UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended November 30, ~~2023~~2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File No. 000-27688

SURGE COMPONENTS, INC.

(Exact name of registrant as specified in its charter)

Nevada		11-2602030
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

95 East Jefryn Boulevard Deer Park, New York		11729
(Address of principal executive offices)		(Zip Code)

(631) 595-1818
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of Each Class to be so Registered:		Name of each exchange on which registered
None		None

Securities registered under Section 12(g) of the Act:

Common Stock, Par Value $0.001

Preferred Stock Purchase Rights

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 31, ~~2023~~2024, the aggregate market value of the issued and outstanding common stock held by non-affiliates of the registrant, based upon the closing price of the common stock, was approximately $108.1 million.

The registrant’s common stock outstanding as of February 24, ~~2024~~ 2025, was 5,~~577~~582,~~698~~783 shares of common stock.

SURGE COMPONENTS, INC.

TABLE OF CONTENTS

PART I
Item 1.	Business	1
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	14
Item 1C.	Cybersecurity	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 Statements and Supplementary Data.	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 Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	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		36
Consolidated Financial Statements		F-1

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 statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

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~~These ~~data~~estimates ~~involves~~ involve 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 and, accordingly, we cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of our future performance and the future ~~performance~~ performance of the industries in which we operate are subject to a high degree of uncertainty and risk due to a variety of factors, including ~~those~~ those described in “Risk Factors” and elsewhere in this report. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

PART I

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 customers which Surge may not have access to otherwise. The products that we sell are manufactured predominantly in Asia by approximately sixteen independent manufacturers. We only have one binding long-term supply agreement with one of our manufacturers, Lelon Electronics. We have an agreement to act as the exclusive sales agent utilizing independent sales representative organizations in North America to sell and market the products for one of such manufacturers, Lelon Electronics. When we act as a sales agent, we receive a commission from our supplier who sold the product to the customer that we introduced to our supplier. The amount of the commission is determined on a sale by sale basis depending on the profit margin of the product. Commission revenue totaled $~~106~~95,~~885~~584 and $~~249~~106,~~248~~ 885 for the fiscal years ended November 30, ~~2023~~2024 (“Fiscal ~~2023~~2024”) and November 30, ~~2022~~2023 (“Fiscal ~~2022~~ 2023”), respectively.

Challenge is engaged in the sale of electronic components. In 1999, Challenge began as a division to sell audible components. We have been able to increase the types of products that we sell because some of our suppliers introduced new products, and we also located other products from new suppliers. Our core products include buzzers, speakers, microphones, resonators, alarms, chimes, filters, and discriminators. We now also work with our suppliers to have our suppliers customize many of the products we sell for many customers through the customers’ own designs and those that we work with our suppliers to have our suppliers redesign for them at our suppliers’ factories. We have engineers on our staff who work with our suppliers on such redesigns and assists with the introduction of new product lines. We are continually looking to expand the line of products that we sell. We sell these products through independent representatives that earn a commission on the products we sell. We are also working with local, regional, and national distributors to sell these products to local accounts in every state Challenge also at times handles the brokering of certain products, helping their customers find parts that regular suppliers can’t deliver.

In order for us to grow, we will depend on, among other things, the continued growth of the electronics and semiconductor industries, our ability to withstand intense price competition, our ability to obtain new clients, our ability to retain and attract sales and other personnel in order to expand our marketing capabilities, our ability to secure adequate sources of products, which are in demand on commercially reasonable terms, our success in managing growth, including monitoring an expanded level of operations.

Industry Background

The United States electronics distribution industry is composed of manufacturers, national and international distributors, as well as regional and local distributors. Electronics distributors market numerous products, including active components (such as transistors, microprocessors, integrated circuits and semiconductors), passive components (such as capacitors and audibles), and electro mechanical, interconnect (such as connectors and wire) and computer products. Surge focuses its efforts on the sale of capacitors, discrete components, and audible products.

The electronics industry has been characterized by intense price cutting and rapid technological changes and development, which could materially adversely affect our future operating results. In addition, the industry has been affected historically by periodic economic downturns, which have had an adverse economic effect upon manufacturers and end-users of the products that we sell, as well as distributors. Furthermore, the life-cycle of existing electronic products and the timing of new product development and introduction can affect the demand for electronic components, including the products that we sell. Accordingly, any downturn in the electronics industry in general could adversely affect our business and results of operations. Due to rising transportation and employment costs in Asia, we have seen some U.S. manufacturers start moving their manufacturing facilities to Mexico to reduce transportation costs and bring manufacturing much closer to home. At this time, however, none of our customers has moved its manufacturing facilities to Mexico.

Products

Surge supplies a wide variety of electronic components (some of which bear our private “Surge” label) which can be broadly divided into two categories—capacitors and discrete components. For Fiscal ~~2023~~2024 and Fiscal ~~2022~~2023, capacitors accounted for approximately 31 28% and 3031% of Surge’s sales, respectively, of which approximately 75% for each year was Lelon capacitors (discussed below). Discrete components accounted for Surge’s remaining sales in Fiscal ~~2023~~2024 and Fiscal ~~2022~~2023. Capacitors and discrete components can be categorized based on various factors, including function, construction, fabrication and capacity.

We sell, under the name of the manufacturer, Lelon Electronics, aluminum electrolytic capacitors, which are capacitors that store and release energy into a circuit incrementally and are used in various applications, including but not limited to, computers, appliances, automotive, lighting, telecommunications devices and various consumer products. Our sales of products under the Lelon Electronics name accounted for approximately 3128% of our total sales (and approximately 75% of our capacitor sales as noted above) in Fiscal ~~2023~~2024.

The principal products sold by Surge are sold under the Surge name (except with respect to capacitors, which the Company also sells under the Lelon Electronics name as noted above) or by Challenge are set forth below.

Capacitors

A capacitor is an electrical energy storage device used in the electronics industry for varied applications, principally as elements of resonant circuits, coupling and bypass applications, blockage of DC current, frequency determining and timing elements, filters and delay-line components. All products are available in traditional leaded as well as surface mount (chip) packages. The product line of capacitors we sell includes:

Aluminum Electrolytic Capacitors- These capacitors, which are Surge’s principal product, are storage devices used in power applications to store and release energy as the electronic circuitry demands. They are commonly used in power supplies and can be found in a wide range of consumer electronics products. Our supplier has one of the largest facilities for these products in Taiwan and China. These facilities are fully certified for the International Quality Standard ISO 9001 and QS9000, and TS16949, which means that they meet the strictest requirements established by the automotive industry and adopted throughout the world to ensure that the facility’s manufacturing processes, equipment and associated quality control systems will satisfy specific customer requirements. This system is also intended and designed to facilitate clear and thorough record keeping of all quality control and testing information and to ensure clear communication from one department to another about the information (i.e., quality control, production or engineering). This certification permits us to monitor quality control/manufacturing process information and to respond to any customer questions.

Ceramic Capacitors- These capacitors are the least expensive, and are widely used in the electronics industry. They are commonly used to bypass or filter semiconductors in resonant circuits and are found predominantly in a wide range of low cost products including computer, telecom, appliances, games and toys.

Mylar Film Capacitors- These capacitors are frequently used for noise suppression and filtering. They are commonly used in telecommunication and computer products. Surge’s suppliers in China have facilities fully certified for all of the above mentioned quality certifications.

Discrete Components

Discrete components, such as semiconductor rectifiers, transistors and diodes, are packaged individually to perform a single or limited function, in contrast to integrated circuits, such as microprocessors and other “chips”, which contain from only a few diodes to as many as several million diodes and other elements in a single package, and are usually designed to perform complex tasks. Surge almost exclusively distributes discrete, low power semiconductor components rather than integrated circuits.

The product line of discrete components we sell includes:

Rectifiers- Low power semiconductor rectifiers are devices that convert alternating current, or AC power, into one directional current, or DC power, by permitting current to flow in one direction only. They tend to be found in most electrical apparatuses, especially those drawing power from an AC wall outlet. All products are available in traditional leaded as well as surface mount (chip) packages. Surge’s rectifier suppliers all have the aforementioned certifications, giving us an opportunity to market the products that we sell to the automotive industry.

Transistors- These products send a signal to the circuit for transmission of waves. They are commonly used in applications involving the processing or amplification of electric current and electric signals, including data, television, sound and power. All products are available in traditional leaded as well as surface mount (chip) packages. Surge sells many types of ISO 9002 transistors, including power transistors, designed for large currents to safely dissipate large amounts of power.

