Latest Updates

Latest Updates

11/26/2019

Surge Logics Completes Development of Intake Logistics

Proprietary Sales and Customer Relationship Solution for Mass Tort Law Firms

Memphis, TN – November 26, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Marketplace Network for convenience stores, bodegas and community markets that provide products to the underbanked, today announced its wholly owned subsidiary, Surge Logics, completed the development and launch of InTake Logistics, a proprietary sales and customer relationship solution for law firms specializing in mass tort lawsuits.

Carter Matzinger, President of Surge Logics, commented, “After months of development, we are excited to launch InTake Logistics, a proprietary CRM software solution that facilitates the entire process of delivering signed retainer services to law firms. This new software enables us to work with a broad range of attorneys that do not have the staff and infrastructure to handle the volume of qualified leads Surge Logics can generate while managing the work flow of converting those leads into signed clients for their contributions to mass tort cases.”

InTake Logistics is a custom developed sales and client management intake solution software for the purpose of procuring signed client retainer documents for attorneys that specialize in mass tort litigation.

“This is a great example of how our strategic equity stake in CenterCom Global is positively impacting not only our revenue, but our ability to scale the business for years to come. CenterCom’s ability to develop and support this platform, which now includes forty-two full-time staff members handling intake, reporting and technical support, streamline our operations for an efficient and productive workflow. Phase 2 of the development project will allow us to license the system, so attorneys can install our software to replace their existing in-house customer and document management platform.  This should improve these firms’ efficiency and results, while increasing Surge Logics’ revenue,” stated Mr. Matzinger.

As disclosed in Surge’s most recent Quarterly Report, Surge Logic’s gross revenue has grown to approximately $4.4 million (unaudited results through September 30, 2019) as compared to $1.5 million in gross revenue in 2018.

 

11/25/2019

SurgePhone Wireless Signs Distribution Agreement with Softel Technologies

Deploying sales teams across ten states including California

Memphis, TN – November 26, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Marketplace Network for convenience stores, bodegas and community markets that provide products to the underbanked, today announced its wholly owned subsidiary SurgePhone Wireless has signed a distribution agreement with Softel Technologies, a leading refurbisher of cell phones and wireless carrier.  Under the agreement, Surge will market Softel’s wireless handsets and enroll qualifying customers in Lifeline, the FCC’s discounted communications program.  Softel will provide the phones to Surge at no upfront cost, and both Surge and Softel will benefit based on customer usage.

Hung Do, President of Softel Technologies, stated, “We are delighted to partner with Surge Holdings, a true innovator, providing unique solutions to underserved markets.  Given their impressive distribution capabilities and track record in terms of both sales and compliance, we believe this relationship will help propel sales of our phones and Lifeline program. As we can procure fully equipped phones, we have the ability to support Surge in rolling this product out to hundreds of thousands of users.”

Jonathon Coffman, VP of Wireless Sales for Surge, commented, “We are excited to partner with Softel, as this supply and distribution agreement removes constraints procuring quality phones and opens new and much larger markets.  Additionally, this agreement alleviates the upfront capital requirements, where previously we had to first purchase the Androids and then realize our returns over a number of months.  Instead, we can use the same management team to oversee enrollments in these additional states, and Softel provides the phones at no upfront cost.  This significantly enhances our cash flow model and should allow us to more rapidly scale the business.  We look forward to aggressively rolling out this unique offering across ten states initially, including California, with additional products to follow.”

Lifeline is the FCC’s program to help make communications services more affordable for low-income consumers. Lifeline provides subscribers a discount on monthly telephone service purchased from participating providers in the marketplace. To participate in the program, subscribers must either have an income that is at or below 135% of the federal Poverty Guidelines or participate in certain assistance programs such as Medicaid and Supplemental Nutrition Assistance Program. (Food Stamps or SNAP)

 

11/15/2019

Surge Holdings Reports 21% Increase in Revenue to $4.9 Million for the Third Quarter of 2019 and Provides Business Update

Reports continued progress with rollout of SurgePays™ Network through AATAC

Asset purchase of ECS prepaid wireless business and software platform adds 9,800 retail locations to SurgePays™ Network

Launches SurgeRewards app enabling wireless customers to earn free unlimited service

Launches SurgePays™ Reloadable Debit Card

Completes investment into SurgeRewards App and Surge Logics InTake CRM Software

Memphis, TN – November 15, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for convenience stores, bodegas and community markets that provide products to the underbanked, today provided a business update and announced financial results for the third quarter ended September 30, 2019.

