Business Context and Reporting Period
This Form 8-K Current Report is filed by Surge Holdings, Inc. (referred to in the request as Surgepays, Inc.) for the reporting period ending March 30, 2020. The filing addresses significant changes in executive leadership, specifically the resignation of the Chief Financial Officer and the appointment of a successor.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity metrics. This report focuses exclusively on personnel changes and employment terms rather than financial performance data.
Material Changes
- Resignation of CFO: Mr. Brian Speck resigned as Chief Financial Officer, effective May 1, 2020. The resignation was not due to any disagreement with the company regarding operations, policies, or practices. Mr. Speck will continue to serve as a consultant.
- Appointment of CFO: Mr. Anthony Evers was appointed as the new Chief Financial Officer, effective May 1, 2020.
Guidance, Outlook, and Management Commentary
Management Commentary and Compensation: The Board appointed Mr. Evers based on his extensive experience as a CFO and CIO in various sectors, including healthcare and non-profits, and his involvement in over 20 merger and divestiture transactions.
Employment Terms: An employment agreement dated March 1, 2020, outlines the following compensation for Mr. Evers:
- Annual salary of $270,000.
- Full coverage of health insurance premiums by the company.
- Severance package consisting of one full year of salary and benefits in the event of termination.
Risks and Contingencies: The filing states there are no family relationships between Mr. Evers and other directors or officers, and no material transactions involving Mr. Evers have occurred since the beginning of the last fiscal year. The full text of the employment agreement will be filed as an exhibit to the Form 10-Q for the quarter ending March 31, 2020.
Investor Verification Checklist
- Verify the effective date of the CFO transition (May 1, 2020) and the interim financial oversight arrangements.
- Review the full text of the Evers Employment Agreement when filed as an exhibit to the Form 10-Q for the quarter ending March 31, 2020.
- Confirm the background and credentials of Mr. Anthony Evers, specifically his experience in healthcare finance and M&A transactions.
- Monitor future filings for any financial impact related to the severance provisions or consulting fees for the outgoing CFO.