Note 10 – Segment Information

 

Operating segments are defined as components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision–making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer.

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025 AND 2024

 

The Company evaluated the performance of its operating segments based on revenue and operating loss. All data below is prior to intercompany eliminations.

 

Segment information for the Company’s operations for the years ended December 31, 2025 and 2024, are as follows:

 

   2025   2024 
   For the Years Ended December 31, 
   2025   2024 
         
Revenues          
Mobile Virtual Network Operators  $13,453,149   $43,450,244 
Point-of-Sale and Prepaid Services   43,509,771    17,419,088 
Other Corporate Overhead   -    11,841 
Total  $56,962,920   $60,881,173 
           
Cost of revenues          
Mobile Virtual Network Operators  $22,242,341   $58,410,842 
Point-of-Sale and Prepaid Services   45,209,470    16,779,312 
Other Corporate Overhead   100,000    15,218 
Total  $67,551,811   $75,205,372 
           
Operating expenses          
Mobile Virtual Network Operators  $1,284,002   $1,204,818 
Point-of-Sale and Prepaid Services   3,412,642    3,132,457 
Other Corporate Overhead   15,374,477    23,120,877 
Total  $20,071,121   $27,458,152 
           
Income (loss) from operations          
Mobile Virtual Network Operators  $(10,073,194)  $(16,165,416)
Point-of-Sale and Prepaid Services   (5,112,341)   (2,492,681)
Other Corporate Overhead   (18,851,328)   (24,805,903)
Total  $(34,136,863)  $(43,464,000)

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025 AND 2024

 

Segment information for the Company’s assets and liabilities at December 31, 2025 and 2024, are as follows:

 

   December 31, 2025   December 31, 2024 
         
Total Assets          
Mobile Virtual Network Operators  $4,524,425   $8,472,349 
Point-of-Sale and Prepaid Services   2,231,645    4,884,817 
Other Corporate Overhead   1,759,776    10,618,839 
Total  $8,515,846   $23,976,005 
           
Total Liabilities          
Mobile Virtual Network Operators  $2,632,025   $1,505,400 
Point-of-Sale and Prepaid Services   2,768,490    103,612 
Other Corporate Overhead   18,518,150    7,105,380 
Total  $23,918,665   $8,714,392 

 

All intercompany accounts are separately presented above as both a component of the assets and liabilities. These amounts net to $0 in the Company’s consolidated balance sheets.

 

Historical Timeline

Fiscal YearFiled
2025Apr 15, 2026Showing above
2024Mar 25, 2025
2023Mar 12, 2024
2022Mar 30, 2023
2021Mar 24, 2022
2020Apr 2, 2021
2019May 12, 2020
2018Apr 1, 2019

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.