Debt (Tables)

12 Months Ended

Dec. 31, 2021

Notes Payable [Member]

Short-term Debt [Line Items]

Schedule of Notes Payable

Notes Payable

Terms	Note			Note			Note			Notes
Issuance dates of notes		2016			2016			November 4, 2019			August/September/October 2021
Maturity date		2016			2017			November 3, 2020			August/September/October 2022
Interest rate		5	%		10	%		18	%		10	%
Collateral		Unsecured			Unsecured			Unsecured			Unsecured
Conversion price		N/A			N/A			N/A			N/A
Warrants issued as discount		N/A			N/A			N/A			2,406,250
														Total			In-Default
Principal	$	485,000		$	27,500		$	250,000		$	1,101,000	*	$	1,863,500
Balance - December 31, 2019		485,000			27,500			223,672			-			736,172		$	512,500
Amortization of debt discount		-			-			26,328			-			26,328
Repayments		(485,000	)		(27,500	)		-			-			(512,500	)
Balance - December 31, 2020		-			-			250,000			-			250,000			250,000
Gross proceeds		-			-			-			1,101,000			1,101,000
Debt discount		-			-			-			(672,254	)		(672,254	)
Amortization of debt discount		-			-			-			698,511			698,511
Repayments		-			-			(250,000	)		(1,127,257	)		(1,377,257	)
Balance - December 31, 2021	$	-		$	-		$	-		$	-		$	-		$	-

* In the event of default, these notes were convertible at 75% of the market price based upon the VWAP in preceding 10 days.

Convertible Notes Payable [Member]

Short-term Debt [Line Items]

Schedule of Notes Payable

Convertible Notes Payable – Net

	Convertible			Convertible			Convertible
Terms	Notes Payable			Notes Payable			Notes Payable
Issuance dates of notes		2019 and Prior			February 2020 - December 2020			January 2021 - March 2021
Maturity date		2020			February 2021 - September 2021			May 2021 - March 2022
Interest rate		14	%		10% - 14	%		5% - 12	%
Collateral		Unsecured			Unsecured			Unsecured
Conversion price		-	A			A			B
											Total
Principal	$	-		$	2,347,000		$	2,550,000		$	4,897,000
Balance - December 31, 2019	$	4,436,684		$	-		$	-		$	4,436,684
Gross proceeds		-			2,347,000			-			2,347,000
Debt discount		-			(2,347,000	)		-			(2,347,000	)
Amortization of debt discount		161,217			1,829,219			-			1,990,436
Repayments - cash		(438,698	)		(130,061	)		-			(568,759	)
Repayments - common stock		(4,159,203	)		(182,988	)		-			(4,342,191	)
Balance - December 31, 2020		-			1,516,170			-			1,516,170
Gross proceeds		-			-			2,550,000			2,550,000
Debt discount		-			-			(2,460,829	)		(2,460,829	)
Amortization of debt discount		-			517,781			2,460,829			2,978,610
Repayments - cash		-			-			(2,550,000	)D		(2,550,000	)
Conversion to equity/debt modification		-			(2,110,898	)		-			(2,110,898	)
Reclassified to receivable		-			76,947	C		-			76,947
Balance - December 31, 2021	$	-		$	-		$	-		$	-

A – Convertible at 65% multiplied by the lowest one (1) day volume weighted average price (“VWAP”) of the Company’s common stock during the ten (10) trading days prior to conversion.

B – Convertible at 70% - 75% multiplied by the lowest one (1) day volume weighted average price (“VWAP”) of the Company’s common stock during the ten (10) trading days prior to conversion.

C - During 2021, the Company overpaid a note holder by $76,947 when settling the outstanding balance. This overpayment had been recorded as a receivable and was repaid in full in April 2021.

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2021 AND 2020

D - During 2021, the Company repaid the $2,550,000 of convertible notes in full, however, one of the notes, having a principal of $2,300,000 was prepaid early. As a result, the Company paid an additional prepayment penalty equal to 120% of the outstanding amount due at the time of prepayment, resulting in additional interest expense of $465,239. Also, at the time of repayment, the embedded derivative liability ceased to exist.

