aims for a healthy margin per subscriber [30][34] Question: Economic outlook for convenience store owners - The company sees stability in underserved communities, with economic challenges potentially increasing demand for its services [38][39] Question: Strategy to reach 100,000 locations - The company has visibility into its pipeline and is leveraging multiple products to onboard new locations, aiming for this goal by the end of 2026 [44][47]

[Financial Performance](index=4&type=section&id=Financial%20Performance) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 saw a significant financial downturn, with revenues dropping 66.3% to $10.6 million and a $7.6 million operating loss, largely due to the ACP cessation Key Consolidated Statements of Operations Data | Financial Metric | Q1 2025 (Unaudited) | Q1 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $10,577,429 | $31,429,135 | -66.3% | | **Cost of Revenues** | $13,519,775 | $23,246,468 | -41.8% | | **Income (Loss) from Operations** | ($7,579,902) | $1,751,861 | Significant Decline | | **Net Income (Loss) to Common Stockholders** | ($7,635,084) | $1,224,595 | Significant Decline | | **Basic EPS** | ($0.38) | $0.07 | Significant Decline | | **Diluted EPS** | ($0.38) | $0.07 | Significant Decline | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased 34.7% to $15.7 million, driven by a 54.2% drop in cash, leading to a 49.0% decline in stockholders' equity Key Consolidated Balance Sheet Data | Balance Sheet Item | March 31, 2025 (Unaudited) | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $5,397,770 | $11,790,389 | -54.2% | | **Total Current Assets** | $9,850,620 | $17,870,323 | -44.9% | | **Total Assets** | $15,664,039 | $23,976,005 | -34.7% | | **Total Liabilities** | $7,882,600 | $8,714,392 | -9.6% | | **Total Stockholders' Equity** | $7,781,439 | $15,261,613 | -49.0% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw a $7.0 million negative operating cash flow, a reversal from Q1 2024, with overall cash and equivalents decreasing by $7.4 million Key Consolidated Cash Flow Data | Cash Flow Activity | Q1 2025 (Unaudited) | Q1 2024 (Unaudited) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | ($6,963,484) | $4,040,058 | | **Net cash used in investing activities** | ($18,590) | $0 | | **Net cash provided by (used in) financing activities** | ($410,545) | $24,282,960 | | **Net increase (decrease) in cash** | ($7,392,619) | $28,323,018 | [Management's Discussion and Analysis (MD&A)](index=64&type=section&id=ITEM%202%3A%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) [Business Overview and Strategy](index=64&type=section&id=Business%20Overview%20and%20Strategy) SurgePays, a fintech and telecom company, is adapting its strategy post-ACP cessation by transitioning subscribers to Lifeline and launching new MVNE and prepaid service initiatives - The company operates through two primary business segments: MVNO Telecommunications (providing wireless services) and Comprehensive Platform Services (offering point-of-sale technology)[335](index=335&type=chunk)[337](index=337&type=chunk)[342](index=342&type=chunk) - The Affordable Connectivity Program (ACP), a key revenue driver, ceased funding in June 2024. The company's strategy involves absorbing costs to retain its subscriber base and transitioning them to the Lifeline program[341](index=341&type=chunk)[358](index=358&type=chunk) - Key growth strategies include expanding prepaid services (LinkUp Mobile), growing subsidized services in new markets like California (Torch Wireless), and launching a new Mobile Virtual Network Enabler (MVNE) business[337](index=337&type=chunk)[351](index=351&type=chunk)[352](index=352&type=chunk) - The company discontinued its Lead Generation segment at the end of 2024 to align with its long-term strategic objectives[338](index=338&type=chunk)[349](index=349&type=chunk) [Results of Operations](index=67&type=section&id=Results%20of%20Operations) Q1 2025 operational results show a dramatic decline, with total revenue falling 66.3% to $10.6 million due to ACP cessation, and gross margin turning negative Segment Revenue Performance | Segment Revenue | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Mobile Virtual Network Operator | $2,285,823 | $28,892,590 | -92.1% | | Comprehensive Platform Services | $8,291,606 | $2,530,589 | +227.7% | | **Total Revenue** | **$10,577,429** | **$31,429,135** | **-66.3%** | Segment Gross Profit (Loss) | Segment Gross Profit (Loss) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Mobile Virtual Network Operator | ($2,903,795) | $8,132,391 | | Comprehensive Platform Services | ($38,551) | $48,783 | | **Total Gross Profit (Loss)** | **($2,942,346)** | **$8,182,667** | - Selling, general and administrative (SG&A) expenses decreased by **$1.8 million (28.6%)** YoY, primarily due to reduced non-cash stock compensation for executives and lower legal fees related to the Blue Skies litigation[367](index=367&type=chunk)[368](index=368&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity tightened significantly in Q1 2025, with working capital decreasing to $4.1 million and a $7.0 million operational cash burn, necessitating new financing secured post-quarter - Working capital surplus decreased from **$11.8 million** at Dec 31, 2024 to **$4.1 million** at March 31, 2025[380](index=380&type=chunk) - Management warns that due to the end of the ACP program, the company may not have sufficient resources to fund operations for the next twelve months without additional funding[393](index=393&type=chunk) - In response to liquidity pressures, the company launched several initiatives in April 2025, including LinkUp Mobile SIM cards, a phone-in-a-box program, and expansion of Torch Wireless into California[394](index=394&type=chunk) - Subsequent to the quarter's end, on May 12, 2025, the company secured **$6.0 million** in net cash proceeds from a Senior Secured Convertible Note issuance, addressing immediate liquidity concerns[324](index=324&type=chunk) [Key Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Business Organization and Discontinued Operations](index=10&type=section&id=Note%201%20-%20Organization%20and%20Nature%20of%20Operations) SurgePays operates in fintech and telecom, abandoning its immaterial lead generation segment effective December 31, 2024, without classifying it as discontinued operations - The company operates through subsidiaries in two main segments: Comprehensive Platform Services (ECS Prepaid, SurgePays Fintech) and Mobile Virtual Network Operators (Torch Wireless, SurgePhone Wireless)[21](index=21&type=chunk) - The lead generation segment was abandoned effective December 31, 2024, as it was no longer aligned with strategic objectives and was financially immaterial[25](index=25&type=chunk)[27](index=27&type=chunk) [Debt](index=39&type=section&id=Note%206%20%E2%80%93%20Debt) As of March 31, 2025, total debt was **$3.6 million**, primarily comprising **$3.1 million** in CEO notes at 10% interest and **$0.5 million** in government EIDL loans Debt Breakdown | Debt Component | Balance at Mar 31, 2025 | | :--- | :--- | | Notes Payable - Related Parties (CEO) | $3,147,879 | | Notes Payable - SBA government | $466,627 | | **Total Debt** | **$3,614,506** | - In March 2024, all outstanding principal and accrued interest payable to the CEO were consolidated into a single note of **$5.08 million**, bearing **10% interest** and payable over 36 months[220](index=220&type=chunk) [Stockholders' Equity and Compensation](index=51&type=section&id=Note%209%20%E2%80%93%20Stockholders%27%20Equity) Equity structure includes common and preferred stock, with significant executive stock-based compensation, totaling **$155,119** in Q1 2025, and **1.26 million** dilutive equivalents outstanding - The CEO's employment agreement includes future stock awards totaling **2,500,000 shares** and additional awards tied to ambitious revenue, EBITDA, and market capitalization goals[251](index=251&type=chunk)[254](index=254&type=chunk) - The CFO was granted **600,000 shares** of restricted common stock in November 2023[249](index=249&type=chunk)[292](index=292&type=chunk) - Total stock compensation expense recognized for related parties was **$155,119** in Q1 2025, compared to **$1,497,417** in Q1 2024[302](index=302&type=chunk) - As of March 31, 2025, there were **93,000 warrants** and **1,166,081 stock options** outstanding[183](index=183&type=chunk) [Commitments and Contingencies](index=42&type=section&id=Note%208%20%E2%80%93%20Commitments%20and%20Contingencies) The company faces significant commitments including **$548,535** in operating leases, ongoing Blue Skies litigation, settled TCPA cases, and substantial executive employment agreements - The company is involved in ongoing litigation with Blue Skies Connections, LLC and its former officer Mike Fina related to the 2021 sale of True Wireless[259](index=259&type=chunk)[261](index=261&type=chunk) - Litigation related to TCPA violations (Aliotta v. SurgePays) and an associated indemnity claim (CAMG v. LogicsIQ) were settled and dismissed in April 2024[266](index=266&type=chunk)[267](index=267&type=chunk) - The company has employment agreements with its CEO and CFO that include substantial base salaries (**$750,000+** and **$475,000+** respectively), annual cash bonuses, and large restricted stock awards[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk) [Subsequent Event: Major Financing](index=63&type=section&id=Note%2011%20%E2%80%93%20Subsequent%20Event) Post-quarter, on