Q2 2024 SurgePays Inc Earnings Call

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Operator: Greetings, and welcome to SurgePay's second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode.

Greetings welcome to search paid second quarter 'twenty 'twenty four earnings conference calls at.

Operator: Welcome to SurgePays 2nd Quarter 2024 Earnings Conference Call. At this time, all participants are in listening mode. A question and answer session will follow the former presentation. If you wish to ask a question on today's call, please press star one on your phone at any time. That's star one if you wish to ask a question on today's call. If anyone should acquire operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded.

Speaker Change: At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Operator: A question and answer session will follow the former president. If you wish to ask a question during today's call, please press star 1 on your phone. Star One if you wish to ask a question on today's program. If anyone should require operator assistance during the conference, please press star zero on your telephone. Please note this conference is being recorded. I will now turn the conference over to your host, Doug Lane, Investor Relations at Citigroup. Doug, you may be.

Speaker Change: If you wish to ask a question on todays call. Please press star one on your phone at any time.

Speaker Change: The star one if you wish to ask a question on today's call.

Speaker Change: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded.

Doug Lane: I will now turn the conference over to your host, Doug Lane, Investor Relations at SurgePays.

Speaker Change: I will now turn the conference over to your host Doug Lane Investor Relations at search base, Doug you may begin.

Doug Lane: Doug, you may begin. Thank you, operator, and good afternoon, everyone.

Doug Lane: Thank you, operator. Good afternoon, everyone. Welcome to the SurgePays second quarter 2024 earnings webcast and conference call. Today's date is August 13, 2024. And on the call today from SurgePays are Brian Cox, President and Chief Executive Officer, and Tony Evers, Chief Financial Officer. 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 certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statement.

Doug Lane: Thank you operator, good afternoon, everyone welcome to the surge pay second quarter 2024 earnings webcast and conference call. Today's date is August 13, 2024, and on the call today from search pays or Bryan Cox, President and Chief Executive Officer, and Tony Ebers Chiefs.

Doug Lane: Welcome to the SurgePays 2nd quarter 2024 earnings webcast and conference call.

Doug Lane: Today's date is August 13th, 2024, and on the call today from SurgePays are Brian Cox, President and Chief Executive Officer, and Tony Evers, Chief Financial Officer. 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 certain risks and uncertainties that could cause actual results to be different materially from those expressed in the forward-looking statements. For discussion of such risks and uncertainties, please see SurgePays' most recent filings with the SEC. 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.

Speaker Change: Natural officer.

Doug Lane: For a discussion of such risks and uncertainties, please see SurgePays' most recent filings with the SEC. 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. 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 June 30, 2024 will also be available on its Investor Relations website. And now I'd like to turn the call over to President and Chief Executive Officer Brian Cox. Thanks, Doug.

Speaker Change: 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 certain 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.

Speaker Change: And uncertainties. Please see surge pays most recent filings with the SEC 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.

Doug Lane: Copies of today's press release are accessible on SurgePays and Investor Relations website, ir.surgepays.com.

Speaker Change: Copies of today's press release are accessible and surge pays investor relations website, IR dot surge pays dot com. In addition surge based Form 10-Q for the quarter ended June 32024 will also be available on the search page Investor Relations website, and now I'd like to turn the call over to President and Chief Executive Office.

Brian Cox: In addition, SurgePays' form 10-Q for the quarter ended June 30th, 2024, will also be available on SurgePays' and Investor Relations' website, and now I'd like to turn the call over to President and Chief Executive Officer Brian Cox.

Brian Cox: Brian Cox.

Brian Cox: Thanks, Doug. Thank you for joining today's call and your continued interest in SurgePays. I want to start by reiterating our unwavering commitment to providing financial technology and prepaid wireless services to the underbanked and underserved populations at the grassroots level where they live and shop. This commitment is at the core of our mission and guides all of our actions. Over the past few years, we have successfully acquired over 250,000 subscribers to our mobile virtual network operators or MVNO business, which at its peak accounted for over 90% of our consolidated sales. This was made possible by offering plans subsidized by the federally funded Affordable Connectivity Program, or ACP.

Brian Cox: Thank you for joining today's call and your continued interest in SurgePays. I want to start by reiterating our unwavering commitment to providing financial technology and prepaid wireless services to the underbanked and underserved populations at the grassroots level where they live and shop. This commitment is at the core of our mission and guides all of our actions. Over the past few years, we have successfully acquired over 250,000 subscribers to our Mobile Virtual Network Operators, or MVNO, business, which at its peak accounted for over 90% of our consolidated sales.

Brian Cox: Thanks, Doug.

Brian Cox: <unk> you for joining today's call and your continued interest in search base.

Brian Cox: I want to start by reiterating our unwavering commitment to providing financial technology and prepaid wireless services to the Underbanked and underserved populations at the grassroots level, where they live and shop. This.

Brian Cox: This commitment is at the core of our mission and guides all of our actions.

Brian Cox: Over the past few years, we have successfully acquired over 250000 subscribers to our mobile virtual network operators or <unk> business, which at its peak accounted for over 90% of our consolidated sales.

Brian Cox: This was made possible by offering plans subsidized by the federally funded Affordable Connectivity Program, or ACP. However, we were aware that this program's funding could run out in the first half of this year, which it did. However, the uncertainty lay in whether Congress would authorize additional funding for the program, which, unfortunately, as of this date, has not happened.

Brian Cox: This was made possible by offering plans subsidized by the federally funded affordable connectivity program or ACP.

Brian Cox: We were aware that this program's funding could run out in the first half of this year, which it did. However, the uncertainty lay in whether Congress would authorize additional funding for the program, which, unfortunately, as of this date, did not happen. We want to ensure you we are fully informed about the challenges we face. But, as said on the last call, we could no longer wait around to find out.

We were aware that this program's funding could run out in the first half of this year, which it did.

Brian Cox: However, the uncertainty Lei and whether Congress would authorize additional funding for the program, which unfortunately as of this date did not happen.

Brian Cox: We want to ensure you we are fully informed about the challenges we face. But, as I said on the last call, we can no longer wait around to find out. We had contingencies and had already begun implementing our non-subsidized MV&O business, LinkUp Mobile, which was launched in early June. We aim to offer our subscribers the option to remain on a free monthly plan subsidized by a sister subsidy program or transition them over to LinkUp Mobile, which we price to be attractive to our target customers. We also hired Joe Gomez, a senior telecommunications industry executive, for the newly created position of Vice President of MV&O Operations.

Brian Cox: We want to ensure you were fully informed about the challenges we face.

Brian Cox: But as said on the last call, we can no longer wait around to find out.

Brian Cox: We had contingencies and had already begun implementing non-subsidized Imbino business link up mobile, which was launched in early June. We aim to offer our subscribers the option to remain on a free monthly plan subsidized by a sister subsidy program or transition them over to Link Up Mobile, which we price to be attractive to our target customer. We also hired Joe Gomez, a senior telecommunications industry executive for the newly created position of Vice President of Imbino operations. Joe spent over 18 years at AT&T and brings a wealth of experience to the team. He is charged with helping to develop innovative products and services for the value market segment, where we believe our competitive position is enhanced in a non-subsidized market environment.

Brian Cox: We had contingencies and had already begun implementing non subsidized in D&O business Linkup mobile, which was launched in early June.

Brian Cox: We aim to offer our subscribers the option to remain on a free monthly plan subsidized by sister subsidy program or transition them over to link up mobile, which we price to be attractive to our target customer.

Brian Cox: We also hired Joe Gomes, a senior telecommunications industry executive for the newly created position of Vice President of M. D&O operations.

Brian Cox: Joe spent over 18 years at AT&T and brings a wealth of experience to the team. He is charged with helping to develop innovative products and services for the value market segment, where we believe our competitive position is enhanced in a non-subsidized market environment. Stay tuned for further developments to come in our ongoing efforts to build out our prepaid wireless MV&O business. In the meantime, we're going through a transition phase in the business.

Speaker Change: Joe spent over 18 years at AT&T and brings a wealth of experience to the team.

Speaker Change: He is charged with helping to develop innovative products and services for the value market segment, where we believe our competitive position is enhanced in a non subsidized market environment.

Brian Cox: Stay tuned for further developments to come in our ongoing efforts to build out our prepaid wireless imbino business. In the meantime, we are going through a transition phase in the business. It would have been an easy, those short-sighted decision to let our subscribers go once the ACP funding ran out. That's losing sight of the fact that we now have an existing subscriber base of 250,000 customers. Not to mention a distribution network of thousands of local convenience stores and bodegas where our customers shop every day. Those are huge and valuable assets. Therefore, to hold on to these valuable assets during this transition period, we chose to keep our subscribers active, absorb the wholesale costs, and put our strong balance sheet to work to replace the cash flow we lost once ACP funding ran out.

Speaker Change: Stay tuned for further developments to come and our ongoing efforts to build out our prepaid wireless immuno business.

Speaker Change: In the meantime, we are going through a transition phase in the business.

Brian Cox: It would have been an easy though short-sighted decision to let our subscribers go once the ACP funding ran out. But that's losing sight of the fact that we now have an existing subscriber base of 250,000 customers, not to mention a distribution network of thousands of local convenience stores and bodegas where our customers shop every day. Those are huge and valuable assets. Therefore, to hold on to these valuable assets during this transition period, we chose to keep our subscribers active, absorb the wholesale costs, and put our strong balance sheet to work to replace the cash flow we lost once ACP funding ran out. But rest assured; this is only temporary.

Speaker Change: It would have been an easy those short sided decision to let our subscribers go once the ACP funding ran out.

Speaker Change: That's losing sight of the fact that we now have an existing subscriber base of 250000 customers not to mention a distribution network of thousands of local convenience stores and bodegas, where our customers shop everyday.

Speaker Change: Those are huge and valuable assets.

Therefore to hold on to these valuable assets. During this transition period, we chose to keep our subscribers active absorbed the wholesale costs and put our strong balance sheet to work to replace the cash flow. We lost once ACP funding ran out.

Brian Cox: But rest assured, this is only temporary. We do not like talking about cash burn rates around here, and we plan to put that in the review mirror by the time we close the year in December. So, in looking at the second quarter, 2024 results, our sales were 15.1 million, compared to 35.9 million in the year-ago quarter, which we're about as expected with the ACP program winding down mid-quarter and Congress declining to provide it with new funding, at least as of yet. Our imbino revenues were 12.5 million versus 30.2 million in the same quarter of last year when ACP was fully funded throughout the quarter.

Speaker Change: But rest assured this is only temporary.

Brian Cox: We do not like talking about cash burn rates around here, and we plan to put that in the rearview mirror by the time we close out the year in December. So in looking at the second quarter 2024 results, our sales were 15.1 million compared to 35.9 million in the year-ago quarter, which was about as expected with the ACP program winding down mid-quarter and Congress declining to provide it with new funding, at least as of yet. Our MB&O revenues were $12.5 million versus $30.2 million in the same quarter of last year when ACP was fully funded throughout the quarter.

Speaker Change: We do not like talking about cash burn rates around here and we plan to put that in the rearview mirror by the time, we closed the year in December.

Brian Cox: Also impacting sales were the operational changes made by management in SurgeLogic's lead generation service, which had 2.8 million in sales a year ago quarter but did not contribute sales this quarter. What was not expected in our planning coming into 2024 was that the second quarter gross profits would be a loss of $3.4 million versus a $10 million profit the year ago quarter. This was due to the double whammy of Congress letting the original ACP funding run out and not immediately renewing the program, coupled with our decision to have our balance sheet take on the funding to maintain continuity within our subscriber base. But why would we continue to provide wireless services and absorb the cost? For three main reasons.

Speaker Change: So in looking at the second quarter 2024 results, our sales were $15 1 million compared to $35 9 million in the year ago quarter, which were about as expected with the ACP program winding down mid quarter and Congress declining to provided with new funding at least as of yet.

Operator: Greetings.

Operator: Welcome to SurgePays 2nd Quarter 2024 Earnings Conference Call. At this time all participants are in listening mode. A question and answer session will follow the former presentation. If you wish to ask a question on today's call please press star one on your phone at any time. That's star one if you wish to ask a question on today's call. If anyone should acquire operator assistance during the conference please press star zero on your telephone keypad. Please note this conference is being recorded.

Speaker Change: Our M D N O revenues were $12 5 million versus $30 2 million in the same quarter of last year. When ACP was fully funded throughout the quarter.

Brian Cox: Also impacting sales were the operational changes made by management in Surge Logics lead generation services, which had 2.8 million in sales a year ago quarter, but did not contribute sales this quarter. What was not expected in our planning coming into 2024 was that the second quarter gross profits would be a loss of 3.4 million versus a 10 million profit the year-ago quarter. This was due to the double whammy of Congress letting the original ACP funding run out, and not immediately renewing the program, coupled with our decision to have our balance sheet take on the funding to maintain continuity within our subscriber. So why would we continue to provide wireless services and absorb the costs?

Speaker Change: Also impacting sales where the operational changes made by management in surge logics lead generation services, which had $2 8 million in sales a year ago quarter, but did not contribute sales this quarter.

Doug Lane: I will now turn the conference over to your host Doug Lane, Investor Relations at SurgePays. Doug, you may begin. Thank you operator and good afternoon everyone. Welcome to the SurgePays 2nd Quarter 2024 Earnings Webcast and Conference Call. Today's date is August 13th 2024 and on the call today from SurgePays of Brian Cox, President and Chief Executive Officer and Tony Evers, Chief Financial Officer. 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.

Speaker Change: What was not expected in our planning coming into 2024 was the second quarter gross profit would be a loss of $3 4 million versus a $10 million profit the year ago quarter.

