$5 Million Percentage Repurchase Licensed

BARTLETT, Tenn., Aug. 13, 2024 /PRNewswire/ — SurgePays, Inc. (NASDAQ: SURG) (“SurgePays” or the “Company”), a know-how and telecom corporate centered at the underbanked and underserved, as of late introduced its monetary effects for the second one quarter ended June 30, 2024.

Control Statement

Chairman and CEO Brian Cox commented at the quarter’s effects, “The second one quarter of 2024 starts a transition section for SurgePays.  ACP investment has trample over and there’s no commitment it’s going to go back.  Thankfully, within the first quarter we shored up our stability sheet and started enforcing expansion tasks outdoor of the ACP program to proceed to pursue our strategic function of being one of the crucial nation’s greatest suppliers of pay as you go wi-fi and underbanked monetary know-how services and products.

“Second quarter sales of $15.1 million were about as expected, but were well below the first quarter 2024 revenues of $31.4 million and the year ago second quarter 2023 revenues of $35.9 million because of the finishing of the federal government’s ACP investment in mid-Would possibly, which we knew used to be coming.  Each the primary quarter of 2024 and the second one quarter of 2023 had complete ACP investment.

“Gross profits in the 2024 second quarter were a loss of ($3.4) million compared to a profit of $10.0 million within the pace in the past quarter because the latest ACP investment ran out mid-quarter. Moreover, we made the strategic resolution to have our stability sheet tug at the investment to preserve endurance inside of our subscriber bottom for 3 major causes: 

1. Congress may just renew the ACP program at any generation, and if we terminated provider, we must progress out and re-acquire shoppers from a status get started, which might charge tens of tens of millions of greenbacks.
2. If Congress not on time or didn’t capitaltreasury this system, we had plan B to procure an organization with licenses to lend a matching wi-fi subsidy and trade in our subscribers the strategy to stay on a independent per 30 days plan backed via a sister program. That is along side incentivizing shoppers to modify to LinkUp Cell, our non-subsidized pay as you go wi-fi logo. 
3. We know the way important broadband provider is in everyone’s age, and we consider it used to be merely the appropriate factor to do. 

“We’re in a transition section and want to get again to producing certain independent coins current via the top of this pace via please see tasks:

1. Keep growing our ACP earnings current will have to Congress start investment it once more.
2. Do business in our ACP subscriber bottom a independent per 30 days provider plan using the Lifeline program generation attractive shoppers with a cost-saving LinkUp Cell pay as you go wi-fi plan.
3. Scaling up our third-party wholesale transactions for alternative pay as you go wi-fi corporate bills at comfort retail outlets. We consider this initiative is essential as a result of this can be a dating gateway product for LinkUp Cell activations and subscriber expansion.
4. Increase our choices outdoor of wi-fi.  For example, we not too long ago introduced our ClearLine buyer engagement platform for comfort retail outlets at ultimate moment’s RetailNOW Convention in Las Vegas.
5. Increase product and repair choices to the similar national community of comfort retail outlets we’re development via exploring and executing potential partnering or product distribution alternatives.
6. Establish distinctive marketplace alternatives that constitute attainable certain momentary coins current.

“As we said last quarter, we knew that the ACP funding could run out, and we are not waiting around for Congress to provide additional funding. Many initiatives are underway to expand SurgePays’s footprint among the underbanked and underserved, who remain our key customers. We recognize that the expiration of ACP funding has adversely impacted our business and stock price. Therefore, we feel it’s an opportune time to announce a corporate stock buyback so our long-term investors know our interests are aligned. Until December 31, 2024, we will implement a buyback of up to $5 million (the “Most Quantity”) of SurgePays common stock in the open market. Repurchases may be made from time to time at management’s discretion. The program will end upon the earlier of 6 months after the commencement of the program or the date upon which the Maximum Amount has been purchased and can be discontinued at any time. No shares have been repurchased under the program to date. There can be no assurance as to the timing or number of shares of any repurchases.”

