BARTLETT, Tenn., Aug. 26, 2021 (GLOBE NEWSWIRE) -- SurgePays, Inc. (OTCQB: SURG) (“SurgePays” or the “Company”), a blockchain financial technology company building a next generation supply chain network in the U.S. for convenience stores, mini-marts, tiendas, bodegas, gas stations, and other merchants serving underbanked consumers, today announces financial results for the second quarter ended June 30, 2021 and provides a corporate update.
Recent Corporate Highlights:
Continued to progress towards an expected Nasdaq up-list of the Company through the customary regulatory process and filings
Continued to progress towards an IPO of the Company’s SaaS subsidiary LogicsIQ, Inc. (formerly Surge Logics, Inc.)
Announced approval from the Emergency Broadband Benefit (EBB) Program to provide discounted broadband services through the Company’s SurgePhone mobile virtual network operator (MVNO) subsidiary to qualified users
Acquired Commander Communication, a provider of prepaid wireless payment products to approximately 500 convenience stores with intent to cross-sell other products and services into Commander’s customer base
Signed national distribution agreement with 1606 Corp. to distribute smokable-hemp products into the 8,000 convenience stores on the Company’s platform
Launched a proprietary, blockchain-supported, customer relationship management (CRM) and business intelligence (BI) platform called BLITZ to further penetrate the 34,000 retail stores in the Company’s U.S. database
Launched new custom private label gift card program for the Company’s independent retail store clients to provide additional convenience and loyalty opportunities for these locations’ customers
“The revenue initiatives we have announced in the last few months speak to the numerous market opportunities we have to execute our ‘wide and deep’ strategy. We are poised to offer the thousands of convenience stores, mini-marts, and bodegas we serve additional higher margin products and services beyond the lower-margin prepaid wireless top-ups on which we founded the Company,” said SurgePays Chief Executive Officer Brian Cox. “We now have the ability to offer thousands of stores and, ultimately, the underbanked population that shop there, access to higher margin, innovative products and services, such as the smokable-hemp products from our partner 1606 Corp., more affordable wireless handsets and monthly wireless plans, retail gift cards, and even discounted broadband service through the EBB Program, that may otherwise be very difficult for them to purchase. Our expanded in-house sales team is dedicated to establishing and nurturing relationships with store owners to help us expand our network of customer stores, and acquisitions like Commander Communications will help us expand our geographical reach.
“Meanwhile, our LogicsIQ subsidiary has seen a reacceleration in its business following a COVID-related slow-down in the second half of 2020. LogicsIQ had the second-best quarter of its existence with revenue in the second quarter of 2021 up nearly 32% over the first quarter of 2021, and this momentum has continued thus far into the third quarter. Anthony Nuzzo and his team at LogicsIQ have executed well during the leaner months with continued development and innovation and managed to continue to strategize for future growth despite the pressures from the pandemic.
“Lastly, we believe we are making good progress in the legal and regulatory process involved in SurgePays’ up-list to the Nasdaq as well as the anticipated IPO of LogicsIQ. We believe both events will be transformational corporate moments for SurgePays that will create value for our shareholders over the longer term,” Mr. Cox concluded.
Financial Results for Second Quarter 2021
Revenue in the second quarter of 2021 was $11.38 million vs. $14.51 million in the year-ago period. General and administrative expenses declined from $4.17 million in the second quarter of 2020 to $2.74 million in the second quarter of 2021. Net loss in the second quarter of 2021 improved to ($214,000) from ($2.43 million) in the year-ago period.
Cash and cash equivalents as of June 30, 2021 totaled $574,824, as compared to $673,995 as of December 31, 2020.
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