Migration of former ACP Subscribers to
Lifeline Well Underway
BARTLETT,
Tenn., Nov. 12, 2024 /PRNewswire/ -- SurgePays,
Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a bridging
critical financial and connectivity gaps in underserved
communities, today announced its financial results for the third
quarter ended September 30, 2024.
Management Commentary
Chairman and CEO Brian
Cox commented on the quarter's results, "We anticipated a
challenging third quarter, and we seized it as an opportunity to
reset, recalibrate, and accelerate. With every team member
intensely focused, we're advancing toward becoming cash flow
positive as quickly as possible. We are aligning sales,
integration, and strategy to generate new revenue streams across
each of our business segments. This quarter wasn't a setback but a
setup, priming us for long-term, sustainable growth.
"In the third quarter of 2024, SurgePays reported
$4.8 million in sales, aligning with
expectations for our first full quarter without Affordable
Connectivity Funding (ACP) since mid-2021. Our Mobile Virtual
Network Operator (MVNO) revenue was $23,609 compared to $30.2
million in the same quarter last year, reflecting the
anticipated funding shift. Meanwhile, sales in our Prepaid Platform
Services segment surged 69% to $4.7
million, showcasing significant growth momentum.
"Gross profit (exclusive of depreciation and
amortization) swung to a $7.8 million
loss in the third quarter from a $10.5
million profit in the year-ago period due to our strategic
decision to utilize our strong balance sheet to protect our
previous ACP subscriber base and distribution network. With ACP
funding ending, our immediate focus was on how to retain and
preserve these hard-earned customers within the SurgePays
ecosystem. We chose to temporarily self-fund our MVNO
operations, prioritizing customer continuity while facilitating a
seamless transition to Lifeline, another government-subsidized
program. By maintaining connectivity for our low-income customers,
we made a socially responsible and strategic choice that positions
us well for potential long-term economic returns. We expect this
decision to be both customer-centered and financially astute in the
long run.
"Our recent Master Services Agreement with
TerraCom, Inc., a licensed Lifeline provider, represents a pivotal
step. This partnership allows us to migrate up to 280,000
subscribers to Lifeline, establishing a steady alternative subsidy
channel. In tandem, our sales teams are now actively engaging new
customers, reigniting growth initiatives, and leveraging our
SurgePays platform's point-of-sale capabilities at convenience
stores. While ACP remains uncertain, our subsidized revenue channel
is robustly supported by the Lifeline program. The team and
platform built for ACP is now enrolling thousands of Lifeline
customers daily without distracting from our core business focus.
This department has been overwhelmed and has had to hire additional
employees for the sales onboarding team. Our team has now enrolled
over 70,000 customers in the Lifeline program, and we believe our
Lifeline subscribers potential can far outpace our highest ACP
subscriber count.
"Meanwhile, our retail prepaid brand, LinkUp
Mobile, has proved to be a more significant opportunity than
initially anticipated, and to capture maximum market share, we
moved decisively to secure a direct carrier connection. We
anticipate this partnership will enable us to quickly generate
hundreds of thousands of new subscribers and establish LinkUp
Mobile as a formidable presence in the prepaid space.
"Our SurgePays Prepaid Top-ups platform is
experiencing exponential growth as a critical element in store
readiness for LinkUp Mobile activations. As a prerequisite to
LinkUp activations, stores join our platform, which also
facilitates prepaid reloads. This channel's monthly revenue growth
has surged nearly 400% in just five months, reaching over
$2.2 million in monthly revenue — a
trend we expect will continue as market demand intensifies.
"Our ClearLine Point of Sale (POS) SaaS platform
is emerging as a high-potential asset within SurgePays. This
advanced platform redefines the in-store customer experience by
transforming POS terminals and customer-facing screens into
interactive engagement tools. ClearLine's patent-pending
application supports in-store marketing campaigns, loyalty
enrollment, and QR code interactions, effectively replacing
traditional posters with smart TVs for dynamic QR-code advertising
and instant coupon redemptions. By enhancing revenue per store and
elevating customer satisfaction, ClearLine offers retailers
actionable insights, driving growth and loyalty. Following
years of development, ClearLine is now ready for market deployment,
and as it gains traction, we anticipate it will contribute
meaningfully to consolidated revenues by Q1 2025.
"While we continue investing across our four
business channels, we're also laying a robust foundation for rapid,
sustainable growth. Recently, we opened a dedicated sales and
operations center in El Salvador,
a project over a year in the making and a strategic move in
anticipation of growth across all our verticals. Nearly 100
experienced team members, previously outsourced, are now full-time
SurgePays employees, bringing continuity and expertise essential
for our ambitious expansion and product launches.
