SurgePays, Inc. (NASDAQ: SURG) reported that a three-month pilot of a smartphone rent-to-own program across 32 independent retail dealers generated $142,725 in sales in June, up from $29,699 in May and $1,500 in April, according to a press release.

The program is a partnership with All Prepaid, LLC, doing business as LowWeeklyPayments (LWP), a Florida-based rent-to-own platform targeting subprime consumers. Under the arrangement, LWP purchases the device and rents it to the customer under a weekly payment structure until the customer owns the phone outright.

June revenue averaged approximately $4,438 per dealer across the 32 pilot locations. SurgePays said the companies are in active discussions about forming a joint venture to expand the program to its broader dealer network, which the company described as numbering in the thousands.

"June revenue reached $142,725 across just 32 pilot dealers, roughly $4,438 per dealer, only two months after initial onboarding in April, and that acceleration is the primary reason the Company is expanding the program to the thousands of dealers already transacting on the SurgePays platform," said K. Brian Cox, Chairman and Chief Executive Officer of SurgePays.

The LWP program is designed to serve customers who transact in cash and do not qualify for traditional credit-based device financing. It can be offered as a standalone option compatible with a customer's existing carrier or bundled with SurgePays' LinkUp Mobile service.

The companies said they will provide further updates on the potential joint venture if and when definitive terms are reached.