$SURG

SurgePays, Inc.

CIK:0001392694|SEC Filings

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
Consolidated Statements of Operations - USD ($)	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 16,204,821	$ 11,518,166	$ 32,188,804	$ 22,095,596
Costs and expenses
Cost of revenues	16,629,992	14,172,832	40,311,533	27,692,607
General and administrative expenses	4,634,054	4,155,843	8,137,066	8,793,401
Total costs and expenses	21,264,046	18,328,675	48,448,599	36,486,008
Gain on contract liability settlement	(8,511,672)		(8,511,672)
Income (loss) from operations	3,452,447	(6,810,509)	(7,748,123)	(14,390,412)
Other income (expense)
Interest expense (including amortization of debt discount)	(1,026,341)	(279,306)	(1,907,348)	(398,740)
Loss on present value measurement of long-term accounts receivable	(415,067)		(415,067)
Accretion of discount on accounts receivable	132,727		132,727
Other income	20,290		20,290	6,785
Interest income		7,008		64,267
Derivative Expense	(1,168,511)		(1,168,511)
Change in fair value of derivative liabilities	292,577		323,120
Total other income (expense) - net	(2,164,325)	(272,298)	(3,014,789)	(327,688)
Net income (loss) before provision for income taxes	1,288,122	(7,082,807)	(10,762,912)	(14,718,100)
Provision for income tax benefit (expense)
Net loss including non-controlling interest	1,288,122	(7,082,807)	(10,762,912)	(14,718,100)
Non-controlling interest	(227)	(209)	(378)	(418)
Net income (loss) available to common stockholders	$ 1,288,349	$ (7,082,598)	$ (10,762,534)	$ (14,717,682)
Income (loss) per share - attributable to common stockholders
Basic	$ 0.05	$ (0.36)	$ (0.43)	$ (0.74)
Diluted	$ 0.05	$ (0.36)	$ (0.43)	$ (0.74)
Weighted average number of shares outstanding - attributable to common stockholders
Basic	25,921,696	19,889,442	24,818,862	19,978,690
Diluted	25,921,696	19,889,442	24,818,862	19,978,690

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net loss - including non-controlling interest	$ (10,762,912)	$ (14,718,100)
Adjustments to reconcile net loss to net cash used in operations
Depreciation and amortization	380,437	479,689
Amortization of right-of-use assets	106,519	123,556
Amortization of debt discount/debt issue costs	930,509	66,887
Stock issued for services	843,935
Stock issued for services - related party	657,900
Recognition of stock based compensation - related parties		310,238
Change in fair value of derivative liabilities	(323,120)
Derivative expense	1,168,511
Accretion of discount on accounts receivable	(132,727)
Gain on contract liability settlement	(8,511,672)
Loss on present value measurement of long-term accounts receivable	415,067
(Increase) decrease in
Accounts receivable	(1,396,985)	319,496
Inventory	85,712	(629,452)
Prepaids and other	185,456	99,957
Increase (decrease) in
Operating lease liability	(106,918)	(121,052)
Net cash used in operating activities	(7,181,032)	(13,082,419)
Investing activities
Purchase of leasehold improvements		(18,590)
Net cash used in investing activities		(18,590)
Financing activities
Proceeds from common stock issued for cash	2,514,375
Cash paid as direct offering costs - common stock	(375,000)
Proceeds from issuance of notes payable	954,272
Repayments of notes payable	(585,994)
Proceeds from issuance of convertible notes payable	5,070,000	6,000,000
Cash paid as direct offering costs - convertibles note payable	(25,500)	(595,000)
Repayments of loans - related party		(684,419)
Repayments on notes payable - SBA government	(5,048)	(5,512)
Treasury shares repurchased (share buy-backs)
Net cash provided by financing activities	7,547,105	4,715,069
Net increase (decrease) in cash, cash equivalents and restricted cash	366,073	(8,385,940)
Cash, cash equivalents and restricted cash - beginning of period	2,013,211	12,790,389
Total cash, cash equivalents, and restricted cash	2,379,284	4,404,449
Cash and cash equivalents	1,954,235	4,404,449
Restricted cash - accounts receivable factoring facility	425,049
Supplemental disclosure of cash flow information
Cash paid for interest	76,379	188,244
Cash paid for income tax
Conversion of debt to common stock	385,880
Conversion of debt to common stock - related party	707,200
Debt forgiveness - related party	292,800
Debt discount - convertible notes payable - original issue discount	143,333
Debt discount - convertible notes payable - issuance of common stock	54,828
Debt discount - convertible notes payable - stated interest	117,067
Debt discount - convertible note payable - embedded conversion feature (derivative liabilities)	176,510
Debt discount - convertible note payable - issuance of warrants (derivative liabilities)	294,125
Reclassification of derivative liability to additional paid-in capital	208,606
Nonrelated Party [Member]
Adjustments to reconcile net loss to net cash used in operations
Recognition of share based compensation - options	15,574
Loss on present value measurement of long-term accounts receivable	415,067
Increase (decrease) in
Accounts payable and accrued expenses	8,435,296	1,179,207
Related Party [Member]
Adjustments to reconcile net loss to net cash used in operations
Recognition of share based compensation - options	110,208
Increase (decrease) in
Accounts payable and accrued expenses	$ 718,178	$ (192,845)

Consolidated Balance Sheets - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 1,954,235	$ 1,731,400
Restricted cash - accounts receivable factoring facility	425,049	281,811
Accounts receivable - net	1,828,586	4,045,162
Inventory	253,858	339,570
Prepaids and other	396,367	581,823
Total Current Assets	4,858,095	6,979,766
Property and equipment - net	349,834	403,517
Other Assets
Long-term accounts receivable - net	3,331,221
Intangibles - net	492,399	819,153
Operating lease - right of use asset - net	206,891	313,410
Total Other Assets	4,030,511	1,132,563
Total Assets	9,238,440	8,515,846
Current Liabilities
Operating lease liability	212,314	219,997
Convertible notes payable - net	9,869,374	3,068,878
Derivative liabilities	1,107,421
Total Current Liabilities	26,161,011	18,201,643
Long Term Liabilities
Operating lease liability		99,235
Convertible notes payable - net	3,390,992	5,170,860
Total Long Term Liabilities	3,826,854	5,717,022
Total Liabilities	29,987,865	23,918,665
Stockholders’ Deficit
Common stock, $0.001 par value, 500,000,000 shares authorized 27,207,618 and 21,847,927 shares issued and 26,511,665 and 21,151,974 shares outstanding, at June 30, 2026 and December 31, 2025, respectively	27,211	21,852
Additional paid-in capital	88,657,683	83,246,736
Treasury stock - at cost (695,953 and 695,953 shares, respectively)	(1,631,966)	(1,631,966)
Accumulated deficit	(107,746,831)	(96,984,297)
Stockholders’ deficit	(20,693,903)	(15,347,675)
Non-controlling interest	(55,522)	(55,144)
Total Stockholders’ Deficit	(20,749,425)	(15,402,819)
Total Liabilities and Stockholders’ Deficit	9,238,440	8,515,846
Nonrelated Party [Member]
Current Liabilities
Accounts payable and accrued expenses	10,142,634	10,219,011
Note payable	2,245,324	1,834,008
Long Term Liabilities
Notes payable - SBA government
Related Party [Member]
Current Liabilities
Accounts payable and accrued expenses	835,724	117,546
Note payable	1,730,796	2,730,796
SBA Government [Member]
Current Liabilities
Note payable	17,424	11,407
Long Term Liabilities
Notes payable - SBA government	$ 435,862	$ 446,927