StockItOut
2 months ago
Coxy's SurgePays self-dealing scam paying himself hugely!
Chief Executive Officer
In December 2023, the Company finalized the terms of its employment agreement with its Chief Financial Officer as follows:
1. Term – through December 31, 2028
2. Base salary
a. For the year ended December 31, 2023 - $750,000,
b. For each year thereafter an increase of 3%
3. Annual cash bonus
a. For the year ended December 31, 2023, and all other years throughout the term of the employment agreement - $870,000.
4. Restricted Stock Awards
a. Effective March 1, 2024, future stock awards totaling 2,500,000 shares of common stock.
b. The shares will be issued and vest as follows:
i. 500,000 shares ratably over the period July 2024 – December 2024 (83,333 shares per month over a six-month period). The fair value of this grant was $3,800,000, based upon the quoted closing price of $7.60/share, 500,000 on June 1, of each subsequent year (2025, 2026, 2027 and 2028), at which time these shares will have their fair value determined. These shares have no stated performance or service requirements, other than to be remain as the Chief Executive Officer, and the expense will be recorded on the grant date; and
ii. Shares shall immediately vest if any of the following occur and the Chief Executive Officer is employed by the Company at the time of:
1. Death,
2. Total disability,
3. Termination without cause; and
4. Change in control
5. Annual Revenue Goals (only one (1) award per goal may be earned until next threshold is achieved
a. $250,000,000 – value of restricted stock award will be $6,250,000,
b. $500,000,000 – value of restricted stock award will be $25,000,000,
c. $1,000,000,000 – value of restricted stock award will be $50,000,000,
d. $2,000,000,000 – value of restricted tock award will be $100,000,000; and
e. Each additional $1,000,000,000 – value of restricted tock award will be $50,000,000,
6. Annual EBITDA Goals (only one (1) award per goal may be earned until next threshold is achieved
a. $50,000,000 - value of restricted stock award will be $2,500,000,
b. $100,000,000 - value of restricted stock award will be $5,000,000; and
c. Each additional $50,000,000 - value of restricted stock award will be $2,500,000
7. Market Capitalization Goals (only one (1) award per goal may be earned until next threshold is achieved
a. $250,000,000 - value of restricted stock award will be $25,000,000,
b. $500,000,000 - value of restricted stock award will be $50,000,000,
c. $1,000,000,000 - value of restricted stock award will be $100,000,000,
d. $2,000,000,000 - value of restricted stock award will be $200,000,000; and
e. Each additional $1,000,000,000 - value of restricted stock award will be $100,000,000
8. Other
a. Vacation,
b. Car allowance of $500 per month; and
c. Home office expense reimbursement of $667 per month,
d. 401(K) plan participation,
e. Life insurance; and
f. Liability insurance
See Note 9 regarding the vesting provisions of these shares.
Televet
5 months ago
Why Cable and Telecom Stocks Were Soaring Today
Story by Billy Duberstein • 4d • 3 min read
The Affordable Connectivity Program (ACP) is alive
Yesterday, a bipartisan group of Senators introduced an amendment to the 2024 Federal Aviation Administration (FAA) Reauthorization Act, which would provide roughly $6 billion in funding toward the Affordable Connectivity Program (ACP), along with another $3 billion to "rip and replace" equipment from Chinese telecom equipment providers ZTE and Huawei.
Telecom and cable stocks have been facing headwinds, as the current ACP, which provides a $30 per month broadband subsidy to low-income households, is in its final month of funding. Thus far, Congress has balked on continuing to fund the program or find room for it in the federal budget. If the subsidy were to go away, some 23 million households would either not pay their bills or pay only a portion to their current broadband provider, creating a big risk for those providers.
But late Tuesday, a bipartisan group of six Senators introduced an amendment that would attach the ACP to the FAA Reauthorization Act, which must be passed at some point.
Notably, the amendment is a modified form of the ACP bill that was shot down earlier this year. It shrinks the subsidy by about $1 billion from $7 billion to $6 billion, lowering the wage threshold for subsidy qualification while also implementing measures meant to curb waste and abuse.
On their recent conference calls, Charter, Comcast, and Shenandoah all referred to the expiration of the ACP as a potential risk for elevated churn in the upcoming second and third quarters. Charter noted it had 5 million ACP customers out of its roughly 30 million (or 17%) residential relationships. Comcast has about 1.4 million ACP recipients out of about 31.6 (4.4%) million residential customers. And Shenandoah said it had less ACP exposure than large players, at less than 4% of its customer base.
Therefore, should the program be revived, that would be a relief to all these companies' financials. It's a bit curious that Shenandoah is up much more than the others, given its lower proportion of ACP customers. But Shenandoah is a much smaller company at just a $900 million market cap, and positive or negative news tends to have an outsized effect on smaller-cap companies. Shenandoah had also seen its stock essentially cut in half in just the past five months or so. So, it was perhaps due for a bounce on any good news.