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Property and Equipment
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 3 – Property and Equipment

 

Management has revised the capitalization policy to capitalize any property and equipment over $7,500. This impact was immaterial to the periods presented.

 

Property and equipment consisted of the following:

 

           Estimated Useful
Type  September 30, 2022   December 31, 2021   Lives (Years)
            
Computer equipment and software  $1,005,946   $283,484   3 - 5
Furniture and fixtures   83,092    82,752   5 - 7
    1,089,038    366,236    
Less: accumulated depreciation   (341,982)   (165,788)   
Property and equipment - net  $747,056   $200,448    

 

In June 2022, the Company acquired software having a fair value of $711,400. Payment for the software consisted of $300,000 in cash, of which $100,000 was paid in June 2022, and the remaining $200,000 in July 2022. Additionally, the Company issued 85,000 shares of common stock having a fair value of $411,400 ($4.84/share), based upon the quoted closing trading price.

 

Depreciation and amortization expense for the three months ended September 30, 2022 and 2021 was $140,318 and $17,756, respectively.

 

Depreciation and amortization expense for the nine months ended September 30, 2022 and 2021 was $174,403 and $50,491, respectively.

 

These amounts are included as a component of general and administrative expenses in the accompanying consolidated statements of operations.

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

(UNAUDITED)