Brian Cox, CEO and Chairman of Surge Holdings, commented, “I am pleased to report we achieved 21% growth in revenue to $4.9 million for the third quarter of 2019. That said, the R&D portion of the Surge lifecycle is complete, and each of the subsidiaries are rolling out products to market. We believe we have built a solid foundation for accelerated revenue growth in 2020. Surge has raised over $3 million in 2019 to support the development of multiple proprietary software programs and applications. I am happy with our team’s performance in executing our strategic plan for scalable growth.”

“First, we continue to gain traction and are moving ahead aggressively with the rollout of the SurgePays™ Network through AATAC, one of the largest private trade associations, representing over 110,000 retail locations. The SurgePays™ Network offers the merchant a wholesale marketplace to order products from regional manufacturers. At the same time, manufacturers are now able to distribute their products nationwide in a more efficient and effective manner. The AATAC model called for Surge to be coupled with Pastime Foods and Weekend Warrior Wellness’ products to be sold, setup and installed in the c-stores and at the same time to share the cost. During phase one, there was a delay in the packaging for one of the third-party companies. During the delay, Surge negotiated an exclusive master distribution agreement with both Pastime Foods and Weekend Warrior Wellness. Through the SurgePays™ Marketplace Portal, these companies’ products and payments will all be centralized and aggregated, while additionally allowing Surge to realize more than twice the expected revenue per store from the AATAC rollout. Another benefit is AATAC utilizing SurgePays™ as a solution by requiring its DRIP member stores, 40,000 locations, to be set up on SurgePays™ so that AATAC membership fees can be paid through the SurgePays™ portal. By bringing these member stores online, Surge will be able to assist future AATAC product rollouts and become the FinTech solution for AATAC distribution and payments. This bolsters our mid-term goal of 100,000 retail locations.”

“We also announced that we successfully completed the asset purchase of the ECS Prepaid business, which marks a major inflection point for Surge, by immediately adding over 9,800 new retail locations, $48.7 million in additional projected annualized revenue, and 160 ISO salespeople. Our goal is to immediately integrate the SurgePays Network within these new retail locations so that we can upsell both Surge owned and other wholesale products.”

“In August, we announced the successful launch of the SurgePays™ Reloadable Debit Card. According to the FDIC, over 25% of Americans are underbanked, and our card is designed to provide these individuals with a convenient way to manage their money. This integration and onboarding took well over a year, but we feel this was well worth it. Our market rollout will propel forward by requiring SurgeRewards App customers to be a SurgePays™ Reloadable Debit Card holder in order to get their monthly cash reward payments disbursed to their personalized card.”

“Another significant investment into software assets was the development and launch of our proprietary SurgeRewards software app. Customers can earn rewards points from the ad impressions that appear when they unlock their phone and by opening the SurgeRewards app to watch videos and ads, as well as by participating in short surveys. The SurgeRewards App allows Surge to more aggressively rollout the SurgePhone Wireless free service offering, since we own and control the app, which should result in more revenue and better results. In addition to our free SurgePhone Wireless service, the app will be preloaded on the Android handsets of True Wireless customers as well as other third-party Lifeline companies’ handsets. This should provide an additional stream of profit through ad network revenue sharing. All these monthly cash disbursements will require these customers to obtain a SurgePays Debit card for monthly cash reward disbursements. We expect this will drive between 15,000 to 20,000 SurgePays™ Reloadable Debit card activations per month, further enhancing brand loyalty and enabling us to maximize our relationship with underbanked customers.”

“Surge Logics completed the development and launch of InTake Logistics, a proprietary CRM software solution that delivers signed retainer services to clients. It is proving to be a direct benefit to clients that do not have the staff and infrastructure to handle the volume of leads Surge Logics generates. A strategic partnership with our affiliate, CenterCom Global, was formed to support these advancements. Forty-two (42) full-time staff members handle intake, reporting and technical support to streamline operations for an efficient and productive workflow. Surge Logics’ exponential growth can be attributed directly to proprietary software development and synergy with CenterCom Global. Surge Logic’s revenue has grown to over $4.4 million year to date as compared to $1.5 million in gross revenue in 2018. We expect the upward revenue trajectory to continue.”