Diodes- Diodes are two-lead or surface mount components that allow electric current to flow in only one direction. They are used in a variety of electronic applications, including signal processing and direction of current. All products are available in traditional leaded as well as surface mount (chip) packages. Diodes sold include:

Circuit Protection Devices- Our circuit protection devices include transient voltage suppressors and metal oxide varistors, which protect circuits against switching, lightening surges and other uncontrolled power surges and/or interruptions in circuits. Transient voltage suppressors, which offer a higher level of protection for the circuit, are required in telecommunication products and are typically higher priced products than the metal oxide varistors, which are more economically priced and are used in consumer products. All products are available in traditional leaded as well as surface mount (chip) packages.

Audible Components- These include audible transducers, Piezo buzzers, speakers, and microphones, which produce an audible sound for, and are used in back-up power supplies for computers, alarms, appliances, smoke detectors, automobiles, telephones and other products which produce sounds. Challenge has initiated marketing relationships with certain Asian manufacturers of audible components to sell these products worldwide. All products are available in traditional leaded as well as surface mount (chip) packages.

New Products- We periodically introduce new products, which are intended to complement our existing product lines. These products are ones that are commonly used in the same circuit designs as other of the products that we sell and will further provide a one- stop-shop for the customer. Some of these products are common items used in all applications and others are niche items with a focus towards a particular application. These new products include fuses, printed circuit boards and switches. All products are available in traditional leaded as well as surface mount (chip) versions. In 2019 we were issued a patent on a new pinpoint alarm designed to improve an individual’s ability to determine the location of the alarm. The improved alarm can be used in a wide variety of applications including reversing vehicles, medical emergency notification and hardware devices that use Bluetooth or other wireless communication protocols in combination with mobile software applications to locate lost items.

Inventory

In order to adequately service our customers’ needs, we believe that it is necessary to maintain large inventories, which makes us more susceptible to price and technology changes. At any given time, we attempt to maintain a one-to-two month inventory on certain products in high demand for customers and at least one month for other products. Our inventory currently contains more than 100 million component units consisting of more than 3,000 different part numbers. The products that we sell range in sales price from less than one cent for a commercial diode to more than $2.00 for high power capacitors and semiconductors. As of November 30, ~~2023~~2024, we maintained inventory valued at $5,~~422~~000,~~824~~707.

Because of the experience of our management, including Ira Levy and Steven Lubman, we believe that we know the best prices to buy the products we sell and as a result we generally waive rights to manufacturers’ inventory protection agreements (including price protection and inventory return rights), and thereby bear the risk of increases in the prices charged by our manufacturers and decreases in the prices of products held in our inventory or covered by purchase commitments. If prices of components, which we hold in inventory decline, or if new technology is developed that displaces products that we sell, our business could be materially adversely affected. The Company has experienced very little impact from customer design changes and slowdown but this can potentially increase due to economic conditions and customer-specific business conditions. If our customers experience these changes, our business could be adversely affected.

Product Availability

Surge and Challenge obtain a significant amount of their products from manufacturers in Asia. Of the total goods purchased by Surge and Challenge in Fiscal ~~2023~~2024, those foreign manufactured products were supplied from manufacturers in Taiwan (3431%), Hong Kong (2115%), elsewhere in Asia including China, South Korea and Singapore (3849%) and overseas outside of Asia (less than 1%). The Company purchases the balance of its products from the United States. The Company purchases its products from approximately sixteen different manufacturers.

Most of the facilities that manufacture products for Surge have obtained International Quality Standard ISO 9002 and other certifications. We typically purchase the products that we sell in United States currency in order to minimize the risk of currency fluctuations. In most cases, Surge utilizes two or more alternative sources of supply for each of its products with one primary and one complementary supplier for each product. Surge’s relationships with many of its suppliers date back to the commencement of our import operations in 1983. We have established payment terms with our manufacturers of between 30 and 60 day open account terms.

We only have one agreement with a supplier, Lelon Electronics, which is terminable by either party upon six months’ notice to the other party. We have an agreement to act as the sales agent in North America for one of our manufacturers, Lelon Electronics. While we believe that we have established close working relationships with our principal manufacturers, our success depends, in large part, on maintaining these relationships and developing new supplier relationships for our existing and future product lines. Because of the lack of long- term contracts, we may not be able to maintain these relationships.

For Fiscal ~~2023~~2024 and Fiscal ~~2022~~ 2023, one of Surge’s vendors, Lelon Electronics, accounted for approximately 3128% and 3331% of Surge’s consolidated purchases, respectively. The loss of or a significant disruption in the relationship with Lelon Electronics, which is our major supplier, could have a material adverse effect on our business and results of operations until a suitable replacement could be obtained.

The Company has a written agreement with Lelon Electronics regarding the supply of inventory for the Company’s customers. The Company purchases products under both the Company’s name and Lelon’s brand name for the Company’s inventory in order to supply the Company’s customers. For the majority of purchases from Lelon Electronics, the Company takes title to the products, houses them in the Company’s warehouse and sells directly to the Company’s customers. There is no right of return on the products purchased from Lelon and the Company accepts all credit risk with regards to sales of these products.

The components business has, from time to time, experienced periods of shortages in product supply, usually as the result of demand exceeding available supply. When these shortages occur, suppliers tend to either increase prices and or reduce the number of units sold to given customers. Should there be shortages in the future, such shortages may benefit our business if we get preferential supply from our manufacturers. It could also have an adverse effect upon our business, in the case that our manufacturers don’t have enough capacity to provide enough components. Conversely, due to poor market demand, there could be an excess of components in the market, causing stronger competition and an erosion of prices. In cases of shortages, customers may purchase more than they need and thus reducing future demand for their products while they use up their excess inventory.What is the status now?

Marketing and Sales

Surge’s sales efforts are directed towards Original Equipment Manufacturer (OEM) customers in numerous industries where the products that we sell have wide application. Surge currently employs ~~ten~~nine sales and marketing personnel, not including two of its executive officers, who are responsible for certain key customer relationships. In addition, Surge has expanded its sales team, hiring a Europe manager based in London as well as one based in China.

We also use independent sales representatives or organizations, which often specialize in specific products and areas and have specific knowledge of and contacts in particular markets. We currently have representation agreements with approximately 30 sales representative organizations. Sales representative organizations, which are generally paid a 5% commission on net sales, are generally responsible in their respective geographic markets for identifying customers and soliciting customer orders. Pursuant to arrangements with our independent sales representatives, they are permitted to represent other electronics manufacturers, but are generally prohibited from carrying a line of products competitive with the products that we sell. These arrangements can be terminated on written notice by either party or if breached by either party. These organizations normally employ between one and twelve sales representatives. The individual sales representatives employed by the sales organizations generally possess an expertise which enhances the scope of our marketing and sales efforts. This permits us to avoid the significant costs associated with creating a direct marketing network. We have had relationships with certain sales organizations since 1988 and continue to engage new sales organizations as needed. We believe that additional sales organizations and representatives are available to us, if required.

We have initiated a formal national distribution program to attract more distributors to promote the products that we sell. We expect this market segment to contribute significantly to our sales growth over time.

Many customers require their suppliers to have a local presence and Surge’s network of independent sales representatives are responsive to these needs. Surge formed a Hong Kong corporation, Surge Components, Limited and hired a regional sales manager to service the Hong Kong/Greater China region customers.

Other marketing efforts include generation and distribution of catalogs and brochures of the products we sell and attendance at trade shows. We have produced an exhibit for display at electronics trade shows throughout the year. The products that we sell have been exhibited at the electronic distribution show in Las Vegas, and we intend to continue our commitment and focus on the distribution segment of the industry by our visibility at the Electronic Distributor Trade Show. In addition, we have updated our website to make it more informative and user friendly. Our search engines have been improved so that customers can find us more easily and we have developed a new portal system to help with lead management and disbursement.

Customers

The products that we sell are sold to distributors and OEMs in such diverse industries as the automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecomm products, computer related products, power supply products, utility meters and household appliances industries. We request our distributors to provide point of sales reporting, which enables us to gain knowledge of the breakdown of industries into which the products that we sell are sold. Two of our customers accounted for 2019% and 1815% of net sales for Fiscal ~~2023~~2024, and 1220% and 2118% of net sales for Fiscal ~~2022~~2023. Our discrete components are often sold to the same clients as our capacitors. These OEM customers typically accept samples for evaluation and, if approved, we work towards procuring the next orders for these items.

Typically, we do not maintain contracts with our customers and generally sell products pursuant to customer purchase orders. Although our customer base has increased, the loss of our largest customers as well as, to a lesser extent, the loss of any other material customer, could have a materially adverse effect on our operations during the short-term until we are able to generate replacement business, although we may not be able to obtain such replacement business. Because of our contracts and good working relationships with our distributors, we offer the OEMs, when purchasing through distributors, extended payment terms, just-in- time deliveries and one-stop shopping for many types of electronic products.

