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SurgePays Inc. (SURG-1.05%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The company reported a significant decrease in revenue to $60,881,173, down from $137,141,832 in the previous year. This decline was primarily due to the cessation of the Affordable Connectivity Program (ACP) funding in June 2024.
The Mobile Virtual Network Operators segment, which includes SurgePhone Wireless and Torch Wireless, generated $43,450,244 in revenue, a decrease from $118,577,920 in 2023. The Comprehensive Platform Services segment saw an increase in revenue to $17,419,088 from $11,341,183.
Cost of revenue for the year was $75,205,372, leading to a gross loss of $14,324,199. General and administrative expenses increased to $27,458,152, mainly due to stock compensation expenses and software development costs.
The company recorded an impairment loss of $866,782 related to goodwill and $316,594 related to internal use software development costs. An additional impairment loss of $498,273 was recorded for the investment in CenterCom.
Net loss for the year was $45,729,224, compared to a net income of $20,617,903 in the previous year. The company attributed the loss to the discontinuation of the ACP and increased operating expenses.
SurgePays ended the year with total assets of $23,976,005, a decrease from $41,925,307 in 2023. The decrease was due to a reduction in accounts receivable and inventory write-offs.
The company reported total liabilities of $8,714,392, down from $13,521,843 in the previous year. This reduction was primarily due to repayments of notes payable.
SurgePays has implemented strategic plans to enhance market visibility and customer reach, diversify Lifeline revenue streams, and sustain platform growth. The company is also exploring specialized marketing strategies through its Clearline product offering.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SurgePays Inc. annual 10-K report dated March 25, 2025. To report an error, please email earnings@qz.com.