May 12, 2025, the company secured **$6.0 million** in net cash from a **$7.0 million** Senior Secured Convertible Note at 15% interest, convertible at **$4.00** per share - On May 12, 2025, the company entered into a financing agreement, issuing a Senior Secured Convertible Note and receiving **$6.0 million** in net cash proceeds[324](index=324&type=chunk) - The note accrues interest at **15% per annum** and is convertible into common stock at **$4.00 per share**. It is secured by a first-priority lien on substantially all company assets[325](index=325&type=chunk)[326](index=326&type=chunk)[327](index=327&type=chunk) - The company also issued **700,000 warrants** exercisable at **$6.00 per share**. Both the warrants and the note's conversion feature are classified as derivative liabilities[330](index=330&type=chunk)[331](index=331&type=chunk)

Core Insights - SurgePays has completed its integration with AT&T and launched its services nationwide, positioning the company for significant growth [1][2] - The company aims to generate over $200 million in revenue over the next 12 months starting April 1, 2025, with expectations of positive operating cash flow by year-end [1][6] Financial Performance - For Q1 2025, SurgePays reported revenues of $10.58 million, a decrease from $31.43 million in Q1 2024 [12][14] - The company incurred a net loss of $7.64 million in Q1 2025, compared to a net income of $1.22 million in the same period last year [14] - Cash and cash equivalents as of March 31, 2025, were $5.4 million, down from $11.79 million at the end of 2024 [12] Operational Highlights - SurgePays shipped over 250,000 SIM cards and has an additional 290,000 in inventory, with plans to ship another 250,000 by June 2025 [8] - The company has fully integrated three MVNOs and is onboarding two more, expanding its MVNE pipeline [8] - The launch of the "Phone in a Box" product exceeded expectations, selling out 2,600 smartphones in under 30 days [8] Strategic Developments - SurgePays secured $7 million in financing, including $6 million in cash, to support its growth initiatives [2][8] - The transition from a reseller model to a direct carrier partner is seen as a transformative milestone for the company [2] - The company is focused on scaling its MVNO and POS platforms, anticipating significant revenue growth and margin expansion [6][7]

Financing with Institutional Shareholder Featuring Share Buyback Component and Fixed Conversion Price of $4 per share, a Premium to MarketBARTLETT, Tenn., May 13, 2025 /PRNewswire/ -- SurgePays, Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a wireless and point-of-sale technology company, today announced that it has entered into a $7 million senior secured convertible note (the "Note") agreement with a current institutional shareholder. The Note has a principal amount of $7 million and matures two yea ...

Core Viewpoint - Surge Copper Corp. has successfully completed a geotechnical drilling and analysis program at its 100%-owned Berg Project, which supports the feasibility of a future open pit mine design and indicates potential for resource expansion [1][3][4]. Group 1: Geotechnical Program Overview - The geotechnical program included six drill holes targeting both central and outer areas of the deposit, designed to gather data on structural geology, rock mass quality, and hydrogeological conditions [1][3]. - The program was completed ahead of schedule and under budget, providing critical data for advancing Pre-Feasibility Study (PFS)-level engineering design [3][8]. Group 2: Slope Design and Mining Efficiency - The resulting slope design criteria recommend inter-ramp angles ranging from 39 to 46 degrees, which may allow for steeper slopes and a lower overall strip ratio compared to previous designs [5][6][9]. - The updated fault model incorporates 2024 drilling data to improve geotechnical resolution and enhance structural interpretation [5][8]. Group 3: Mineralization and Resource Expansion - Several drill holes intersected low-grade mineralization and silver-rich base-metal veins, suggesting potential for resource expansion and conversion [8][9]. - Notable results include hole BRG24-246, which returned 184 meters grading 0.30% CuEq, and hole BRG24-249, which encountered high-grade silver intervals [9][25]. Group 4: Company Background and Future Prospects - Surge Copper Corp. is advancing a critical metals district in British Columbia, owning multiple advanced porphyry deposits with significant resources of copper, molybdenum, gold, and silver [28][29]. - The Berg Project has a maiden PEA outlining a large-scale, long-life project with an NPV of C$2.1 billion and an IRR of 20% based on long-term commodity prices [29].