SURGHIGH SIGNALRISK10-K

SURG experienced severe cash depletion dropping 85% to $1.7M while gross profit declined substantially and total assets contracted meaningfully.

The dramatic cash position deterioration combined with substantial asset contraction signals potential liquidity stress for the company. Despite reducing net losses modestly, the fundamental financial deterioration suggests SURG may face operational constraints or require external financing to maintain operations.

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

SURG's financial position deteriorated significantly with cash dropping 85% to just $1.7M and total assets contracting nearly two-thirds to $8.5M. While the company modestly reduced its net losses and SG&A expenses, gross profit declined substantially, indicating core operational challenges. The combination of severe cash depletion, asset contraction, and inventory reduction suggests potential liquidity concerns despite the modest improvement in loss metrics.

FINANCIAL STATEMENT CHANGES
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.

Gross Profit
P&L
-54.6%
$5.4M→$2.5M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Accounts Receivable
Balance Sheet
+34.8%
$3.0M→$4.0M

Receivables surged 34.8% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

SG&A Expense
P&L
-26.9%
$27.5M→$20.1M

SG&A reduced 26.9% — improved cost efficiency or headcount reduction improving operating margins.

Net Income
P&L
+21.1%
-$45.7M→-$36.1M

Net income grew 21.1% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+18.3%
-$41.8M→-$34.1M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

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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