Speaker Change: This was due to the double whammy of Congress letting the original ACP funding run out and not immediately renewing the program coupled with our decision to have our balance sheet take on the funding to maintain continuity within our subscriber base.

Doug Lane: These statements are subject to certain risks and uncertainties that could cause actual results to be different materially from those expressed in the forward-looking statements. For discussion of such risks and uncertainties please see SurgePays most recent filings with the SEC. 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.

Speaker Change: So why would we continue to provide wireless services and absorbed the costs.

Brian Cox: For three main reasons. Number one, Congress could renew the ACP program at any time. And if we terminated service, we would have to go out and reacquire customers from a standing start, which would cost tens of millions of dollars. Number two, if Congress delayed or didn't fund the program, we had as a backup plan B to acquire a company with licenses to provide a similar subsidy program to our customer base and recapture a lower but viable and sustainable recurring revenue stream. This is in conjunction with incentivizing customers to switch over to Link Up Mobile, our non-subsidized prepaid wireless brand.

Speaker Change: For three main reasons number one Congress could renew the ACP program at any time and if we terminated service we would have to go out and reacquire customers from a standing start which would cost tens of millions of dollars.

Brian Cox: Number one, Congress could renew the ACP program at any time, and if we terminated service, we would have to go out and reacquire customers from a standing start, which would cost tens of millions of dollars. Number two, if Congress delayed or didn't fund the program, we had a backup plan B to acquire a company with licenses to provide a similar subsidy program to our customer base and recapture a lower but viable and sustainable reoccurring revenue stream.

Speaker Change: Two if congress delayed or didn't fund the program, we had as a backup plan be to acquire a company with licenses to provide a similar subsidy program to our customer base and recapture a lower book viable and sustainable reoccurring revenue stream.

Unknown Executive: Copies of today's press release are accessible on SurgePays and Investor Relations website, ir.surgepays.com.

Brian Cox: In addition, SurgePays form 10Q for the quarter ended June 30th, 2024 will also be available on SurgePays and Investor Relations website and now I'd like to turn the call over to President and Chief Executive Officer Brian Cox. Thanks Doug. Thank you for joining today's call and your continued interest in SurgePays.

Brian Cox: This is in conjunction with incentivizing customers to switch over to LinkUp Mobile, our non-subsidized prepaid wireless service. Number three, we know how critical a role broadband service plays in everybody's life, and we believe it was simply the right thing to do.

Speaker Change: This is in conjunction with incentivizing customers to switch over to link up mobile our non subsidized prepaid wireless brand.

Brian Cox: Number three, we know how critical a role broadband service plays in everybody's life, and we believe it was simply the right thing to do. As we evolve, we don't want to become a more increasingly important provider of goods and services to our convenience store and bodega partners. While prepaid wireless and fintech are the main products we now provide, we look to expand our offerings to these points of distribution in the community. Since we know that our customer base of underbanked and underserved consumers conduct most of their financial transactions at their trusted local convenience store. We recognize that the delay in ACP funding has adversely impacted our business and stock price.

Speaker Change: Number three we know how critical a role broadband service plays in everybody's life and we believe it was simply the right thing to do.

Brian Cox: I want to start by reiterating our unwavering commitment to providing financial technology and prepaid wireless services to the underbanked and underserved populations at the grassroots level where they live and shop. This commitment is at the core of our mission and guides all of our actions. Over the past few years we have successfully acquired over 250,000 subscribers to our mobile virtual network operators or MBNO business, which at its peak accounted for over 90% of our consolidated sales.

Brian Cox: As we evolve, we want to become an increasingly important provider of goods and services to our convenience store and bodega partners. While prepaid wireless and fintech are the main products we now provide, we look to expand our offerings to these points of distribution in the community since we know that our customer base of underbanked and underserved consumers conduct most of their financial transactions at their trusted local convenience stores. We recognize that the delay in ACP funding has adversely impacted our business and stock price.

Speaker Change: As we evolve we don't want to become a more increasingly important provider of goods and services to our convenience store in Bodega partners.

Speaker Change: While prepaid wireless and Fintech or the main products. We now provide we look to expand our offerings to these points of distribution in the community since we know that our customer base of Underbanked and underserved consumers conduct most of their financial transactions at their trusted local convenience store.

Brian Cox: This was made possible by offering plans subsidized by the federally funded Affordable Connectivity Program or ACP. We were aware that this program's funding could run out in the first half of this year, which it did. However, the uncertainty lay in whether Congress would authorize additional funding for the program, which unfortunately as of this date did not happen. We want to ensure you, we are fully informed about the challenges we face. But as said on the last call, we could no longer wait around to find out.

Speaker Change: We recognize that the delay in ACP funding has adversely impacted our business and stock price.

Brian Cox: Therefore, we feel it's an opportunistic time to announce a corporate stock buyback, so our long-term investors know our interests are aligned. We have announced a buyback of up to $5 million of surge-based common stock in the open market over the next six months. We are in a transition phase and are looking to get back to generating positive free cash flow by the end of this year through the following initiatives. Number one, continue to grow our ACP revenue stream should Congress continue to fund it. Number two, offer our subscriber base a sister subsidy program while enticing customers with a cost-saving link-up prepaid wireless plan.

Brian Cox: Therefore, we feel it's an opportunistic time to announce a corporate stock buyback so our long-term investors know our interests are aligned. We have announced a buyback of up to $5 million of SurgePays common stock in the open market over the next six months.

Speaker Change: Therefore, we feel it's an opportunistic time to announce a corporate stock buyback. So our long term investors know our interests are aligned.

Speaker Change: We have announced a buyback of up to $5 million of search paid common stock in the open market over the next six months.

Brian Cox: We are in a transition phase and are looking to get back to generating positive, free cash flow by the end of this year through the following initiatives. Number one, continue to grow our ACP revenue stream should Congress continue to fund it. Number two, offer our subscriber base a sister subsidy program while enticing customers with a cost-saving Link Up prepaid wireless plan. Number three.

Speaker Change: We are in a transition phase and are looking to get back to generating positive.

Speaker Change: Free cash flow by the end of this year through the following initiatives.

Brian Cox: We had contingencies and had already begun implementing non-subsidized imbino business link up mobile, which was launched in early June. We aim to offer our subscribers the option to remain on a free monthly plan subsidized by a sister subsidy program or transition them over to link up mobile, which we price to be attractive to our target customer. We also hired Joe Gomez, a senior telecommunications industry executive for the newly created position of Vice President of imbino operations.

Speaker Change: Number one continue to grow our ACP revenue stream should Congress continue to fund it.

Speaker Change: <unk> two <unk>.

Speaker Change: Our subscriber base, a sister subsidy program, while enticing customers with a cost saving linkup prepaid wireless plan.

Brian Cox: Number three, scaling up our third party wholesale transactions for other prepaid wireless company payments at convenience stores. This initiative has been necessary because it's a relationship gateway product or link up activations and subscriber growth at the convenience store. Number four, expand our offerings outside of wireless. For instance, we recently launched our clear-line customer engagement platform for convenience stores at last month's Retail Now conference in Las Vegas. Number five, expand the product and service offerings to the same nationwide network of convenience stores we are building by exploring and executing prospective partnering or product distribution opportunities. Number six, identify unique market opportunities that represent potential positive short-term cash flow.

Speaker Change: Number three.

Brian Cox: Scaling Up Our Third-Party Wholesale Transactions for Other Prepaid Wireless Company Payments at Convenience Stores. This initiative has been necessary because it's a relationship gateway product for link-up activations and subscriber growth at convenience stores. Number four, expand our offerings outside of wireless. For instance, we recently launched our Clear Line customer engagement platform for convenience stores at last month's Retail Now conference in Las Vegas. Number five, expand product and service offerings to the same nationwide network of convenience stores we are building by exploring and executing potential partnering or product distribution opportunities.

Speaker Change: Scaling up our third party wholesale transactions for other prepaid wireless company payments at convenience stores.

Speaker Change: This initiative has been necessary.

Speaker Change: It's a relationship gateway product or linkup, activations and subscriber growth at the convenience store.

Brian Cox: Joe spent over 18 years at AT&T and brings a wealth of experience to the team. He is charged with helping to develop innovative products and services for the value market segment, where we believe our competitive position is enhanced in a non-subsidized market environment. Stay tuned for further developments to come in our ongoing efforts to build out our prepaid wireless imbino business. In the meantime, we are going through a transition phase in the business.

Speaker Change: Number four expand our offerings outside of wireless for instance, we recently launched our clear line customer engagement platform for convenience stores at last month's retail now conference in Las Vegas.

Speaker Change: Number five.

Speaker Change: Expanded product and service offerings to the same nationwide network of convenient stores, we are building.

Speaker Change: Exploring and executing perspective, partnering or product distribution opportunities.

Brian Cox: Number six, identify unique market opportunities that represent potential positive short-term cash flow. As I said at the outset, we knew that the ACP funding could run out, and we were not waiting around for Congress to provide additional funding.

Brian Cox: It would have been an easy, those short-sighted decision to let our subscribers go once the ACP funding ran out. That's losing sight of the fact that we now have an existing subscriber base of 250,000 customers. Not to mention a distribution network of thousands of local convenience stores and bodegas where our customers shop every day. Those are huge and valuable assets. Therefore, to hold on to these valuable assets during this transition period, we chose to keep our subscribers active, absorb the wholesale costs, and put our strong balance sheet to work to replace the cash flow we lost once ACP funding ran out.

Speaker Change: Number six identify unique market opportunities that represent potential positive short term cash flow.

Brian Cox: As I said at the outset, we knew that the ACP funding could run out, and we were not waiting around for Congress to provide additional funding. Many initiatives are underway to expand surge-based footprint among the underbank and underserved who remain our key customer. Stay tuned for more news on this front as we move into the back half of 2024.

Speaker Change: As I said at the outset.

We knew that the ACP funding could run out and we were not waiting around for Congress to provide additional funding.

Brian Cox: Many initiatives are underway to expand SurgePay's footprint among the underbanked and underserved who remain our key customers. Stay tuned for more news on this front as we move into the back half of 2024. I'll turn the call over to Tony to review our financial results before summarizing today's call.

Speaker Change: Many initiatives are underway to expand search page footprint, among the underbanked and underserved who remain our key customers.

Speaker Change: Stay tuned for more news on this front as we move into the back half of 2024.

Tony Evers: I'll turn the call over to Tony to review our financial results before summarizing today's call.

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

Tony Evers: Tony, thank you, Brian, and good afternoon, everyone. I will begin my overview of the second quarter's financial results. For the second quarter, we reported revenues of 15.1 million compared to 35.9 million in 2023, representing a decrease of 58%. The decrease was primarily due to the lack of additional federal funding for the ACP. April was the last month that ACP households received the full ACP benefit as they had in prior months. Some ACP households received a partial benefit in May, and effective June 1st, households were no longer receiving an ACP benefit. Additionally, similar to the first quarter, we received no revenues from our lead generation services consisting of Logics IQ and Q2 of 2024 versus a 2.8 million received in Q2 of 2023.

Tony Evers: Thank you, Brian, and good afternoon, everyone. I will begin my overview of the second quarter's financial results. For the second quarter, we reported revenues of $15.1 million, compared to $35.9 million in the second quarter of 2023, representing a decrease of 58%. The decrease was primarily due to the lack of additional federal funding for the ACP.

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

Tony Evers: April was the last month that ACP households received the full ACP benefit as they had in prior months. Some ACP households received a partial benefit in May, and effective June 1st, they were no longer receiving an ACP benefit. Additionally, similar to the first quarter, we received no revenues from our lead generation services consisting of Logix IQ and Q2 of 2024 versus 2.8 million received in Q2 of 2023. This was a result of operational changes by management.

Brian Cox: But rest assured, this is only temporary. We do not like talking about cash burn rates around here, and we plan to put that in the review mirror by the time we close the year in December. So, in looking at the second quarter, 2024 results, our sales were 15.1 million, compared to 35.9 million in the year ago quarter, which we're about as expected with the ACP program winding down mid-quarter and Congress declining to provide it with new funding, at least as of yet.

Tony: For the second quarter, we reported revenues of $15 1 million compared to $35 9 million in 2023, representing.

Tony: Representing a decrease of 58% the decrease was primarily due to the lack of additional federal funding for the ACP.

Tony: April was the last months that ACP households received the full ACP benefit as they had in prior months.

Tony: ACP households received a partial benefit in may and.

Tony: And effective June one household we're no longer receiving an ACP benefit.

Brian Cox: Our imbino revenues were 12.5 million versus 30.2 million in the same quarter of last year when ACP was fully funded throughout the quarter. Also impacting sales were the operational changes made by management in surge logics lead generation services, which had 2.8 million in sales a year ago quarter, but did not contribute sales this quarter. What was not expected in our planning coming into 2024 was that the second quarter gross profits would be a loss of 3.4 million versus a 10 million profit the year ago quarter.

Speaker Change: Additionally, similar to the first quarter, we received no revenues from our lead generation services, consisting of logics IQ in Q2 of 2024 versus $2 8 million received in Q2 of 2023. This was a result of operational changes by management.

Tony Evers: This was a result of operational changes by management.

Tony Evers: Growth profits swung to a 3.4 million loss in the second quarter from a $10 million profit in the year ago period due to our strategic decision to utilize our strong balance sheet to protect our ACP subscriber base and distribution network well each transition over to a non-subdued MVNO business model. Additionally, the de-emphasis of our lead generation business resulted in a lower gross profits in that segment as well. SG&A expenses increased by 101 percent year over year. The increase was primarily due to additional non-cash dot compensation for management. The stock compensation relates to employment agreements signed in late 2023.

