About SurgePays

SurgePays, Inc. (SurgePays) operates as a technology and telecom company that focuses on the underbanked and underserved communities. On January 1, 2022, the company acquired 100% of Torch Wireless, LLC (Torch Wireless or Torch) resulting in Torch becoming a wholly-owned subsidiary. SurgePhone Wireless, LLC (SurgePhone Wireless or SurgePhone) and Torch Wireless provide subsidized mobile broadband to low-income subscribers nationwide. SurgePays fintech platform empowers clerks at thousands of convenience stores to provide a suite of prepaid wireless and financial products to underbanked customers. The company’s wireless subsidiaries provide mobile broadband, voice and SMS text messaging to both subsidized and direct retail prepaid customers. The company’s blockchain fintech platform utilizes a suite of financial and prepaid products to convert corner stores into tech-hubs for underbanked neighborhoods. SurgePhone Wireless and Torch Wireless SurgePhone and Torch, wholly owned subsidiaries of SurgePays, are mobile virtual network operators (MVNO) licensed by the Federal Communications Commission (the ‘FCC’) to provide subsidized access to quality internet through mobile broadband services to consumers qualifying under the federal guidelines of the Affordable Connectivity Program (the ‘ACP’). SurgePhone and Torch combined are licensed to offer subsidized mobile broadband to all fifty states. Surge Fintech (ECS Business) The company refers to the collective operations of ECS Prepaid, LLC, a Missouri limited liability company, Electronic Check Services, Inc., a Missouri corporation, and Central States Legal Services, Inc., a Missouri corporation, as ‘Surge Fintech.’ This was previously referred to as the ‘ECS Business’. Surge Fintech has been a financial technology tech and wireless top-up platform for over 15 years. Through a series of transactions between October 2019 and January 2020, the company acquired the ECS Business primarily for the favorable ACH banking relationship and a fintech transactions platform processing over 20,000 transactions a day at approximately 8,000 independently owned convenience stores. The platform serves as the proven backbone for wireless top-up transactions and wireless product aggregation for the SurgePays nationwide network. ShockWave CRM SurgePays acquired the Software as a Service (SaaS) Customer Relationship Management (CRM) and Billing System software platform ‘MVNO Cloud Services’ on June 7, 2022. SurgePays is rebranding the software as ShockWave CRM. ShockWave is an end-to-end cloud-based SaaS offering an Omnichannel CRM, billing system and carrier integrations specific to the telecommunication and broadband industry. Some of these services include sales agent management, device and SIM inventory management, order processing and provisioning, retail Point of Service (POS) activations and payments, customer service management, retention tools, billing, and payments. Surge Blockchain Surge Blockchain Software is a back-office marketplace (accessed through the SurgePays fintech portal for convenience stores) offering wholesale consumable goods direct to convenience stores who are transacting on the SurgePays Fintech platform. The company is able to sell products at a significant discount by using on demand Direct Store Delivery (DSD). The company’s platform is connected directly to manufactures, who ship products direct to the store while cutting out the middleman. LogicsIQ, Inc. LogicsIQ, Inc. is a lead generation and case management solutions company primarily serving law firms in the mass tort industry. The company’s CRM ‘Intake Logics’ facilitates the entire life cycle of converting a lead into a signed retainer client integrated into the law firms case management software. The company’s proven strategy of delivering retained cases to the company’s attorney and law firm clients means those clients are better able to manage their media and advertising budgets and reach targeted audiences more quickly and effectively when utilizing the company’s proprietary data driven analytics dashboards. The company’s ability to deliver transparent results through its integrated Business Intelligence (B.I.) dashboards has bolstered the company’s reputation as an industry leader in the mass tort client acquisition field. Centercom Since 2019, the company has owned a 40% equity interest in Centercom Global, S.A. de C.V. (‘Centercom’). Centercom is a bilingual operations center providing the company with sales support, customer service, IT infrastructure design, graphic media, database programming, software development, revenue assurance, lead generation, and other various operational back-office services. Centercom is based in El Salvador. Growth Strategies The company has different strategies for each of the company’s sales