Third Quarter 2019 Financial Results

For the three months ended September 30, 2019, revenues were approximately $4.9 million compared to approximately $4.1 million for the same period last year. Operating loss for three months ended September 30, 2019 was approximately $(1.1 million) versus operating loss of approximately $(399,815) for the quarter ended September 30, 2018. Net loss for the three months ended September 30, 2019 was approximately $(1.2 million), or $(0.01) per share, versus a net loss of approximately $(425,724), or $(0.00) per share, in the same period last year.
A copy of the Company’s quarterly report on Form 10-Q has been filed with the Securities and Exchange Commission (www.sec.gov) and posted on the Company’s website at https://surgeholdings.com/.

 

11/14/2019

Surge Holdings Launches Proprietary Rewards App Software

Enables SurgePhone Wireless customers to earn free unlimited service

 Increases SurgePays Reloadable Debit cardholders by requiring the card to receive cash rewards

Memphis, TN – November 14, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Marketplace Network for convenience stores, bodegas and community markets that provide products to the underbanked, today announced the launch of its proprietary SurgeRewards App. Through engagement with the SurgeRewards application, customers earn points that can be redeemed for wireless service, cash rewards, and more.

Customers earn rewards points from the ad impressions that appear while they unlock their phone and also by opening the SurgeRewards app to watch videos and ads, as well as by participating in short surveys. These reward points can be converted into statement credits for free cell phone service or cash. Customers are required to have a SurgePays Reloadable Debit card to receive their monthly cash disbursements.

Brian Cox, CEO of Surge Holdings, commented, “After significant investment and development into this software asset, we are very excited to launch our very own SurgeRewards app. Not only do we enable SurgePhone to offer free wireless service, but we can now partner with 3rd party wireless companies to offer revenue sharing rewards to their customers. We estimate this app will drive between 15,000 to 20,000 SurgePays Reloadable Debit card activations per month due to the card being a requirement for customers to get their monthly cash payments. Out of a single sale and customer relationship, Surge will realize revenue from the ad network rewards app, the wireless service and the debit card. This app allows us to cross-market sales efforts to obtain wireless customers and debit card holders.”

In addition to its free SurgePhone Wireless service, the app will be preloaded on True Wireless customers Android handsets as well as other 3rd party Lifeline companies’ handsets for additional revenue sharing opportunities through the ad network. All of these monthly cash disbursements will require these customers to obtain a SurgePays Reloadable Debit card as well.

Mr. Cox further stated, “We believe the SurgeRewards app will help build brand loyalty and further entrench customers within the Surge ecosystem so we can further monetize the relationships with our underbanked customers. This product fits perfectly with our mission to have a positive impact on the lives of our customers, and I take pride in knowing how many people will benefit from this service.”

 

11/05/2019

Surge Holdings Provides Update on Completing Asset Purchase of ECS Prepaid Wireless Business and Software Platform; Adds 9,800 Retail Locations to SurgePays™ Network and Projected $48.7 Million of Additional Annualized Revenue

ECS
platform currently processes over 18,000 transactions per day and supports over 160 independent sales
organizations and agents representing potential new Surge partners and customers

 

Immediate
goal to launch high demand and trending retail products
through the SurgePays Network to rapidly scale revenue

 

Transaction
expected to be immediately accretive to earnings

Memphis, TN – November 5, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for convenience stores, bodegas and community markets that provide products to the underbanked, today provided an update on completing the asset purchase of the ECS Prepaid business, Electronic Check Services business and the Central States Legal Services business (collectively, “ECS”).

Through its proprietary Fintech software platform, ECS is a leading provider of prepaid wireless load and top-ups, check cashing and wireless SIM activation to convenience stores and bodegas nationwide. Since 2008, ECS has grown to a network of over 9,800 retail locations and 160 independent sales organizations (“ISO”) processing over 18,000 transactions per day. Surge will integrate the ECS software with its SurgePays™ Network in order to offer both wholesale products from third-party manufacturers, as well as Surge products, including the SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits. The transaction is expected to be immediately accretive to earnings.

Brian Cox, Chairman and CEO of Surge Holdings, commented, “This transaction marks a major inflection point for Surge, by immediately adding over 9,800 new retail locations, $48.7 million in additional projected annualized revenue, and 160 ISO salespeople. The developers are already working to integrate software platforms to include the ability to cross market the SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits, as well as layer on additional high demand and trending products through the SurgePays™ Network. ECS and their management team of Derron Winfrey and Mark Garner have been a leader in our sector for a long time. We are excited about working with them to scale up the business – not only by adding stores, but also increasing same store revenue.”