This new facility marks a pivotal evolution from
our longstanding outsourcing strategy, which enhances customer
relationships and maximizes sales opportunities.
"At SurgePays, we're driven by four pillars of
success: team, product, distribution, and funding. With what I
believe is the most seasoned team in prepaid wireless, a
market-leading product suite, proprietary distribution channels,
and $24 million in cash, cash
equivelants, and investments as of September
30, 2024, we're positioned to execute our growth strategy
with precision. Over the next few months, we expect each of our
four business segments to create a momentum that drives continuous
growth and improvement, generating synergistic and scalable
recurring revenue."
Third Quarter 2024 Results Conference
Call
SurgePays management will host a webcast today at
5 p.m. ET / 2
p.m. PT to discuss these results.
The live webcast of the call can be accessed on
the company's investor relations website at ir.surgepays.com, or by
registering at the following link: Third Quarter Results
Call .
Telephone access to the call will be available at
877-545-0320 (in the U.S.) or by dialing 973-528-0002 (outside the
U.S.). Participant access code is 801757.
A telephone replay will be available
approximately one hour following completion of the call
until November 26, 2024. To access the replay, please dial
877-481-4010 (in the U.S.) or 919-882-2331 (outside the U.S.).
Replay passcode is 51609.
Share Repurchase Authorization
During the third quarter, SurgePays' board of
directors authorized the company to repurchase up to $5 million of common stock in the open market
within six months from implementation of the program. The
company repurchased $485,131 of
treasury shares in the third quarter.
About SurgePays, Inc.
SurgePays, Inc. is a technology and telecom
company focused on the underbanked and underserved communities.
SurgePays' technology-layered platform empowers clerks at over
8,000 convenience stores to provide a suite of prepaid wireless and
financial products to underbanked customers. SurgePays prepaid
wireless companies provide services to over 250,000 low-income
subscribers nationwide. The company ranks as the 345th
fastest-growing tech company in North
America according to the 2023 Deloitte Technology Fast 500.
Please visit SurgePays.com for more information.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes express or implied
statements that are not historical facts and are considered
forward-looking within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act. Forward-looking
statements involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or our
future financial or operating performance and may contain
projections of our future results of operations or of our financial
information or state other forward-looking information. In some
cases, you can identify forward-looking statements by the following
words: "may," "will," "could," "would," "should," "expect,"
"intend," "plan," "anticipate," "believe," "estimate," "predict,"
"project," "potential," "continue," "ongoing," "attempting," or the
negative of these terms or other comparable terminology, although
not all forward-looking statements contain these words.
Although we believe that the expectations
reflected in these forward-looking statements such as regarding our
market potential along with the statements under the heading
Management Commentary are reasonable, these statements relate to
future events or our future operational or financial performance
and involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by these
forward-looking statements including but not limited to, our plans
to expand our prepaid wireless company and the stock buyback
program, our ability to retain our subscribers on a free monthly
plan subsidized by a sister program, our ability to obtain a
company that has the license to subsidize our subscribers through a
sister program and our expanded service and offerings .
Furthermore, actual results may differ materially from those
described in the forward-looking statements and will be affected by
a variety of risks and factors that are beyond our control,
including, without limitation, whether the ACP is funded again, our
ability to obtain a company that has the license to subsidize our
subscribers through a sister program, statements about our future
financial performance, including our revenue, cash flows, costs of
revenue and operating expenses; our anticipated growth; and our
predictions about our industry. The forward-looking statements
contained in this release are also subject to other risks and
uncertainties, including those more fully described in our filings
with the Securities and Exchange Commission ("SEC"), including in
our Annual Report on Form 10-K for the fiscal year ended
December 31, 2023. The
forward-looking statements in this press release speak only as of
the date on which the statements are made. We undertake no
obligation to update, and expressly disclaim the obligation to
update, any forward-looking statements made in this press release
to reflect events or circumstances after the date of this press
release or to reflect new information or the occurrence of
unanticipated events, except as required by law.
