MASSIVE RECORD Q1
LOSSES OF
$3,100,000 EQUAL TO
OVER $30,000
PER DAY!
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Company Profile
Surge leverages its wholly owned subsidiaries (value driven Prepaid Wireless and Fintech products) to build relationships with convenience stores, bodegas, tiendas and community markets that serve the underbanked…..which is now approximately 35% of the people living in the United States. Once the store is onboarded to the SurgePays network and the trusted profit partnership is established then, Surge facilitates the sale of other consumable products through our wholesale marketplace by connecting manufacturers directly to these retail stores.
The SurgePays Marketplace is built on Blockchain Technology and has created a new sales channel that disrupts the traditional c-store distribution and products sales model by providing local retailers with direct access to regional manufacturers from around the country.
This Marketplace software platform additionally provides manufacturers a lower cost and more efficient platform to access mom-n-pop retailers to sell products nationwide without the need to offer cash-flow crunching “net” terms to distributors.
Surge Holdings Revenues Increase Four-Fold to $15.8 Million for the First Quarter of Fiscal 2020
Retires over $4M in debt for upcoming NASDAQ Listing!!!!! ____________________________________________________________________________________________________________
MASSIVE RECORD Q1
LOSSES OF
$3,100,000 EQUAL TO
OVER $30,000
PER DAY!
CEO STATES IN THE
LASTEST FILING....Cash
requirements and capital
expenditures – At the
level of operations, the
Company has to borrow
funds to meet basic
operating costs.
Real companies would
NEVER have to pay a
50% interest rate...case
closed!
Here's the math for all the
recent 50% loans each
month...
so the purchase price was
$350,000 to get back
$378,000 net $28000
Then add 14% interest
rate on the $350,000 net
$49,000
And then add in 400,000
FREE shares of stock net
$110,000
lets add it up...28,000+49,000+110,000 =187,000 return on $350000.
Thats over 50%.... what real company borrows money at 50%?
On March 5, 2020, the Company entered into a Securities Purchase Agreement (the “March 2020 SPA”), with an accredited investor (the “March 2020 Investor”), pursuant to which the March 2020 Investor purchased from the Company, for an aggregate purchase price of $350,000 (the “March 2020 Purchase Price”), a Promissory Note in the principal amount of $378,000 (the “March 2020 Note”). The March 2020 Note will be repaid according to a schedule of fixed interest and principal payments beginning in September 2020. As additional consideration for the March 2020 Investor loaning the March 2020 Purchase Price to the Company, the Company issued to the March 2020 Investor 400,000 shares of Common Stock of the Company.
The March 2020 Note shall accrue interest at a rate of fourteen percent (14%) per annum and will mature on March 5, 2021. No payments of principal or interest are due through August 2020 (five (5) months following issuance) and then there are seven (7) fixed payments of principal and interest due on a monthly basis until maturity.
WHOOOOOPSIES!!!! RECORD BREAKING $8,300,000 LOSSES FOR 2019 OR DAILY LOSSES OF $23,000 PER DAY!
"At-the-current-level-of-operations,-the-Company-has-to-borrow-funds-to-meet-basic-operating-costs."
*Note: 2019 included $8M for R&D to establish SurgePays software system being installed in over 100K stores. These general expenses are NOT reoccuring or daily loses.
Surge Holdings 2019 10-K