Tony Evers: Gross profits swung to a $3.4 million loss in the second quarter from a $10 million profit in the year-ago period due to our strategic decision to utilize our strong balance sheet to protect our ACP subscriber base and distribution network while we transition over to a non-subsidized MVNO business model. Additionally, the de-emphasis of our lead generation business resulted in lower gross profits in that segment as well. SG&A expenses increased by 101% year over year.

Speaker Change: Gross profit swung to a $3 4 million loss in the second quarter from a $10 million profit in the year ago period due to our strategic decision to utilize our strong balance sheet to protect our ACP subscriber base and distribution network, while we transition over to a non subsidized <unk> business model. Additionally, the de emphasis of our.

Brian Cox: This was due to the double whammy of Congress letting the original ACP funding run out, and not immediately renewing the program, coupled with our decision to have our balance sheet take on the funding to maintain continuity within our subscriber So why would we continue to provide wireless services and absorb the costs?

Speaker Change: Our lead generation business resulted in a lower gross profits in that segment as well.

Tony Evers: The increase was primarily due to additional non-cash stock compensation for management. The stock compensation relates to employment agreements signed in late 2023. We also had additional expenses for contractors and consulting. The company engaged several contractors to overhaul the financial platform to allow for the conversion to a tablet-based transaction at the store level from the outdated Verifone terminal. The company also engages consultants to provide advisory services specifically in the area of investment relations to identify opportunities to increase shareholder value.

Speaker Change: SG&A expenses increased by 101% year over year increase was primarily due to additional noncash stock compensation for management the stock compensation relates to employment agreement signed in late 2023.

Tony Evers: We also had additional expenses for contractor and consulting fees. The company engaged several contractors to overhaul the financial platform to allow for the conversion to a tablet-based transaction at the store level from the outdated telephone terminal. The company also engaged with consultants to provide advisory services specifically in the area of investment relations to identify opportunities to increase our shareholder value.

Brian Cox: For three main reasons. Number one, Congress could renew the ACP program at any time. And if we terminated service, we would have to go out and reacquire customers from a standing start, which would cost tens of millions of dollars. Number two, if Congress delayed or didn't fund the program, we had as a backup plan B to acquire a company with licenses to provide a similar subsidy program to our customer base and recapture a lower but viable and sustainable reoccurring revenue stream.

Speaker Change: Also had additional expenses for contractor and consulting fees.

Speaker Change: <unk> engaged several contractors to overhaul the financial platform to allow for the conversion to a tablet based transaction at the store level from the outdated Verifone terminal.

Speaker Change: The company also engage with consultants to provide advisory services, specifically in the area of investment relations to identify opportunities to increase our shareholder value.

Tony Evers: Loss from operations was $10.9 million during the second quarter compared to a $6.2 million profit in a year-ago period. Our reported net loss and loss per share were $12.9 million loss and $0.66 cents per share loss. Our loss and loss per share were adversely impacted primarily by the ending of the federally funded ACP for our customers during the quarter.

Tony Evers: Loss from operations was 10.9 million during the second quarter compared to a 6.2 million profit in the year-ago period. The reported net loss and loss per share were 12.9 million and 66 cents per share respectively.

Speaker Change: Loss from operations was $10 9 million during the second quarter compared to a $6 2 million profit in a year ago period.

Brian Cox: This is in conjunction with incentivizing customers to switch over to link up mobile, our non subsidized repaid wireless brand. Number three, we know how critical a role broadband service plays in everybody's life, and we believe it was simply the right thing to do. As we evolve, we don't want to become a more increasingly important provider of goods and services to our convenience store and bodega partners. While prepaid wireless and fintech are the main products we now provide, we look to expand our offerings to these points of distribution in the community.

Speaker Change: Our reported net loss and loss per share were $12 9 million loss.

Speaker Change: And 66.

Speaker Change: <unk> per share loss.

Tony Evers: Our loss and loss per share were adversely impacted primarily by the ending of the federally funded ACP for our customers during the quarter. Turning to balance sheet liquidity and cash flow, our cash balance as of June 30, 2024 was $38.4 million compared to $42.9 million at the end of the first quarter. Our cash from operations was 4.1 million use in the second quarter versus a 4.0 million source in the first quarter, a large negative swing due to the winding down of the federal ACP funding to our customers during the quarter, which we picked up and funded with our cash on hand. Accounts receivable decreased by $6.9 million in the second quarter to $1.4 million from $8.3 million at the end of the first quarter.

Speaker Change: Our loss and loss per share were adversely impacted primarily by the ending of the federally funded ACP for our customers during the quarter.

Tony Evers: Turning to the balance sheet liquidity in cash flow. Our cash balance as of June 30, 2024, was $38.4 million compared to $42.9 million at the end of the first quarter. Our cash from operations was $4.1 million use in the second quarter versus a $4.0 million source in the first quarter. A large negative swing due to the winding down of the federal ACP funding to our customers during the quarter, which we picked up and funded with our cash on hand. Accounts receivable decreased by $6.9 million in the second quarter to $1.4 million from $8.3 million at the end of the first quarter.

Speaker Change: Turning to the balance sheet liquidity and cash flow our cash balance as of June 32024 was $38 4 million compared to $42 9 million at the end of the first quarter.

Our cash from operations was $4 1 million use in the second quarter versus a 4.0 million source in the first quarter, a large negative swing due to the winding down of the federal ECB funding to our customers during the quarter, which we picked up and funded with our cash on hand.

Brian Cox: Since we know that our customer base of underbanked and underserved consumers conduct most of their financial transactions at their trusted local convenience store. We recognize that the delay in ACP funding has adversely impacted our business and stock price.

Speaker Change: Accounts receivable decreased by $6 9 million in the second quarter to a $1 4 million from $8 3 million at the end of the first quarter.

Brian Cox: Therefore, we feel it's an opportunistic time to announce a corporate stock buyback, so our long-term investors know our interests are aligned. We have announced a buyback of up to $5 million of surge-based common stock in the open market over the next six months.

Tony Evers: The ACP stopped accepting new subscribers in February of 2024, resulting in much lower receivables from the U.S. government. Given our cash balance and capital structure, our cash allocation priority is in financing the transition from a federally subsidized MVO model to a one fully funded buyer customers.

Brian Cox: The ACP stopped accepting new subscribers in February of 2024, resulting in much lower receivables from the US government. Given our cash balance and capital structure, our cash allocation priority is to finance the transition from a federally subsidized MBO model to one fully funded by our customer. I will now pass the call back to Brian for some closing remarks. Thanks, Tony. I believe the four key components to a company's success are the team, the products, the distribution, and the funding.

Speaker Change: The ACP stopped accepting new subscribers in February of 2024, resulting in much lower receivables from the U S government.

Speaker Change: Given our cash balance and capital structure, our cash allocation priority is in financing you then transition from a federally subsidized MPL model 'twenty one fully funded by our customers I will now pass the call back to Brian for some closing remarks.

Brian Cox: We are in a transition phase and are looking to get back to generating positive free cash flow by the end of this year through the following initiatives. Number one, continue to grow our ACP revenue stream should Congress continue to fund it. Number two, offer our subscriber base a sister subsidy program while enticing customers with a cost saving link up prepaid wireless plan. Number three, scaling up our third party wholesale transactions for other prepaid wireless company payments at convenience stores.

Brian Cox: That will now pass the call back to Brian for some closing remarks. Thanks, Tony. I believe the four key components to a company's success are the team, the products, the distribution, and the funding. I believe we have assembled the best and most experienced team in the history of prepaid wireless products. We currently have the most compelling offering in our market. We own our own distribution and have 38 million cash in the bank as of June 30, 2024 to execute our transition. I believe SurgePays has the foundation for long-term success despite the short-term disruption caused by the ACP funding situation.

Brian Cox: Thanks, Tony.

Brian Cox: I believe the four key components to our company's success or the team the products the distribution and the funding.

Brian Cox: I believe we have assembled the best and most experienced team in the history of prepaid wireless products. We currently have the most compelling offering in our market. We own our own distribution and have 38 million cash in the bank as of June 30, 2024 to execute our transition. I believe SurgePays has the foundation for long-term success, despite the short-term disruption caused by the ACP funding situation. Thank you so much for your time today.

Brian Cox: I believe we have assembled the best and most experienced team in the history of prepaid wireless products.

Brian Cox: We currently have the most compelling offering in our market.

Brian Cox: We own our own distribution and have $38 million cash in the bank as of June 32024 to execute our transition.

Brian Cox: This initiative has been necessary because it's a relationship gateway product or link up activations and subscriber growth at the convenience store. Number four, expand our offerings outside of wireless. For instance, we recently launched our clear-line customer engagement platform for convenience stores at last month's retail now conference in Las Vegas. Number five, expand the product and service offerings to the same nationwide network of convenience stores we are building by exploring and executing prospective partnering or product distribution opportunities.

Brian Cox: I believe <unk> has the foundation for long term success. Despite the short term disruption caused by the ACP funding situation.

Doug Lane: Thank you so much for your time today. We will now open up the call to questions.

Operator: We will now open up the call to questions. Operator. Thank you. If you would like to ask a question, please press star 1 on your telephone keyboard. A confirmation tone will indicate your line is in the question. You may press star two if you would like to remove your question.

Speaker Change: So much for your time today, we will now open up the call to questions operator.

Operator: Operator? Thank you. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

Speaker Change: Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue you.

Speaker Change: You May press star two if he would like to remove your question from the queue.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment, please, while we... The first question today is coming from Anya Cederstrom from Siddilti. Anya, your line is live, taking my questions. First, of course, how optimistic are you that that's going to be refunded and do you have any sort of idea and a timeline there? Hey, Anya, thanks for the question. I tell you, it's been a week to week feedback scenario for us. I think our optimism wanes as time goes on. I mean, I'm just being blunt.

Brian Cox: Number six, identify unique market opportunities that represent potential positive short-term cash flow. As I said at the outset, we knew that the ACP funding could run out and we were not waiting around for Congress to provide additional funding. Many initiatives are underway to expand surge-based footprint among the underbank and underserved who remain our key customer.

Speaker Change: For participants using speaker equipment that may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Anya Saiders: And the first question today is coming from Anya Saiders from Siddhoti. Anya, your line is live.

Anya <unk>: And the first question today is coming from Anya <unk> from from Sidoti Your line is live.

Anya Saiders: Hi. Thank you for taking my questions.

Anya <unk>: Alright, Thank you for taking my questions.

Anya Saiders: First, of course, the ACP. What are you, how optimistic are you that that's going to be refunded, and do you have any sort of idea of any timeline there?

Anya <unk>: First of course the ACP.

How optimistic are you that that.

Brian Cox: Stay tuned for more news on this front as we move into the back half of 2024.

Anya <unk>: It's going to be refunded and do you have any sort of.

Speaker Change: Any timeline there.

Brian Cox: Hey, Anya, thanks for the question. I tell you, it's been a week-to-week feedback scenario for us. I think our optimism wanes as time goes on. I mean, just being blunt.

Brian Cox: We had internally set a date of August 1st to take action, you know, and assume internally that if the ACP comes back, great. If it doesn't, you know, it's beyond that. Let's just call it the threshold that we'd set for ourselves to take and move to transition to Plan B. We are still told that there are actions taking place in the halls of Congress. We are still told that most people, even the folks who were negative about the program, are now very positive about it, especially since J.D. Vance on the Republican side of the Vice President pick.

Tony Evers: I'll turn the call over to Tony to review our financial results before summarizing today's call.

Speaker Change: Hi, yes, thanks for the question.

Speaker Change: I would tell you it's been a week to week feedback scenario for US I think our optimism wanes as time goes on I mean, just being blunt.

Tony Evers: Tony, thank you Brian and good afternoon everyone. I will begin my overview of the second quarter's financial results. For the second quarter we reported revenues of 15.1 million compared to 35.9 million in 2023, representing a decrease of 58%. The decrease was primarily due to the lack of additional federal funding for the ACP. April was the last month that ACP households received the full ACP benefit as they had in prior months. Some ACP households received a partial benefit in May and effective June 1st households were no longer receiving an ACP benefit.

Brian Cox: We had internally set a date of August 1st to take action, you know, and assume internally if ACP comes back, great; if it doesn't, you know, it's beyond that. This is called the threshold that we've set for ourselves to take and move to transition to plan B. We are still told that there are actions taking place in the halls of Congress. We are still told that most people, even the folks who were negative about the program, now are very positive about it, especially since JD Vance, on the Republican side of the Vice President pick, you know, and he was a huge advocate of the program.

Speaker Change: We have internally set a date of August 1st to take action.

Speaker Change: Assume internally if ACP comes back great. If it doesn't you know it's beyond that let's just call. It the threshold that we had set for ourselves to take and move to transition to plan B.

Speaker Change: We are still told that there are <unk>.

Speaker Change: Actions, taking place in the halls of Congress, we are still told that most people even the folks who were negative about the programme now are very positive about it, especially since J D. Vance on the Republican side as the Vice President.

Tony Evers: Additionally, similar to the first quarter, we received no revenues from our lead generation services consisting of logics IQ and Q2 of 2024 versus a 2.8 million received in Q2 of 2023. This was a result of operational changes by management. Growth profits swung to a 3.4 million loss in the second quarter from a $10 million profit in the year ago period due to our strategic decision to utilize our strong balance sheet to protect our ACP subscriber base and distribution network well each transition over to a non-subdued MVNO business model.

Brian Cox: You know, and he was a huge advocate of the program. But at the same time, we can't sit on our hands anymore, as we talked about earlier; we have to take action. So, we're positioning the company after a lot of talk and a lot of back and forth. You know, we want to transition these customers or offer them the ability to remain on a free service and then have that subsidized by the Lifeline program.

Speaker Change: And he was a huge advocate of the program.

