Surgepays Inc (SURG) 2023 Q3 法說會逐字稿

Good day and welcome to the SurgePays Q3 2023 on conference call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 SurgePays 2023 年第三季電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Brian Prenoveau, Investor Relations. Please go ahead.

我現在想將會議交給投資人關係部門的布萊恩‧普雷諾沃 (Brian Prenoveau)。請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to the SurgePays third quarter 2023 earnings webcast and conference call. Today's date is November 14, 2023. And on the call today from SurgePays Brian Cox, President and Chief Executive Officer; Anthony Evers, Chief Financial Officer.

謝謝接線員，大家下午好。歡迎參加 SurgePays 2023 年第三季財報網路廣播和電話會議。今天的日期是 2023 年 11 月 14 日。SurgePays 總裁兼執行長 Brian Cox 在今天的電話會議上表示：安東尼·埃弗斯，首席財務官。

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties, please see SurgePays most recent filings with the SEC.

在開始之前，我想提醒大家，本次電話會議可能包含根據 1995 年《私人證券訴訟改革法案》定義的前瞻性陳述。這些陳述存在風險和不確定性，可能導致實際結果存在重大差異來自前瞻性陳述中表達的內容。有關此類風險和不確定性的討論，請參閱 SurgePays 最近向 SEC 提交的文件。

All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call.

今天發表的所有前瞻性聲明僅反映我們目前的預期，我們沒有義務更新任何聲明以反映本次電話會議後發生的事件。

Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release we issued this afternoon.

此外，在今天的電話會議期間，該公司將討論一項或多項非公認會計準則財務措施。我們今天下午發布的新聞稿中包含了這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節表。

Copies of today's press release are accessible on SurgePays Investor Relations website, ir.surgepays.com. In addition, SurgePays Form 10-Q for the quarter ended September 30, 2023, will also be available on SurgePays Investor Relations website.

今天新聞稿的副本可在 SurgePays 投資者關係網站 ir.surgepays.com 上取得。此外，截至 2023 年 9 月 30 日的季度的 SurgePays 10-Q 表格也將在 SurgePays 投資者關係網站上提供。

Now I'd like to turn the call over to President and Chief Executive Officer, Brian Cox. Brian.

現在我想將電話轉給總裁兼執行長布萊恩考克斯。布萊恩.

Thanks, Brian. First, I'd like to thank our shareholders and those interested in SurgePays for joining the call. As we have expanded and continue expanding our audience, I'd like to give a brief overview of who we are, what we do, and our target market.

謝謝，布萊恩。首先，我要感謝我們的股東和對 SurgePays 感興趣的人加入這次電話會議。隨著我們的受眾不斷擴大，我想簡要概述我們是誰、我們做什麼以及我們的目標市場。

SurgePays brings financial and telecom products to the underbanked and underserved populations at a grassroots level where they live and shop. The underbanked do most of their financial transactions at their trusted local convenience store closest to their home. SurgePays utilizes these stores as the point of distribution into these communities.

SurgePays 為居住和購物的基層人群提供金融和電信產品，這些產品缺乏銀行服務和服務不足。銀行服務不足的人在離家最近的值得信賴的當地便利商店進行大部分金融交易。 SurgePays 利用這些商店作為這些社區的分銷點。

Our technology layered platform empowers clerks at thousands of convenience stores to provide prepaid, wireless, and financial products to lower income and underbanked consumers without access to traditional credit cards or checking accounts. The FCC licenses us to provide subsidized wireless service to qualifying subscribers through the affordable connectivity program, more commonly referred to as ACP.

我們的技術分層平台使數千家便利商店的店員能夠向低收入和無法獲得傳統信用卡或支票帳戶的銀行服務消費者提供預付、無線和金融產品。 FCC 授權我們透過經濟實惠的連線計畫（通常稱為 ACP）向符合資格的用戶提供補貼無線服務。

Our ACP, prepaid wireless companies provide service to hundreds of thousands of subscribers nationwide. This enticing and beneficial program is the lead product to get our platform into stores nationwide. These store owners are quick to realize, but in lower income areas, usually over 20% of the transactions in the store are done through government supported programs, and those customers are all eligible for ACP. In a high interest rate environment where store owners are looking for more transactional revenue without hitting their credit line for store inventory, SurgePays presents a compelling offering for those owners who want their store to be the transactional tech hub for the underbanked community.