Competition

We conduct business in the highly competitive electronic components industry. We expect this industry to remain competitive. We face intense competition in both our selling efforts and purchasing efforts from the many companies that manufacture or distribute electronic components. Our principal competitors in the sale of capacitors include Nichicon, Panasonic, Illinois Capacitor, NIC, AVX, Murata, Epcos, United Chemicon, Rubycon, Vishay and Kemet. Our principal competitors in the sale of discrete components include Vishay, General Semiconductor Division, General Instrument Corp., OnSemi, Inc., Microsemi Corp., Diodes, Inc. and Littlefuse, and Copper Bussman Division. Our principal ~~competition~~ competition in the audible business include AVX, Murata, Panasonic, Projects Unlimited, International Components Corp. and Star Micronics. Many of these companies are well established with substantial expertise, and have much greater assets and greater financial, marketing, personnel, and other resources than we do. Many larger competing suppliers also carry product lines which we do not carry. Generally, large semiconductor manufacturers and distributors do not focus their direct selling efforts on small to medium sized OEMs and distributors, which constitute many of our customers. As our customers become larger, and as the market becomes more competitive, our competitors may find it beneficial to focus direct selling efforts on those customers, which could result in our facing increased competition, the loss of customers or pressure on our profit margins. We are finding increased competition from manufacturers located in Asia due to the increased ~~globalization~~ globalization nature of the business. There can be no assurance that we will be able to continue to compete effectively with existing or potential competitors. Other factors that will affect our success in these markets include our continued ability to attract additional ~~experienced~~ experienced marketing, sales and management talent, and our ability to expand our support, training and field service capabilities. Additionally, since the tsunami and earthquake in Japan in 2012, our competitors have established manufacturing facilities in China enabling them to be more competitive by lowering their labor rates and manufacturing costs. Also, as the world continues to become global and customers have easier access to suppliers in Asia, our business could be adversely affected since the internet enables customers to meet and interact with suppliers through Google and other search engines which customers had not previously done.

Customer Service

We have customer service employees whose time is dedicated largely to responding to customer inquiries such as price quote requests, delivery status of new or existing purchase orders, changes of existing order dates, quantities, dates, etc. We intend to increase our customer service capabilities, as necessary.

Foreign Trade Regulation

Most products sold by Surge are manufactured in Asia, including such countries as Taiwan, South Korea, Hong Kong, India, Japan and China. The purchase of goods manufactured in foreign countries is subject to a number of risks, including economic disruptions, transportation delays and interruptions, foreign exchange rate fluctuations, impositions of tariffs and import and export controls, and changes in governmental policies, any of which could have a material adverse effect on our business and results of operations. Potential concerns may include drastic devaluation of currencies, loss of supplies and increased competition within the region.

From time to time, protectionist pressures have influenced United States trade policy concerning the imposition of significant duties or other trade restrictions upon foreign products. We cannot predict whether additional United States customs quotas, duties, taxes or other charges or restrictions will be imposed upon the importation of foreign components in the future or what effect such actions could have on our business, financial condition or results of operations.

Our ability to remain competitive with respect to the pricing of imported components could be adversely affected by increases in tariffs or duties, changes in trade treaties, strikes in air or sea transportation, and possible future United States legislation with respect to pricing and import quotas on products from foreign countries. Our ability to remain competitive could also be affected by other governmental actions related to, among other things, anti-dumping legislation and international currency fluctuations. While we do not believe that any of these factors adversely impact our business at the present time, there can be no assurance that these factors will not materially adversely affect us in the future. Since July 2018, when tariffs started to impact some of the Company’s sales, the Company has been able to pass on the tariffs to its U.S. and Canadian customers. We have also changed our shipping terms with our Mexico customers to Free Carrier, which means we deliver the goods to the customers’ Hong Kong freight forwarder, who then becomes responsible for the transportation and tariff costs. Any significant disruption in the delivery of merchandise from our suppliers, substantially all of whom are foreign, could have a materially adverse impact on our business and results of operations.

Government Regulation

Various laws and regulations relating to safe working conditions, including the Occupational Safety and Health Act, are applicable to our Company. We believe we are in substantial compliance with all material federal, state and local laws and regulations regarding safe working conditions. We believe that the cost of compliance with such governmental regulations is not material.

We are subject to the United States Foreign Corrupt Practices Act, which generally prohibits United States companies from engaging in bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining business. Foreign companies, including some that may compete with us, are not subject to these prohibitions. If our employees or other agents are found to have engaged in such practices, we could suffer severe penalties and other consequences that may have a material adverse effect on our business, financial condition and results of operations. To the Company’s knowledge, none of our employees or other agents have engaged in such practices.

The Company has been impacted by the tariffs in effect or being considered by the United States to impose on Chinese goods being imported into the United States, which includes the Company’s products. The imposition of such tariffs will likely cause our costs, as well as the prices we charge customers, to increase.

Environmental and Regulatory Compliance

We are subject to various environmental laws and regulations relating to the protection of the environment, including those governing the handling and management of certain chemicals used in electronic components.

We do not believe that compliance with these laws and regulations will have a material adverse effect on our capital expenditures, earnings, or competitive position.

Patents, Trademarks and Proprietary Information

In September 2018, we were issued a U.S. patent application with the United States Patent and Trademark Office for an improved pinpoint alarm designed to improve an individual’s ability to determine the location of an alarm versus standard single, multi-frequency, or broadband alarms. The improved alarm can be used in a wide variety of applications, including reversing vehicles, medical emergency notification, and hardware devices that use Bluetooth or other wireless communications protocols in combination with mobile software applications to locate lost items, including phones, wallets, and keys. Our patent issued on December 31, 2019, as United States Patent No. 10,522,008. With regard to our other products, although we have no knowledge that such products infringe patents or trademarks, or violate proprietary rights of others, it is possible that alleged infringement of existing or future patents, trademarks or proprietary rights of others may occur. In the event that the products that we sell are alleged to infringe proprietary rights of others, these products may have to be modified or redesigned. However, there can be no assurance that any infringing products will be able to be modified or redesigned in a way that does not infringe on the proprietary rights of others, which could have a material adverse effect upon our operations. In In addition, there can be no assurance that we will have the financial or other resources necessary to enforce or defend a patent infringement or proprietary rights violation action. Moreover, if the products we sell infringe patents, trademarks or proprietary rights of others, we could, under certain circumstances, become liable for damages, which also could have a material adverse effect on our business.

With respect to the other products that we sell, we have no patents, trademarks or copyrights registered in the United States Patent and Trademark Office or in any state. Additionally, to the best of our knowledge the manufacturers of the products that we sell do not have patents, ~~trademarks~~ trademarks or copyrights registered in the United States Patent and Trademark Officer or in any state. We rely on the know-how, experience and capabilities of our management personnel.

Backlog

As of November 30, ~~2023~~2024, our backlog was approximately $119,~~427~~432,~~000~~962, as compared with $1811,~~408~~427,000 at November 30, ~~2022~~2023. Substantially all backlog is expected to be shipped by us within 365 days of booking date. Due to the economic downturn, some of the Company’s customers have cancelled orders while others are not placing as many new orders. Year to year comparisons of backlog are not necessarily indicative of future operating results.

Employees

As of November 30, ~~2023~~2024, Surge and Challenge employed 4442 persons, two of whom are employed in executive capacities, ~~ten~~nine are engaged in sales, ~~five~~four in engineering, four in purchasing, five in administrative capacities, twelve in customer service, two in accounting and four in warehousing. None of our employees are covered by a collective bargaining agreement, and we consider our relationship with our employees to be good.

Competitive pay and benefits. The Company’s compensation programs are designed to provide the proper incentives to attract, retain and motivate employees to achieve superior results. We provide employee wages that are competitive and consistent with employee positions, skill levels, experience, knowledge and geographic location. Annual increases and incentive compensation are based on merit, which is communicated to the employees at the time of hiring. Employees are eligible for paid and unpaid leaves, a retirement plan, and disability/accident coverage.

Health and safety. The health and safety of our employees is our highest priority. Our safety focus is also evident in our response to the COVID-19 pandemic.

●

Adding work from home flexibility.

●

Adjusting attendance policies to encourage those who are sick to stay home.

● Increasing cleaning protocols across all locations. ● Providing additional personal protective equipment and cleaning supplies.

●8

~~● Providing additional personal protective equipment and cleaning supplies~~Item 1A. Risk Factors

●An investment in our common stock involves a high degree of risk. An investor should carefully consider the risks described below as well as other information contained in this annual report on Form 10-K. If any of the following risks actually occur, our business, financial condition or results of operations could be materially adversely affected, the value of our common stock could decline, and an investor may lose all or part of his or her investment.