Brian Cox: But at the same time, we can't sit on our hands anymore, as we talked about earlier; had to take action. So we're positioning the company after a lot of talking, a lot of back and forth. You know, we want to transition these customers or offer them the ability to remain on a free service and then have that subsidized by the Lifeline program. But for those that want to keep it, let's call it a heavier broadband bandwidth, you know, more gigabytes per month, more accustomed to a regular wireless plan that would have a much larger, let's call it more like a regular plan, 30 or 40 or $50 plan in the prepaid world, offer those folks a discounted Link-Up Mobile plan that they could transition to.

Speaker Change: But at the same time, we can't sit on our hands anymore. As we talked about earlier had to take action. So we're we're positioning the company after a lot of talk and a lot of back and forth.

Brian Cox: But for those that want to keep a, let's call it a heavier broadband bandwidth, you know, more gigabytes per month, more accustomed to a regular wireless plan that would have a much larger, let's call it more like a regular plan 30 or 40 or $50 plan in the prepaid world, offer those folks a discounted Link Up mobile plan that they could transition to. So if they needed help, they could stay on the lifeline, the free service; if they wanted to have something more similar to ACP and that service, then they could start paying for it.

We want to transition these customers are offer them the ability to remain on a free service.

Speaker Change: And then have that subsidized by the lifeline program.

Speaker Change: But for those that want to keep the let's call it a heavier.

Tony Evers: Additionally, the de-emphasis of our lead generation business resulted in a lower gross profits in that segment as well. SGNA expenses increased by 101 percent year over year. The increase was primarily due to additional non-cash dot compensation for management. The stock compensation relates to employment agreements signed in late 2023. We also had additional expenses for contractor and consulting fees. The company engaged several contractors to overhaul the financial platform to allow for the conversion to a tablet-based transaction at the store level from the outdated telephone terminal.

Speaker Change: <unk> band bandwidth more gigabytes per month more accustomed to our regular wireless plan that would have.

Speaker Change: A much larger let's call them more like a regular planned 30 or 40 or $50 plan.

Speaker Change: Prepaid world offer those folks a discounted linkup mobile plan that they get transitioned to so if they needed the help they can stay on the lifelock the free service.

Brian Cox: So if they needed the help, they could stay on the Lifeline, the free service. If they wanted to have something more similar to ACP and that service, then they could start paying for it.

Speaker Change: They wanted to have something more similar to ACP and that service then they can start paying for it.

Anya Saiders: And she's having the sort of initial read on who's going to opt for the Lifeline Program is going to opt for the Link Up mobile. My instincts would tell me that the majority of folks want something as free. They're going to maintain and stick with the free program, and then it would be over the course of, let's say, three to four months.

Brian Cox: And do you have any sort of initial read on who's going to opt for the Lifeline program or the LinkUp mobile? My instincts would tell me that the majority of folks, once something is free, they're going to maintain and stick with the free program, and then, over the course of, let's say, three to four months, the transition would take place to bump to a paid plan.

Speaker Change: And do you have any is any.

Speaker Change: Shall read on.

Speaker Change: So theres going to Australia. The lifeline program is going to offer that linked up.

Tony Evers: The company also engaged with consultants to provide advisory services specifically in the area of investment relations to identify opportunities to increase our shareholder value. Loss from operations was $10.9 million during the second quarter compared to a $6.2 million profit in a year ago period. Our reported net loss and loss per share were $12.9 million loss and $0.66 cents per share loss. Our loss and loss per share were adversely impacted primarily by the ending of the federally funded ACP for our customers during the quarter.

Speaker Change: Uh huh.

Speaker Change: My Instinct would tell me that the majority of folks once something is free they're going to maintain and stick with the free program and then it would be over the course of let's say three to four months the transition would take place to bump to a paid plan.

Brian Cox: The transition would take place to bump to a paid plan. I don't think people out of the gate would opt for a paid plan until they've experienced the three plans first.

Brian Cox: I don't think people out of the gate would opt for a paid plan until they've experienced the free plan first. Okay, and then, in terms of the Clareline customer engagement platform, how are you seeing initial leads there? You know, I've spent a lot of time with our folks on the clear line side of things. I'm really happy we acquired Clairline. Just a quick, quick history lesson for those that are not familiar with ClearLine.

Speaker Change: I don't think people out of the gatewood opt for a paid plan until they've experienced the three plan first.

Anya Saiders: Okay, and then also the Clarinine customer engagement platform. What are you seeing initial read there? You know, I've spent a lot of time with our folks on the clear line side of things.

Speaker Change: Okay and.

Speaker Change: Then in terms of the airline customer engagement platform and what are you seeing initial reads there.

Tony Evers: Turning to the balance sheet liquidity in cash flow. Our cash balance as of June 30, 2024 was $38.4 million compared to $42.9 million at the end of the first quarter. Our cash from operations was $4.1 million use in the second quarter versus a $4.0 million source in the first quarter. A large negative swing due to the winding down of the federal ACP funding to our customers during the quarter, which we picked up and funded with our cash on hand.

Speaker Change: I've spent a lot of time with our folks on the clear line side of things.

Brian Cox: I'm really happy we acquired Clear Line, you know, just a quick, quick history lesson for those that are not familiar with Clear Line. The reason we acquired Clear Line was they had a really good technology that allowed us to do the ACP enrollment at convenience stores. They enabled us to. Tony had mentioned to transition away from refurbished bare phone terminals, which are the little credit card terminals with the keypad push buttons. They allowed us to transition over to touch screens, which enable people to use their finger to sign things. And obviously, a much more technologically advanced interface at the store also provides for a lot of cool things in the future, such as scanning QR codes and doing transactions, which is one of our business model, or excuse me, business plan goals in the future, is to be able to be that go-to for digital transactions at the convenience store for under bank books.

Speaker Change: I'm really happy we acquired clear line.

Speaker Change: A quick.

Speaker Change: A quick history lesson for those that are not familiar with clear line. The reason we acquired clear loan was they had a really good technology that allowed us to do the ACP enrollments at convenience stores.

Brian Cox: The reason we acquired ClearLine was they had really good technology that allowed us to do the ACP enrollments at convenience stores. They enabled us, as Tony had mentioned, to transition away from refurbished Verifone terminals, which are the little credit card terminals with the keypad push buttons. They allowed us to transition over to touchscreens, which enabled people to use their finger to sign things, and obviously a much more technologically advanced interface at the store.

Speaker Change: It enabled us to as Tony had mentioned to transition away from refurbished Verifone terminals, which are a little credit card terminals with the keypad push buttons, they allowed us to transition over to touch screens, which enable people to use their finger to sign things and obviously a much more technologically advanced.

Tony Evers: Accounts receivable decreased by $6.9 million in the second quarter to a $1.4 million from $8.3 million at the end of the first quarter. The ACP stopped accepting new subscribers in February of 2024, resulting in much lower receivables from the US government. Given our cash balance and capital structure, our cash allocation priority is in financing the transition from a federally subsidized MVO model to a one fully funded buyer customers.

Brian Cox: It also provides for a lot of cool things in the future, such as scanning QR codes and doing transactions, which is one of our business plan goals for the future, is to be able to be that go-to for digital transactions at the convenience store for underbanked folks. So ClearLine was a really good acquisition for us, but it helped us accomplish a goal that we had an immediate need. It addressed a problem for us, but the really great thing about that is that that solution also came with all of the projects that they were currently working on and were just a tad bit underfunded. They had a great team.

Speaker Change: Interface at the store.

Speaker Change: So provides for a lot of cool things in the future such as scanning QR codes and doing transactions, which is one of our business model or excuse me business plan goals in the future is to be able to be that go to for digital transactions at the convenience store front or bank books. So clear line was a really good acquisition for us, but what was.

Brian Cox: That will now pass the call back to Brian for some closing remarks. Thanks, Tony.

Brian Cox: So clear line was a really good acquisition for us, but what was it helped us, it helped us accomplish a goal that we had an immediate need to address the problem for us.

Brian Cox: I believe the four key components to a company's success are the team, the products, the distribution, and the funding. I believe we have assembled the best and most experienced team in the history of prepaid wireless products. We currently have the most compelling offering in our market. We own our own distribution and have 38 million cash in the bank as of June 30, 2024 to execute our transition.

Speaker Change: It helped us it helped us accomplish a goal that we had an immediate need to address the problem for us, but the really great thing about that is with.

Brian Cox: But the really great thing about that is, with that solution also came all of the projects that they were currently working on, and we're just a tad bit underfunded that a great team, they were almost there on quite a few projects. And we incentivized the guys to come over. We converted that entrepreneur into an entrepreneur and powered him to go focus on doing what he was great at and not have to worry about all the operational, you know, the distractions of running a business. And Nate, the gentleman who runs that for us, has rolled out some really good products.

Speaker Change: That solution also came all of the projects that they were currently working on and were just a tad bit underfunded. They had a great team. There we're almost there on quite a few projects and we incentivize the guys to come over we converted that entrepreneur into an intrapreneur.

Brian Cox: They were almost there on quite a few projects, and we incentivized the guys to come over. We converted that entrepreneur into an intrapreneur, empowered him to go focus on doing what he was great at and not have to worry about all the operational, you know, the distractions of running a business. And Nate, the gentleman who runs that for us, has rolled out some really good products. And just at a high level.

Brian Cox: I believe SurgePays has the foundation for long term success despite the short term disruption caused by the ACP funding situation.

Speaker Change: Powered him to go focus on doing what he was great at and not have to worry about all the operational.

Brian Cox: Thank you so much for your time today.

Operator: We will now open up the call to questions. Operator? Thank you.

Speaker Change: The distractions of running a business and Nate the gentleman, who runs that for US has rolled out some really good products and just at a high level.

Operator: At this time, we'll be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please while we pull for questions.

Brian Cox: And just at a high level, the goal of Clear Line is to create customer engagement at the store level, and they've got quite a few products. I don't want to take up too much time because it's a little bit; it can get off into the weeds. But, for example, you know, having a scenario where you walk into a convenience store, and by the way, over the next year or two, you're going to start seeing this at your larger chains and all the way down to the mom-and-pop's. We're instead of posters on the wall; you're going to see big screen TVs mounted, and there's going to be more dynamic advertising in these stores, and it's going to be engaging; it's not going to be just slides of pictures.

Brian Cox: The goal of Clearline is to create customer engagement at the store level, and they've got quite a few products, and I don't want to take up too much time, because it's a little bit, it can get off into the weeds. But for example, you know, having a scenario where you walk into a convenience store, and by the way, over the next year or two, you're going to start seeing this at your larger chains and all the way down to the mom and pops, where instead of posters on the wall, you're going to see big screen TVs mounted, and there's going to be more dynamic advertising in these stores.

Speaker Change: The goal of clear line is to create customer engagement at the store level and they've got quite a few products and I don't want to take up too much time, because it's a little bit it can get us into the weeds.

Speaker Change: But for example.

Speaker Change: Having a scenario where you walk into a convenience store and by the way over the next year or two youre going to start seeing this.

Anya Soderstrom: And the first question today is coming from Anya Saiders from Siddhoti. Anya, your line is live. Hi. Thank you for taking my questions. First, of course, the ACP. What are you, how optimistic are you that that's going to be refunded and do you have any sort of idea of any timeline there? Hey, Anya, thanks for the question. I tell you, it's been a week-to-week feedback scenario for us. I think our optimism wanes as time goes on. I mean, just being blunt.

Speaker Change: Your larger chains, and all the way down to the mom and Pops, where instead of posters on the wall youre going to see big screen Tvs mounted and theres going to be more dynamic advertising in these stores and.

Brian Cox: And it's going to be engaging; it's not going to be just slides of pictures; it's going to be QR codes; it's going to be things that can be tracked and redeemed right there at the register. Clearline manages that entire process.

Speaker Change: And there's going to be engaging its not going to be.

Speaker Change: Just slides of pictures is gonna be QR codes is going to be things that can be tracked and redeemed right. There at the register clear line managers that entire process and matter of fact, we're rolling that out now into several chains.

Brian Cox: It's going to be QR codes; it's going to be things that can be tracked and redeemed right there at the register. Clearline manages that entire process in our fact. We're rolling that out now in the cerebral change. I don't want to call it a beta test because we know it works, but as our initial engagement of putting it out in the market, very high margin products for us. And what's really cool about it is it's the same target market, the convenience store, and it can be another relationship builder. So that same clear line TV, if you will, over in the corner that's rolling eight to ten different ads with buy one, get one free, or what have you.

Brian Cox: As a matter of fact, we're rolling that out now in several chains. I don't want to call it a beta test because we know it works. But as our initial engagement of putting them out in the market, they are very high-margin products for us. And what's really cool about it is it's the same target market, the convenience store, and it can be another relationship builder. So that same clear line TV, if you will, over in the corner, that's running eight to 10 different ads with buy one, get one free or what have you.

Don't want to call it a beta test because we know it works, but as our initial engagement of putting that out in the market.

Brian Cox: We had internally set a date of August 1st to take action, you know, and assume internally if ACP comes back great, if it doesn't, you know, it's beyond that. This is called the threshold that we've set for ourselves to take and move to transition to plan B. We are still told that there are actions taking place in the halls of Congress. We are still told that most people, even the folks who were negative about the program now are very positive about it, especially since JD Vance on the Republican side of the Vice President Pick, you know, and he was a huge advocate of the program.

Speaker Change: Very high margin products for us.

And what's really cool about it is it's the same target market the convenience store and it can be another relationship builder.

Speaker Change: That same clear line TV, if you will over in the corner, that's rolling eight to 10 different ads with buy one get one free or what have you instead, the QR code customers can hold their smartphone up scan walk right up to the register and literally tap their phone.