我們的 ACP（預付費無線公司）為全國數十萬用戶提供服務。這個誘人且有益的計劃是將我們的平台推向全國商店的主導產品。這些店主很快就意識到，但在收入較低的地區，通常超過 20% 的店內交易是透過政府支持的計劃完成的，而這些顧客都有資格享受 ACP。在高利率環境下，商店業主正在尋求更多的交易收入，同時又不影響商店庫存的信用額度，SurgePays 為那些希望自己的商店成為銀行服務不足的社區的交易技術中心的業主提供了一項引人注目的產品。

With this go-to-market approach and a profitable suite of underbanked products and services, we are well positioned to significantly grow our footprint and owner operated convenience stores nationwide. Our strategy is to continue evolving into a multi-product company with an ecosystem around us, enabling us to build the largest distribution of products and services sold to the underbanked population.

憑藉這種進入市場的方法以及一系列盈利能力不足的產品和服務，我們處於有利地位，可以在全國範圍內顯著擴大我們的足跡和業主經營的便利商店。我們的策略是繼續發展成為一家擁有生態系統的多產品公司，使我們能夠向銀行服務不足的人群提供最大的產品和服務分銷。

I'm pleased to announce that the third quarter of 2023 continues the profitability trend that we saw at the end of 2022, delivering our highest ever net income of $7.1 million and EBITDA of $7.5 million. This year has indeed demonstrated the long-term profitability potential of the business, and we are just getting started.

我很高興地宣布，2023 年第三季延續了我們在 2022 年底看到的獲利趨勢，實現了有史以來最高的淨利潤 710 萬美元和 EBITDA 750 萬美元。今年確實展現了該業務的長期獲利潛力，而我們才剛開始。

We have achieved over $17 million of net income year-to-date and our profitability margins have continued to expand. Our cash balance improved to over $12 million and minimal debt. This year compares well to September 30 of last year, where we lost approximately $3.7 million on the bottom line.

年初至今，我們已實現超過 1700 萬美元的淨利潤，並且我們的利潤率持續擴大。我們的現金餘額增加到超過 1,200 萬美元，債務也降至最低。今年與去年 9 月 30 日相比，我們損失了約 370 萬美元。

The tremendous profitability levels SurgePays has achieved have afforded to companies from opportunities that would not have been possible in the past, especially in this economic environment. SurgePays can now focus on playing offense aggressively and make strategic decisions on our terms at our timing that will produce both short and long-term growth and profitability.

SurgePays 所取得的巨大獲利水準為公司提供了過去不可能的機會，特別是在當前的經濟環境下。 SurgePays 現在可以專注於積極進攻，並根據我們的條件在我們的時間做出策略決策，這將產生短期和長期的成長和獲利能力。

In over 20 years of successful business, I've never been shy of stating my goals and willing to make tough decisions to accomplish them, whether through delayed gratification or some actions that might be confusing or unpopular to casual onlookers. Achieving a listing on Nasdaq was just the first of several accomplishments we fully expected to perform.

在20 多年的成功商業生涯中，我從不羞於說出自己的目標，並願意做出艱難的決定來實現這些目標，無論是透過延遲滿足還是採取一些可能讓旁觀者感到困惑或不受歡迎的行動。在納斯達克上市只是我們完全期望實現的多項成就中的第一個。

The next goal is to move from micro-cap to small cap. After months of discussion and well over a year of speaking to analysts -- excuse me, consultants, portfolio and fund managers on this subject, it became apparent in order for us to accomplish this next move. We need to gain institutional stakeholders at an impact to level.

下一個目標是從微型股轉向小型股。經過幾個月的討論以及一年多與分析師（對不起，顧問、投資組合和基金經理）就這個主題的交談，我們很明顯需要完成下一步行動。我們需要獲得具有影響力的機構利害關係人。

One of the checks against us was our potentially confusing businesses outside of our core model. It was clear we needed to shelf the legacy mass tort lead gen company, LogicsIQ and streamline the company messaging along with our financials.

對我們的限制之一是我們核心模式之外的業務可能令人困惑。很明顯，我們需要擱置傳統的大規模侵權領先公司 LogicsIQ，並簡化公司訊息傳遞和財務。

Our company story, focus, and market strategy must be defined with an understandable vision of a significant attainable future value. Even though LogicsIQ contributed $4.1 million to the top line sales last year in Q3, we chose to wind down operations because we felt that was the right thing to do to ultimately accomplish our goals.

我們的公司故事、重點和市場策略必須以可實現的重大未來價值的可理解願景來定義。儘管 LogicsIQ 去年第三季為營收貢獻了 410 萬美元，但我們還是選擇停止運營，因為我們認為這是最終實現我們目標的正確做法。

Another example of our strategic long term profit approach is our ACP sign-up transition focus to -- convenient stores. Yes, it slowed down subscriber growth in the short term compared to outdoor pop-up tents sales. But considering the economics of a store-based versus tent sales model, it was 100% the right call.