8Risks Related to our Business

~~Item~~We have ~~1A.~~an ~~Risk~~agreement ~~Factors~~with only one of our suppliers and we depend on a limited number of suppliers

AnWe have ~~investment~~an inagreement with only one of our ~~common stock~~suppliers ~~involves~~(Lelon aElectronics), ~~high~~which ~~degree~~agreement ofis ~~risk.~~terminable Anby ~~investor~~either ~~should~~party ~~carefully~~upon ~~consider~~notice to the other ~~risks~~party. ~~described~~Lelon ~~below~~Electronics asaccounted ~~well~~for asapproximately ~~other~~28% ~~information~~and ~~contained~~ 31% of the Company’s consolidated purchases in ~~this~~the ~~annual~~years ~~report~~ending November on30, ~~Form~~2024 ~~10-K~~and November 30, 2023. IfWe ~~any~~also ofact as the ~~following~~exclusive ~~risks~~sales ~~actually~~agent ~~occur~~in North America for Lelon Electronics. While we believe that we have established close working relationships with our principal suppliers, our ~~business~~success depends, ~~financial~~in ~~condition~~large orpart, ~~results~~on ofmaintaining these ~~operations~~relationships and developing new supplier relationships for our existing and future product lines. There is no assurance that we ~~could~~will be ~~materially~~able ~~adversely~~to ~~affected,~~maintain ~~the~~these ~~value~~relationships. ofWhile ~~our~~we ~~common~~believe ~~stock~~that ~~could~~there ~~decline,~~are alternative semiconductor and ancapacitor ~~investor~~suppliers whose replacement products may ~~lose~~be ~~all~~acceptable orto ~~part~~our customers, the loss of, ~~his~~or a significant disruption in the relationship with, one or ~~her~~more ~~investment~~of our major suppliers would likely have a material adverse effect on our business and results of operations.

~~Risks~~We need ~~Related~~to maintain large inventories in order to ~~our~~succeed ~~Business~~and as a result, price fluctuations could harm us.

WeIn order ~~have~~to anadequately ~~agreement~~service ~~with~~our ~~only~~customers, we believe that it is necessary to maintain a large inventory of products. Accordingly, we attempt to maintain a one-to-two month inventory of those products which we supply to our customers. As a result of our strategic ~~suppliers~~inventory ~~and~~purchasing policies, under which we ~~depend~~order onproducts to obtain preferential pricing, we generally waive the right to manufacturers’ inventory protection agreements (including price protection and inventory return rights). As a ~~limited~~result, ~~number~~we bear the risk of ~~suppliers~~increases in the prices charged by our manufacturers to the Company and decreases in the prices we are able to charge our customers. If prices of components which we hold in inventory decline or if new technology is developed that displaces products which we sell, our business could be materially adversely affected. Typically the Company has experienced very little impact from customer design changes and slowdown but this can potentially increase due to economic conditions and specific customers business conditions. If our customers experience these changes, our business could be adversely affected... There can be no assurances that we will be required to take additional reserves in the future.

~~We have an agreement with~~Our ~~only~~operations ~~one~~would of our suppliers (Lelon Electronics), which agreement is terminable by either party upon notice to the other party. Lelon Electronics accounted for approximately 31% and 33% of the Company’s consolidated purchases in the years ending November 30, 2023 and November 30, 2022. We also act as the exclusive sales agent in North America for Lelon Electronics. While we believe that we have established close working relationships with our principal suppliers, our success depends, in large part, on maintaining these relationships and developing new supplier relationships for our existing and future product lines. There is no assurance that we will be ~~able~~adversely toeffected ~~maintain these~~if ~~relationships. While~~ we ~~believe~~lose ~~that~~certain ~~there are alternative semiconductor and capacitor suppliers whose replacement products may be acceptable to our customers, the loss~~ of, ~~or a significant disruption in the relationship with, one or more of~~ our ~~major suppliers would likely have a material adverse effect on our business and results of operations~~customers.

WeFor Fiscal ~~need~~2024, approximately 19% and 15% of our net sales were derived from sales to two ~~maintain~~customers. ~~large~~Although ~~inventories~~our incustomer base has ~~order~~increased, tothe ~~succeed~~loss ~~and~~of our largest customers as well as, to a ~~result~~lesser extent, ~~price~~the ~~fluctuations~~loss ~~could~~of ~~harm~~any usother material customer, would be expected to have a materially adverse effect on our operations until we are able to generate replacement business, although we may not be able to obtain such replacement business.

~~In order to adequately service our customers,~~We wemay ~~believe~~not ~~that~~be itable ~~is necessary~~ to ~~maintain~~compete aagainst large ~~inventory~~competitors ~~of products.~~who ~~Accordingly,~~have webetter ~~attempt to maintain a one-to-two month inventory of those products which we supply to our customers~~resources. As a result of our strategic inventory purchasing policies, under which we order products to obtain preferential pricing, we generally waive the right to manufacturers’ inventory protection agreements (including price protection and inventory return rights). As a result, we bear the risk of increases in the prices charged by our manufacturers to the Company and decreases in the prices we are able to charge our customers. If prices of components which we hold in inventory decline or if new technology is developed that displaces products which we sell, our business could be materially adversely affected. Typically the Company has experienced very little impact from customer design changes and slowdown but this can potentially increase due to economic conditions and specific customers business conditions. If our customers experience these changes, our business could be adversely affected. We recorded an adjustment to Inventory reserves in 2023 totaling $99,583 due to some inventory we held that will be outdated and may not be saleable.. There can be no assurances that we will be required to take additional reserves in the future.

We face intense competition, in both our selling efforts and purchasing efforts, from the many companies that manufacture or distribute electronic components and semiconductors. Our ~~operations~~principal ~~would~~competitors bein ~~adversely~~the ~~effected~~sale of capacitors include Nichicon, Panasonic, Illinois Capacitor, ifNIC, AVX, Murata, Epcos, United Chemicon, Rubycon, Vishay and Kemet, General Semiconductor Division, General Instrument Corp., OnSemi, Inc., Microsemi Corp., Diodes, Inc. and Littlefuse, and Copper Bussman Division. Many of these companies are well established with substantial expertise, and have much greater assets and greater financial, marketing, personnel, and other resources than we ~~lose~~do. ~~certain~~Many larger competing suppliers also carry product lines which we do not carry. Generally, large semiconductor manufacturers and distributors do not focus their direct selling efforts on small to medium sized OEMs and distributors, which constitute most of our customers. As our customers become larger, however, our competitors may find it beneficial to focus direct selling efforts on those customers, which could result in our facing increased competition, the loss of customers or pressure on our profit margins. There can be no assurance that we will be able to continue to compete effectively with existing or potential competitors. The Company periodically introduces new products to the market.

For Fiscal 2023, approximately 20% and 18% of our net sales were derived from sales to two customers. Although our customer base has increased, the loss of our largest customers as well as, to a lesser extent, the loss of any other material customer, would be expected to have a materially adverse effect on our operations until we are able to generate replacement business, although we may not be able to obtain such replacement business.9

WeSystem failure ~~may~~or ~~not~~cybersecurity bebreaches ~~able~~of our network security could subject us to ~~compete~~increased ~~against~~operating ~~large competitors~~costs, ~~who~~as ~~have~~well ~~better~~as ~~resources~~litigation and other potential losses.