SurgePays, Inc. and
Subsidiaries
|
Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
September 30, 2024
|
|
December 31, 2023
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
13,651,559
|
|
$
14,622,060
|
Investments
|
|
10,068,506
|
|
-
|
Accounts receivable -
net
|
|
1,513,996
|
|
9,536,074
|
Inventory
|
|
8,363,138
|
|
9,046,594
|
Prepaids and
other
|
|
312,679
|
|
161,933
|
Total Current Assets
|
|
33,909,878
|
|
33,366,661
|
|
|
|
|
|
Construction-in-process
|
|
518,189
|
|
-
|
|
|
|
|
|
Property and equipment - net
|
|
158,092
|
|
361,841
|
|
|
|
|
|
Other Assets
|
|
|
|
|
Note
receivable
|
|
176,851
|
|
176,851
|
Intangibles -
net
|
|
1,636,339
|
|
2,126,470
|
Internal use software
development costs - net
|
|
372,303
|
|
539,424
|
Goodwill
|
|
4,166,782
|
|
1,666,782
|
Investment in
CenterCom
|
|
498,273
|
|
464,409
|
Operating lease - right
of use asset - net
|
|
62,786
|
|
387,869
|
Deferred income taxes -
net
|
|
-
|
|
2,835,000
|
Total Other Assets
|
|
6,913,334
|
|
8,196,805
|
|
|
|
|
|
Total Assets
|
|
$
41,499,493
|
|
$
41,925,307
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
3,173,968
|
|
$
6,439,120
|
Accounts payable and
accrued expenses - related party
|
|
462,376
|
|
1,048,224
|
Accrued income taxes
payable
|
|
100,000
|
|
570,000
|
Deferred
revenue
|
|
-
|
|
20,000
|
Operating lease
liability
|
|
50,415
|
|
43,137
|
Note payable - related
party
|
|
1,647,491
|
|
4,584,563
|
Total Current Liabilities
|
|
5,434,250
|
|
12,705,044
|
|
|
|
|
|
Long Term Liabilities
|
|
|
|
|
Note payable - related
party
|
|
2,303,989
|
|
-
|
Notes payable - SBA
government
|
|
472,135
|
|
460,523
|
Operating lease
liability
|
|
13,132
|
|
356,276
|
Total Long Term Liabilities
|
|
2,789,256
|
|
816,799
|
|
|
|
|
|
Total Liabilities
|
|
8,223,506
|
|
13,521,843
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
Common stock, $0.001
par value, 500,000,000 shares authorized
|
|
|
|
|
19,931,549
shares issued and 19,650,779 shares outstanding,
respectively, at September 30, 2024
|
|
|
|
|
14,403,261
shares issued and outstanding at December 31, 2023
|
|
19,935
|
|
14,404
|
Additional paid-in
capital
|
|
74,725,651
|
|
43,421,019
|
Treasury stock - at
cost (280,770 and 0 shares, respectively)
|
|
(485,131)
|
|
-
|
Accumulated
deficit
|
|
(41,102,720)
|
|
(15,186,203)
|
Stockholders'
equity
|
|
33,157,735
|
|
28,249,220
|
Non-controlling
interest
|
|
118,252
|
|
154,244
|
Total Stockholders' Equity
|
|
33,275,987
|
|
28,403,464
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
$
41,499,493
|
|
$
41,925,307
|
|
|
|
|
|
SurgePays, Inc. and
Subsidiaries
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September
30,
|
|
For the Nine Months Ended September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
4,769,697
|
|
$
34,160,834
|
|
$
51,284,531
|
|
$
104,823,710
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
12,602,057
|
|
23,680,247
|
|
54,377,300
|
|
76,622,912
|
General and
administrative expenses
|
|
6,448,402
|
|
3,389,015
|
|
20,312,185
|
|
10,201,663
|
Total costs and expenses
|
|
19,050,459
|
|
27,069,262
|
|
74,689,485
|
|
86,824,575
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
(14,280,762)
|
|
7,091,572
|
|
(23,404,954)
|
|
17,999,135
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(112,814)
|
|
(130,335)
|
|
(362,119)
|
|
(478,928)
|
Loss on lease
termination - net
|
|
(194,862)
|
|
|
|
(194,862)
|
|
|
Other income
|
|
239
|
|
-
|
|
637,107
|
|
-
|
Interest
income
|
|
183,537
|
|
|
|
183,537
|
|
|
Unrealized gains -
investments
|
|
38,292
|
|
|
|
38,292
|
|
|
Dividends, interest and
other income - investments
|
|
86,626
|
|
|
|
86,626
|
|
|
Gain on investment in
CenterCom
|
|
-
|
|
51,894
|
|
33,864
|
|
95,636
|
Total other income (expense) -
net
|
|
1,018
|
|
(78,441)
|
|
422,445
|
|
(383,292)
|
|
|
|
|
|
|
|
|
|
Net income (loss) before provision for income
taxes
|
|
(14,279,744)
|
|
7,013,131
|
|
(22,982,509)
|
|
17,615,843
|
|
|
|
|
|
|
|
|
|
Provision for income tax benefit
(expense)
|
|
-
|
|
-
|
|
(2,970,000)
|
|
-
|
|
|
|
|
|
|
|
|
|
