SurgePays forms LLC for 51% smartphone JV
SurgePays sets up LWP-SURGE, LLC for a proposed smartphone rent-to-own joint venture but notes that key agreements, funding and operations remain uncertain.
Rhea-AI Filing Summary
SurgePays, Inc. (SURG) has formed LWP-SURGE, LLC, a Wyoming limited liability company, as the intended operating vehicle for a proposed joint venture with All Prepaid, LLC, which does business as LowWeeklyPayments. LWP-SURGE is expected to run a smartphone rent-to-own program through SurgePays’ independent retail dealer network, using LowWeeklyPayments’ real-time approval platform, contract templates, and servicing technology.
SurgePays expects to hold a 51% membership interest, manage LWP-SURGE, and appoint three of five board of managers seats, with LowWeeklyPayments holding 49% and appointing the remaining two seats. Certain major actions would require consent of both members. No definitive operating, IP license, distribution, or shared services agreements have been executed, LWP-SURGE currently has no operations, revenue, assets, or liabilities, and the structure and terms may change. SurgePays states it does not expect the formation of LWP-SURGE alone to have a material effect on its financial condition or results for the current fiscal quarter.
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Insights
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8-K Event Classification
Item 8.01 — Other Events
1 item
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Key Figures
SurgePays membership interest in LWP-SURGE: 51%
LowWeeklyPayments membership interest in LWP-SURGE: 49%
Board of managers size: 5 members
+3 more
6 metrics
SurgePays membership interest in LWP-SURGE
51%
Expected ownership stake in the proposed joint venture vehicle
LowWeeklyPayments membership interest in LWP-SURGE
49%
Remaining ownership stake in the proposed joint venture vehicle
Board of managers size
5 members
Anticipated size of LWP-SURGE’s board of managers
SurgePays-appointed board members
3 members
Number of LWP-SURGE board seats, including chair, expected to be appointed by SurgePays
LowWeeklyPayments-appointed board members
2 members
Number of LWP-SURGE board seats expected to be appointed by LowWeeklyPayments
Formation date of LWP-SURGE
September 2, 2026
Date articles of organization were initiated for filing with the Wyoming Secretary of State
Key Terms
joint venture, rent-to-own, portfolio funding facility, forward-looking statements, +1 more
5 terms
joint venture financial
"to serve as the operating vehicle for a proposed joint venture with All Prepaid"
A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.
rent-to-own financial
"intended to operate a smartphone rent-to-own program through the Company’s network"
A rent-to-own agreement lets a customer use an item or property by paying regular rental fees with the option to buy it later, often with part of those payments counting toward the purchase price. Think of it like a trial rental that can turn into ownership. For investors, these contracts affect how a company records revenue and assets, influence cash flow predictability, and carry credit and repossession risks that matter for valuation and credit analysis.
portfolio funding facility financial
"the incurrence of indebtedness outside an approved portfolio funding facility"
forward-looking statements regulatory
"contains forward-looking statements within the meaning of the Private Securities Litigation"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
limited liability company financial
"LWP-SURGE, LLC, a Wyoming limited liability company"
A limited liability company (LLC) is a business structure that separates the owners’ personal assets from the company’s debts and legal obligations, like a protective shield that keeps personal savings and property distinct from business risk. For investors, that protection reduces personal financial exposure and often brings flexible rules for profit sharing and taxes, but it can also affect how easily interests are bought or sold and how decisions are made.
FAQ
What joint venture did SurgePays (SURG) announce involving LWP-SURGE, LLC?
SurgePays formed LWP-SURGE, LLC, a Wyoming LLC, as the proposed operating vehicle for a joint venture with All Prepaid, LLC (LowWeeklyPayments) to operate a smartphone rent-to-own program using SurgePays’ independent retail dealer network and LowWeeklyPayments’ technology platform.
What ownership stakes will SurgePays (SURG) and LowWeeklyPayments hold in LWP-SURGE?
SurgePays expects to hold a 51% membership interest in LWP-SURGE and serve as its manager, while LowWeeklyPayments is expected to hold the remaining 49% membership interest, according to the described joint venture structure.
How will governance of LWP-SURGE be structured for SURG?
The board of managers of LWP-SURGE is anticipated to have five members, with SurgePays appointing three, including the chair, and LowWeeklyPayments appointing two. Certain major actions, such as a sale or new indebtedness outside an approved funding facility, would require consent of both members.
Have definitive agreements for the SurgePays (SURG) joint venture been signed?
No. SurgePays and LowWeeklyPayments have not yet executed a definitive operating agreement or related intellectual property license, distribution, and shared services agreements. The company notes that the terms described are subject to change and there is no assurance the joint venture will be consummated.
Does LWP-SURGE currently have operations or affect SURG’s near-term financials?
As of September 2, 2026, LWP-SURGE has no operations, revenue, assets, or liabilities. SurgePays states it does not expect the formation of LWP-SURGE, by itself, to have a material effect on its financial condition or results of operations for the current fiscal quarter.
What funding considerations are mentioned for the SURG joint venture?
The company notes that certain actions, including incurring indebtedness outside an approved portfolio funding facility, would require consent of both members and that there is no assurance any portfolio funding will be obtained on acceptable terms or at all.
AI-generated analysis. How Rhea-AI works. Not financial advice.