2nd Quarter 2024 Effects Convention Name

SurgePays control will host a webcast at 5 p.m. ET / 2 p.m. PT to speak about those effects. The reside webcast of the decision will also be accessed at the corporate’s investor members of the family site at ir.surgepays.com, or via registering at please see hyperlink: Second Quarter Financial Results Call. 

Phone get admission to to the decision shall be to be had at 877-545-0320 (within the U.S.) or via dialing 973-528-0002 (outdoor the U.S.). Player get admission to code is 650138.

A phone replay shall be to be had roughly one age following of entirety of the decision till August 27, 2024. To get admission to the replay, please dial 877-481-4010 (within the U.S.) or 919-882-2331 (outdoor the U.S.). Replay passcode is 51057.

Percentage Repurchase Authorization

As indicated above, SurgePays’s board of administrators has licensed the corporate to repurchase as much as $5 million of habitual inventory during the perceivable marketplace till December 31, 2024.

About SurgePays, Inc.

SurgePays, Inc. is a know-how and telecom corporate centered at the underbanked and underserved communities. SurgePays’ technology-layered platform empowers clerks at over 8,000 comfort retail outlets to lend a collection of pay as you go wi-fi and fiscal merchandise to underbanked shoppers. SurgePays pay as you go wi-fi firms lend services and products to over 250,000 low-income subscribers national. The corporate ranks because the 345th fastest-growing tech corporate in North The us in line with the 2023 Deloitte Era Rapid 500. Please talk over with SurgePays.com for more info.

Cautionary Observe Referring to Ahead-Having a look Statements

This press reduce comprises specific or implied statements that don’t seem to be historic details and are regarded as forward-looking throughout the which means of Division 27A of the Securities Operate and Division 21E of the Securities Trade Operate. Ahead-looking statements contain considerable dangers and uncertainties. Ahead-looking statements most often relate to day occasions or our day monetary or running efficiency and would possibly include projections of our day result of operations or of our monetary knowledge or shape alternative forward-looking knowledge. In some circumstances, you’ll be able to determine forward-looking statements via please see phrases: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “attempting,” or the unfavourable of those phrases or alternative related terminology, even supposing no longer all forward-looking statements include those phrases.

Even though we consider that the expectancies mirrored in those forward-looking statements similar to referring to our marketplace attainable in conjunction with the statements below the heading Control Statement are cheap, those statements relate to day occasions or our day operational or monetary efficiency and contain identified and unknown dangers, uncertainties and alternative components that can purpose our unedited effects, efficiency or achievements to be materially other from any day effects, efficiency or achievements expressed or implied via those forward-looking statements together with however no longer restricted to, our plans to increase our pay as you go wi-fi corporate and the inventory buyback program,  our talent to keep our subscribers on a independent per 30 days plan backed via a sister program, our talent to acquire an organization that has the license to subsidize our subscribers via a sister program and our expanded provider and choices. Moreover, unedited effects would possibly fluctuate materially from the ones described within the forward-looking statements and shall be suffering from plenty of dangers and components which can be past our regulate, together with, with out limitation, whether or not the ACP is funded once more, our talent to acquire an organization that has the license to subsidize our subscribers via a sister program, statements about our day monetary efficiency, together with our earnings, coins flows, prices of earnings and running bills; our expected expansion; and our predictions about our trade. The forward-looking statements contained on this reduce also are topic to alternative dangers and uncertainties, together with the ones extra totally described in our filings with the Securities and Trade Fee (“SEC”), together with in our Annual File on Method 10-Ok for the fiscal pace ended December 31, 2023. The forward-looking statements on this press reduce discuss most effective as of the presen on which the statements are made. We adopt disagree legal responsibility to replace, and expressly disown the duty to replace, any forward-looking statements made on this press reduce to mirror occasions or instances upcoming the presen of this press reduce or to mirror unutilized knowledge or the prevalence of unanticipated occasions, excluding as required via regulation.

SOURCE SurgePays