channels: SurgePhone and Torch Wireless Federally Subsidized Mobile Broadband / Affordable Connectivity Program (ACP) Prioritize sales channels with lower cost per acquisition in conjunction with shipping devices direct fulfillment for enhanced inventory controls and logistics. Integrate Shockwave CRM into the company’s SurgePays software to enable ACP enrollments initiated from convenience stores. Integrate Shockwave CRM into existing ATM machines and Point of Sale registers to initiate ACP enrollments. Partner with existing regional distribution companies already provide consumable goods to convenient stores. Analyze attrition/retention data to continually monitor and improve customer experience with the goal of industry best retention. Enhance the company’s offering by adding a mix of smartphones. Increase the national sales team nationally. SurgePays Fintech Prepaid Wireless Top-ups and Underbanked Financial Products at Convenience Stores Continue building a national sales team of in-house salespeople, Independent Sales Organizations, Chain Retail Stores, and Distributors, all incentivized to add store locations and drive increased sales per store. Strategically acquire other companies that offer prepaid products and other complimentary fintech products. Integrating these acquisitions to an existing base of convenience stores allows the company to deploy its comprehensive fintech suite to maximize the value of the existing relationships. Continue to add value driven products such as payment processing and consumer retail hard goods via the company’s marketplace to differentiate its competitive advantage over single product companies and diversify the company’s revenue streams. Create and offer the company’s own MVNO products to all new and existing distribution channels adding further branding and revenue streams for SurgePays. SurgePays Blockchain Wholesale Marketplace in the SurgePays platform offering Consumables Shipped Direct Rollout a national sales team of in-house salespeople incentivized to add stores and sales per store. Acquire other companies offering prepaid products to an existing base of convenience stores to deploy the company’s comprehensive fintech suite to maximize the value of the existing relationships. Integrate with more manufacturers of commonly sold consumable items to drive interest, sales and revenue. Increase efforts in rural America where many distributors do not have routes to deliver affordable wholesale goods. Branded Prepaid Wireless Proprietary Mobile Network Virtual Operator (MVNO) Leverage the volume of buying power for wholesale carrier minutes/texts/data to build market low plans to offer customers using SIM kits in convenience stores transacting on the SurgePays network. Penetrate rural America where there is less competition and higher consumer pricing. Offer incentivized family plans to the rapidly growing base of subsidized customer households. LogicsIQ Lead Generation and Signed Retainer Clients for Law Firms Continue to develop a centralized software platform to maximize efforts and data collection. Identify additional revenue streams to complement existing revenue streams, such as SSI enrollments and other lead generation services. Nationwide Product Deployment The SurgePays Blockchain platform streamlines the process for bringing products directly to the retail store. The company’s sales protocols have been tested and proven transferable from one product offering to another while ultimately providing the company’s network of stores with better pricing and a larger product selection. The company’s strategy for increasing revenues is based on developing, maintaining, and expanding the company’s nationwide network of retail stores. The company’s relationship-driven approach to selling along with providing many of the top selling c-store products at a wholesale discount greater than traditional distributors gives management confidence of continued growth into the foreseeable future. The company has established relationships with distribution companies delivering significant sales per day for the company’s subsidized mobile broadband product. Seasonality The company experiences some seasonality whereby the peak tax season months show a higher level of sales and consumption. However, the structure of the company’s business and range of products in the company’s portfolio mitigate any major fluctuations. The company’s revenue during the peak tax season months in the spring have historically been approximately 5% greater than the peak other months, and as the company’s product portfolio continues to expand, the level of seasonal peaks the company expects to diminish. History The company was incorporated in Nevada in 2006. It was formerly known as Surge Holdings, Inc. and changed its name to SurgePays, Inc. in 2020.