我們策略性長期利潤方法的另一個例子是我們的 ACP 註冊轉型重點—便利商店。是的，與戶外彈出式帳篷的銷售相比，它在短期內減緩了用戶成長。但考慮到以商店為基礎的銷售模式與帳篷銷售模式的經濟性，這是 100% 正確的決定。

Scaling the national footprint of stores transacting on our network, while growing actual routes into these communities creates a tremendous revenue opportunity, not only organically, but by controlling the distribution platform. We are creating an M&A machine whereby we can acquire companies with existing relationships or networks of stores and also acquire companies with products we can add to our platform.

擴大我們在網路上交易的商店的全國覆蓋範圍，同時增加進入這些社區的實際路線，不僅可以有機地創造巨大的收入機會，而且可以透過控制分銷平台創造巨大的收入機會。我們正在創建一個併購機器，透過它我們可以收購具有現有關係或商店網路的公司，也可以收購擁有可添加到我們平台的產品的公司。

Revenue was down $2.1 million for Q3 year-over-year. But as discussed, this is due to the winding down of LogicsIQ, which contributed $4.1 million last year. For those of you doing the simple math, yes, that means the core business of wireless and fintech was up over $2 million in Q3. And this focus contributed to the record breaking $7.1 million in net income.

第三季營收年減 210 萬美元。但正如所討論的，這是由於 LogicsIQ 的倒閉所致，該公司去年貢獻了 410 萬美元。對於那些做簡單數學計算的人來說，是的，這意味著無線和金融科技的核心業務在第三季度增長了超過 200 萬美元。這種專注為淨利潤打破了 710 萬美元的紀錄。

As a moment of reflection in 2021, when we uplisted to Nasdaq, we had a net loss of $13.5 million for the year. It's pretty amazing what our team is accomplishing and we are adding like-minded folks to the team each quarter. From our leaders spread out coast-to-coast to my favorite team working at our bilingual operations center in El Salvador. Chris and Franklin are among several great managers, leading a fantastic group of over 150 hard-working folks at every level of operations ready to immediately scale our store and subscriber growth.

回顧 2021 年，當我們在納斯達克上市時，我們全年淨虧損 1,350 萬美元。我們的團隊所取得的成就非常令人驚奇，我們每季都會在團隊中加入志同道合的人。從我們遍布全國各地的領導者到我最喜歡的在薩爾瓦多雙語營運中心工作的團隊。 Chris 和 Franklin 是幾位出色的經理人之一，他們領導著一支由 150 多名勤奮工作人員組成的出色團隊，負責各個營運層面，準備立即擴大我們的商店和訂閱者的成長。

As I mentioned in last quarter's call. The key metric is in the future is new stores on our platform. More stores on the platform mean more ACP sign-ups, more products and services, more transactions over the platform, and more sales for individual stores equaling more revenue per SurgePays. Our model to acquire ACP subscribers at stores worked fantastically. However, converting leads to customers directly using text messages were not performing at the success rate I expected.

正如我在上個季度的電話會議中提到的。未來的關鍵指標是我們平台上的新商店。平台上的商店越多意味著 ACP 註冊人數越多、產品和服務越多、平台上的交易越多，以及單一商店的銷售額越高，相當於每個 SurgePays 的收入越高。我們在商店獲取 ACP 訂閱者的模式效果非常好。然而，直接使用簡訊將潛在客戶轉化為客戶的成功率並未達到我預期的成功率。

After a couple of months of analysis, we determined the challenge was relying on customer follow-up to give consent to check their eligibility. We concluded we needed equipment on the countertop next to the register that was customer facing and allowed the customer to perform the necessary compliance components of the ACP enrollment at the moment of impact before they walked away.

經過幾個月的分析，我們確定挑戰在於依靠客戶的後續行動來同意檢查他們的資格。我們得出的結論是，我們需要在面向客戶的收銀機旁的檯面上安裝設備，並允許客戶在離開之前在影響發生時執行 ACP 註冊的必要合規部分。

This short term process failure was the seed of a tremendous success that has opened opportunities for a much better approach to the market with our own customer facing point-of-sale equipment. We can now promote our other products through 24/7 marketing on the LCD screen at the register. This includes creating awareness of the prepaid top-ups potential for customers, awareness of the upcoming launch of our prepaid wireless brand linkup [mobile], and other products on our platform.

這種短期流程失敗是巨大成功的種子，它為我們透過面向客戶的銷售點設備更好地進入市場提供了機會。我們現在可以透過收銀台液晶螢幕上的 24/7 行銷來推廣我們的其他產品。這包括提高客戶對預付費充值潛力的認識，並認識我們即將推出的預付費無線品牌連結 [行動] 以及我們平台上的其他產品。

Historically, we relied exclusively on posters and other promotional materials in the store to create awareness of our products since we don't have actual facings on the shelf. Now, we will have our products in lights on the screen right in the middle of the most prized real estate in the convenience store, the counter by the register. In other words, this solution launched our point of sale equipment channel. We partnered with ClearLine Mobile to test customer facing LCD screens at the register to promote our products, activate wireless subscribers, and create customer engagement.

