Surge Components Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Surge Components Inc. has filed its 2023 10-K report, detailing its financial and operational status for the fiscal year ending November 30, 2023.</b>

AI Summary

SURGE COMPONENTS INC (SPRS) filed a Annual Report (10-K) with the SEC on February 28, 2024. Surge Components Inc. filed its annual report for the fiscal year ended November 30, 2023. The company is incorporated in Nevada and its principal executive offices are located in Deer Park, New York. Surge Components Inc. is registered under the SIC code 5065 for Wholesale-Electronic Parts & Equipment, NEC. The company has common stock and preferred stock purchase rights registered under Section 12(g) of the Act. Surge Components Inc. is classified as a non-accelerated filer and a smaller reporting company.

Why It Matters

For investors and stakeholders tracking SURGE COMPONENTS INC, this filing contains several important signals. This filing provides investors with a comprehensive overview of Surge Components Inc.'s performance, risks, and strategic direction over the past fiscal year. As a smaller reporting company and non-accelerated filer, this 10-K is crucial for understanding the company's compliance and disclosure obligations.

Risk Assessment

Risk Level: low — SURGE COMPONENTS INC shows low risk based on this filing. The filing is a standard 10-K for a smaller reporting company, indicating no immediate or significant new risks are highlighted in the initial header information.

Analyst Insight

Review the full 10-K filing for detailed financial statements, risk factors, and management discussion to assess Surge Components Inc.'s performance and outlook.

Key Numbers

• 2023-11-30 — Fiscal Year End (Reported fiscal year end)
• 2024-02-28 — Filing Date (Date the 10-K was filed)
• 000-27688 — SEC File Number (Registrant's SEC file number)
• 5065 — SIC Code (Standard Industrial Classification code)
• 11-2602030 — IRS Number (IRS Employer Identification No.)

Key Players & Entities

• SURGE COMPONENTS INC (company) — Filer name
• 2023-11-30 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• 000-27688 (company) — Commission File Number
• 95 EAST JEFRYN BLVD (address) — Principal executive offices street
• DEER PARK (address) — Principal executive offices city
• NY (address) — Principal executive offices state
• 11729 (address) — Principal executive offices zip

FAQ

Industry Context

Surge Components Inc. operates in the wholesale of electronic parts and equipment sector.

Regulatory Implications

The company is subject to the reporting requirements of the Securities Exchange Act of 1934.

What Investors Should Do

1. Thoroughly review the full 10-K document for detailed financial statements and disclosures.
2. Analyze the risk factors section to understand potential challenges facing Surge Components Inc.
3. Compare the current year's performance with previous periods to identify trends and changes.

Year-Over-Year Comparison

This is the initial filing information for the 2023 10-K; comparative data from the previous filing will be available within the full document.

Key Financial Figures

• $0.001 — g) of the Act: Common Stock, Par Value $0.001 Preferred Stock Purchase Rights (Ti
• $106,885 — the product. Commission revenue totaled $106,885 and $249,248 for the fiscal years ended
• $249,248 — Commission revenue totaled $106,885 and $249,248 for the fiscal years ended November 30,
• $2.00 — ent for a commercial diode to more than $2.00 for high power capacitors and semicondu
• $5,422,824 — 2023, we maintained inventory valued at $5,422,824. Because of the experience of our mana

Filing Documents

• ea0200540-10k_surgecomp.htm (10-K) — 770KB
• ea0200540ex23-1_surgecomp.htm (EX-23.1) — 2KB
• ea0200540ex31_surgecomp.htm (EX-31) — 11KB
• ea0200540ex32_surgecomp.htm (EX-32) — 4KB
• 0001213900-24-017771.txt (&nbsp;) — 4151KB
• sprs-20231130.xsd (EX-101.SCH) — 46KB
• sprs-20231130_cal.xml (EX-101.CAL) — 43KB
• sprs-20231130_def.xml (EX-101.DEF) — 203KB
• sprs-20231130_lab.xml (EX-101.LAB) — 384KB
• sprs-20231130_pre.xml (EX-101.PRE) — 197KB
• ea0200540-10k_surgecomp_htm.xml (XML) — 312KB

Business

Business 1 Item 1A. Risk Factors 9 Item 1B. Unresolved Staff Comments 14 Item 2. Properties. 14 Item 3. Legal Proceedings. 14 Item 4. Mine Safety Disclosures. 14 PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 15 Item 6. [Reserved] 16 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 16 Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 20 Item 8. Financial 20 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 20 Item 9A. Controls and Procedures. 21 Item 9B. Other Information. 21 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 21 PART III Item 10. Directors, Executive Officers, and Corporate Governance. 22 Item 11. Executive Compensation. 29 Item 12. Security 32 Item 13. Certain Relationships and Related Transactions, and Director Independence. 33 Item 14. Principal Accounting Fees and Services. 33 PART IV Item 15. Exhibits and Financial Statement Schedules. 34 Item 16. Form 10-K Summary. 35

SIGNATURES

SIGNATURES 36 Consolidated Financial F-1 i

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar words. These statements are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. We discuss many of the risks in greater detail under the heading "Risk Factors." Also, these forward-looking statements represent our estimates and assumptions only as of the date of the filing of this report. Except as required by law, we assume no obligation to update any forward-looking statements after the date of the filing of this report. This report also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other industry data. This data involves a number of assumptions and limitations, and investors are cautioned not to give undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent parties and contained in this report

Business

Item 1. Business. References to "we," "us," "our", "our company" and "the company" refer to Surge Components, Inc. ("Surge" or the "Company") and, unless the context indicates otherwise, includes Surge's wholly-owned subsidiaries, Challenge/Surge, Inc. ("Challenge"), and Surge Components, Limited ("Surge Limited"). We were incorporated under the laws of the State of New York on November 24, 1981, and re-incorporated in Nevada on August 26, 2010. In February 2019, we converted into a Delaware corporation. Effective on the close of December 30, 2021, we converted into a Nevada corporation. We completed an initial public offering of our securities in 1984 and a second offering in August 1996. Our principal executive offices are located at 95 East Jefryn Boulevard, Deer Park, New York 11729 and our telephone number is (631) 595-1818. We are a supplier of electronic products and components. These products include capacitors, which are electrical energy storage devices, and discrete components, such as semiconductor rectifiers, transistors and diodes, which are single function low power semiconductor products that are packaged alone as compared to integrated circuits such as microprocessors. The products that we sell are typically utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, telecomm, audio, cellular telephones, computers, consumer electronics, garage door openers, household appliances, power supplies and security equipment. The products that we sell are sold to both original equipment manufacturers, commonly referred to as OEMs, who incorporate them into their products, and to distributors of the lines of products we sell, who resell these products within their customer base. Surge sells its products through three of the top four distributors for electronic components in the world and also supplies its products to subcontractors who manufacture for their customers. These channels open doors to Surge at customer

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