SurgePays Inc (SURG)

[bUrRpPPP!]

Excellent DD and analysis based on real numbers and facts! Explains why the stock continues to fall week over week...a true scam to the core! Well done!

Summary: SURG had an Operational Loss of nearly $4m and a Net Loss of $2.4m for the last quarter. Considering they only had $1.2m in cash, this gives them roughly 6 weeks of cash (from June 30th) until it runs out, yes, it’s gone by now. The only way to prevent from going broke is to issue more shares (dilution). This adds Supply to the Supply/Demand dynamic and will push the share price down unless there is a catalyst to create Demand. Growth is the Demand catalyst; however, we have already seen that even with recent strong Revenue Growth, they are actually losing more money Operationally due to the shrinking Margins. So, any share price pop due to a growth headline, will be quickly overwhelmed by the dilution required to avoid bankruptcy. It is also notable that the little Gross Profit they had $1,114,785 is being largely consumed by the Interest Expense ($701,044) of their excessive Debt.

This is certainly not an investment worthy company,

All the best,

Knife