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Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt

Note 6 – Debt

 

The following represents a summary of the Company’s notes payable – SBA government, notes payable – related parties, and notes payable, key terms, and outstanding balances at March 31, 2025 and December 31, 2024, respectively:

 

Notes Payable – SBA government

 

Economic Injury Disaster Loan (“EIDL”)

 

During 2020, this program was made available to eligible borrowers in light of the impact of the COVID-19 pandemic and the negative economic impact on the Company’s business. Proceeds from the EIDL were used for working capital purposes.

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

 

Installment payments, including principal and interest, are due monthly (beginning twelve (12) months from the date of the promissory note) in amounts ranging from $74 - $731/month. The balance of principal and interest is payable over the next thirty (30) years from the date of the promissory note. There are no penalties for prepayment. The EIDL Loan was not required to be refinanced by the PPP loan.

 

   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, 2023   141,994    318,529    460,523 
Interest expense adjustment - SBA loans   5,487    14,263    19,750 
Repayments   (3,532)   (7,345)   (10,877)
Balance - December 31, 2024   143,949    325,447    469,396 
Repayments   (864)   (1,905)   (2,769)
Balance - March 31, 2025  $143,085   $323,542   $466,627 

 

Notes Payable – Related Parties

 

 

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

 

    1    1    Total 
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   (1,527,899)   -    (1,527,899)
Balance - December 31, 2024   3,555,655    -    3,555,655 
Repayments   (407,776)   -    (407,776)
Balance - March 31, 2025  $3,147,879   $-   $3,147,879 

 

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

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

 

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.

 

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  March 31, 2025   December 31, 2024 
Note #1  December 31, 2023  December 31, 2026   10.00%   15.00%  None  $3,147,879   $3,555,655 
                   Short Term   1,731,366    1,689,367 
                   Long Term  $1,416,513   $1,866,288 

 

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 
             
2025 (9 months)   1,731,366    8,275    1,739,641 
2026   1,416,513    11,461    1,427,974 
2027   -    11,902    11,902 
2028   -    12,308    12,308 
2029   -    12,820    12,820 
Thereafter   -    409,861    409,861 
Total  $3,147,879   $466,627   $3,614,506