從歷史上看，我們完全依靠商店裡的海報和其他宣傳材料來提高我們產品的知名度，因為我們的貨架上沒有實際的飾面。現在，我們的產品將在便利商店最珍貴的不動產中間、收銀台旁的螢幕上顯示我們的產品。換句話說，這個解決方案啟動了我們的銷售點設備管道。我們與 ClearLine Mobile 合作，在收銀台測試面向客戶的 LCD 螢幕，以推廣我們的產品、啟動無線用戶並提高客戶參與度。

This next step in point-of-sale advancement will solidify SurgePays as an innovative market leader in providing wireless telecom and fintech products to the underbanked and underserved where they live and shop. This will also assist in connecting dots for potential investors by quickly seeing visuals of our equipment at the register and understanding the impact we can have in the stores on our network.

銷售點進步的下一步將鞏固 SurgePays 作為創新市場領導者的地位，為居住和購物地區銀行服務不足和服務不足的人提供無線電信和金融科技產品。這也將有助於透過在收銀台快速查看我們設備的視覺效果並了解我們對網路商店的影響，為潛在投資者建立聯繫。

We have placed over a 100 LCD screens at this time and are pleased with the response. An additional 1,000 units just arrived this month and we will be immediately deploying those while continuously reordering more units in bigger batches.

目前我們已經放置了 100 多個 LCD 螢幕，並對反應感到滿意。本月又有 1,000 台設備剛抵達，我們將立即部署這些設備，同時不斷大幅重新訂購更多設備。

At this point, we've just begun to scratch the surface of the potential means SurgePays has to drive additional revenue through our store relationships. As always, we're focused on managing our cash and cash flow and deploying that cash to maximize growth. Now that we have integrated our equipment and software platform and our sales leadership team has been built out, we can focus more heavily on driving revenue organically and through acquisition, while working through relationships that position us to accomplish our revenue goals.

目前，我們才剛開始觸及 SurgePays 必須透過我們的商店關係來增加額外收入的潛在手段的表面。一如既往，我們專注於管理我們的現金和現金流，並部署現金以實現最大化成長。現在我們已經整合了我們的設備和軟體平台，並且我們的銷售領導團隊已經建立，我們可以更加專注於透過收購有機地增加收入，同時透過使我們能夠實現收入目標的關係來開展工作。

We expected third quarter revenues to align with second quarter revenues and precisely what happened, but with even stronger cash flow.

我們預計第三季的收入將與第二季的收入以及實際發生的情況保持一致，但現金流將更加強勁。

Now I'll turn the call over to Tony to review our financial results. Before summarizing today's call, Tony?

現在我將把電話轉給托尼，以審查我們的財務表現。在總結今天的電話會議之前，托尼？

Thank you, Brian, and good afternoon, everyone. I will begin my overview of the third quarter's financial results.

謝謝你，布萊恩，大家下午好。我將開始概述第三季的財務表現。

For the quarter, we reported revenues of $34.2 million compared to $36.2 million in the third quarter of 2022, representing a decrease of 6%. The decrease was primarily due to a $4.1 million decrease in the revenues from the company's LogicsIQ business.

我們報告的本季營收為 3,420 萬美元，與 2022 年第三季的 3,620 萬美元相比，下降了 6%。下降的主要原因是該公司 LogicsIQ 業務的收入減少了 410 萬美元。

Revenues related to providing mobile broadband and wireless service to low-income subscribers through the ACP increased 12% to $30.7 million in the third quarter of 2023. Gross profit increased 446% in the third quarter to $10.5 million compared to $1.9 million in the year ago period. Third quarter gross margin also showed significant improvement, up to 30.7% versus 5.3% in the third quarter last year.

2023 年第三季度，透過ACP 向低收入用戶提供行動寬頻和無線服務相關的收入成長12%，達到3,070 萬美元。第三季毛利成長446%，達到1,050 萬美元，而上年同期為190萬美元時期。第三季毛利率也顯著改善，從去年第三季的5.3%上升至30.7%。

SG&A expenses increased by 19% year-over- year. The increase was primarily driven by contractor and consultant expenses, legal fees, and expenses related to the acquisition of Shockwave CRM.

SG&A 費用年增 19%。這一成長主要是由承包商和顧問費用、法律費用以及與收購 Shockwave CRM 相關的費用所推動的。

Income from operations was positive for the quarter at $7.1 million compared to the [gross] loss of $1 million in the year ago period. Net income for third quarter was $7.1 million or a gain of $0.49 per share compared to a net loss of $1.5 million or a loss of $0.12 per share. Of the $8.6 million gain for third quarter included lower interest expense of $503,000 less than a year ago period.

