XML 39 R28.htm IDEA: XBRL DOCUMENT v3.24.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2024
Short-Term Debt [Line Items]  
Schedule of Notes Payable - Related Parties

The following is a detail of the Company’s Notes Payable - Related Parties:

 

Notes Payable - Related Parties
Note Holder  Issue Date  Maturity Date  Interest Rate   Default Interest Rate   Collateral  September 30, 2024   December 31, 2023 
Note #1  December 31, 2023  December 31, 2026   10.00%   15.00%  None  $3,951,480   $- 
Note #2  December 31, 2022  December 31, 2023   10.00%   0.00%  None   -    4,584,563 
                       3,951,480    4,584,563 
                   Short Term   1,647,491    4,584,563 
                   Long Term  $2,303,989   $- 
Schedule of Debt Maturities

The following represents the maturities of the Company’s various debt arrangements for each of the five (5) succeeding years and thereafter as follows:

 

For the Year Ended December 31,  Notes Payable - Related Parties   Notes Payable - SBA Government   Total 
             
2024 (3 Months)  $395,825   $2,660   $398,485 
2025   1,689,367    11,043    1,700,410 
2026   1,866,288    11,461    1,877,749 
2027   -    11,902    11,902 
2028   -    12,308    12,308 
Thereafter   -    422,761    422,761 
Total  $3,951,480   $472,135   $4,423,615 
Notes Payable [Member]  
Short-Term Debt [Line Items]  
Schedule of Notes Payable

Notes Payable

   1   2   3     
Terms  Notes Payable   Notes Payable   Note Payable   Total 
                 
Issuance dates of notes   April/May 2022    March 2022    2022      
Maturity date   October/November 2022    March 2023    2025      
Interest rate   19%   19%   1%     
Default interest rate   26%   26%   0%     
Collateral   Unsecured    Unsecured    Unsecured      
Warrants issued as debt discount/issue costs   36,000    15,000    N/A      
                     
Balance - December 31, 2022   1,100,000    400,000    95,167    1,595,167 
Repayments   (1,100,000)   (400,000)   (95,167)   (1,595,167)
Balance - December 31, 2023  $-   $-   $-   $- 

 

1- These notes were issued with 36,000, three (3) year warrants, which were previously reflected as debt issue costs and were amortized over the life of the debt. These notes were fully repaid in 2023.

 

2- These notes were issued with 15,000, three (3) year warrants, which were previously reflected as debt issue costs and were amortized over the life of the debt. Additionally, in 2022, the Company issued an additional 12,000, three (3) year warrants, which were treated as interest expense in connection with extending the maturity date for notes totaling $400,000 to March 2023. In 2023, the Company repaid $400,000 in notes and related accrued interest of $36,204 (aggregate $436,204).

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024

 

3– This loan, originally a PPP loan, was refinanced in 2022 and was extended from October 2021 to March 2025. Monthly payments were $3,566 per month. In 2023, the remaining balance of the note was repaid in full.
Related Party [Member]  
Short-Term Debt [Line Items]  
Schedule of Notes Payable

Notes Payable – Related Parties

Schedule of Notes - Payable Related Parties  

The following is a summary of the Company’s Notes Payable - Related Parties:

 

   1   1   2   Total 
Balance - December 31, 2022  $-   $5,134,563   $467,385   $5,601,948 
Repayments   -    (550,000)   (467,385)   (1,017,385)
Balance - December 31, 2023   -    4,584,563    -    4,584,563 
Reclassification of principal into one single note   4,584,563    (4,584,563)   -    - 
Reclassification of accrued interest payable into one single note   498,991    -    -    498,991 
Repayments   (1,132,074)   -    -    (1,132,074)
Balance - September 30, 2024  $3,951,480   $-   $-   $3,951,480 

 

1Activity is with the Company’s Chief Executive Officer and Board Member (Kevin Brian Cox).

 

At December 31, 2023, of the total $4,584,563 due, the Company owed $558,150 that had not been repaid (due December 31, 2023), the balance of $4,026,413 was due December 31, 2024. The Chief Executive Officer waived any events of default as of December 31, 2023.

 

On March 12, 2024, as approved by the Audit Committee, the Company consolidated all remaining outstanding principal ($4,584,563) and accrued interest payable ($498,991) into one note totaling $5,083,554. This note bears interest at 10% (with a default interest rate of 15%) and will be repaid ratably over a period of 36 months aggregating $5,905,427 in total payments to be made (inclusive of interest). Each monthly payment will be $164,039. The note is unsecured. The Note is expected to be repaid in full by December 2026.

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024

 

2Activity was with David May, who is a Board Member. The note of $467,385 and related accrued interest of $63,641 (aggregate $531,026) was repaid in 2023. The note bore interest at 10% and was unsecured.
Economic Injury Disaster Loan [Member]  
Short-Term Debt [Line Items]  
Schedule of Notes Payable

  

   EIDL   EIDL     
Terms  SBA   SBA   Total 
             
Issuance dates of SBA loans   May 2020    July 2020      
Term   30 Years    30 Years      
Maturity date   May 2050    July 2050      
Interest rate   3.75%   3.75%     
Collateral   Unsecured    Unsecured      
                
Balance - December 31, 2022  $145,922   $328,924   $474,846 
Repayments   (3,928)   (10,395)   (14,323)
Balance - December 31, 2023   141,994    318,529    460,523 
Interest expense adjustment - SBA loans   5,487    14,263    19,750 
Repayments   (2,676)   (5,462)   (8,138)
Balance - September 30, 2024  $144,805   $327,330   $472,135