Net income (loss) including non-controlling
interest
|
|
(14,279,744)
|
|
7,013,131
|
|
(25,952,509)
|
|
17,615,843
|
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
(4,397)
|
|
(71,170)
|
|
(35,992)
|
|
19,209
|
|
|
|
|
|
|
|
|
|
Net income (loss) available to common
stockholders
|
|
$
(14,275,347)
|
|
$
7,084,301
|
|
$
(25,916,517)
|
|
$
17,596,634
|
|
|
|
|
|
|
|
|
|
Earnings per share - attributable to common
stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.73)
|
|
$
0.50
|
|
$
(1.37)
|
|
$
1.24
|
Diluted
|
|
$
(0.73)
|
|
$
0.49
|
|
$
(1.37)
|
|
$
1.19
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding -
attributable
to common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
19,689,010
|
|
14,291,263
|
|
18,940,689
|
|
14,205,127
|
Diluted
|
|
19,689,010
|
|
14,507,984
|
|
18,940,689
|
|
14,740,201
|
|
|
|
|
|
|
|
|
|
SurgePays, Inc. and
Subsidiaries
|
Consolidated
Statements of Changes in Stockholders' Equity
|
For the Three and
Nine Months Ended September 30, 2024
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
Common Stock
|
|
Paid-in
|
|
Accumulated
|
|
Treasury Stock
|
|
Non-Controlling
|
|
Stockholders'
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Shares
|
|
Amount
|
|
Interest
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023
|
|
14,403,261
|
|
$
14,404
|
|
$
43,421,019
|
|
$
(15,186,203)
|
|
$
-
|
|
$
-
|
|
$
154,244
|
|
$
28,403,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued for
cash
|
|
3,080,356
|
|
3,081
|
|
17,246,913
|
|
-
|
|
-
|
|
-
|
|
-
|
|
17,249,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid as direct
offering costs
|
|
-
|
|
-
|
|
(1,395,000)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,395,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of warrants -
cash
|
|
1,860,308
|
|
1,861
|
|
8,797,396
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8,799,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of warrants -
cashless
|
|
40,238
|
|
41
|
|
(41)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued for
services
|
|
47,386
|
|
48
|
|
411,692
|
|
-
|
|
-
|
|
-
|
|
-
|
|
411,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognition of stock
based compensation - unvested
shares - related parties
|
|
-
|
|
-
|
|
1,497,417
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,497,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognition of
stock-based compensation - related party
|
|
-
|
|
-
|
|
6,196
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(12,164)
|
|
(12,164)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
1,224,595
|
|
-
|
|
-
|
|
-
|
|
1,224,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2024
|
|
19,431,549
|
|
19,435
|
|
69,985,592
|
|
(13,961,608)
|
|
-
|
|
-
|
|
142,080
|
|
56,185,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognition of stock
based compensation - unvested
shares - related parties
|
|
-
|
|
-
|
|
2,981,577
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,981,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(19,431)
|
|
(19,431)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
-
|
|
-
|
|
-
|
|
(12,865,765)
|
|
|
|
|
|
-
|
|
(12,865,765)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2024
|
|
19,431,549
|
|
19,435
|
|
72,967,169
|
|
(26,827,373)
|
|
-
|
|
-
|
|
122,649
|
|
46,281,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognition of stock
based compensation - unvested
shares - related parties
|
|
500,000
|
|
500
|
|
1,758,482
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,758,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury shares
repurchased (share buy-backs)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
280,770
|
|
(485,131)
|
|
-
|
|
(485,131)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,397)
|
|
(4,397)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
-
|
|
-
|
|
-
|
|
(14,275,347)
|
|
-
|
|
-
|
|
-
|
|
(14,275,347)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024
|
|
19,931,549
|
|
$
19,935
|
|
$
74,725,651
|
|
$
(41,102,720)
|
|
280,770
|
|
$
(485,131)
|
|
$
118,252
|
|
$
