SurgePays Inc (SURG)

[bUrRpPPP!]

LINE OF CREDIT MAXED OUT READ THIS! ALL THE ASSETS OF THE COMPANY ON THE LINE !!!!!!!!



On January 25, 2018 the Company obtained a $500,000 line of credit (LOC) with a Bank. The LOC bears interest at 5% per annum and is secured by essentially all of the Company’s assets. The note is personally guaranteed by the owner of the majority of the Company’s voting shares. On December 21, 2018, the Company and the bank agreed to increase the LOC to $1,000,000 at an interest rate of 6% per annum. During the three months ended March 31, 2019, total advances and repayments under the LOC were $1,130,973 and $200,000, respectively. As of March 31, 2019 and December 31, 2018, the outstanding balance on the LOC was $930,973 and $0, respectively.