Here are 1-2 brief analogies for Surgepays (SURG):

• It's like Green Dot for local convenience stores in underserved communities, offering prepaid financial products and bill pay.
• Think of it as the Walmart MoneyCenter for independent convenience stores.

• Prepaid Wireless Services: Facilitates the purchase and top-up of prepaid mobile phone services, often through a network of retail points of sale.
• Bill Payment Services: Enables consumers to pay various bills, including utilities and phone services, through a network of retail agents.
• Merchant Processing Solutions: Provides payment processing services to businesses, allowing them to accept credit/debit card payments and manage transactions.
• Fintech Platform: Offers a comprehensive digital platform that integrates financial services and telecom solutions, primarily targeting the unbanked and underbanked populations.

Major Customers of Surgepays (SURG)

Surgepays (SURG) primarily serves individual consumers through its Mobile Broadband and Fintech segments. Given that its Mobile Broadband segment, which directly serves individuals, accounts for the majority of its revenue, Surgepays is best characterized as selling primarily to individuals. The company's major customer categories are:

• Individuals eligible for government connectivity programs: These customers primarily utilize Surgepays' Mobile Broadband services, often through the Affordable Connectivity Program (ACP), to access affordable or free high-speed internet and mobile communication services. They are typically low-income households seeking essential connectivity.
• Underbanked and unbanked consumers: This category encompasses individuals who rely on alternative financial services rather than traditional banking. They access a range of prepaid products, bill payment services, and other financial technology solutions through Surgepays' network of independent retail stores. These services include prepaid mobile top-ups, utility bill payments, and debit card reloads.

• T-Mobile US, Inc. (TMUS)

Brian Cox, Chief Executive Officer
Mr. Cox is an accomplished entrepreneur with over 19 years of experience in growing best-in-class companies, including building a company with over 1,300 employees. He founded his first prepaid telephone company (CLEC) in 2004, which became the largest prepaid home phone company in the country through organic growth and acquisition before being sold in 2009. Since then, he has owned and directed over $500 million in sales from his fintech/software and telecom companies. Mr. Cox also served as CEO of True Wireless, Inc., a nationwide wireless carrier, from 2011 to 2018 and founded Prepaidworx LLC. He joined SurgePays as CEO in July 2017 and has been instrumental in transforming the company, leading it from an OTC listing to a NASDAQ listing by Q4 2021.

Tony Evers, Chief Financial Officer
Mr. Evers is a seasoned financial executive with over 30 years of proven financial and consulting experience. He has served as CFO and CIO for a variety of organizations, including non-profit, private-equity-backed, and publicly traded companies ranging from $100 million to over $1.3 billion in annual revenue. Most recently, he served as Chief Financial Officer for Vista Health System. Mr. Evers also holds Certified Public Accountant and Certified Internal Auditor credentials. SurgePays has announced that Mr. Evers' employment agreement will not be renewed upon its expiration on December 31, 2025.

Derron Winfrey, President of Sales & Operations
Mr. Winfrey is a pioneer in the fintech and wireless industry with over 25 years of experience. He founded ECS Prepaid and has led multiple high-growth businesses in prepaid and financial services. Since joining SurgePays through its 2019 acquisition of ECS Prepaid, he has played a key role in transforming the company's go-to-market strategy, scaling its ISO channel, and preparing LinkUp Mobile for direct market launch with AT&T.

Jeremy Gies, EVP Strategy & Compliance
Mr. Gies is a senior sales, business development, and operations executive with over 25 years of experience in the telecom, fintech, and prepaid industries. He has held leadership positions at companies such as AT&T Wireless, Wave Crest Payment Services, telSPACE, and Honeywell Voice Solutions. Since joining SurgePays in 2022, he has led the expansion of the company's fintech and prepaid channels, focusing on ACP and Lifeline enrollment.

Mark Garner, EVP Technology
Mr. Garner is a seasoned operations executive with nearly 30 years of experience in the wireless and financial technology industries. He has held leadership roles at ECS Prepaid and SurgePays. Since joining SurgePays in 2019, he has overseen platform integrations, prepaid wireless campaigns, and the launch of LinkUp Mobile.

The primary clear emerging threat to Surgepays is the potential expiration of funding for the Affordable Connectivity Program (ACP). Surgepays' wireless services segment has significantly benefited from this government program, which provides subsidies for internet service to low-income households. The FCC has announced that February 2024 was the last fully funded month for the ACP, and without further Congressional appropriation, the program is set to expire. This creates a substantial risk of subscriber churn and a material decline in revenue for Surgepays' mobile broadband division, as a significant portion of its customer base relies on these subsidies.

Surgepays (SURG) operates in the telecommunications and financial technology (fintech) sectors, primarily focusing on providing services to underserved and underbanked populations in the United States.

