SurgePays Reports 2024 Financial Results and Issues Revenue Guidance of Over $200 Million in Next 12 Months

Completed AT&T integration positions company for its most aggressive growth phase to date with projected positive cash flow from operations in 2025

SurgePays, Inc. (Nasdaq: SURG) (“SurgePays” or the “Company”), a wireless and point of sale technology company, today announced its financial results for the year ended December 31, 2024, and is issuing guidance of over $200 million in revenue over the next 12 months and positive cash flow from operations before the end of 2025, following the successful integration and official launch with AT&T.

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Brian Cox, Chairman and CEO, commented, “We built the infrastructure. Now we are scaling. With AT&T integration complete and LinkUp Mobile launching nationally, SurgePays is positioned for the most aggressive revenuegrowth phase in our history.”

2024 Operational Highlights:

— Nationwide Launch of LinkUp Mobile: SurgePays has begun its national rollout of its retail prepaid wireless brand, LinkUp Mobile. The Company expects monthly SIM card shipments of 250,000-300,000, driven by robust demand from its retail distribution network of nearly 9,000 convenience and community stores.

— AT&T Integration Complete: In November 2024, SurgePays signed a multi-year strategic agreement with AT&T to deliver full access to 4G LTE and 5G wireless services across North America. As of April 1, 2025, the integration is complete and live.

— MVNE Wholesale Business Launch: SurgePays now offers wireless infrastructure services, including SIM provisioning and billing, to other wireless companies as a Mobile Virtual Network Enabler (MVNE). This high-margin revenue channel is expected to scale rapidly.

— Lifeline Subscriber Retention: Following the end of ACP funding, SurgePays retained a portion of its wireless subscriber base and is transitioning eligible customers to the federally supported Lifeline program. Daily Lifeline enrollments are ongoing through the Company's Torch Wireless brand.

— POS Platform Growth: SurgePays' point-of-sale software platform, used in thousands of retail locations, grew prepaid wireless top-up revenue over 400% from Q1 to Q2 2024. The POS platform is a critical distribution and activation tool for both LinkUp Mobile and third-party services.

— Leadership Expansion: The Company strengthened its leadership team with the promotion of Mark Garner to Executive Vice President, and Allison Seyler to VP of Sales.

2024 Financial Results:

2024 marked the end of the federally funded ACP era. As expected, revenue and gross profit were impacted. However, strategic investments made during this transition – including AT&T integration, POS growth, and the development of our MVNE platform – have built the foundation for 2025's goal to return to growth and profitability.

2025 Financial Guidance:

SurgePays expects first quarter 2025 revenue to remain consistent with Q4 2024. With the national launch of LinkUp Mobile and expanding MVNE partnerships, revenue is projected to exceed $200 million over the next 12 months and the Company anticipates achieving positive cash flow from operations before the end of 2025.

This guidance is based solely on the monetization of core MVNO and POS platforms already deployed. As these platforms scale – both through direct customer acquisition and wholesale MVNE relationships – we anticipate expanding both revenue and margins.

“We've earned the right to scale,” added Mr. Cox. “The heavy lifting is behind us. Now we are focused on execution, revenue acceleration, and delivering long-term value to shareholders.”

Fourth 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: Fourth Quarter Results Call.

Telephone access: – U.S.: 888-506-0062 – International: 973-528-0011 – Participant Access Code: 937037

A telephone replay will be available approximately one hour following completion of the call until April 8, 2025. Replay: 877-481-4010 (U.S.) or 919-882-2331 (Intl.) Replay Passcode: 52151

About SurgePays, Inc.