33,275,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per TB/ISL
|
|
19,931,549
|
|
$
19,935
|
|
$
74,725,651
|
|
$
(41,102,720)
|
|
|
|
$
(485,131)
|
|
$
118,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Difference
|
|
-
|
|
-
|
|
-
|
|
(0)
|
|
|
|
-
|
|
0
|
|
33,275,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurgePays, Inc. and
Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
|
For the Nine Months Ended September
30,
|
|
|
2024
|
|
2023
|
|
|
|
|
|
Operating activities
|
|
Net income (loss) -
including non-controlling interest
|
|
$
(25,952,509)
|
|
$
17,615,843
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operations
|
|
|
|
|
Depreciation and
amortization
|
|
693,880
|
|
701,279
|
Amortization of
right-of-use assets
|
|
70,857
|
|
32,426
|
Amortization of
internal use software development costs
|
|
167,121
|
|
96,795
|
Stock issued for
services
|
|
411,740
|
|
874,284
|
Recognition of
stock based compensation - unvested shares - related
parties
|
|
6,237,976
|
|
-
|
Recognition of
share based compensation - options - related party
|
|
6,196
|
|
27,882
|
Interest expense
adjustment - SBA loans
|
|
19,750
|
|
-
|
Right-of-use
asset lease payment adjustment true up
|
|
(148,584)
|
|
-
|
Gain on equity
method investment - CenterCom
|
|
(33,864)
|
|
(95,637)
|
Cash paid for
lease termination
|
|
(212,175)
|
|
-
|
Loss on lease
termination - net
|
|
194,862
|
|
-
|
Changes in operating
assets and liabilities
|
|
|
|
|
(Increase)
decrease in
|
|
|
|
|
Accounts receivable
|
|
8,022,078
|
|
(544,063)
|
Inventory
|
|
683,456
|
|
(3,363,165)
|
Prepaids and other
|
|
(150,746)
|
|
(86,355)
|
Deferred income taxes - net
|
|
2,835,000
|
|
-
|
Increase
(decrease) in
|
|
|
|
|
Accounts payable and accrued expenses
|
|
(5,765,152)
|
|
1,048,750
|
Accounts payable and accrued expenses - related party
|
|
(86,857)
|
|
(726,163)
|
Accrued income taxes payable
|
|
(470,000)
|
|
-
|
Installment sale liability - net
|
|
-
|
|
(7,097,838)
|
Deferred revenue
|
|
(20,000)
|
|
(125,110)
|
Operating lease liability
|
|
84,257
|
|
(29,230)
|
Net cash provided by (used in) operating
activities
|
|
(13,412,714)
|
|
8,329,698
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Advances made for
construction-in-process costs
|
|
(518,189)
|
|
-
|
Capitalized internal
use software development costs
|
|
-
|
|
(281,304)
|
Purchase of investments
- net
|
|
(10,068,506)
|
|
-
|
Net cash used in investing
activities
|
|
(10,586,695)
|
|
(281,304)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Proceeds from stock
issued for cash
|
|
17,249,994
|
|
-
|
Proceeds from exercise
of common stock warrants
|
|
8,799,257
|
|
207,240
|
Cash paid as direct
offering costs
|
|
(1,395,000)
|
|
-
|
Repayments of loans -
related party
|
|
(1,132,074)
|
|
(1,017,385)
|
Repayments on notes
payable
|
|
-
|
|
(1,531,478)
|
Repayments on notes
payable - SBA government
|
|
(8,138)
|
|
(10,976)
|
Treasury shares
repurchased (share buy-backs)
|
|
(485,131)
|
|
-
|
Net cash provided (used in) by financing
activities
|
|
23,028,908
|
|
(2,352,599)
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents
|
|
(970,501)
|
|
5,695,795
|
|
|
|
|
|
Cash and cash equivalents - beginning of
period
|
|
14,622,060
|
|
7,035,654
|
|
|
|
|
|
Cash and cash equivalents - end of
period
|
|
$
13,651,559
|
|
$
12,731,449
|
|
|
|
|
|
Supplemental disclosure of cash flow
information
|
|
|
|
|
Cash paid for
interest
|
|
$
372,579
|
|
$
209,840
|
Cash paid for income
tax
|
|
$
-
|
|
$
-
|
|
|
|
|
|
Supplemental disclosure of non-cash investing and
financing activities
|
|
|
|
|
|
|
|
|
|
Reclassification of
accrued interest - related party to note payable - related
party
|
|
$
498,991
|
|
$
-
|
Exercise of warrants -
cashless
|
|
$
41
|
|
$
-
|
Termination of ROU
operating lease assets and liabilities
|
|
$
309,826
|
|
|
Right-of-use asset
obtained in exchange for new operating lease liability
|
|
$
98,638
|
|
$
-
|
Goodwill (ClearLine
Mobile, Inc.)
|
|
$
2,500,000
|
|
$
-
|
|
|
|
|
|
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SOURCE SurgePays