Derron Winfrey, President of ECS, commented, “We are extremely excited about the integration with Surge and the opportunity to bring Surge’s product offering to our network. Our business models are closely aligned and highly complementary. The significant and immediate synergies will allow us to scale much more rapidly, growing both the network and product offerings. ECS was built as a preferred partner to our ISO’s and independent retailers, catering to mom and pop shop owners by bringing them a level of service typically only found in the big box space. Many people do not realize that independent store owners make up approximately 53% of the entire convenience store marketplace, so this is a significant, underserved addressable market. We believe the level of service and product offerings that come from combining the strengths of Surge and ECS are unmatched in the industry and we are aligning our organizations to bring this advanced technology and service offering to our retail and ISO partners.”

*Annualized revenue is assumed if the Company had completed the acquisition on January 1 of the current fiscal period.  The $48.7M is based on the gross revenue of the acquired businesses for the fiscal year ended December 31, 2018.  The Company has not completed an audit on the value and annualized revenue is not a basis in accordance with accounting principles generally accepted in the United States.   Such amounts have not been audited by the Company.

10/17/2019

Surge Holdings and BB King Music Company Announce Exclusive Agreement for Nationwide Distribution of Licensed Merchandise to Stores on the SurgePays™ Retail Network

As part of the BB King Icon Legacy Initiative, Surge will distribute a line of BB King licensed merchandise to retailers through the SurgePays™ Portal

BB King Music Company owns all of the rights to the likeness of BB King and related trademarks and copyrights representing the interests of the King Family through its $250 million estate and trust 

Memphis, TN – October 17, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for independent retailers, and the BB King Music Company, owner of all rights to BB King’s likeness and related trademarks and copyrights on behalf of the King Family Trust, a $250 million estate and trust, today announced an exclusive license agreement to distribute a line of BB King merchandise, including T-shirts, hats, and other products with the likeness of BB King, Lucille and/or approved song titles and lyrics related to the life and legacy of this iconic artist. The license agreement provides Surge the exclusive US rights to distribute these products to corner stores (c-stores, neighborhood stores), convenience stores, gas stations, bodegas and tiendas through the SurgePays™ Retail Network. This rollout is part of the new BB King Icon Legacy Initiative being implemented by the BB King Music Company for the King Family Trust.

Brian Cox, Chairman and CEO of Surge, commented, “This is an ideal brand for our retail partners and we could not be more excited about working with the BB King Music Company and the King family estate. There is a high demand to deliver top quality, low cost T-shirts to our customers who shop at the type of stores that are on the SurgePays Network and otherwise would not be able to afford the same clothing comfort and quality fabric we are able to offer by disrupting the traditional distribution model. T-shirts are both a high margin and high volume product in our marketplace, as well as a great upsell product we believe will help increase the revenue and profitability of locations on the SurgePays™ Network. Being from Memphis myself, I’m honored to align ourselves with the iconic brand power of the King of the Blues, which provides a product with immediate brand recognition. We look forward to building our relationship with the BB King Music Company to expand this line of products in the future.”

The Corporate Business Managers of the BB King Music Company, stated, “It has been a pleasure working with the Surge team and we look forward to benefitting from their approach to distribution through their unique technology platform. The Surge network provides us a virtually untapped market outside of our current traditional retail channels that would otherwise be cost prohibitive to penetrate. We are extremely excited to open this new distribution avenue and we share Surge’s goal of affordable quality. Eric Mitchell, grandson of BB King, Patty King, daughter of BB King, and family members Rita King, Shirley King, Claudette Robinson King, Willie King, as well as Barbra Winfree, daughter of BB King, are pleased to announce this nationwide rollout, as part of the first phase in the new BB King Icon Legacy Initiative to preserve the iconic name of BB King. We look forward to seeing BB King shirts on millions of fans, as well as developing new product offerings to bring to this substantial market.”

 About BB King Music Company:

BB King Music Company owns all rights and likeness to BB King and related trademarks and copyrights representing the interest of The King Family Estate, a $250 million estate and trust. The BB King Music company is dedicated to extending the legacy of this iconic American singer-songwriter known for his sophisticated style and grace that has influenced and impacted so many other artists and genres of music. The BB King Music Company is currently expanding the BB King brand in to many new consumer products and is committed to bringing the best of BB King’s life and legacy to the world.