Addressable Markets:

• Prepaid Wireless Services (including Lifeline and LinkUp Mobile): The global prepaid wireless service market was valued at approximately USD 616.91 billion in 2024 and is projected to reach approximately USD 644.73 billion in 2025, with an expected growth to USD 917.57 billion by 2033, at a compound annual growth rate (CAGR) of 4.51% from 2025 to 2033. North America accounts for over 35% of this global market, with the U.S. being the dominant country in the region. Another estimate places the global market at USD 573.52 billion in 2024, growing to USD 772.94 billion by 2031 at a CAGR of 4.4%.
• Broadband Services (Mobile Broadband for Underserved Communities): The global broadband services market was valued at approximately USD 497.47 billion in 2024 and is projected to grow to approximately USD 1,062.73 billion by 2033, exhibiting a CAGR of 8.8% from 2025 to 2033. Another report estimates the market size at USD 475.85 billion in 2025, expected to reach USD 745.34 billion by 2030, with North America holding the largest market share. In the United States, there were 121 million broadband subscribers in 2022, a number projected to increase to 128 million by 2024. Millions of households in the U.S. face challenges with broadband affordability, with low-income areas paying a significantly higher share of their income for services.
• Fintech Solutions for Unbanked and Underbanked Populations: In the United States, approximately 63 million adults were identified as either unbanked or underbanked in a 2019 report, representing 22% of the U.S. population. These underbanked consumers in the U.S. collectively spend an estimated USD 189 billion annually in fees and interest on alternative financial services. Fintech solutions addressing this segment are taking a significant share of what was described as a "$60 billion industry" in 2022. Globally, around 1.4 billion adults remain unbanked.

1. Growth in Lifeline-Subsidized Torch Wireless Subscribers: Surgepays is focusing on expanding its Lifeline-subsidized Torch Wireless brand, transitioning eligible customers from the discontinued Affordable Connectivity Program (ACP) and leveraging its re-tooled infrastructure. The company has seen significant subscriber activations, with projections for continued high monthly activations, surpassing previous peak growth rates.
2. Expansion of LinkUp Mobile Prepaid Platform: The LinkUp Mobile prepaid wireless brand is a key growth area. Surgepays anticipates revenue growth from this platform through expanded retail distribution, targeted marketing efforts, and competitive pricing strategies. The company has successfully launched LinkUp Mobile nationally and is seeing strong traction with increasing subscriber activations.
3. Growth of Prepaid POS Fintech Network and Top-Up Revenue: Surgepays' prepaid point-of-sale (POS) fintech network, which facilitates third-party wireless "top-ups" at community stores, is a significant contributor to revenue growth. This channel has shown substantial increases in monthly top-up revenue and creates opportunities for cross-selling other Surgepays products like LinkUp Mobile and ClearLine.
4. Scaling of HERO MVNE Services (B2B Enablement): The company's Mobile Virtual Network Enabler (MVNE) wholesale business, known as HERO MVNE services, provides "wireless company in a box" solutions to other wireless companies, including SIM provisioning, billing, and customer relationship management. This business-to-business segment is expected to scale rapidly, contributing to Surgepays' overall growth trajectory.
5. New Distribution Partnerships and Technology Integrations: Strategic partnerships and technology integrations are crucial for expanding Surgepays' market reach. The completion of a multi-year strategic agreement with AT&T, providing full access to 4G LTE and 5G wireless services, is a major development. Additionally, expanding the retail distribution network through partners like HT Hackney and other national convenience store distributors is expected to drive customer acquisition and product availability across all business verticals.

Share Repurchases

• SurgePays announced a stock repurchase program of up to $5 million, commencing on August 22, 2024, in response to delays in ACP funding.
• As part of a $7 million debt financing arrangement in May 2025, the company repurchased 333,333 shares from an existing institutional shareholder.
• No shares had been repurchased under the $5 million program as of its commencement in August 2024.

Share Issuance

• In May 2025, SurgePays received $6 million in cash proceeds through a $7 million senior secured convertible note from an existing institutional shareholder.
• The convertible note is set to become convertible into common stock at a fixed price of $4.00 per share after eight months from issuance.
• The number of common shares outstanding for SurgePays was 20,411,549 as of May 7, 2025.

Inbound Investments

• SurgePays secured $6 million in cash from a $7 million senior secured convertible note agreement with an existing institutional shareholder in May 2025.
• Institutional interest in the company increased in Q1 and Q2 2025, with firms like Jones Financial Companies and Cetera Investment Advisers raising their holdings.

Outbound Investments

• The company's 2023 10-K indicated plans to acquire other businesses with similar operations.

Capital Expenditures

• SurgePays has made targeted investments in AT&T integration, MVNE platform development, and POS fintech expansion to support scalable growth.
• The company repurposed infrastructure and operational efficiencies, initially developed for the Affordable Connectivity Program (ACP), to support its Lifeline and other platforms after ACP funding ended in June 2024.
• SurgePays anticipates achieving positive operating cash flow by the end of 2025.