SurgePays, Inc.(SURG), a leading provider of r etail and payment solutions, announced its financial results for the first quarter of 2023. The company reported a net income of $4.5 million, showcasing a significant improvement compared to the previous year. SurgePays also achieved strong revenue growth, generating $34.8 million in the first quarter. The company's consolidated balance sheets revealed a favorable increase in assets, while the consolidated statements of operations highlighted a positive income from operations. These results reflect SurgePays' continued efforts in expanding its product offerings and capturing market share.**
SurgePays, Inc. and its subsidiaries have released their unaudited consolidated financial statements for the period ending March 31, 2023. The company experienced a positive quarter, posting a net income of $4.5 million, a significant improvement compared to the previous year. SurgePays' revenue for the first quarter reached $34.8 million, demonstrating strong growth and the company's ability to expand its customer base and product portfolio.
Consolidated Balance Sheets
As of March 31, 2023, SurgePays, Inc. reported total assets of $40.6 million, representing a considerable increase from $34.0 million at the end of December 2022. The company's current assets, including cash, accounts receivable, inventory, and prepaids, amounted to $34.2 million, indicating a positive trend in its liquidity position. SurgePays also reported significant investments in property and equipment, with net values of $573,000 and $643,000 for March 2023 and December 2022, respectively.
Additionally, SurgePays listed other assets such as note receivable, intangibles, internal use software development costs, goodwill, investment in CenterCom, and operating lease right-of-use assets. The total value of these assets was $5.8 million, reflecting the company's strategic investments and ongoing commitment to innovation and growth.
Consolidated Statements of Operations
SurgePays, Inc. achieved a notable income from operations in the first quarter of 2023. The company reported $4.7 million, a significant improvement compared to a loss of $1.1 million in the same period last year. This positive result can be attributed to the effective management of costs and expenses, which amounted to $30.1 million during the quarter. SurgePays successfully controlled its cost of revenue and general and administrative expenses, allowing for increased profitability.
Other income and expense recorded in the consolidated statements showed a net expense of $159,297, mainly due to interest expense and the gain/loss on investment in CenterCom. Despite this, SurgePays managed to achieve a net income of $4.5 million, demonstrating its ability to generate profits and deliver value to its shareholders.
Consolidated Statements of Changes in Stockholders' Equity
SurgePays, Inc.'s stockholders' equity for the period ending March 31, 2023, stood at $9.9 million, a notable increase from $5.1 million at the end of 2022. The company's common stock, additional paid-in capital, and accumulated deficit contributed to this improvement. SurgePays also reported a non-controlling interest of $127,000.
Consolidated Statements of Cash Flows
During the first quarter of 2023, SurgePays, Inc. generated $2.9 million in cash from its operating activities. The positive cash flow can be attributed to the company's net income and adjustments for depreciation, amortization, and share-based compensation. SurgePays' investing activities involved a net cash outflow of $157,000, primarily related to the purchase of property and equipment. The company's financing activities resulted in a net cash outflow of $882,000, including repayments of notes payable and related party loans.
Despite these cash outflows, SurgePays maintained a healthy cash position, with $8.9 million on hand at the end of the quarter, compared to $3.4 million at the beginning of the period. The company's cash flow management supports its ongoing operations and growth initiatives.
SurgePays, Inc.'s financial performance in the first quarter of 2023 showcased significant progress, with a net income of $4.5 million and revenue of $34.8 million. The company's balance sheets reflected a favorable increase in total assets, while the statements of operations demonstrated a positive income from operations. SurgePays' ability to generate profits, control expenses, and maintain a strong cash position highlights its commitment to delivering value to shareholders and sustaining growth in the retail and payment solutions industry.