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Organization and Nature of Operations | 9 Months Ended
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Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Organization and Nature of Operations SurgePays, Inc. (“SurgePays,” “SP,” “we,” “our” or “the Company”), and its operating subsidiaries, is a technology-driven company building a next generation supply chain software platform that can offer wholesale goods and services more cost efficiently than traditional and existing wholesale distribution models. The Company and its subsidiaries are organized as follows: Schedule of Subsidiaries
Company Name (Active) |  | Incorporation Date |  | State of Incorporation |  | Segment
SurgePays, Inc. |  | August 18, 2006 |  | Nevada |  | Corporate Parent
Surge Blockchain, LLC |  | January 29, 2009 |  | Nevada |  | Other
ECS Prepaid, LLC |  | June 9, 2009 |  | Missouri |  | Comprehensive Platform Services
LogicsIQ, Inc. |  | October 2, 2018 |  | Nevada |  | Lead Generation
Torch Wireless |  | January 29, 2019 |  | Wyoming |  | Mobile Virtual Network Operators
SurgePays Fintech, Inc. |  | August 22, 2019 |  | Nevada |  | Comprehensive Platform Services
SurgePhone Wireless, LLC |  | August 29, 2019 |  | Nevada |  | Mobile Virtual Network Operators
Injury Survey, LLC |  | July 28, 2020 |  | Nevada |  | Lead Generation
All of the following entities have nominal operations.
Company Name (Inactive) |  | Incorporation Date |  | State of Incorporation |  |
Electronic Check Services, Inc. |  | May 19, 1999 |  | Missouri |  |
Central States Legal Services, Inc. |  | August 1, 2003 |  | Missouri |  |
KSIX, LLC |  | September 14, 2011 |  | Nevada |  |
DigitizeIQ, LLC |  | July 23, 2014 |  | Illinois |  |
KSIX Media, Inc. |  | November 5, 2014 |  | Nevada |  |
Surge Payments, LLC |  | December 17, 2018 |  | Nevada |  |
SURGEPAYS, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all of the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2024 and the results of operations and cash flows for the periods presented. The results of operations for the nine months ended September 30, 2024 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 12, 2024. Management acknowledges its responsibility for the preparation of the accompanying unaudited consolidated financial statements which reflect all adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its consolidated financial position and the consolidated results of its operations for the periods presented. Liquidity and Management’s Plans As reflected in the accompanying consolidated financial statements, for the nine months ended September 30, 2024, the Company had:
● | Net loss available to common stockholders of $25,916,517; and
● | Net cash used in operations was $13,412,714
Additionally, at September 30, 2024, the Company had:
● | Accumulated deficit of $41,102,720
● | Stockholders’ equity of $33,275,987; and
● | Working capital of $28,475,628
We manage liquidity risk by reviewing, on an ongoing basis, our sources of liquidity and capital requirements. The Company has cash and cash equivalents on hand of $13,651,559 at September 30, 2024. SURGEPAYS, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 The Company has historically incurred significant losses and has not, prior to 2023, demonstrated an ability to generate sufficient revenues from the sales of its products and services to achieve profitable operations. There can be no assurance that we will have profitable operations again in the future and could be sustained on a continuing basis. In making this assessment we performed a comprehensive analysis of our current circumstances including: our financial position, our cash flows and cash usage forecasts for the twelve months ending September 30, 2025, and our current capital structure including equity-based instruments and our obligations and debts. Effective February 7, 2024, the Affordable Connectivity Program (“ACP”) stopped accepting new applications and enrollments. The program ceased funding on 1, 2024. See discussion below regarding revenue recognition. The Company believes it has sufficient cash resources on hand to meet its current obligations for a period that is more than one year from the issuance date of these financial statements. Management’s strategic plans include the following:
● | Expand product and services offerings to a larger surrounding geographic area,
● | Continuing to explore and execute prospective partnering or distribution opportunities; and
● | Identifying unique market opportunities that represent potential positive short-term cash flow.

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