與去年同期的[總]虧損 100 萬美元相比，該季度的營運收入為 710 萬美元。第三季淨利為 710 萬美元，即每股收益 0.49 美元，而淨虧損為 150 萬美元，即每股虧損 0.12 美元。在第三季 860 萬美元的收益中，利息支出比去年同期減少了 503,000 美元。

Turning to the balance sheet, liquidity and cash flow. Our cash balance as of September 30 was $12.6 million compared to $7 million at the end of 2022. Accounts receivable have increased by $540,000 from year end 2022 to $9.8 million receivable is from the US government for the mobile broadband subsidy.

轉向資產負債表、流動性和現金流。截至9 月30 日，我們的現金餘額為1,260 萬美元，而2022 年底為700 萬美元。應收帳款較2022 年底增加了54 萬美元，應收帳款為980 萬美元，來自美國政府的移動寬頻補貼。

Payment generally occurs approximately 30 to 60 days after a new subscriber is verified and signed up. Given our strength in financial position, cash balance, and capital structure, our cash allocation priorities focus on investing in the business and maintaining ample liquidity for future growth.

付款通常會在新訂戶經過驗證並註冊後約 30 至 60 天進行。鑑於我們在財務狀況、現金餘額和資本結構方面的實力，我們的現金分配優先重點是投資於業務並為未來成長保持充足的流動性。

I will now pass the call back to Brian for closing remarks. Brian?

我現在將把電話轉回給布萊恩，讓他發表結束語。布萊恩？

Thanks, Tony. SurgePays is now on sounds financial footing, with a healthy cash balance, consistent earnings, and growth. We are poised to create one of the largest direct distribution networks of underbanked products and services in the country and a vast market with tremendous growth potential weights. These results have proven we perform at a high level, are not afraid to make difficult decisions and understand how to deliver positive cash flow.

謝謝，托尼。 SurgePays 目前財務狀況良好，擁有健康的現金餘額、穩定的利潤和成長。我們準備好創建全國最大的銀行服務不足的產品和服務的直接分銷網絡之一，以及具有巨大成長潛力的廣大市場。這些結果證明我們表現出色，不怕做出困難的決定，並且了解如何實現正現金流。

Thank you so much for your time today. We will now open up the call to questions. Operator?

非常感謝您今天抽出時間。我們現在開始接受提問。操作員？

(Operator Instructions) Michael Diana, Maxim Group.

（操作員說明）Michael Diana，Maxim 集團。

Okay, thank you. Congratulations on the [quarterback].

好的謝謝。恭喜[四分衛]。

Hey, thank you, Mike. Appreciate it, Michael.

嘿，謝謝你，麥克。很感激，麥可。

You mentioned that the key metric or the key metric now is new stores. And you also talked about screens being the main driver of business at new stores. And you also mentioned you got a thousand new screens coming in lately. So it is that this order is your growth in number of stores going to be dependent? How many screens you get into the stores?

您提到關鍵指標或現在的關鍵指標是新店。您還談到螢幕是新商店業務的主要驅動力。您還提到您最近推出了一千個新螢幕。那麼這個訂單是你們門市數量的成長所依賴的嗎？您進入商店有多少螢幕？

Thanks for the question, Michael. I wouldn't say that our growth in stores is going to be dependent on how many screens we have. But one of the key metrics we're going to analyze internally is the stores that have an existing platform that we pipe into, for stores that already are using our web interface app. Or let's say, for example, the stores that use the reprogrammed Verifone terminal up to countertop compared to stores that helps the screen.

謝謝你的提問，麥可。我不會說我們商店的成長將取決於我們擁有的螢幕數量。但我們要在內部分析的關鍵指標之一是擁有我們接入的現有平台的商店，以及已經在使用我們的網路介面應用程式的商店。或者說，例如，商店使用重新編程的 Verifone 終端到櫃檯，而不是使用螢幕的商店。

Now ideally, we want to roll out with as many stores utilizing the point-of-sale screen as possible because as stated, the fantastic side effect of needing that to provide a solution to us internally actually became an external marketing device that we didn't even think about until we deployed it and that kind of had the Eureka light bulb go off of being able to promote all of our products without having multiple rooms at the operation center, sending out posters and replacement promotional materials constantly or needing salespeople to visit stores once every three months to replace promotional materials that it either been written down or destroyed from the Sun or just needed to be updated.