Brian Cox: And it's got the QR code; customers can hold their smartphone up, scan, walk right up to the register, and literally tap their phone and then redeem that coupon in real time. That data will be sent in a really cool back office format to the store owner or the chain owner, and they'll know the impact of their in-store marketing, their hyperlocal marketing. That same system will also enable them to do our prepaid transactions, our third-party prepaid top-ups for any wireless company out there. That is a customer now. That is a point of distribution for us and all of our other products at the convenience store.

Brian Cox: And it's got the QR code; customers can hold their smartphone up, scan, walk right up to the register, and literally tap their phone and then redeem that coupon in real time. That data will be sent in a really cool back office format to the store owner or the chain owners. And they'll know the impact of their in-store marketing, their hyper-local marketing. And. That same system will also enable them to do our prepaid transactions, our third party prepaid top-ups for any wireless company out there. That same system will also allow them to do activations for link of mobile.

Speaker Change: And then redeem that coupon in real time that data will be sent in.

Speaker Change: Really cool back office format to the store owner.

Speaker Change: The chain owners and they'll know the impact of their in store marketing their hyper local marketing.

Brian Cox: But at the same time, we can't sit on our hands anymore as we talked about earlier, had to take action. So we're positioning the company after a lot of talking, a lot of back and forth. You know, we want to transition these customers or offer them the ability to remain on a free service and then have that subsidized by the Lifeline program. But for those that want to keep it, let's call it a heavier broadband bandwidth, you know, more gigabytes per month, more accustomed to a regular wireless plan that would have a much larger, let's call it more like a regular plan, 30 or 40 or $50 plan in the prepaid world, offer those folks a discounted link-up mobile plan that they could transition to.

Speaker Change: And.

Speaker Change: That same system will also enable them to do our prepaid <unk>.

Speaker Change: Transactions are third party prepaid top ups for any wireless company out there that same system will also allow them to do activations for linker mobile that is a customer now that as a point of distribution for us in all of our other products at the convenience store. So that's what's really the clear line deal again it address the problems that we had with a <unk>.

Brian Cox: So if they needed the help, they could stay on the Lifeline, the free service, if they wanted to have something more similar to ACP and that service then they could start paying for it. And she's having the sort of initial read on who's going to opt for the Lifeline Program is going to opt for the link up mobile. My instincts would tell me that the majority of folks want something as free.

Brian Cox: That is a customer now; that is a point of distribution for us and all of our other products at the convenience store. So that's what's really that the clear line deal, you know, again, it addressed a problem that we had with a solution, but it came with it with a plethora of fantastic opportunities that I'm not even sure we fully realized last year when we bought it, but now we've been able to capitalize on this.

Brian Cox: So that's what's really great about the ClearLine deal, again, it addressed a problem that we had with a solution, but it came with a plethora of fantastic opportunities that I'm not even sure we fully realized last year when we bought it, but now we've been able to capitalize on it. Okay, thank you.

Speaker Change: <unk>, but it came with it with a plethora of fantastic opportunities, but I'm not even sure we fully realized last year when we when we bought it but now we've been able to capitalize on those.

Anya Saiders: Okay, thank you.

Brian Cox: And then I'll see you talked about getting back to free cash flow positive this year. How do you envision doing that without the ACP being refunded, or how dependent are you on that coming back for you to be free cash for both? Yeah, no. I appreciate that question. The, the, the, our goal of being cash flow positive by the end of the year is assuming ACP is gone. I'm not going to do any modeling or projections or any, Even on my own spreadsheets, old school pro forma, I'm not going to factor in any ACP.

Anya Saiders: And then I'll see you talk about getting back to free cash repositive this year. How do you listen to doing that without the ACP being refunded, or how dependent are you on that coming back for you to be free cash repositive?

Speaker Change: Okay. Thank you and then also you talked about.

Speaker Change: Getting back to free cash flow positive this year.

Speaker Change: Got it.

Speaker Change: Do you envision you did that without the ACP being refunded dependent eye on that.

Speaker Change: Coming back for for you to be free cash flow positive.

Brian Cox: Yeah, no, I appreciate that question.

Speaker Change: Yes, no I appreciate that question.

Brian Cox: Our goal of being cash repositive by the end of the year is assuming ACP is gone. I'm not going to do any modeling or projections or any, even on my own spreadsheets, old school pro forma. I'm not going to factor in any ACP. I'm going to assume that's behind us. The cash flow positive by the end of the year would be taking into account transitioning those customers who want to remain on a free product over to a lifeline product. That would be the third-party wireless transactions we talked about that are really a gateway product to the store.

Speaker Change: The our goal of being cash flow positive by the end of the year is assuming ACP is gone.

Speaker Change: I'm not going to do any modeling or projections or any.

Brian Cox: They're going to maintain and stick with the free program and then it would be over the course of let's say three to four months. The transition would take place to bump to a paid plan. I don't think people out of the gate would opt for a paid plan until they've experienced the three plan first.

Brian Cox: I'm going to assume that's behind us. The cash flow positive by the end of the year would take into account transitioning those customers who want to remain on a free product over to a lifeline product. That would be the third-party wireless transactions we talked about that are really a gateway product to the store. It's the lead product to, you know, where a convenience store owner could take payments for every prepaid wireless company out there using our platform.

Speaker Change: Even though my own spreadsheets old school pro forma.

Speaker Change: Not going to factor in any ACP I'm going to assume thats behind us.

Speaker Change: The cash flow positive.

Speaker Change: At the end of the year would be taking into account transitioning those customers who want to remain on a free product over to a lifeline product.

Brian Cox: Okay, and and then also the clarinine customer engagement platform. What are you seeing initial read there? You know, I've spent a lot of time with our folks on the clear line side of things.

Speaker Change: That would be the.

Speaker Change:

Speaker Change: Third party wireless transactions, we talked about that.

Or really a gateway product to the store, it's the lead product too.

Anya Saiders: It's the lead product to where a convenience store owner could take payments for every prepaid wireless company out there using our platform. That is ramping up significantly right now. The clear line product picking in for us and then by the end of the year, link up mobile, getting traction and starting to contribute as well. Okay, thank you.

Speaker Change: We're a convenience store owner could take payments for every prepaid wireless company out there using our platform.

Brian Cox: I'm really happy we acquired clear line, you know, just a quick, quick history lesson for those that are not familiar with clear line. The reason we acquired clear line was they had a really good technology that allowed us to do the ACP enrollment at convenience stores. They enabled us to Tony had mentioned to transition away from refurbished bare phone terminals, which are the little credit card terminals with the keypad push buttons.

Speaker Change: That that is ramping up significantly right now the clear line product kicking in for US and then by the end of the year link up mobile getting it's getting traction and starting to contribute as well.

Brian Cox: That is ramping up significantly right now, with the ClearLine product picking up for us, and then by the end of the year, LinkUp Mobile getting traction and starting to contribute as well. Okay, thank you. I'll get back in queue.

Anya Saiders: I'll get back in here. Thank you.

Speaker Change: Okay. Thank you I'll get back in queue.

Speaker Change: Okay.

Operator: Thank you. The next question is coming from Curtis Shauger from Water Tower Research. Yeah, hi guys. Can you hear me?

Curtis Schroger: The next question is coming from Curtis Schroger from Water Table Research. Curtis, your line of life.

Speaker Change: Thank you. The next question. The next question is coming from Curtis Sugar from Watertown Research Curtis Your line of lives.

Brian Cox: They allowed us to transition over to touch screens, which enable people to use their finger to sign things. And obviously a much more technologically advanced interface at the store also provides for a lot of cool things in the future, such as scanning QR codes and doing transactions, which is one of our business model or excuse me, business plan goals in the future is to be able to be that go to for digital transactions at the convenience store for under bank books.

Curtis Schroger: Yeah, hi guys. Can you hear me? Yes, thank you, Curtis.

Curtis Sugar: Yeah, Hi, guys can you hear me.

Curtis Shauger: Yes. Hey, Curtis. Yeah, awesome. Thanks for taking my question. I think, you know, what usually comes to mind for me is, are there any opportunities with the carriers to help mitigate the cost that you're experiencing to keep the ACP customers alive? That's a good question.

Speaker Change: Yes, Hey, Curtis.

Curtis Schroger: Yeah, awesome.

Curtis Schroger: Thanks for taking my question. I think what comes to mind for me is: are there any opportunities with the carriers to help mitigate the costs that you're experiencing to keep the ACP customer alive?

Curtis Sugar: Awesome. Thanks for taking my question.

Speaker Change: I think.

Speaker Change: Yeah.

Speaker Change: What comes to mind.

Speaker Change: For me is are there any opportunities with the carriers to help mitigate the costs that you're experiencing keep the ACP customers alike.

Brian Cox: That's a good question. You know, and I appreciate that question because you give them an angle to discuss some of that. Some of what Tony and I in our management team has been scratching our head about the initial discounts, and let's call it maybe the cost of goods sold alleviation that the carriers were discussing. It was a lot more aggressive for a period of time back. Let's say when this first came up on the horizon in April, but they pulled a lot of it back due to their absolute certainty that ACP was going to be funded.

Brian Cox: You know, and I appreciate that question because it gives me an angle to discuss some of what Tony and I and our management team have been scratching our heads about the initial discounts. And let's call it maybe the cost of goods sold alleviation that the carriers were discussing. It was a lot more aggressive for a period of time back when this first came up on the horizon in April.

Speaker Change: That's a good question.

Brian Cox: So clear line was a really good acquisition for us, but what was it helped us, it helped us accomplish a goal that we had an immediate need to address the problem for us. But the really great thing about that is with that solution also came all of the projects that they were currently working on and we're just a tad bit underfunded that a great team, they were almost there on quite a few projects.

Speaker Change: And I appreciate that question, because you give them an angle to discuss some of that some of what Tony and I and our management team has been scratching our head about.

Speaker Change: The initial discounts and let's call. It maybe the cost of goods sold alleviation that the carriers were discussing.

Speaker Change: It was a lot more aggressive for a period of time back let's say when this first came up on the horizon in April.

Brian Cox: And we incentivized the guys to come over we converted that entrepreneur into an entrepreneur and power him to go focus on doing what he was great at and not have to worry about all the operational, you know, the distractions of running a business and Nate, the gentleman who runs that for us has rolled out some really good products. And just at a high level, the goal of clear line is to create customer engagement at the store level and they've got quite a few products and I don't want to take up too much time because it's a little bit it can get off into the weeds.

Brian Cox: But they pulled a lot of it back due to their absolute certainty that ACP was going to be funded. So it was really, I mean, we were in a whirlwind, you know; every day it was something different. It was a soap opera.

Speaker Change: But they pulled a lot of it back due to their absolute certainty that ACP is going to be funded.

Brian Cox: So it was really, I mean, we were in a whirlwind. You know, every day it was something different. It was a soap opera.

Speaker Change: So it was really I mean, we were in a whirlwind everyday with something different it was a soap opera.

Brian Cox: And so that's one reason why we finally had to put our foot down and say, hey, this is the path we're going to chart. If ACP comes back, great. If it doesn't, you know, it's been a great run.

Brian Cox: And so that's one reason why finally we had to put our foot down and say, "Hey, this is the path we're going to chart." If ACP comes back great, if it doesn't, you know, it's been a great run. The carriers right now, where I believe the alleviation is going to be, is obviously they do not want to lose subscribers. You know, just looking out at the market, you can see some of the other guys out there who have lost significant subscribers. The backgrounds of T-Mobile and AT&T; they don't want to lose subscribers. So I think where we're going to see the, I would never call it a partnership necessarily, but the assistance to collectively keep these subscribers on is going to be in offering some discounted rates to provide these folks' lifeline service, which again, that's the subsidy program that's been around since Ronald Reagan.

Speaker Change: And so that's one reason why finally, we had to put our foot down and say Hey, This is <unk>.

Speaker Change: We're Gonna chart, if ACP comes back great. If it doesn't it's been a great run.

Brian Cox: The carriers right now, where I believe the alleviation is going to be, obviously do not want to lose subscribers. You know, just looking out at the market, you can see some of the other guys out there who have lost significant subscribers. You know, the backbones of T-Mobile and AT&T. They don't want to lose subscribers.

Speaker Change: The carriers right now where I believe the alleviation is gonna be.

Speaker Change: Obviously, they do not want to lose subscribers.

Speaker Change: Looking at the market you can see some of the other guys out there who have lost significant subscribers.

Brian Cox: But for example, you know, having a scenario where you walk into a convenience store and by the way over the next year or two, you're going to start seeing this at your larger chains and all the way down to the mom and pops. We're instead of posters on the wall, you're going to see big screen TVs mounted and there's going to be more dynamic advertising in these stores and it's going to be engaging it's not going to be just slides of pictures.

Speaker Change: The backbones of T mobile and AT&T.

Brian Cox: So I think where we're going to see the, I would never call it a partnership necessarily, but the assistance to collectively keep these subscribers on is going to be in offering us some discounted rates to provide these folks with lifeline service, which again, that's the subsidy program that's been around since Ronald Reagan. And it's not quite as much as ACP, but it is, you know, viable. The challenge with lifeline was that the pricing to provide the service, the wholesale side of it, never was really there to give consumers a viable product. It was almost just an emergency phone, or let's just call it the glove box phone.

Speaker Change: They don't want to lose subscribers, so I think where we're going to see.

Speaker Change: <unk>.

Speaker Change: I would never call it a partnership necessarily but the assistance to collectively keep these subscribers on is going to be in offering some discounted rates to provide these folks lifeline service, which again that's the that's the the subsidy program that's been around since Ronald Reagan.

Brian Cox: It's going to be QR codes, it's going to be things that can be tracked and redeemed right there at the register. Clearline manages that entire process in our fact we're rolling that out now in the cerebral change. I don't want to call it a beta test because we know it works, but as our initial engagement of putting it out in the market, very high margin products for us. And what's really cool about it is it's the same target market, the convenience store, and it can be another relationship builder.