Related Party [Member]

Short-term Debt [Line Items]

Schedule of Notes Payable

Notes Payable – Related Parties

		1			2			3
		Note Payable			Note Payable			Note Payable
Terms		Related Party			Related Party			Related Party
Issuance dates of notes		Various			May 2020/January 2021			August 2021
Maturity date		June 30, 2022 or January 1, 2023 due on demand			March 2021 and due on demand			August 2031 due on demand
Interest rate		10	%		15	%		10	%
Collateral		Unsecured			Unsecured			Unsecured
Conversion price		N/A			N/A			N/A
											Total			In-Default
Balance - December 31, 2019		2,205,440			-			-			2,205,440		$	-
Gross proceeds		1,136,500			147,500			-			1,284,000
Balance - December 31, 2020		3,341,940			147,500			-			3,489,440			-
Gross proceeds		3,825,000			63,000			467,385			4,355,385
Accrued interest included in note balance		692,458			-			-			692,458
Conversion of debt into common stock		(2,265,967	)		-			-			(2,265,967	)
Repayments		-			(210,500	)		-			(210,500	)
Balance - December 31, 2021	$	5,593,431		$	-		$	467,385		$	6,060,816		$	467,385

1 Activity is with the Company’s Chief Executive Officer and Board Director (Kevin Brian Cox). Prior to September 30, 2021, these notes were either due on demand or had a specific due date. Additionally, these advances had interest rates from 6% - 15%. On September 30, 2021, all notes and related accrued interest were combined into two (2) new notes.

The new notes had due dates of June 30, 2022 or January 1, 2023. All notes bear interest at 10%. At September 30, 2021, the Company included $692,458 of accrued interest in the new note balance. In 2021, the Company issued 561,758 shares of common stock at $4.30/share to settle $2,415,560 of debt including principal of $2,265,967 and accrued interest of $149,593. As a result of the debt conversion with a related party, accordingly gains/losses are not recognized, however, the Company increased additional paid-in capital for $2,415,560.

2 Activity is with the Company’s President, Chief Operating Officer and Board Director (Anthony Nuzzo).

3 Activity is with David May, who is a Board Member. The note requires payments of $5,000 per month. During 2021, no payments had been made.

Paycheck Protection Program and Economic Injury Disaster Loan [Member]

Short-term Debt [Line Items]

Schedule of Notes Payable

	PPP			EIDL			EIDL			PPP
Terms	SBA			SBA			SBA			SBA
Issuance dates of SBA loans		April 2020			May 2020			July 2020			March 2021
Term		18 months			30 Years			30 Years			5 Years
Maturity date		October 2021			May 2050			July 2050			March 2026
Interest rate		1	%		3.75	%		3.75	%		1	%
Collateral		Unsecured			Unsecured			Unsecured			Unsecured
Conversion price		N/A			N/A			N/A			N/A
														Total
Principal	$	498,082		$	150,000		$	486,600		$	518,167		$	1,652,849
Balance - December 31, 2019		-			-			-			-			-
Gross proceeds		498,082			150,000			486,600			-			1,134,682
Balance - December 31, 2020		498,082			150,000			486,600			-			1,134,682
Gross proceeds		-			-			-			518,167			518,167
Forgiveness of loan		(371,664	)		-			-			-			(371,664	)
Deconsolidation of subsidiary (“TW”)		-			-			(150,000	)		-			(150,000	)
Balance - December 31, 2021	$	126,418		$	150,000		$	336,600		$	518,167		$	1,131,185

1	During 2021, the Company received a partial forgiveness on a PPP loan totaling $377,743, of which $371,664 was for principal and $6,079 for accrued interest. The Company recorded this forgiveness as other income in the accompanying consolidated statements of operations.
2	In connection with the deconsolidation of TW, $150,000 was assumed by the buyer.