現在理想情況下，我們希望在盡可能多的商店中推出使用銷售點螢幕的服務，因為如上所述，需要它為我們內部提供解決方案的奇妙副作用實際上成為了我們沒有的外部行銷設備。在在我們部署它之前，甚至不用考慮，尤里卡燈泡熄滅了，我們就可以在運營中心沒有多個房間、不斷發送海報和更換促銷材料或需要銷售人員上門的情況下推廣我們所有的產品。每三個月更換一次商店的促銷材料，這些材料要么被寫下來，要么從太陽報上銷毀，要么只是需要更新。

So I think what you're going to see and I think the next time that we talk on this call, we're going to start having metrics based on our stores and then stores where we've deployed our screens. And I'll come up with a little bit catchier phrases to differentiate that because that's going to be a really important metric for us, as it relates to being able to have and provide all the products on our platform. Like, I say, compliantly provide ACP, launch our prepaid wireless brand, do the prepaid wireless top-ups, load prepaid debit cards, and then to promote all of these services in loops nonstop 24/7 right there at the register.

所以我想你會看到什麼，我想下次我們在這次電話會議上討論時，我們將開始根據我們的商店以及我們部署螢幕的商店制定指標。我將想出一些更吸引人的短語來區分這一點，因為這對我們來說將是一個非常重要的指標，因為它關係到能夠在我們的平台上擁有和提供所有產品。就像我說的那樣，合規地提供 ACP，推出我們的預付費無線品牌，進行預付費無線充值，加載預付費借記卡，然後在收銀台 24/7 不間斷地循環推廣所有這些服務。

So I do think that while this will not limit our ability to add stores, this, we should catch up pretty quickly and very, very aggressive on the screen.

所以我確實認為，雖然這不會限制我們添加商店的能力，但我們應該很快就會趕上，並且在螢幕上非常非常積極。

And I do expect us, like I said, we just got 1,000 in our already reordering now. And I think that you're going to see us reload and really get those out there as fast as we can and get a good stockpile of screens. And bluntly, the actual screen is going to help us get into more stores because they're excited. The stores are actually more interested in our platform with the screen at the point of sale as opposed to just our platform. So I think it's going to be a driver for sales and revenue.

我確實希望我們，就像我說的，我們現在已經重新訂購了 1,000 個。我認為你會看到我們重新加載並盡可能快地把它們放到那裡，並獲得大量的螢幕庫存。坦白說，實際的螢幕將幫助我們進入更多商店，因為他們很興奮。事實上，商店對我們的銷售點螢幕平台更感興趣，而不僅僅是我們的平台。所以我認為這將成為銷售和收入的驅動力。

Okay, great. So I know ACP has been your big product so far, but you mentioned prepaid wireless and I think you have high hopes for that. Could you talk more about that?

好的，太好了。我知道到目前為止，ACP 一直是你們的重要產品，但你們提到了預付費無線，我認為你們對此寄予厚望。能多談談嗎？

Sure. The prepaid wireless brand LinkUp Mobile, we're literally weeks away from the launch. I wanted to kind of hang tight and wait for more screens to get out because the alternative is we already have real estate in the store tied up with posters for creating awareness of ACP. It's a little difficult to send out multiple rounds of new posters and say, Hey, can you put these up in your store? Don't put them in the places posted where we already have. We just want to own all the real estate on the wall. That's not going to happen. We're competing with every everything that's in the store for that marketing space.

當然。預付費無線品牌 LinkUp Mobile 距離發表還有幾週時間。我想堅持住，等待更多的螢幕出現，因為另一種選擇是我們已經在商店裡貼上了海報，以提高 ACP 的知名度。發送多輪新海報並說“嘿，你能把這些放在你的商店裡嗎？”有點困難。不要將它們放在我們已經張貼的地方。我們只想擁有牆上的所有房地產。那是不會發生的。我們正在與商店中的所有商品競爭該行銷空間。

So the actual screens at the point of sale are going to drive the LinkUp Mobile, the prepaid wireless brand, and I'm excited about that. Absolutely, that before ACP, that was a part of our that was really going to be the anchor of our entire business model moving forward, bring on stores with the sales pitch of doing prepaid top-ups, then launch our prepaid wireless company that has a savings to the customer, a 5 to 10 bucks per plan, and we're able to pay a little bit higher commission to the store owner for the activations and for taking the payments because we own the platform.

因此，銷售點的實際畫面將推動預付費無線品牌 LinkUp Mobile 的發展，我對此感到很興奮。當然，在 ACP 之前，那是我們的一部分，這確實將成為我們整個商業模式向前發展的支柱，以預付費充值的銷售方式引入商店，然後推出我們的預付費無線公司，該公司擁有為客戶節省費用，每個計劃節省5 到10 美元，而且我們可以向店主支付更高的佣金來進行激活和付款，因為我們擁有該平台。

That was all. That's always been the mix. What I didn't, I guess, factor in was the fact that we have hundreds of thousands of subscribers. We have much better rates from the carriers, AT&T and T-Mobile, because we've got the buying power and legitimacy and we've got a seat at the table on the wholesale side, we own our CRM, the customer relationship management platform.