SurgePays, Inc. is a wireless and point-of-sale (POS) technology company. SurgePays operates a unique ecosystem that blends prepaid wireless, government-subsidized mobile plans, and a point-of-sale software platform used in thousands of community retail stores. SurgePays is a platform – built for stores in underserved communities, built to scale, and built for growth. Please visit www.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 and generally relate to future events or our future financial or operating performance. These statements may include projections, guidance, or other estimates regarding revenue, cash flow, business growth, market expansion, or customer acquisition.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 the expectations reflected in these forward-looking statements, such as regarding our revenue and profitability potential along with the statements under the heading 2025 Financial Guidance 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 actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. 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, the assumption that revenue is projected to exceed $200 million over the next 12 months and the Company anticipates achieving positive cash flow from operations before the end of 2025, 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. These include, but are not limited to, our ability to scale our prepaid wireless business, transition ACP subscribers to Lifeline, maintain our MVNE partnerships, and achieve financial targets. 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 and the to-be-filed Annual Report on Form 10-K for the fiscal year ended December 31, 2024. 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 SubsidiariesConsolidated Balance Sheets December 31, December 31, 2024 2023AssetsCurrent AssetsCash and cash equivalents $ 11,790,389 $ 14,622,060Restricted cash – held in escrow 1,000,000 -Accounts receivable – net 3,000,209 9,536,074Inventory 1,781,365 9,046,594Prepaids and other 298,360 161,933Total Current Assets 17,870,323 33,366,661Property and equipment – net 591,088 361,841Other AssetsNote receivable 176,851 176,851Intangibles – net 1,472,962 2,126,470Internal use software development costs – net – 539,424Goodwill 3,300,000 1,666,782Investment in CenterCom – 464,409Operating lease – right of use asset – net 564,781 387,869Deferred income taxes – net – 2,835,000Total Other Assets 5,514,594 8,196,805Total Assets $ 23,976,005 $ 41,925,307Liabilities and Stockholders' EquityCurrent LiabilitiesAccounts payable and accrued expenses $ 3,929,195 $ 6,439,120Accounts payable and accrued expenses – related party 192,845 1,048,224Accrued income taxes payable – 570,000Deferred revenue – 20,000Operating lease liability 248,069 43,137Note payable – related party 1,689,367 4,584,563Total Current Liabilities 6,059,476 12,705,044Long Term LiabilitiesNote payable – related party 1,866,288 -Notes payable – SBA government 469,396 460,523Operating lease liability 319,232 356,276Total Long Term Liabilities 2,654,916 816,799Total Liabilities 8,714,392 13,521,843Stockholders' EquityCommon stock, $0.001 par value, 500,000,000 shares authorized 20,431,549 shares issued and 20,068,929 shares outstanding, respectively, at December 31, 2024 14,403,261 shares issued and outstanding at December 31, 2023 20,435 14,404Additional paid-in capital 76,842,878 43,421,019Treasury stock – at cost (362,620 and 0 shares, respectively) (631,967) -Accumulated deficit (60,915,427) (15,186,203)Stockholders' equity 15,315,919 28,249,220Non-controlling interest (54,306) 154,244Total Stockholders' Equity 15,261,613 28,403,464Total Liabilities and Stockholders' Equity $ 23,976,005 $ 41,925,307SurgePays, Inc. and SubsidiariesConsolidated Statements of Operations For the Years Ended December 31, 2024 2023Revenues $ 60,881,173 $ 137,141,832Costs and expensesCost of revenues 75,205,372 101,499,341General and administrative expenses 27,458,152 16,777,107Total costs and expenses 102,663,524 118,276,448Income (loss) from operations (41,782,351) 18,865,384Other income (expense)Interest expense (554,200) (595,975)Loss on lease termination – net (194,863) -Other income 636,868 -Interest income 105,395 -Realized gains – investments 13,613 -Dividends, interest, and other income – investments 355,549 -Gain on investment in CenterCom 33,864 110,203Impairment loss – CenterCom (498,273) -Impairment loss – internal use software development costs (316,594) -Impairment loss – goodwill (866,782) -Total other income (expense) – net (1,285,423) (485,772)Net income (loss) before provision for income taxes (43,067,774) 18,379,612Provision for income tax benefit (expense) (2,870,000) 2,265,000Net income (loss) including non-controlling interest (45,937,774) 20,644,612Non-controlling interest (208,550) 26,709Net income (loss) available to common stockholders $ (45,729,224) $ 20,617,903Earnings per share – attributable to common stockholdersBasic $ (2.39) $ 1.45Diluted $ (2.39) $ 1.38Weighted average number of shares outstanding – attributable to common stockholdersBasic 19,119,181 14,258,172Diluted 19,119,181 14,922,881SurgePays, Inc. and SubsidiariesConsolidated Statements of Cash Flows For the Years Ended December 31, 2024 2023Operating activitiesNet income (loss) – including non-controlling interest $ (45,937,774) $ 20,644,612Adjustments to reconcile net income (loss) to net cash provided by (used in) operationsBad debt expense – 90,009Depreciation and amortization 942,450 935,039Amortization of right-of-use assets 126,970 43,483Amortization of internal use software development costs 222,830 129,060Impairment loss – CenterCom 498,273 -Impairment loss – internal use software development costs 316,594 -Impairment loss – goodwill 866,782 -Stock issued for services 411,740 1,290,024Recognition of stock based compensation – unvested shares – related parties 6,752,706 529,534Recognition of stock-based compensation 1,602,997 -Recognition of share based compensation – options – 576,625Recognition of share based compensation – options – related party 6,196 37,176Realized gain in sale of investments (13,613) -Interest expense adjustment – SBA loans 19,750 -Right-of-use asset lease payment adjustment true up (267,347) -Gain on equity method investment – CenterCom (33,864) (110,203)Cash paid for lease termination (212,175) -Loss on lease termination – net 194,863 -Changes in operating assets and liabilities(Increase) decrease inAccounts receivable 6,535,865 (395,718)Inventory 7,265,229 2,139,648Prepaids and other (136,427) (50,409)Deferred income taxes – net 2,835,000 (2,835,000)Increase (decrease) inAccounts payable and accrued expenses (2,509,925) 654,746Accounts payable and accrued expenses – related party (356,388) (680,497)Accrued income taxes payable (570,000) 570,000Installment sale liability – net – (13,018,184)Deferred revenue (20,000) (223,110)Operating lease liability 148,665 (39,490)Net cash provided by (used in) operating activities (21,310,603) 10,287,345Investing activitiesPurchase of property and equipment (518,189) -Purchase of investments – net (10,159,444) -Proceeds from sale of investments 10,173,057 -Cash paid for acquisition of Clearline Mobile, Inc. assets (2,500,000) -Capitalized internal use software development costs – (281,304)Net cash used in investing activities (3,004,576) (281,304)Financing activitiesProceeds from stock issued for cash 17,249,994 -Proceeds from exercise of common stock warrants 8,799,257 207,240Cash paid as direct offering costs (1,395,000) -Repayments of loans – related party (1,527,899) (1,017,385)Repayments on notes payable – (1,595,167)Repayments on notes payable – SBA government (10,877) (14,323)Treasury shares repurchased (share buy-backs) (631,967) -Net cash provided (used in) by financing activities 22,483,508 (2,419,635)Net increase (decrease) in cash, cash equivalents and restricted cash (1,831,671) 7,586,406Cash, cash equivalents and restricted cash – beginning of year 14,622,060 7,035,654Cash, cash equivalents and restricted cash – end of year $ 12,790,389 $ 14,622,060Supplemental disclosure of cash flow informationCash paid for interest $ 470,208 $ 222,326Cash paid for income tax $ – $ -Supplemental disclosure of non-cash investing and financing activitiesReclassification 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 $ 327,139Right-of-use asset obtained in exchange for new operating lease liability $ 664,288 $ –

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SOURCE SurgePays

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