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].

Core Viewpoint - SurgePays, Inc. is set to release its first quarter 2025 financial results on May 13, 2025, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the first quarter of 2025 will be released after the close of trading on May 13, 2025 [1]. - A conference call will be held on the same day at 5:00 p.m. ET to discuss the financial results [1]. Group 2: Accessing the Conference Call - The live webcast of the conference call can be accessed via the Company's investor relations website or through a registration link [2]. - Telephone access is available for participants in the U.S. and internationally, with specific numbers provided [2]. Group 3: Company Overview - SurgePays, Inc. is a wireless and fintech company focused on providing mobile connectivity and financial services to underserved communities [4]. - The company operates as both a mobile virtual network operator (MVNO) and a mobile virtual network enabler (MVNE), offering its own wireless brand and back-end infrastructure to other providers [4]. - SurgePays has a proprietary point-of-sale platform used in thousands of retail locations across the nation, facilitating SIM activations, top-ups, and digital financial services [4].

Wall Street expects a year-over-year decline in earnings on lower revenues when SurgePays, Inc. (SURG) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock ...

Veteran Operator to Lead Growth Initiatives Across Core Services BARTLETT, Tenn., April 23, 2025 /PRNewswire/ -- SurgePays, Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a leading technology and wireless telecommunications company, today announced the promotion of Derron Winfrey to the role of President, Sales and Operations. Derron Winfrey Derron Winfrey Winfrey will oversee SurgePays' expanding sales organization with a focus on scaling the Company's core offerings: LinkUp Mobile prepaid wireless se ...

Vancouver, British Columbia, April 15, 2025 (GLOBE NEWSWIRE) -- Surge Copper Corp. (TSXV: SURG) (OTCQB: SRGXF) (Frankfurt: G6D2) ("Surge" or the "Company") is pleased to highlight results from an industrial energy efficiency study investigating the potential benefits of incorporating high-pressure grinding rolls ("HPGR") into the comminution circuit at its Berg Project in central British Columbia. The study, conducted by Ausenco Engineering Canada ULC with input and support provided by BC Hydro, evaluates t ...