~~We face intense competition,~~The incomputer ~~both~~systems ~~our selling efforts~~ and ~~purchasing~~network ~~efforts,~~infrastructure ~~from~~that ~~the~~we ~~many~~use ~~companies~~could ~~that~~be ~~manufacture~~vulnerable orto ~~distribute~~unforeseen ~~electronic~~hardware ~~components~~ and ~~semiconductors.~~ ~~Our principal competitors in the sale of capacitors include Nichicon~~cybersecurity issues, ~~Panasonic,~~including “hacking” ~~Illinois~~and ~~Capacitor,~~“identity ~~NIC,~~theft.” ~~AVX,~~Our ~~Murata, Epcos,~~operations ~~United~~are ~~Chemicon,~~dependent ~~Rubycon,~~upon ~~Vishay~~our ~~and~~ability ~~Kemet,~~to ~~General~~protect ~~Semiconductor~~our ~~Division,~~computer ~~General~~equipment against ~~Instrument~~damage ~~Corp.,~~from ~~OnSemi~~fire, ~~Inc.,~~power ~~Microsemi Corp.~~loss, ~~Diodes,~~telecommunications ~~Inc.~~failure ~~and~~or ~~Littlefuse,~~a ~~and~~similar ~~Copper~~catastrophic ~~Bussman Division~~event. ~~Many~~Any ofdamage ~~these~~or ~~companies~~failure ~~are~~that ~~well~~causes ~~established~~an interruption ~~with~~in ~~substantial~~our ~~expertise, and~~operations could have ~~much~~an ~~greater~~adverse ~~assets~~effect ~~and~~on ~~greater~~our financial, ~~marketing,~~condition ~~personnel,~~ and ~~other~~results ~~resources~~of ~~than we do~~operations. ~~Many~~In ~~larger~~addition, ~~competing~~our ~~suppliers~~operations ~~also~~are ~~carry~~dependent ~~product~~upon ~~lines~~our ~~which~~ability weto doprotect ~~not~~our ~~carry.~~computer ~~Generally,~~systems ~~large~~and ~~semiconductor~~network ~~manufacturers~~infrastructure ~~and~~against ~~distributors~~damage dofrom ~~not~~physical ~~focus~~break-ins, ~~their direct~~cybersecurity breaches ~~selling~~and ~~efforts~~other ondisruptive ~~small~~problems tocaused ~~medium~~by ~~sized~~the ~~OEMs~~Internet ~~and~~or ~~distributors,~~other ~~which~~users. ~~constitute~~Such ~~most~~computer ofbreak-ins ~~our~~and ~~customers.~~other Asdisruptions ~~our~~would ~~customers~~jeopardize ~~become larger,~~the ~~however,~~security ~~our~~of ~~competitors~~information ~~may~~stored ~~find~~in itand ~~beneficial~~transmitted tothrough ~~focus~~our ~~direct~~computer ~~selling~~systems ~~efforts~~and onnetwork ~~those customers~~infrastructure, which ~~could~~may result in ~~our facing~~significant ~~increased~~liability ~~competition,~~to ~~the~~us ~~loss~~and ofdamage ~~customers or pressure on~~ our ~~profit margins~~reputation. ~~There can be no assurance that we will be able to continue to compete effectively with existing or potential competitors. The Company periodically introduces new products to the market.~~

9Despite efforts to ensure the integrity of our systems, we will not be able to anticipate all security breaches of these types, nor will we be able to implement guaranteed preventive measures against such security breaches. Persistent attackers may succeed in penetrating defenses given enough resources, time and motive. The techniques used by cyber criminals change frequently, may not be recognized until launched and can originate from a wide variety of sources, including outside groups such as external service providers, organized crime affiliates, terrorist organizations or hostile foreign governments.

~~System~~A successful ~~failure~~attack orto ~~cybersecurity~~our ~~breaches~~system security could cause us serious negative consequences, including significant disruption of operations, misappropriation of confidential information, or damage to our ~~network~~computers or systems or those of our customers. A successful security breach could ~~subject~~result usin violations of applicable privacy and other laws, financial loss to ~~increased~~us ~~operating~~or ~~costs~~to our customers, asloss ~~well~~of asconfidences in our security measures, significant litigation exposure, and ~~other~~harm ~~potential~~to ~~losses~~our reputation, all of which could have a material adverse effect on our business and results of operations.

~~The computer systems and~~In ~~network~~April ~~infrastructure~~2021, ~~that~~the weCompany ~~use~~launched ~~could~~an beinvestigation ~~vulnerable~~into toa ~~unforeseen~~ransomware ~~hardware~~attack ~~and~~on ~~cybersecurity issues,~~the ~~including~~Company’s ~~“hacking” and “identity theft~~systems.” ~~Our~~Based ~~operations~~on ~~are~~the ~~dependent~~review ~~upon~~of ~~our ability to protect our computer equipment against damage from~~the ~~fire,~~forensic ~~power loss~~files, ~~telecommunications~~it ~~failure~~was ordetermined ~~a similar catastrophic event. Any damage or failure~~ that ~~causes~~the anthreat ~~interruption~~actor inused ~~our operations~~ransomware ~~could~~to ~~have~~access anCompany ~~adverse effect on our financial condition and results of operations~~files. InNo ~~addition,~~ransom ~~our~~was ~~operations~~paid ~~are dependent upon our ability~~ to ~~protect~~the ~~our~~threat ~~computer systems and network infrastructure against damage from physical break-ins, cybersecurity breaches~~actors and ~~other~~all ~~disruptive~~parties ~~problems~~associated ~~caused~~with by the ~~Internet~~compromised orfiles ~~other~~were ~~users~~notified. Such computer break-ins and other disruptions would jeopardize the security of information stored in and transmitted through our computer systems and network infrastructure, which may result in significant liability to us and damage our reputation.

~~Despite efforts to ensure~~Our ~~the~~business ~~integrity of our systems, we~~ will ~~not~~ be ~~able~~adversely toaffected ~~anticipate~~if ~~all~~there ~~security~~is breaches of these types, nor will we be able to implement guaranteed preventive measures against such security breaches. Persistent attackers may succeed in penetrating defenses given enough resources, time and motive. The techniques used by cyber criminals change frequently, may not be recognized until launched and can originate from a ~~wide~~shortage ~~variety~~ of ~~sources, including outside groups such as external service providers, organized crime affiliates, terrorist organizations or hostile foreign governments~~components.

AThe components ~~successful~~business ~~attack~~has, from time to ~~our system~~time, ~~security~~experienced ~~could~~periods ~~cause~~of usextreme ~~serious~~shortages ~~negative~~in ~~consequences~~product supply, ~~including~~generally ~~significant~~as ~~disruption~~the result of ~~operations,~~demand exceeding ~~misappropriation~~available ofsupply. ~~confidential information~~When these shortages occur, orsuppliers ~~damage~~tend to ~~our~~either ~~computers~~increase prices or ~~systems~~reduce orthe ~~those~~number of ~~our~~units sold to customers. AWe ~~successful~~believe ~~security~~that ~~breach~~because ~~could~~of ~~result~~our large inventory and our relationships with our manufacturers, we have not been adversely affected by shortages in ~~violations~~certain discrete semiconductor components. However, future shortages may have an adverse effect upon our business especially ofif ~~applicable~~we ~~privacy~~were to reduce inventory to cut costs and ~~other~~reduce ~~laws~~risks of obsolescence. Currently, ~~financial~~the ~~loss~~Company tobelieves usthat orits lead time is better than their competitors and we have been able to ~~our~~maintain the customers, ~~loss~~we ofhave ~~confidences~~as well as in ~~our~~some ~~security~~instances ~~measures,~~acquire ~~significant~~new customers ~~litigation~~. ~~exposure~~However, ~~and~~our ~~harm~~business could be affected if the Company is unable to maintain the levels of inventory needed to keep our ~~reputation~~customers lines running. In addition, ~~all~~customers could order extra inventory of ~~which~~products ~~could~~from ~~have~~several asuppliers ~~material~~when ~~adverse~~they ~~effect~~are onconcerned ~~our~~about ~~business~~a possible shortage and ~~results~~then ofnot ~~operations~~reorder such products in the future for such time as they work off their excess inventory purchased.

~~In April 2021, the Company~~Our ~~launched~~success andepends ~~investigation into a ransomware attack~~ on ~~the~~key ~~Company’s~~personnel ~~systems.~~whose ~~Based~~continued onservice ~~the~~is ~~review~~not ~~of the forensic files, it was determined that the threat actor used ransomware to access Company files~~guaranteed. ~~No ransom was paid to the threat actors and all parties associated with the compromised files were notified.~~

Our continued ~~business~~success ~~will~~and beour ability to manage anticipated future growth depend, in large part, upon the efforts of key personnel, particularly Ira Levy and Steven Lubman, our chief executive officer and vice president, respectively, who have extensive industry knowledge and relationships and exercise substantial influence over our operations. The loss of services of one or both of these individuals, or our inability to attract and retain highly qualified personnel, could adversely ~~affected~~affect our business, and weaken our relationships with suppliers, business ifpartners, ~~there~~and isindustry apersonnel, ~~shortage~~which could adversely affect our financial condition, results of ~~components~~operations, cash flow and trading price of our common stock.

~~The components business has,~~Our from time to time, experienced periods of extreme shortages in product supply, generally as the result of demand exceeding available supply. When these shortages occur, suppliers tend to either increase prices or reduce the number of units sold to customers. We believe that because of our large inventory and our relationships with our manufacturers, we have not been adversely affected by shortages in certain discrete semiconductor components. However, future shortages may have an adverse effect upon our business ~~especially~~is ifsubject ~~we were~~ to ~~reduce inventory to cut costs and reduce~~ risks of obsolescence. Currently, the Company believes that its lead time is better than their competitors and we have been able to maintain the customers we have as well as in some instances acquire new customers. However, our business could be affected if the Company is unable to maintain the levels of inventory needed to keep our customers lines running. In addition, customers could order extra inventory of products from ~~several~~trade ~~suppliers~~regulation ~~when they are concerned about a possible shortage~~ and ~~then~~foreign ~~not~~economic ~~reorder such products in the future for such time as they work off their excess inventory purchased~~conditions.