Brian Cox: And it's not quite as much as ACP, but it is, you know, viable. The challenge with lifeline was that pricing to provide the service, the whole cell side of it never was really there to give consumers a viable product. It was almost just an emergency phone, or let's just call it like the glove box phone. But now where I think carriers are from, what I've seen. And I will find out in the next week or two, but what we're told is they're going to step up and offer us something that would be considered a regular plan for a basic phone user, you know, talk, text, data that would be something that could be provided on the lifelong program.

Speaker Change: And it's not.

Speaker Change: Not quite as much as ACP, but it is.

Speaker Change: Viable the challenge with lifeline was that.

Speaker Change: Pricing to provide the service the wholesale side of it never was really there to give consumers a viable product. It was almost just an emergency phone or listen to call. It like the glove box phone.

Brian Cox: But now, where I think carriers are, from what I've seen, and I will find out in the next week or two, but what we're told is that they're going to step up and offer us something that would be considered a regular plan for a basic phone user, you know, talk, text data, that would be something that could be provided on the Lifeline program. So that's where I think they're going to step up and look, they have given us the last couple.

Speaker Change: But now we're I think carriers are from what I've seen.

Brian Cox: So that same clear line TV, if you will, over in the corner that's rolling eight to ten different ads with buy one, get one free or what have you. And it's got the QR code, customers can hold their smartphone up scan, walk right up to the register and literally tap their phone and then redeem that coupon in real time, that data will be sent in a really cool back office format to the store owner or the chain owners.

Speaker Change: And I will find out in the next week or two but what we're told is.

Speaker Change: They're going to step up and offer us something that would be.

Speaker Change: Considered a regular plan for a basic phone user talk text data.

Speaker Change: It would be something that could be.

Speaker Change: Provided on the Lifeline program. So that's where I think they are going to step up and look they have given us discounts last couple of months.

Brian Cox: So that's where I think they're going to step up, and look, they have given us discounts the last couple of months. You know, so if they had not, it probably would have moved the needle faster for us. But, you know, those were all things that we factored in, and they have stepped up a little bit. I wish they would have shouldered it more, but again, they were under the complete impression that this was going to be funded. There folks told them; our folks told us. Everybody across the board, both sides of the aisle. Everybody thought it would have been funded.

Brian Cox: Uh, you know, so if they had not, it probably would have moved the needle faster for us. Um, but, um, those were all things that we factored in, and they have stepped up a little bit. I wish they would have shouldered it more.

Brian Cox: And they'll know the impact of their in store marketing, their hyper local marketing. And. That same system will also enable them to do our prepaid transactions, our third party prepaid top-ups for any wireless company out there. That same system will also allow them to do activations for link of mobile. That is a customer now, that is a point of distribution for us and all of our other products at the convenience store.

Speaker Change: So if they had not it probably would have moved the needle faster for us.

Speaker Change: But.

Brian Cox: But again, they were under the complete impression that this was going to be funded. Their folks told them, our folks told us, everybody across the board, both sides of the aisle, everybody thought it would have been funded. I think everybody's still a little bit caught off guard that it wasn't.

Speaker Change: Those were all things that we factored in and they have stepped up a little bit I wish they would've shouldered it more but again they were under the complete impression that this was going to be funded their folks told them our folks told us everybody across the board both sides of the aisle.

Brian Cox: So that's what's really that the clear line deal, you know, again, it addressed a problem that we had with a solution, but it came with it with a plethora of fantastic opportunities that I'm not even sure we fully realized last year when we bought it, but now we've been able to capitalize on this.

Brian Cox: But, you know, we're here now. And, you know, that's why we took that day of August 1 to put it on the agenda, chart the path to Plan B, get back on, you know, get back cash flow positive, and then go from there. Awesome. Thank you. I'll get back in the queue.

Everybody thought it would've been funded I think everybody is still a little bit caught off guard. It wasn't but we are here now and.

Brian Cox: I think everybody's still a little bit caught off guard. It wasn't, but you know, we're here now. And, you know, that's why we've taken that day of August 1st to start to pass to plan B, get back on, you know, get back a casual positive and then go from that.

Speaker Change: That's why we have to.

Speaker Change: We've taken that day of August 1st to.

Speaker Change: Chart, the path to plan B get back on the give back cash flow positive and then go from there.

Brian Cox: Okay, thank you. And then I'll see you talk about getting back to free cash repositive this year. How do you listen to doing that without the ACP being refunded or how dependent are you on that coming back for you to be free cash repositive? Yeah, no, I appreciate that question. Our goal of being cash repositive by the end of the year is assuming ACP is gone. I'm not going to do any modeling or projections or any, even on my own spreadsheets, old school pro forma, I'm not going to factor in any ACP.

Curtis Schroger: Awesome. Thank you.

Speaker Change: Awesome, Thank you I'll get back into queue.

Curtis Schroger: I'll be back in the queue. Thank you.

Andrew Scott: The next question will be from Andrew Scott from 395 Group. Andrew, your line is live.

Speaker Change: Thank you. The next question will be from Andrew Scott from 395 Group Andrew Your line is live.

Andrew Scott: Hey Brian. Hey Tony. I know you guys are in a truly challenging period right now. A lot of the questions that I had were just answered regarding what's, you know, your fastest way back to cash flow positivity and break even. It sounds like you guys outlined it on the call. Looks like you have more than enough cash to get there.

Brian Cox: Thank you. Hey, Brian. Hey, Tony.

Andrew Scott: Hey, Brian Hey, Tony I know you guys are in a truly challenging.

Gary: Gary It right now.

Speaker Change: So a lot of the questions that I had were just answered regarding whats.

Andrew Scott: Fastest way back to cash flow positive breakeven.

Unknown Shareholder: I know you guys are in a truly challenging period right now. A lot of the questions that I had were just answered regarding what's your fastest way back to cash flow, positivity, and breakeven. It sounds like you guys outlined that on the call. Looks like you have more than enough cash to get there.

Speaker Change: It sounds like you guys outlined that on the call looks like you have more than enough cash to get there and I've heard you talk about Wi Fi a lot.

Andrew Scott: And I've heard you talk about Lifeline a lot, but would you consider, would you look at any other accretive acquisitions with synergistic business models? Whether it be any other kind of, you know, payment processing, I'm still an idea is out there. But, um, have you guys thought about other acquisitions in addition to Lifeline Lifeline? Sorry.

Unknown Shareholder: And I've heard you talk about Lifeline a lot. But would you consider, would you look at any other accretive acquisitions with synergistic business models? Whether it be any other kind of, you know, payment processing?

Brian Cox: I'm going to assume that's behind us. The cash flow positive by the end of the year would be taking into account transitioning those customers who want to remain on a free product over to a lifeline product. That would be the third party wireless transactions we talked about that are really a gateway product to the store. It's the lead product to where a convenience store owner could take payments for every prepaid wireless company out there using our platform. That is ramping up significantly right now. The clear line product picking in for us and then by the end of the year, link up mobile, getting traction and starting to contribute as well.

Andrew Scott: But.

Speaker Change: Would you consider or would you look at any other accretive acquisitions with synergistic business models, whether it be any other kind of payment processing I'm, just throwing ideas out there but have.

Unknown Shareholder: I'm just throwing ideas out there, but have you guys thought about other acquisitions in addition to Lifeline? Lifeline, sorry.

Speaker Change: Have you guys thought about other acquisitions in addition to lifeline lifestyle site.

Brian Cox: Yeah. Hey, thank you for the question, Andrew. And yeah, we're constantly in a mode of evaluating. Let's call it sorting and sifting, like paying for gold through acquisitions. And I think right now, and let's just kind of zoom out of, you know, the ACP and what we're dealing with and say the macro environment's unique for a company with cash in the bank. We don't want to buy a company just to buy a company or just to go buy revenue. But I think, you know, one of the mantras I've had is, you know, I'd rather have a little less in the bank and have that cash flow stacking upward than have a little more in the bank and have that cash flow depleting.

Brian Cox: Yeah, hey, thank you for the question, Andrew. And yeah, we're constantly in a mode of evaluating. It's called sorting and sifting, like panning for gold through acquisitions.

Speaker Change: Yeah, Hey, Thank you for the question, Andrew and yes, we're constantly in a mode of evaluating.

Speaker Change: This call is sorting and assisting like panning for gold through <unk>.

Brian Cox: And I think right now, and let's just kind of zoom out of, you know, the ACP and what we're dealing with, and say the macro environments unique to a company with cash in the bank. We don't want to buy a company just to buy a company or just to go buy revenue. But I think, you know, one of the mantras I've had is, you know, I'd rather have a little less in the bank and have that cash flow stacking upward, then have a little more in the bank and have that cash flow depleting, you know, because you're either growing or you're dying. So that's just an old school mentality that comes from the entrepreneurial world, where we had to survive, or we And yet, it's a tough environment. But it's a transition.

Speaker Change: Acquisitions, and I think right now.

Speaker Change: And let's just kind of zoom out of the ACP and what we're dealing with and say the macro environments unique for a company with cash in the bank.

Speaker Change: We don't want to buy a company used to buy a company or just to go by revenue.

Speaker Change: But I think one of the mantras iPad is I'd, rather have a little less in the bank and have that cash flow stacking upward then have a little more in the bank and have that cash flow depleting.

Unknown Executive: Okay, thank you. I'll get back in here.

Unknown Executive: Thank you.

Curtis Shauger: The next question is coming from Curtis Schroger from Water Table Research. Curtis, your line of life. Yeah, hi guys. Can you hear me? Yes, thank you Curtis. Yeah, awesome. Thanks for taking my question.

Brian Cox: You know, because you're either growing or you're dying. So that's just an old school mentality that coming from the entrepreneurial world where we had to survive, or you went out of business. And yet it's a tough environment, but it's a transition, and that, you know, look, the opportunities for people who keep their heads up during transitions or during tough environments. I think the team that we have, we've made our biggest gains when times were the toughest. So we see this as opportunities. There's opportunities for millions of customers who are going to be looking for an alternate way to keep it for the wireless services.

Speaker Change: Because you're either growing or dying so that's.

Brian Cox: I think what comes to mind for me is are there any opportunities with the carriers to help mitigate the costs that you're experiencing to keep the ACP customer alive? That's a good question. You know, and I appreciate that question because you give them an angle to discuss some of that. Some of what Tony and I in our management team has been scratching our head about the initial discounts, and let's call it maybe the cost of goods sold alleviation that the carriers were discussing.

Speaker Change: That's just an old school mentality that coming from the entrepreneur World, where we had to survive or you went out of business.

Speaker Change: And yes, it's a tough environment, but it is a transition and that the opportunities for people who keep their heads up during transitions are doing tough environments.

Brian Cox: And I, you know, look at the opportunities for people who keep their heads up during transitions or during tough environments. I think the team that we have, we've made our biggest gains when times were the toughest. So we see this as an opportunity; there are opportunities for millions of customers who are going to be looking for an alternate way to communicate for their wireless services. You know, there are opportunities out there with immigration and the Hispanics. Say the bilingual, prepaid wireless companies; there's not a whole lot of them out there right now. There are a lot of opportunities out there.

Speaker Change: I think the team that we have we've made our biggest gains when times were the toughest. So we see this as opportunities theres opportunities for millions of customers, who are going to be looking for.

Speaker Change: Alternate way too can use it for their wireless services.

Brian Cox: You know, there's opportunities out there with immigration and the Hispanic, you know, say the bilingual, prepaid wireless companies. There's not a whole lot of them out there right now. There's a lot of opportunities out there, and one of the benefits. that I get to enjoy is that our team is built of primarily at the high level former entrepreneurs who all built from scratch, from nothing, just crawling across the glass, elbows and these elbows, to survive. So we've all been through things that are far worse than this. We've been through things similar to this, but no money in the bank.

Brian Cox: It was a lot more aggressive for a period of time back. Let's say when this first came up on the horizon in April, but they pulled a lot of it back due to their absolute certainty that ACP was going to be funded. So it was really, I mean, we were in a whirlwind. You know, every day it was something different. It was a soap opera.

Speaker Change: There is opportunities out there with the immigration and the Hispanic.

Speaker Change: Let's say the bilingual.

Speaker Change: Prepaid wireless companies, there's not a whole lot of them out there right now there's a lot of opportunities out there and one of the benefits.

Brian Cox: And one of the benefits that I get to enjoy is that our team is built primarily of high-level former entrepreneurs who all built from scratch from nothing, just crawling across glass, elbows and knees and elbows to survive. So we've all been through things that are far worse than this. We've been through things similar to this with no money.

Speaker Change: And then I get to enjoy is that our team is built of.

Brian Cox: And so that's one reason why finally we had to put our foot down and say, hey, this is the path we're going to chart. If ACP comes back great, if it doesn't, you know, it's been a great run. The carriers right now, where I believe the alleviation is going to be, is obviously they do not want to lose subscribers. You know, just looking out at the market, you can see some of the other guys out there who have lost significant subscribers.

Speaker Change: Primarily at the high level of former entrepreneurs, who all built from scratch for nothing.

Speaker Change: Crawling across glass elbows, and knees and elbows.

Speaker Change: To survive. So we've all been through things that are far worse than this we don't do things similar to this with no money in the bank. So we're survivors are very intelligent books with huge networks and then we've added folks from the larger carriers as we talked about with Joe Gomes, Jeremy geese people.

Brian Cox: So we're survivors, very intelligent folks with huge networks. And then we've added folks from the larger carriers, as we talked about with Joe Gomez and Jeremy Gies, people who bring the corporate aspect of the wireless world together as well. So, you know, we're. Obviously, if ACP had stayed around, I'm not going to sit here and say that, you know, we're just fine, whatever. It'll be the same a year from now, where we look back and, like, you know, ACP, by the nature of it being a gold rush land rush, for a time frame, made us a one-product company. And that was never the intention of why we built this.