就這些。一直都是這樣。我想，我沒有考慮到我們擁有數十萬訂閱者這一事實。我們從營運商 AT&T 和 T-Mobile 那裡獲得了更好的費率，因為我們擁有購買力和合法性，並且我們在批發方面擁有一席之地，我們擁有自己的 CRM（客戶關係管理平台） 。

So we already have that built and we were able to own everything suit to nuts as it relates to the MVNO, we don't outsource anything from all the way from the payment being made at the store. It's our platform. It's our ACH. It comes to us everything we own, every component of the product delivery all the way to the actual tower where the services provided.

所以我們已經建立了這個，我們能夠擁有與 MVNO 相關的所有東西，我們不會從商店支付的所有方式外包任何東西。這是我們的平台。這是我們的 ACH。我們所擁有的一切、產品交付的每個組成部分，一直到提供服務的實際塔樓，都是如此。

So it's a whole lot better than my original business plan because of ACP and then utilizing ACP to grow the prepaid wireless brand. And I think we've talked about this before, but ACP is limited one per household that qualifies. Our prepaid wireless brand. There's no limits it's seen out there's four or five smartphones in that household on prepaid wireless. And keep in mind, there's over 100 prepaid wireless consumers out in the United States now. It presents a huge opportunity without limits for us to piggyback on our technology layer platform and ACP that we're using to get into these neighborhoods.

因此，由於 ACP，然後利用 ACP 來發展預付費無線品牌，這比我最初的商業計劃要好得多。我想我們之前已經討論過這一點，但 ACP 僅限於每個符合資格的家庭。我們的預付費無線品牌。沒有任何限制，該家庭有四、五部預付費無線智慧型手機。請記住，美國現在有 100 多個預付費無線消費者。它為我們提供了一個巨大的機會，讓我們可以利用我們的技術層平台和 ACP 來進入這些社群。

So we expect this to be a big hit, and we're looking forward to talking about the subscriber growth on LinkUp Mobile and hopefully we can have a good discussion about that on our next call.

因此，我們預計這會大受歡迎，我們期待談論 LinkUp Mobile 上的用戶成長問題，並希望我們能在下次電話會議上對此進行良好的討論。

All right. Thank you very much. And congratulations here.

好的。非常感謝。在此表示祝賀。

Thank you, Michael.

謝謝你，麥可。

Ed Woo, Ascendiant Capital.

艾德·吳，Ascendian Capital。

Yeah. Congratulations on the quarter and profitable quarter. My question is you seem to have -- the macro environment seems to be steady. Inflation is coming down, job growth is still relatively high. What are you seeing and hearing from the convenience store owners with obviously their core customer base. Are there any significant changes from the last couple of months?

是的。恭喜本季和獲利季度。我的問題是，宏觀環境似乎很穩定。通貨膨脹正在下降，就業成長仍然相對較高。您從便利商店老闆那裡看到和聽到的，顯然是他們的核心客戶群。與過去幾個月相比，有什麼重大變化嗎？

Hey Ed. Thanks for the question. It's you know, I've talked about this for years and years now. It is a little bit interesting, lower income people are still lower income people. I think some of the macroeconomic things out there more affect the middle to middle upper class, maybe a little bit more than lower-income folks who are already on government assistance.

嘿艾德。謝謝你的提問。你知道，我已經談論這個很多年了。有點有趣的是，低收入的人仍然是低收入的人。我認為一些宏觀經濟因素對中上階級的影響更大，可能比已經接受政府援助的低收入者影響更大。

I think there's a scenario where more people might actually pull into our potential customer base, whether it be folks sit down a little bit challenged financially with, let's say, too much not enough check or immigrants to me, like I said, we have a bilingual operation center and all of our products are in both English and Hispanic.

我認為有一種情況，更多的人實際上可能會進入我們的潛在客戶群，無論是那些在財務上遇到一點挑戰的人，比如說，支票太多，還是移民對我來說，就像我說的，我們有一個雙語營運中心，我們所有的產品都有英語和西班牙語版本。

So our potential customer base does increase by the day. I don't look at that. We've talked about this a lot I don't look at that as wishing any type of economic downfall folks. But we do provide significant essential services to folks that may be in situations. I think you're always going to have that lower income prepaid market and for us to be able to provide them a savings on their wireless services, these essential services now. A savings on most of the services that we offer, it does free up cash to spend on other things that they might have.