~~Our~~Approximately 95% ~~success~~of ~~depends~~the ontotal ~~key~~goods ~~personnel~~which ~~whose~~we purchased in Fiscal 2024 were manufactured in foreign countries, with the majority purchased from ~~continued~~Taiwan ~~service~~(31%), isHong ~~not~~Kong ~~guaranteed~~(15%), elsewhere in Asia (49%) and outside of Asia (less than 1%). These purchases subject us to a number of risks, including economic disruptions, transportation delays and interruptions, foreign exchange rate fluctuations, imposition of tariffs and import and export controls and changes in governmental policies, any of which could have a materially adverse effect on our business and results of operations. Potential concerns may include drastic devaluation of currencies, loss of supplies and increased competition within the region.

Our continued success and our ability to manage anticipated future growth depend, in large part, upon the efforts of key personnel, particularly Ira Levy and Steven Lubman, our chief executive officer and vice president, respectively, who have extensive industry knowledge and relationships and exercise substantial influence over our operations. The loss of services of one or both of these individuals, or our inability to attract and retain highly qualified personnel, could adversely affect our business, and weaken our relationships with suppliers, business partners, and industry personnel, which could adversely affect our financial condition, results of operations, cash flow and trading price of our common stock.10

~~Our~~The ability ~~business~~to isremain ~~subject~~competitive with respect to ~~risks~~the ~~from~~pricing of imported components could be adversely affected by increases in tariffs or duties, changes in trade treaties, strikes in air or sea transportation, and possible future United States legislation with ~~regulation~~respect to pricing and import quotas on products from foreign countries. For example, it is possible that political or economic developments ~~conditions~~in China, or with respect to the United States’ relationship with China, could have an adverse effect on our business. Our ability to remain competitive could also be affected by other governmental actions related to, among other things, tariffs, anti-dumping legislation and international currency fluctuations. While we do not believe that any of these factors have adversely impacted our business in the past, there can be no assurance that these factors will not materially adversely affect us in the future. Because the China internal consumption market is depressed, this will increase competition, as there is now a smaller market potential target. Therefore, we believe certain of our competitors will reduce their pricing to capture more market share.

~~Approximately 93% of the~~Electronics ~~total~~industry ~~goods~~cyclicality ~~which~~may weadversely ~~purchased~~affect in Fiscal 2023 were manufactured in foreign countries, with the majority purchased from Taiwan (34%), Hong Kong (21%), elsewhere in Asia (38%) and outside of Asia (less than 1%). These purchases subject us to a number of risks, including economic disruptions, transportation delays and interruptions, foreign exchange rate fluctuations, imposition of tariffs and import and export controls and changes in governmental policies, any of which could have a materially adverse effect on our ~~business and results of~~ operations. ~~Potential concerns may include drastic devaluation of currencies, loss of supplies and increased competition within the region.~~

10The electronics industry has been affected historically by general economic downturns, which have had an adverse economic effect upon manufacturers and end-users of capacitors and semiconductors. In addition, the life-cycle of existing electronic products and the timing of new product developments and introductions can affect demand for semiconductor components. Any downturns in the electronics distribution industry could adversely affect our business and results of operations.

~~The ability to remain competitive~~Most ~~with respect to the pricing~~ of ~~imported~~our components could be adversely affected by increases in tariffs or duties, changes in trade treaties, strikes in air or sea transportation, and possible future United States legislation with respect to pricing and import quotas on products ~~from~~ ~~foreign~~are ~~countries.~~not ~~For~~protected example, it is possible that political or economic developments in China, or with respect to the United States’ relationship with China, could have an adverse effect on our business. Our ability to remain competitive could also be affected by ~~other governmental actions related to~~patents, ~~among~~trademarks ~~other things, anti-dumping legislation~~ and ~~international~~proprietary ~~currency fluctuations~~information. While we do not believe that any of these factors have adversely impacted our business in the past, there can be no assurance that these factors will not materially adversely affect us in the future. Because the China internal consumption market is depressed, this will increase competition, as there is now a smaller market potential target. Therefore, we believe certain of our competitors will reduce their pricing to capture more market share.

~~Electronics~~On December ~~industry~~31, ~~cyclicality~~2019, ~~may~~a ~~adversely~~U.S. patent which was issued by the United States Patent and Trademark Office for an improved pinpoint alarm designed ~~affect~~to ~~our~~improve ~~operations~~an individual’s ability to determine the location of an alarm versus standard single, multi-frequency, or broadband alarms, which can be used in a wide variety of applications, including reversing vehicles, medical emergency notification, and hardware devices that use Bluetooth or other wireless communications protocols in combination with mobile software applications to locate lost items, including phones, wallets, and keys. We have no other patents, trademarks or copyrights registered with the United States Patent and Trademark Office.

~~The~~Although we ~~electronics~~have ~~industry has~~no ~~been~~knowledge ~~affected~~that ~~historically~~our byproducts ~~general~~infringe ~~economic~~patents ~~downturns~~or trademarks, ~~which~~or ~~have~~violate ~~had~~proprietary anrights ~~adverse~~of ~~economic~~others, ~~effect~~it ~~upon~~is ~~manufacturers~~possible ~~and~~that ~~end-users~~alleged infringement of ~~capacitors~~existing ~~and~~or ~~semiconductors~~future patents, trademarks or proprietary rights of others may occur. In ~~addition,~~the event that the ~~life-cycle~~products that we sell are alleged to infringe proprietary rights of ~~existing~~others, ~~electronic~~these products ~~and~~may ~~the~~have ~~timing~~to ofbe ~~new~~modified ~~product~~or ~~developments and~~redesigned. ~~introductions~~However, there can ~~affect~~be ~~demand~~no ~~for~~assurance that ~~semiconductor~~any ~~components.~~infringing ~~Any~~products ~~downturns~~will be able to be modified or redesigned in a way that does not infringe on the ~~electronics~~proprietary ~~distribution~~rights ~~industry~~of others, which could ~~adversely affect~~have a material adverse effect upon our ~~business~~operations. ~~and~~In ~~results~~addition, there can be no assurance that we will have the financial or other resources necessary to enforce or defend a patent infringement or proprietary rights violation action. Moreover, if the products we sell infringe patents, trademarks or proprietary rights of ~~operations~~others, we could, under certain circumstances, become liable for damages, which also could have a material adverse effect on our business.

~~Most of our products are not protected by patents, trademarks and proprietary information.~~11

~~On December 31, 2019, a U.S.~~Additionally ~~patent which was issued by the United States Patent and Trademark Office for an improved pinpoint alarm designed~~ to ~~improve an individual’s ability to determine~~ the ~~location~~best of anour ~~alarm~~knowledge ~~versus~~the ~~standard~~manufacturers ~~single, multi-frequency, or broadband alarms, which can be used in a wide variety~~ of ~~applications,~~the ~~including~~products ~~reversing vehicles, medical emergency notification, and hardware devices~~ that ~~use~~we ~~Bluetooth~~sell ordo ~~other wireless~~not ~~communications protocols in combination with mobile software applications to locate lost items, including phones, wallets, and keys. We~~ have ~~no other~~ patents, trademarks or copyrights registered in ~~with~~ the United States Patent and Trademark ~~Office~~Officer or in any state.

~~Although we have no knowledge~~Risks ~~that~~Related our products infringe patents or trademarks, or violate proprietary rights of others, it is possible that alleged infringement of existing or future patents, trademarks or proprietary rights of others may occur. In the event that the products that we sell are alleged to infringe proprietary rights of others, these products may have to be modified or redesigned. However, there can be no assurance that any infringing products will be able to be modified or redesigned in a way that does not infringe on the proprietary rights of others, which could have a material adverse effect upon our ~~operations.~~Common In addition, there can be no assurance that we will have the financial or other resources necessary to enforce or defend a patent infringement or proprietary rights violation action. Moreover, if the products we sell infringe patents, trademarks or proprietary rights of others, we could, under certain circumstances, become liable for damages, which also could have a material adverse effect on our business.Stock

11Our common stock is quoted on the OTC Market, which may limit the liquidity and price of our common stock more than if our common stock were listed on the Nasdaq Stock Market or another national exchange.