Brian Cox: So we're survivors, very intelligent folks with huge networks. And then we've added folks from the larger carriers, as we talked about with Joe Gomez, Jeremy Geese, people who bring the corporate aspect of the wireless world together as well. So, you know, we're obviously, if ACP had stayed around, I'm not going to sit here and say that, you know, we're just we're fine or whatever.

Brian Cox: The backgrounds of T-Mobile and AT&T, they don't want to lose subscribers. So I think where we're going to see the, I would never call it a partnership necessarily, but the assistance to collectively keep these subscribers on is going to be in offering some discounted rates to provide these folks' lifeline service, which again, that's the subsidy program that's been around since Ronald Reagan. And it's not quite as much as ACP, but it is, you know, viable.

Speaker Change: Who bring the corporate aspect of the wireless world together as well so.

Speaker Change: Sure.

Speaker Change: Obviously, if ACP has stayed.

Speaker Change: Round I'm not going to sit here and say that.

Speaker Change: We're just we're fine or whatever.

Brian Cox: It'll be the same a year from now where we look and we look back and like, you know, ACP by the nature of it being a gold rush, land rush, for a time frame made us a one product company. And that was never the intention of why we built this. That was that's not not necessarily our mission, but it was a fantastic opportunity. If it's not funded again, I mean, we've been over and picked up a $200 million bill. We strengthened the balance sheet. We're able to shift in our team; we're able to make some acquisitions.

Speaker Change: It'll be the same.

Speaker Change: Year from now.

Speaker Change: Where we look and.

Speaker Change: We look back in line.

Brian Cox: The challenge with lifeline was that Pricing to provide the service, the whole cell side of it never was really there to give consumers a viable product. It was almost just an emergency phone or let's just call it like the glove box phone. But now where I think carriers are from what I've seen. And I will find out in the next week or two, but what we're told is they're going to step up and offer us something that would be considered a regular plan for a basic phone user, you know, talk text data that would be something that could be provided on the lifelong program.

Speaker Change: ACP.

Speaker Change: By the nature of it being a gold rush land rush.

Speaker Change: Timeframe made us a one product company.

Speaker Change: And that was never the intention of why we built this that was that's not necessarily our mission, but it was a fantastic opportunity, yes, it's not funded again.

Brian Cox: That's not necessarily our mission, but it was a fantastic opportunity. If it's not funded again, I mean, we went over and picked up a $200 million bill. We strengthened the balance sheet.

Speaker Change: We've been over and picked up a $200 million Bill we strengthen the balance sheet, we're able to staff and her team were able to make some acquisitions. So.

Brian Cox: We're able to strengthen our team. We're able to make some acquisitions. So, you know, so either way, the way we look at it, yeah, of course.

Brian Cox: So, you know, so either way the way we look at it, yeah, of course. And look, kind of summarizing the last part of your question. We're always open to acquisitions that would grow the company because we're not just an ACP company; we're not just a wireless company. And we have goals of distributing into these convenience stores.

Speaker Change: Either way the way we look at it yes of course and look kind of summarizing the last part of your question.

Brian Cox: And look, kind of summarizing the last part of your question, we're always open to acquisitions. That would grow the company because we're not just an ACP company. We're not just a wireless company, and we have goals of distributing into these convenience stores. And I think. If you zero in, one of the things that the ACP depletion has made us do, and sometimes it's not a bad thing, just go back, sharpen your pencil, and remember who you are, why you put this together, and what your goals were.

Speaker Change: We're always open to acquisitions that would grow the company.

Brian Cox: So that's where I think they're going to step up and look, they have given us discounts last couple of months. You know, so if they had not, it probably would have moved the needle faster for us. But, you know, those were all things that we factored in and they have stepped up a little bit. I wish they would have shouldered it more, but again, they were under the complete impression that this was going to be funded.

Speaker Change: Because we're not just in ACP company, we're not just a wireless company.

We have goals of distributing into these convenience stores and I think.

Brian Cox: And I think if you zero in one of the things that the ACP depletion has made us do, and sometimes it's not a bad thing, just go back, sharpen your pencil and remember who you are, why you put this together and what your goals were. And our goals had been more focused on our goals the last two months. So, it's actually, again, we say that the ACP is still around, but this has not been a bad exercise, big picture as we are looking forward three to five years for us to really focus in on who we want to be, and how are we going to get there?

Speaker Change: If you zero in one of the things that the ACP depletion has made us do and sometimes it's not a bad thing.

Brian Cox: And our goals, we've been more focused on our goals the last two months. So it's actually, again, wish ACP was still around, but this has not been a bad exercise, big picture, as we are looking forward three to five years for us to really focus in on who we want to be, who we are, and how we are going to get there. I got it. Guys, a nice touch on the corporate buyback. I thought that was a really good idea. I'm good at it.

Speaker Change: Go back sharpen your pencil and remember who you are why you put this together and what your goals were.

Brian Cox: There folks told them our folks told us everybody across the board, both sides of the aisle. Everybody thought it would have been funded. I think everybody's still a little bit caught off guard. It wasn't, but, you know, we're here now.

And our goals, we've been more focused on our goals for the last two months.

Speaker Change: So it's actually again, we're saying C. P was still around but this has not been a bad exercise big picture as we are looking forward three to five years for us to really focus in on who we want to be who and how are we going to get there.

Brian Cox: And, you know, that's why we've taken that that day of August 1st to start to pass to plan B, get back on, you know, get back a casual positive and then go from that.

Andrew Scott: I got it.

Andrew Scott: Now, guys, nice touch on the corporate side by back. I don't know if that was a really good idea. I'm good.

Speaker Change: Got it guys nice touch on the corporate slab buybacks.

Curtis Shauger: Awesome. Thank you. I'll be back in the queue.

Good idea.

Andrew Scott: Thank you. Thank you for the question.

Speaker Change: Thank you guys. Thank you.

Speaker Change: Thanks for the question.

Andrew Scott: Thank you. The next question will be from Andrew Scott from 395 Group. Andrew, your line is live. Hey Brian. Hey Tony. I know you guys are in a truly challenging period right now. A lot of the questions that I had were just answered regarding what's, you know, your fastest way back to cash flow positivity and break even. It sounds like you guys outlined it on the call. Looks like you have more than enough cash to get there.

Ed Vue: Thank you. And the next question will be from Ed Vue from Athendian Capital.

Brian Cox: Thank you, guys. Thanks for the question. Thank you, and the next question will be from Ed Woo from Ascendian Capital. Yeah, thanks for taking my question. My question is, you guys have a direct relationship with, you know, the underserved market through convenience stores. What are you hearing in terms of the economic outlook? And has it really changed?

Speaker Change: Thank you and the next question will be from Ed Woo from <unk> capital and your line is live.

Ed Vue: Ed, your line is live. Yeah, thank you for taking my question. My question is, you know, you guys have a direct relationship with, you know, the underserved market through the convenience stores. What are you hearing in terms of the economic outlook? And has it really changed, and how has that impacted your business and obviously with the underserved customers? Thank you.

Ed Woo: Yes. Thanks for taking my question. My question is you guys have a direct relationship with the.

Ed Woo: Underserved market through the convenience stores what are you hearing in terms of the economic outlook and has it really changed and how has that impacted your business and obviously with the underserved customers. Thank you.

Edward Woo: And how has that impacted your business? And, obviously, with underserved customers? Thank you.

Brian Cox: Hey Ed, thanks for the question. I think that the feedback, maybe a way to position that is, you know, one of the things we've been cultivating is specific feedback as it relates to the wireless world. And...

Brian Cox: Hey, Ed, thanks for the question. I think that feedback may be a way to position that is, you know, one of the things we've been cultivating is specific feedback as it relates to the wireless world.

Hey, guys. Thanks for the question.

I think the feedback.

Brian Cox: And I've heard you talk about lifeline a lot, but would you consider, would you look at any other accretive acquisitions with synergistic business models? Whether it be any other kind of, you know, payment processing, I'm still an idea is out there. But, um, have you guys thought about other acquisitions in addition to lifeline lifeline? Sorry. Yeah. Hey, thank you for the question, Andrew. And yeah, we're constantly in a mode of evaluating.

Speaker Change: A way to position that as one of the things we've been cultivating is specific feedback as it relates to the wireless world.

Speaker Change: And.

Brian Cox: Consumers are looking for something that's more engaging. As far as the economy, it is what it is. We've always talked about the underbank segment of society really is not necessarily affected by the Dow Jones or the GDP of the country. It kind of maintains what it is in good times and bad times that underbanked underserved markets face pretty similar. But there's been a stagnant offering platform to these consumers for the past three, four, or five years. And if you look at the prepaid brands out there, there's been a lot of consolidation where the larger carriers previously Sprint, T-Mobile, Verizon, and AT&T acquired quite a few of the larger companies.

Brian Cox: So, Consumers are looking for something that's more engaging. You know, as far as the economy is concerned, it is what it is, and we've always talked about, the underbanked segment of society really is not necessarily affected by the Dow Jones or the GDP of the country. It kind of maintains itself, in good times and bad times, that underbanked, underserved market stays pretty similar, but there's been a stagnant offering platform for these consumers for the past three or four or five And if you look at the prepaid brands out there, there's been a lot of consolidation where the larger carriers, previously Sprint, T-Mobile, Verizon, and AT&T, acquired quite a few of the larger companies.

Speaker Change: Consumers are looking for something that's more engaging.

Speaker Change: As far as the economy. It is what it is and we've always talked about.

Speaker Change: The under Bank segment of Society really is not necessarily affected by the Dow Jones or.

Speaker Change: The G. The GDP of the country.

Brian Cox: Let's call it sorting and sifting like paying for gold through acquisitions. And I think right now, and let's just kind of zoom out of, you know, the ACP and what we're dealing with and say the macro environment's unique for a company with cash in the bank. We don't want to buy a company just to buy a company or just to go buy revenue. But I think, you know, one of the mantras I've had is, you know, I'd rather have a little less in the bank and have that cash flow stacking upward, then have a little more in the bank and have that cash flow depleting.

Speaker Change: That kind of maintains it is what it is in good times and bad times.

Speaker Change: The under banked underserved market.

Speaker Change: It's pretty similar but theres been a stagnant offering platform.

Speaker Change: To these consumers for the past three or four or five years and if you look at the prepaid brands out there there's been a lot of consolidation where the.

Speaker Change: The larger carriers.

Speaker Change: Previously sprint T mobile Verizon and AT&T acquired quite a few of the larger companies and then obviously, we know that sprint and T mobile.

Brian Cox: And then obviously, we know that Sprint and T-Mobile merged, or Sprint was acquired. So, we think there's a huge opportunity out there for value-added prepaid wireless, not just for those who can offer the cheapest talk, text, and data. You know, that's something we can... Due to our efficiencies, we can compete in that environment. But then when the next guy comes along and offers the same plan for a couple of bucks less, I mean, now you're in that down cycle. I always call it the downward bidding game.

Brian Cox: And then obviously, we know that Sprint and T-Mobile merged or Sprint was acquired. So we think there's a huge opportunity out there for value-added prepaid wireless, not just who can offer the cheapest talk, text, and data. That's something we can do to our efficiencies. We can compete in that environment. But then when the next dot comes along and offers the same plan for a couple of bucks less, I mean, now you're in that down. I always call it the downward bidding game. I think that what we've put together, and when you start adding some of the unique components that we can pull from our subsidiaries, for example, one of the folks that are integrated with Clearline is a coupon redemption company.

Speaker Change: Emerged.

Brian Cox: You know, because you're either growing or you're dying. So that's just an old school mentality that coming from the entrepreneurial world where we had to survive or you went out of business. And yet it's a tough environment, but it's a transition and that, you know, look, the opportunities for people who keep their heads up during transitions or during tough environments. I think the team that we have, we've made our biggest gains when times were the toughest.

Speaker Change: It was acquired.

Speaker Change: So we think there's a huge opportunity out there for value added prepaid wireless not just who can offer the cheapest talk text and data.

Speaker Change: That's something we can do.

Speaker Change: Due to our efficiencies we can compete in that environment.

Speaker Change: Then when the next that comes along and offers the same plan for a couple of Bucks less I mean now you are in that down I always call. It the downward bidding game.

Brian Cox: So we see this as opportunities. There's opportunities for millions of customers who are going to be looking for an alternate way to keep it for the wireless services. You know, there's opportunities out there with immigration and the Hispanic, you know, say the bilingual, prepaid wireless companies. There's not a whole lot of them out there right now. There's a lot of opportunities out there and one of the benefits, that I get to enjoy is that our team is built of primarily at the high level former entrepreneurs who all built from scratch, from nothing, just crawling across the glass, elbows and these elbows, to survive.

Brian Cox: I think that what we've put together, and when you start adding some of the unique components that we can pull from our subsidiaries, for example, one of the folks that are integrated with ClearLime is a coupon redemption company whose intent is to work for convenience stores and the register. But what we can utilize that for is offering coupons texted or sent to our customers, and linking up mobile when they pay their bill.

Speaker Change: I think that what we've put together and when you start adding some of the unique components that we can pull from our subsidiaries. For example, one of the folks that are integrated with clear line is a coupon redemption company that the.

Brian Cox: That the intent of that company is to work for convenience stores and the register. But what we can utilize that for is offering coupons, texted, sent to our customers, link up mobile when they pay their bill. There's a lot of really unique ways that we can differentiate from the other guys out there without just trying to be the cheapest. So that's some of the feedback that we're getting right now.

Speaker Change: The intent of that company has to work.

Speaker Change: For convenience stores in the register and but what we can utilize that for is offering coupons texted.

