Revenue from first three months is $2.5M and plans to further accelerate rollout are underway
BARTLETT, Tenn., November 9, 2021 – SurgePays, Inc. (Nasdaq: SURG) (“SurgePays” or the “Company”), a fintech company providing essential financial services and products to the underbanked population and software applications to a number of industry verticals, provides an update on the initial rollout from its distribution of the Emergency Broadband Benefit Program (“EBB Program”) through the Company’s wholly owned subsidiary, SurgePhone Wireless LLC (“SurgePhone”).
In mid-August, SurgePays began a limited launch of the EBB Program sponsored devices and generated $115,211 in revenue in 4 states. This launch was accelerated in these states with additional sales teams in the months of September and October and generated a total of $2.42 million in revenue.
“We continue to surpass our internal projections on subscribers and expect to eclipse the 15,000-customer mark in November, representing $750,000 in relatively higher-margin recurring revenue every month. Following our recent equity raise of nearly $20 million in gross proceeds, we now have available capital to ramp up the SurgePhone customer count while taking advantage of multiple growth initiatives and better execute on things in our pipeline,” commented SurgePays CEO Brian Cox. “Given the immediate and measurable impact from the launch of the EBB Program, we have ordered an additional 20,000 tablet devices to cover the remainder of the year. We plan to launch the EBB Program in ten additional states over the next 60 days and are exploring avenues to gain access to even more states that we could launch in over the next six months.”
The EBB Program provides SurgePhone up to a $90 reimbursement for the cost of each tablet distributed and a $50 per customer, per month (i.e., recurring) subsidy for data services. Additionally, the EBB Program allows one monthly service discount plan and one device discount per household and eligible consumers need to enroll in the EBB Program through their participating retailer offering the connected devices. SurgePhone has received approval to offer customers these discounted services in California, Colorado, Florida, Illinois, Maryland, Mississippi, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas. SurgePhone is a mobile virtual network operator (MVNO) and operates both the SurgePhone wireless and Loco Rabbit wireless brands.
The preliminary EBB Program revenues are estimates prior to the completion of the Company’s financial closing procedures and review procedures by its external auditors and, therefore, may be subject to adjustment when the actual results are available.
About SurgePays, Inc.
SurgePays, Inc. is a B2B fintech with other verticals in the underbanked and software development space. SurgePays utilizes its blockchain software platform to offer a comprehensive suite of essential financial services for the underbanked, and top selling consumable products to convenience stores, mini-marts, tiendas, and bodegas more cost efficiently than existing wholesale distribution models. Please visit www.SurgePays.com for more information.
Tony Evers CPA, CIA
Chief Financial Officer
Investor Relations Contact:
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