~~Additionally~~Our securities toare currently quoted on the ~~best~~OTC Market, an inter-dealer electronic quotation and trading system or equity securities. Quotation of our ~~knowledge~~securities on the ~~manufacturers~~OTC ofMarket may limit the ~~products~~liquidity ~~that~~and weprice ~~sell~~of doour ~~not~~securities ~~have~~more ~~patents,~~than ~~trademarks~~if our securities were listed on The Nasdaq Stock Market or ~~copyrights~~another ~~registered~~national exchange. Some investors may perceive our securities to be less attractive because they are traded in the ~~United~~over-the-counter market. In addition, as an OTC quoted company, we do not attract the extensive analyst coverage that ~~States~~accompanies ~~Patent~~companies listed on national exchanges. Further, institutional and ~~Trademark~~other ~~Officer~~investors may have investment guidelines that restrict or prohibit investing in ~~any~~securities ~~state~~traded on the OTC Market. These factors may have an adverse impact on the trading and price of our common stock.

~~Risks~~The market ~~Related~~price toof our ~~Common~~common ~~Stock~~stock may fluctuate significantly in response to the following factors, most of which are beyond our control:

~~Our~~● ~~common~~variations ~~stock~~in isour ~~quoted~~quarterly onoperating ~~the~~results; ~~OTC~~● ~~Market, which~~changes ~~may~~in ~~limit~~general ~~the~~economic ~~liquidity~~conditions; ~~and~~● ~~price~~changes in market valuations of ~~our~~similar ~~common~~companies; ~~stock~~● ~~more~~announcements ~~than~~by ifus or our ~~common~~competitors ~~stock~~of ~~were~~significant ~~listed~~new oncontracts, ~~the~~acquisitions, ~~Nasdaq~~strategic ~~Stock~~partnerships ~~Market~~or joint ventures, or ~~another national~~capital ~~exchange~~commitments; ● loss of a major supplier or customer; and ● the addition or loss of key managerial and collaborative personnel.

~~Our securities are currently~~Any ~~quoted~~such onfluctuations ~~the~~may ~~OTC~~adversely ~~Market,~~affect ~~an inter-dealer electronic quotation and trading system or equity securities. Quotation of our securities on~~ the ~~OTC~~market ~~Market may limit the liquidity and~~ price of our ~~securities~~common ~~more~~stock, ~~than~~regardless ifof our ~~securities~~actual ~~were~~operating ~~listed~~performance. onAs ~~The~~a ~~Nasdaq Stock Market~~result, orstockholders ~~another national exchange. Some investors~~ may ~~perceive~~be ~~our~~unable ~~securities~~ to besell ~~less~~their ~~attractive because they are traded in the over-the-counter market. In addition~~shares, as an OTC quoted company, we do not attract the extensive analyst coverage that accompanies companies listed on national exchanges. Further, institutional and other investors may have investment guidelines that restrict or ~~prohibit investing in securities traded on the OTC Market. These factors~~ may ~~have~~be anforced ~~adverse~~to ~~impact~~sell onthem ~~the~~at ~~trading~~a ~~and price of our common stock~~loss.

The application ~~market price~~ of ~~our~~the ~~common~~ “penny stock” ~~may~~rules ~~fluctuate~~could ~~significantly~~adversely inaffect ~~response~~the tomarket ~~the~~price ~~following~~of ~~factors,~~our ~~most~~common ofstock ~~which~~and ~~are~~increase ~~beyond~~an ~~our~~investor’s transaction ~~control:~~costs to sell those shares.

●Rule 3a51-1 ~~variations~~of inthe ~~our~~Exchange ~~quarterly~~Act ~~operating~~defines ~~results;~~“penny ●stock,” ~~changes~~ in ~~general~~part, ~~economic~~as ~~conditions;~~any ●equity ~~changes~~security inthat has a market ~~valuations~~price of ~~similar~~less ~~companies;~~than ●$5.00 per ~~announcements~~share ~~by us~~ or ~~our~~an ~~competitors~~exercise price of ~~significant~~less ~~new~~than ~~contracts,~~$5.00 ~~acquisitions~~per share, ~~strategic~~subject ~~partnerships~~to orcertain ~~joint~~exceptions. ~~ventures,~~For orany ~~capital~~transaction ~~commitments;~~involving ~~● loss of~~ a ~~major~~penny ~~supplier~~stock, unless orexempt, ~~customer;~~Rule ~~and~~15g-9 ●of the ~~addition~~Exchange orAct ~~loss~~requires ofthat ~~key~~a ~~managerial~~broker ~~and~~or ~~collaborative personnel.~~dealer:

~~Any~~● ~~such~~approve ~~fluctuations~~a ~~may adversely~~person’s ~~affect~~account ~~the~~for ~~market~~transactions ~~price~~in ofpenny ~~our~~stocks; ~~common~~and ~~stock,~~● ~~regardless~~receive offrom ~~our~~the ~~actual~~investor ~~operating~~a ~~performance.~~written Asagreement ato ~~result~~the transaction, ~~stockholders~~setting ~~may be~~forth ~~unable~~the toidentity ~~sell~~and ~~their~~quantity ~~shares,~~of orthe ~~may~~penny bestock ~~forced~~ to ~~sell~~be ~~them at a loss~~purchased.

~~The application of the “penny stock” rules could adversely affect the market price of our common stock and increase an investor’s transaction costs to sell those shares.~~12

~~Rule 3a51-1 of the Exchange~~In ~~Act~~order ~~defines~~to ~~“penny~~approve ~~stock,” in part, as any equity security that has~~ a ~~market~~person’s ~~price~~account offor ~~less~~transactions ~~than~~in ~~$5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a~~ penny ~~stock~~stocks, ~~unless exempt, Rule 15g-9 of~~ the ~~Exchange Act requires that a~~ broker or dealer must:

● ~~approve~~obtain afinancial ~~person’s~~information ~~account~~and ~~for~~investment ~~transactions~~experience inand ~~penny~~objectives ~~stocks~~of the person; and ● ~~receive~~make ~~from~~a reasonable determination that the ~~investor~~transactions ain ~~written~~penny ~~agreement~~stocks toare ~~the~~suitable ~~transaction,~~for ~~setting~~that ~~forth~~person and the ~~identity~~person has sufficient knowledge and ~~quantity~~experience in financial matters to be capable of evaluating the ~~penny~~risks ~~stock~~of totransactions bein ~~purchased~~penny stocks.

12The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to the penny stock market, which:

In● ~~order~~sets toforth ~~approve~~the abasis ~~person’s account~~on ~~for~~which ~~transactions~~the inbroker ~~penny~~or ~~stocks,~~dealer made the suitability determination; and ● that the broker or dealer ~~must:~~received a signed, written agreement from the investor prior to the transaction.

●Generally, brokers ~~obtain~~may ~~financial~~be ~~information~~less ~~and~~willing ~~investment~~to ~~experience~~execute ~~and~~transactions ~~objectives~~in ofsecurities ~~the~~subject ~~person;~~to ~~and~~the ●“penny ~~make~~stock” arules. ~~reasonable~~This ~~determination~~may ~~that~~make ~~the~~it ~~transactions~~more difficult infor ~~penny~~investors ~~stocks~~to ~~are~~dispose ~~suitable~~of ~~for~~our ~~that~~common ~~person~~stock and ~~the~~cause ~~person~~a ~~has~~decline ~~sufficient knowledge and experience~~ in ~~financial~~the ~~matters~~market tovalue ~~be capable~~ of ~~evaluating~~our ~~the risks of transactions in penny stocks~~stock.

~~The~~Anti-takeover provisions ~~broker~~in our organizational documents and the shareholder rights plan that we have adopted may discourage or ~~dealer~~prevent ~~must also~~a ~~deliver~~change of control, ~~prior~~even if an acquisition would be beneficial to ~~any~~our ~~transaction~~stockholders, inwhich acould ~~penny~~affect our stock, aprice ~~disclosure~~adversely ~~schedule~~and ~~prescribed~~prevent attempts by ~~the~~our ~~SEC~~stockholders ~~relating~~ to ~~the~~replace ~~penny~~or ~~stock~~remove ~~market, which:~~our current management.

