BARTLETT, Tenn., Nov. 09, 2021 (GLOBE NEWSWIRE) -- SurgePays, Inc. (Nasdaq: SURG) (“SurgePays” or the “Company”), a fintech company providing essential financial services and products to the underbanked population and software applications to a number of industry verticals, provides an update on the initial rollout from its distribution of the Emergency Broadband Benefit Program (“EBB Program”) through the Company’s wholly owned subsidiary, SurgePhone Wireless LLC (“SurgePhone”).
In mid-August, SurgePays began a limited launch of the EBB Program sponsored devices and generated $115,211 in revenue in 4 states. This launch was accelerated in these states with additional sales teams in the months of September and October and generated a total of $2.42 million in revenue.
“We continue to surpass our internal projections on subscribers and expect to eclipse the 15,000-customer mark in November, representing $750,000 in relatively higher-margin recurring revenue every month. Following our recent equity raise of nearly $20 million in gross proceeds, we now have available capital to ramp up the SurgePhone customer count while taking advantage of multiple growth initiatives and better execute on things in our pipeline,” commented SurgePays CEO Brian Cox. “Given the immediate and measurable impact from the launch of the EBB Program, we have ordered an additional 20,000 tablet devices to cover the remainder of the year. We plan to launch the EBB Program in ten additional states over the next 60 days and are exploring avenues to gain access to even more states that we could launch in over the next six months.”
The EBB Program provides SurgePhone up to a $90 reimbursement for the cost of each tablet distributed and a $50 per customer, per month (i.e., recurring) subsidy for data services. Additionally, the EBB Program allows one monthly service discount plan and one device discount per household and eligible consumers need to enroll in the EBB Program through their participating retailer offering the connected devices. SurgePhone has received approval to offer customers these discounted services in California, Colorado, Florida, Illinois, Maryland, Mississippi, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas. SurgePhone is a mobile virtual network operator (MVNO) and operates both the SurgePhone wireless and Loco Rabbit wireless brands.
The preliminary EBB Program revenues are estimates prior to the completion of the Company’s financial closing procedures and review procedures by its external auditors and, therefore, may be subject to adjustment when the actual results are available.
About SurgePays, Inc.
SurgePays, Inc. is a B2B fintech with other verticals in the underbanked and software development space. SurgePays utilizes its blockchain software platform to offer a comprehensive suite of essential financial services for the underbanked, and top selling consumable products to convenience stores, mini-marts, tiendas, and bodegas more cost efficiently than existing wholesale distribution models. Please visit www.SurgePays.com for more information.
SurgePays, Inc.
Company Contact:
Tony Evers CPA, CIA
Chief Financial Officer
847-648-7541
tevers@surgeholdings.com
Investor Relations Contact:
CORE IR
516-222-2560
invest@surgeholdings.com
Media Relations:
Jules Abraham
CORE IR
917-885-7378
julesa@coreir.com
Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; our predictions about our industry; the impact of the COVID-19 pandemic on our business and our ability to attract, retain and cross-sell to clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