Speaker Change: Sent to our customers.

Speaker Change: Wake up mobile when they pay their bill.

Brian Cox: There's a lot of really unique ways that we can differentiate from the other guys out there without just trying to be the cheapest. So that's some of the feedback that we're getting right now. We're also hearing that with the, Obviously, we all know we're the melting pot here in the United States.

Speaker Change: There is a lot of really unique ways that we can differentiate from the other guys out there without just trying to be the cheapest.

Speaker Change: So that's some of the feedback that we're getting right now we're also hearing.

Brian Cox: We're also hearing that with the, obviously, we all know we're the melting pot here in the United States. The feedback that we've gotten from a lot of the master agents, you know, we're probably up to 15 plus right now that we're integrating with, is that the international offering, if we can strengthen that, which we are right now, there's a pretty significant opportunity out there. You know, there's one of the masters that we're either integrating with through API or have just finished integrating with. There's known monthly activations of between 120,000 and 150,000 activations a month. We didn't want to go in and just try to carve out a little of that.

Brian Cox: So we've all been through things that are far worse than this. We've been through things similar to this, but no money on the bank. So we're survivors, very intelligent folks with huge networks. And then we've added folks from the larger carriers, as we talked about with Joe Gomez, Jeremy Geese, people who bring the corporate aspect of the the wireless world together as well. So, you know, we're obviously if ACP had stayed around, I'm not going to sit here and say that, you know, we're just we're fine or whatever.

Speaker Change: That with the.

Speaker Change: Obviously, we all know where the melting pot here in the United States.

Brian Cox: The feedback that we've gotten from a lot of the master agents, you know, we're probably up to 15 plus right now that we're integrating with is that the international offering, if we can strengthen that, which we are right now, there's a pretty significant opportunity out there. You know, some of the masters that we're either integrating with through API or have just finished integrating with, have known monthly activations of between 120 and 150,000 activations a month. We didn't want to go in, Ed, and just try to carve out a little of that.

Speaker Change: The feedback that we've gotten from a lot of the master agents.

Speaker Change: We're probably up to 15, plus right now that we're integrating with is that the international offering.

Speaker Change: We can strengthen that which we are right now.

Speaker Change: There is a pretty significant opportunity out there.

Speaker Change: There is of the masters that were either integrating with through API or have just finished integrating with their is known monthly activation of <unk>.

Brian Cox: It'll be the same a year from now where we look and we look back and like, you know, ACP by the nature of it being a gold rush, land rush, for a time frame made us a one product company. And that was never the intention of why we built this. That was that's not not necessarily our mission, but it was a fantastic opportunity. If it's not funded again, I mean, we've been over and picked up a $200 million bill.

Speaker Change: 120, and 150000 Activations a month.

Speaker Change: We didn't want to go in.

Speaker Change: And just try to carve out a little of that we wanted to be able to take it all and one of the feedback there's two things that we got one of them was.

Brian Cox: We wanted to be able to take it all. And one of the feedback, there's two things that we got. One of them was, you know, we need to strengthen our international offering because there's still people that don't use WhatsApp and Telegram and some of these other apps to call long distance. People still want to just dial direct. So we're working on that right now. We look to have that offering together in the next 30, 60 days. The other one was porting numbers over. You know, historically, the telephone number for that prepaid customer was not really that important.

Brian Cox: We wanted to be able to take it all. And one of the feedbacks, there were two things that we got. One of them was, you know, we need to strengthen our international offering because there are still people that don't use WhatsApp and Telegram and some of these other apps to call long distance. People still want to just dial directly.

Speaker Change: We need to strengthen our international offering because there is still people that don't use whatsapp and telegram in some of these other apps to call long distance people still want to just dial direct so we're working on that right now we look to have that.

Brian Cox: So we're working on that right now. You know, we look to have that, that offering together in the next 30, 60 days. The other one was porting numbers over. You know, historically, the telephone number for that prepaid customer was not really that important. That goes back over a decade.

Brian Cox: We strengthened the balance sheet. We're able to shift in our team, we're able to make some acquisitions. So, you know, so either way the way we look at it, yeah, of course. And look, kind of summarizing the last part of your question. We're always open to acquisitions that would grow the company because we're not just an ACP company, we're not just a wireless company. And we we have goals of distributing into these convenience stores.

Speaker Change: That offering together in the next 30 60 days the other one was porting numbers over.

Speaker Change: Historically, the telephone number for that prepaid customer was not really that important.

Brian Cox: You know, that goes back over a decade. Here recently, now that everything is connected to your number, you know, where you get text messages to authorize, forgotten passwords, all the other mechanisms that are attached to your phone number, it is important. So the ability to port numbers, that's something else that we are integrating a little more heavily on right now so that we can go get all those subscribers. So feedback directly from our, let's call it our stores, more directly from the master agent to get the feedback from stores.

Speaker Change: Okay.

Speaker Change: That goes back over a decade here recently now that everything is connected to your number.

Brian Cox: Here recently, now that everything is connected to your number, where you get text messages to authorize forgotten passwords and all the other mechanisms that are attached to your phone number, it is important. So the ability to port numbers is important. That's something else that we are integrating a little more heavily on right now so that we can get all those subscribers. So feedback directly from our, Let's call it our stores, more directly from the master agents who get the feedback from stores.

Speaker Change: <unk>.

Speaker Change: What are the.

Brian Cox: And I think if you zero in one of the things that the ACP depletion has made us do, and sometimes it's not a bad thing, just go back sharpen your pencil and remember who you are, why you put this together and what your goals were. And our goals had been more focused on our goals the last two months. So, it's actually, again, we say that the ACP is still around, but this has not been a bad exercise, big picture as we are looking forward three to five years for us to really focus in on who we want to be, and how are we going to get there? I got it.

Speaker Change: Where you get text messages to authorize forgotten passwords and all the other.

Speaker Change: The mechanisms that are attached to your phone number it is important so the ability to port numbers.

Speaker Change: That's something else that we are integrating a little more heavily on right now so that we can go get all those subscribers so feedback directly from our.

Speaker Change: Let's call it our stores more directly from the master agent to get the feedback from stores. Those are the two big focuses right now for us to be able to achieve these goals we've talked about by the end of the year.

Brian Cox: Those are the two big focuses right now for us to be able to achieve. Like I said, these goals we've talked about by the end of the year, because when we look down, and I mean, look, I've never been somebody who just wants a piece; I don't want to hold things. So if I can see 150,000 activations a month, and we need to take these two or three steps to knock something out so that we can take it, that's what we're doing right now. And we're, it's not just hearing the feedback, Ed. It's executing a strategy to maximize that feedback and use it to our advantage.

Brian Cox: Those are the two big focuses right now for us to be able to achieve, like I said, these goals we've talked about by the end of the year. Because when we look down, and I mean, look, I've never been somebody who just wants a piece of something. I want the whole thing.

Speaker Change: When we look down and then they look at the Guy I've never been somebody who just wants a piece of something I want the whole thing. So if I can see 150000, activations a month and we need to take these two or three steps too.

Andrew Scott: Now, guys, nice touch on the corporate side by back. I don't know if that was a really good idea. I'm good. Thank you.

Brian Cox: So if I can see 150,000 activations a month, and we need to take these two or three steps to knock something out so that we can take it, that's what we're doing right now. And we're not just hearing the feedback, Ed; it's executing a strategy to maximize that feedback and use it to our advantage. And hey, this is all happening right now. As a matter of fact, we have the largest prepaid convention of the year in two weeks.

Unknown Executive: Thank you for the question. Thank you.

Speaker Change: To knock something out so that we can take it that's what we're doing right now and where it's not just hearing feedback good it's executing a strategy to maximize that feedback and use it to our advantage and this is all happening right now.

Ed Woo: And the next question will be from Ed Vue from Athendian Capital. Ed, your line is live. Yeah, thank you for taking my question. My question is, you know, you guys have a direct relationship with, you know, the underserved market through the convenience stores. What are you hearing in terms of the economic outlook? And has it really changed and how has that impacted your business and obviously with the underserved customers? Thank you.

Brian Cox: And hey, this is all happening right now.

Brian Cox: In our fact, we have a, in two weeks, we have the largest prepaid convention of the year. And we will be rolling out all of these products. And I'm booked, sun up, sun down, with meetings personally, along with the sales team. And we've got about, I think 10 to 12 of our team members. So we're coming in strong. And, you know, we're not coming in to be an also-ran. We're coming in to, you know, be one of the top guys.

Speaker Change: As a matter of fact, we have a in two weeks, we have the largest prepaid convention of the year and we will be rolling out all of these products.

Brian Cox: We will be rolling out all of these products, and I'm booked sunup to sundown with meetings, personally, along with the sales team, and we've got about, I think, 10 to 12 of our team members. So we're coming in strong, and we're not coming in to be an also ran. We're coming in to be one of the top guys.

Ed Woo: Hey Ed, thanks for the question. I think that the feedback, maybe a way to position that is, you know, one of the things we've been cultivating is specific feedback as it relates to the wireless world. And... Consumers are looking for something that's more engaging. As far as the economy, it is what it is. We've always talked about the underbank segment of society really is not necessarily affected by the Dow Jones or the GDP of the country.

Speaker Change: Booked sign ups and down.

Speaker Change: With meetings personally along with the sales team and we've got about I think 10 to 12 of our team members. So we're coming in strong and.

Speaker Change: We're not coming in to be an also ran we're coming in to.

Speaker Change: Would be one of the top guys. So stay tuned I appreciate the question as always and.

Brian Cox: So stay tuned. I appreciate the question, as always. Uh, you know, look forward to hearing from you again. Great. Well, thank you. Thank you, and this is the end of our Q&A session today. And that does conclude today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Brian Cox: So, you know, stay tuned. I appreciate the question, as always. And, you know, look forward to hearing from you again.

Speaker Change: Look forward to hearing from you again.

Brian Cox: Great. Well, thank you. Thank you.

Speaker Change: Great well thank you.

Speaker Change: Thank you and this is the end of our Q&A session today.

Operator: And this is the end of our Q&A session today.

Operator: And that does conclude today's conference. And you may disconnect your lines at this time. Thank you for your.

And that does conclude today's conference and you may disconnect your lines at this time.

Ed Woo: It kind of maintains what it is in good times and bad times that underbanked underserved markets face pretty similar. But there's been a stagnant offering platform to these consumers for the past three or four or five years. And if you look at the prepaid brands out there, there's been a lot of consolidation where the larger carriers previously sprint, T-Mobile, Verizon, and AT&T acquired quite a few of the larger companies. And then obviously, we know that sprint and T-Mobile merged or sprint was acquired.

Speaker Change: Thank you for your participation.

Ed Woo: So we think there's a huge opportunity out there for value added prepaid wireless, not just who can offer the cheapest talk text and data. That's something we can do to our efficiencies. We can compete in that environment. But then when the next dot comes along and offers the same plan for a couple of bucks less, I mean, now you're in that down. I always call it the downward bidding game. I think that what we've put together and when you start adding some of the unique components that we can pull from our subsidiaries, for example, one of the folks that are integrated with Clearline is a coupon redemption company.

Ed Woo: That the intent of that company is to work for convenience stores and the register. But what we can utilize that for is offering coupons, texted, sent to our customers, link up mobile when they pay their bill. There's a lot of really unique ways that we can differentiate from the other guys out there without just trying to be the cheapest. So that's some of the feedback that we're getting right now. We're also hearing that with the, obviously, we all know we're the melting pot here in the United States.

Ed Woo: The feedback that we've gotten from a lot of the master agents, you know, we're probably up to 15 plus right now that we're integrating with is that the international offering, if we can strengthen that, which we are right now, there's a pretty significant opportunity out there. You know, there's of the masters that we're either integrating with through API or have just finished integrating with. There's known monthly activations of between 120 and 150,000 activations a month.

Ed Woo: We didn't want to go in and just try to carve out a little of that. We wanted to be able to take it all. And one of the feedback, there's two things that we got. One of them was you know, we need to strengthen our international offering because there's still people that don't use WhatsApp and Telegram and some of these other apps to call long distance. People still want to just dial direct.

Ed Woo: So we're working on that right now. We look to have that offering together in the next 30, 60 days. The other one was porting numbers over. You know, historically, the telephone number for that prepaid customer was not really that important. You know, that goes back over a decade. Here recently, now that everything is connected to your number, you know, where you get text messages to authorize, forgotten passwords, all the other, the mechanisms that are attached to your phone number, it is important.

Ed Woo: So the ability to port numbers, that's something else that we are integrating a little more heavily on right now so that we can go get all those subscribers. So feedback directly from our, let's call it our stores, more directly from the master agent to get the feedback from stores. Those are the two big focuses right now for us to be able to achieve. Like I said, these goals we've talked about by the end of the year, because when we look down, and I mean, look, I've never been somebody who just wants a piece, I don't want to hold things.

Ed Woo: So if I can see 150,000 activations a month, and we need to take these two or three steps to knock something out so that we can take it, that's what we're doing right now. And we're, it's not just hearing the feedback, Ed. It's executing a strategy to maximize that feedback and use it to our advantage. And hey, this is all happening right now. In our fact, we have a, in two weeks, we have the largest prepaid convention of the year.

Ed Woo: And we will be rolling out all of these products. And I'm booked, sun up, sun down with meetings personally, along with the sales team. And we've got about, I think 10 to 12 of our team members. So we're coming in strong. And, you know, we're not coming in to be an also ran. We're coming in to, you know, be one of the top guys. So, you know, stay tuned. I appreciate the question, as always.

Ed Woo: And, you know, look forward to hearing from you again. Great. Well, thank you. Thank you. And this is the end of our Q&A session today. And that does conclude today's conference. And you may disconnect your lines at this time. Thank you for your