所以我們的潛在客戶群確實與日俱增。我不看那個。我們已經討論過很多次了，我不認為這是希望人們出現任何類型的經濟衰退。但我們確實為可能遇到困難的人提供重要的基本服務。我認為您總是會擁有收入較低的預付費市場，並且我們能夠為他們提供無線服務（現在是這些基本服務）的節省。我們提供的大多數服務都可以節省費用，因此可以騰出現金來購買他們可能擁有的其他東西。

So I think from the convenience store perspective and the convenience store owner. We stated earlier, they are getting a bit -- quite a bit on the interest rates for the inventory they have in their store. So they're definitely not looking at bringing in new inventory, new products or anything that's not proven.

所以我從便利商店的角度和便利商店老闆的角度來思考。我們之前說過，他們從商店裡的庫存中獲得了相當多的利率。因此，他們絕對不會考慮引入新庫存、新產品或任何未經證實的東西。

So if we were rolling out with a kiosk of new products or had a freestanding rack or something like that, and it required the store to come out of pocket for new product launches. That will be a little bit difficult for us to do I mean, be a tough sell right now, but quite on the contrary, we're coming to the store with a I call it the first dollar. You take the first dollar you make product where there's no inventory requirements. They're making it on the transaction. And the great thing about these transactions is those customers have to come in the store to make the transaction.

因此，如果我們推出新產品亭或獨立式貨架或類似的東西，就需要商店自掏腰包來推出新產品。這對我們來說有點困難，我的意思是，現在很難推銷，但恰恰相反，我們帶著我稱之為第一美元的東西來到商店。您可以在沒有庫存要求的情況下獲得生產產品的第一美元。他們正在透過交易實現這一目標。這些交易的好處是顧客必須來到商店才能進行交易。

So they've got foot traffic. They've got real current foot traffic and they're providing a service to their community and word of mouth gets out really fast, a, number one, I guess you don't have to go way back down the street to the A-plus-plus wireless store to make your wireless payments, you can go down to the C-store the convenience store now and say, oh, by the way, I also while I was down there, I switched my service, I get to keep my same number and I'm saving 10 bucks a month. That word gets around real fast in an economic category where that 5 to 10 bucks means a lot.

所以他們有客流量。他們有真實的當前人流量，他們正在為社區提供服務，口碑傳播得非常快，第一，我想你不必沿著街道回到 A- plusplus無線商店來進行無線支付，你現在可以去C店便利店說，哦，順便說一句，我也在那邊，我切換了我的服務，我可以保留我的號碼相同，每個月可以節省 10 美元。這個詞在經濟領域傳播得非常快，因為 5 到 10 美元意義重大。

In traditionally hourly workers on government assistance. that savings means a whole lot more to people when things are tight. So those are what we're hearing. We think it's a perfect window of opportunity, sometimes when things are going great and money is falling through the cracks and people and store owners don't really care because things are so fantastic. They're not as open to new products or services because they're a little content. That's one of our downfalls as humans, not always looking to better ourselves or better ourselves financially, we are comfortable.

傳統上靠政府援助的時薪員工。當事情緊張時，儲蓄對人們來說意義重大。這些就是我們所聽到的。我們認為這是一個完美的機會之窗，有時當事情進展順利而金錢卻從裂縫中流失時，人們和店主並不真正關心，因為事情是如此美妙。他們對新產品或服務不那麼開放，因為他們不太滿足。這是我們作為人類的弱點之一，並不總是尋求更好的自己或在經濟上改善自己，我們很舒服。

So I think because things are a little bit odd out there right now, a little bit challenging. It's a wonderful time for a company like SurgePays, compelling opportunity and compelling platform, if you will, for these store owner not only money, but to help they're communities.

所以我認為因為現在的情況有點奇怪，有點具有挑戰性。對於像SurgePays 這樣的公司來說，這是一個美好的時刻，如果你願意的話，這裡有令人信服的機會和令人信服的平台，對這些店主來說不僅是金錢，而且是幫助他們的社區。

Great. Well, thank you. And I'm sure all your customers appreciate your products and services. Thank you very much and good luck.

偉大的。嗯，謝謝。我確信您所有的客戶都會欣賞您的產品和服務。非常感謝，祝你好運。

Thanks, Ed. I appreciate it.

謝謝，艾德。我很感激。

This concludes our question-and-answer session. I would I'll turn the conference back over to Brian Cox for any closing remarks.

我們的問答環節到此結束。我會將會議轉回給布萊恩考克斯 (Brian Cox) 做閉幕致詞。

Thank you, operator. Thank you, everyone, for joining us on the call today. We look forward to continuing to report our team's execution in the near future. Have a good evening.

謝謝你，接線生。謝謝大家今天加入我們的電話會議。我們期待在不久的將來繼續報告我們團隊的執行情況。祝你晚上愉快。

The conference has now concluded. Thank you for attending today's presentation. You may all now disconnect.

會議現已結束。感謝您參加今天的演講。你們現在可以斷開連結了。