SURGHIGH SIGNALFINANCIAL10-K

SURG experienced severe financial deterioration with stockholders' equity turning negative $15.3M from positive $15.3M, while debt tripled and cash reserves collapsed by 85%.

The company has moved from a healthy balance sheet to potential insolvency, with negative equity indicating liabilities now exceed assets by $15.3M. The dramatic increase in debt coupled with minimal capital expenditures and collapsing cash position suggests the company is burning through resources rapidly without meaningful reinvestment in growth.

Comparing 2026-04-15 vs 2025-03-25View on EDGAR →
FINANCIAL ANALYSIS

SURG's financial position deteriorated catastrophically across all key metrics, with total debt surging 230% to $13.3M while cash plummeted 85% to just $1.7M, creating a severe liquidity crunch. The company's balance sheet flipped from $15.3M in positive equity to $15.3M in negative equity as total liabilities nearly tripled to $23.9M, indicating the business may be approaching insolvency. Combined with a 96% collapse in capital expenditures and 81% decline in inventory, these changes signal a company in severe financial distress with limited operational capacity and resources.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+2531.4%
$15K→$400K

Interest expense surged 2531.4% — significant debt increase or rising rates materially impacting earnings.

Total Debt
Balance Sheet
+229.5%
$4.0M→$13.3M

Debt increased 229.5% — substantial leverage increase; assess whether deployed for growth or covering losses.

Stockholders Equity
Balance Sheet
-200.2%
$15.3M→-$15.3M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Current Liabilities
Balance Sheet
+200.2%
$6.1M→$18.2M

Current liabilities surged 200.2% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+174.5%
$8.7M→$23.9M

Liabilities grew 174.5% — significant increase in debt or obligations, assess impact on financial flexibility.

Capital Expenditure
Cash Flow
-96.4%
$518K→$19K

Capex reduced 96.4% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Cash & Equivalents
Balance Sheet
-85.3%
$11.8M→$1.7M

Cash declined 85.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Inventory
Balance Sheet
-80.9%
$1.8M→$340K

Inventory drawn down 80.9% — strong sell-through or deliberate destocking; watch for supply constraints.

Total Assets
Balance Sheet
-64.5%
$24.0M→$8.5M

Total assets contracted 64.5% — asset sales, write-downs, or balance sheet optimization underway.

Current Assets
Balance Sheet
-60.9%
$17.9M→$7.0M

Current assets declined 60.9% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-04-15
PRIOR — 2025-03-25
ADDED
As of June 30, 2025, the aggregate market value of the shares of common stock held by non-affiliates of the registrant was approximately $ 41,752,369 based on the $3.11 closing price of the registrant s common stock on that date.
( SurgePays , we , the Company ) is a wireless and point of sale technology company focused on serving underserved and value-conscious consumers through a combination of retail distribution and digital acquisition channels.
The Company provides mobile connectivity, financial technology services, and transaction processing solutions through an integrated platform that combines wireless services with point of sale software and nationwide retail distribution.
SurgePays operates a network of more than 9,000 independently owned convenience stores and similar retail locations, which serve as a primary distribution channel for its products and services.
In addition, the Company acquires customers through digital channels, including ProgramBenefits.com, which enables direct-to-consumer engagement and expands the Company s ability to acquire and monetize customer relationships beyond the point of sale.
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REMOVED
As of June 28, 2024, the aggregate market value of the shares of common stock, par value $ 0.001 per share held by non-affiliates of the registrant was approximately $ 43,673,936 based on the $3.19 closing price of the registrant s common stock, par value $0.001 per share, on that date.
( SurgePays , we , the Company ) is a financial technology and telecommunications company with one clear mission: to enhance connectivity and financial access in the places people live, shop, and work.
We were previously known as North American Energy Resources, Inc.
Prior to April 27, 2015, we operated solely as an independent oil and natural gas company engaged in the acquisition, exploration and development of oil and natural gas properties and the production of oil and natural gas through its wholly owned subsidiary, NAER.
On April 27, 2015, NAER entered into a Share Exchange Agreement with KSIX Media whereby KSIX Media became a wholly owned subsidiary of NAER and which resulted in the shareholders of KSIX Media owning approximately 90% of the voting stock of the surviving entity.
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