●Our articles ~~sets~~of ~~forth~~incorporation ~~the~~and ~~basis~~bylaws oncurrently ~~which~~contain ~~the~~provisions ~~broker~~that orcould ~~dealer~~delay ~~made~~or ~~the~~prevent ~~suitability~~a ~~determination;~~change ~~and~~of ●control ~~that~~of ~~the~~our ~~broker~~company or ~~dealer~~changes in ~~received~~our aBoard ~~signed,~~of ~~written~~Directors ~~agreement~~that ~~from~~our ~~the~~stockholders ~~investor~~might ~~prior~~consider tofavorable. ~~the~~Some ~~transaction.~~of these provisions:

~~Generally,~~● ~~brokers~~authorize ~~may~~the ~~be less~~issuance ~~willing~~of topreferred ~~execute~~stock ~~transactions~~which incan ~~securities~~be ~~subject~~created toand issued by the ~~“penny~~Board ~~stock”~~of ~~rules.~~Directors ~~This~~without ~~may~~prior ~~make~~stockholder itapproval, ~~more~~with ~~difficult~~rights ~~for investors~~senior to ~~dispose~~those of our common stock ~~and cause a decline in the market value of our stock.~~;

~~Anti-takeover~~● ~~provisions~~prohibit in our ~~organizational documents~~stockholders ~~and~~from ~~the~~calling ~~shareholder~~special ~~rights~~stockholder ~~plan~~meetings ~~that we have adopted may discourage~~ or ~~prevent~~taking aaction ~~change of control, even if an acquisition would be beneficial to our stockholders, which could affect our stock price adversely and prevent attempts~~ by ~~our~~written ~~stockholders~~consent; ~~to replace or remove our current management.~~and

~~Our~~● ~~articles~~require ofadvance ~~incorporation and~~written ~~bylaws~~notice ~~currently contain provisions that could delay or prevent a change~~ of ~~control~~stockholder ofproposals ~~our~~and ~~company~~director ~~or changes in our Board of Directors that our stockholders might consider favorable~~nominations. ~~Some of these provisions:~~

●We have ~~authorize~~also adopted a shareholder rights plan that could make it more difficult for a third party to acquire, or could discourage a third party from acquiring, us or a large block of our common stock. A third party that acquires 5% or more of our common stock could suffer substantial dilution of its ownership interest under the terms of the shareholder rights plan through the issuance of ~~preferred~~our ~~stock~~shares ~~which~~to ~~can~~all stockholders beother ~~created~~than the acquiring person. These and ~~issued~~other provisions in our articles of incorporation and bylaws could make it more difficult for stockholders or potential acquirers to obtain control of our Board of Directors or initiate actions that are opposed by our ~~the~~then-current Board of Directors, ~~without~~including ~~prior~~a ~~stockholder~~merger, ~~approval~~tender offer, ~~with~~or ~~rights~~proxy ~~senior~~contest toinvolving ~~those~~our company. Any delay or prevention of a change of control transaction or changes in our Board of Directors could cause the market price of our common stock; to decline.

~~● prohibit our stockholders from calling special stockholder meetings or taking action by written consent; and~~13

●Item 1B. ~~require~~Unresolved ~~advance~~Staff ~~written notice of stockholder proposals and director nominations.~~Comments

~~We have also adopted a shareholder~~Not ~~rights plan that could make it more difficult for a third party to acquire, or could discourage a third party from acquiring, us or a large block of our common stock~~applicable. A third party that acquires 5% or more of our common stock could suffer substantial dilution of its ownership interest under the terms of the shareholder rights plan through the issuance of our shares to all stockholders other than the acquiring person. These and other provisions in our articles of incorporation and bylaws could make it more difficult for stockholders or potential acquirers to obtain control of our Board of Directors or initiate actions that are opposed by our then-current Board of Directors, including a merger, tender offer, or proxy contest involving our company. Any delay or prevention of a change of control transaction or changes in our Board of Directors could cause the market price of our common stock to decline.

13Item 1C. Cybersecurity

~~Item~~We 1Bhave developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. ~~Unresolved~~Our ~~Staff~~cybersecurity ~~Comments~~risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.

~~Not~~Key ~~applicable.~~elements of our cybersecurity risk management program include but are not limited to,

~~Item~~● 2.risk ~~Properties.~~assessments designed to help identify material risks from cybersecurity threats to our critical systems, information, services, and our broader enterprise IT environment;

~~Our~~● ~~executive~~individuals, ~~offices~~including employees and ~~warehouse~~ ~~facilities~~external ~~are~~third ~~located~~party atservice ~~95 East Jefryn Boulevard~~providers, ~~Deer~~who ~~Park,~~are ~~New~~responsible ~~York,~~for ~~11729.~~managing ~~We lease~~ our ~~facilities~~cybersecurity ~~from~~risk ~~Great~~assessment ~~American Realty of Jefryn Blvd.~~processes, ~~LLC~~our ~~(“Great~~security ~~American”)~~controls, ~~an entity that is 50% owned by Ira Levy, Surge’s president~~ and ~~Steven Lubman, Surge’s vice president. Our lease is through September 30, 2030 and~~ our ~~monthly~~response ~~rent~~to ~~for~~cybersecurity ~~the~~incidents; ~~year~~cybersecurity ~~ended~~incident ~~November~~response ~~30, 2023~~plan ~~was~~that ~~$16,850~~includes Weprocedures ~~occupy approximately 23,250 square feet of office space and warehouse space. The rental rate is typical~~ for ~~the~~ ~~type~~responding ~~and~~to ~~location~~cybersecurity ofincidents; ~~Surge’s~~ and ~~Challenge’s facilities.~~

~~The~~● ~~Company has~~ a ~~lease~~cybersecurity ~~to rent~~insurance ~~office~~policy ~~space and a warehouse~~ in ~~Hong~~place ~~Kong~~to ~~Through~~help ~~June~~mitigate ~~2025.~~monetary ~~Annual~~losses ~~minimum~~of ~~rental~~a ~~payments~~potential ~~for~~cybersecurity ~~this space are approximately $73,580~~attack.

Our management team is responsible for assessing and managing our material risks from cybersecurity threats. The ~~Company~~team has aprimary ~~lease~~responsibility tofor our overall cybersecurity ~~rent~~risk ~~additional~~management ~~warehouse~~program ~~space~~and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Members of our management team have prior work experience in ~~Hong~~supervising ~~Kong~~and ~~through~~implementing ~~November~~cybersecurity ~~30,~~risk ~~2025~~mitigation efforts in highly-regulated industries. ~~Annual~~Our ~~minimum~~internal ~~rental~~cybersecurity ~~payments~~personnel ~~for~~and ~~this~~retained ~~space~~external ~~are~~cybersecurity ~~approximately~~consultants also have a breadth of expertise across ~~$76~~core cybersecurity disciplines including governance,~~170~~ risk, compliance, and security architecture.

~~Item~~Our 3.management ~~Legal~~team ~~Proceedings.~~takes steps to stay informed and monitors efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment

~~None~~Our Board considers cybersecurity risk as part of its risk oversight function and receives regular updates from the management team on our cybersecurity risks and in addition, management updates the Board where it deems appropriate, regarding any cybersecurity incidents it considers to be significant or potentially significant.

Item 4 2. ~~Mine Safety Disclosures~~Properties.

~~Not~~Our executive ~~applicable~~offices and warehouse facilities are located at 95 East Jefryn Boulevard, Deer Park, New York, 11729. We lease our facilities from Great American Realty of Jefryn Blvd., LLC (“Great American”), an entity that is 50% owned by Ira Levy, Surge’s president and Steven Lubman, Surge’s vice president. Our lease is through September 30, 2030 and our monthly rent for the year ended November 30, 2024 was $17,187 We occupy approximately 23,250 square feet of office space and warehouse space. The rental rate is typical for the type and location of Surge’s and Challenge’s facilities.

14The Company has a lease to rent office space and a warehouse in Hong Kong Through June 2025. Annual minimum rental payments for this space are approximately $73,580.

~~PART~~The Company IIhas a lease to rent additional warehouse space in Hong Kong through November 30, 2025. Annual minimum rental payments for this space are approximately $76,170.

Item 5 3. ~~Market~~Legal ~~For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities~~Proceedings.

~~Shares of our common stock are quoted on the OTC Pink Market maintained by OTC Markets Group under the symbol “SPRS”~~None. ~~Trading in our common stock is limited. Quotations represent inter-dealer prices without retail mark-up, mark-down, or commission and may not necessarily represent actual transactions.~~

~~As of the date of the filing~~Item of4. ~~this~~Mine ~~report,~~Safety ~~there are 5,584,521 shares of common stock issued and outstanding~~Disclosures.

~~As of the date of the filing~~Not ~~of this report, there are approximately 176 holders of record of our common stock~~applicable.

~~Purchases of Equity Securities by the Issuer and Affiliated Purchasers~~14

~~None.~~PART II

Item 5. Market For Registrant’s Common Equity, ~~Compensation~~Related ~~Plan~~Stockholder ~~Information~~Matters and Issuer Purchases of Equity Securities

~~The~~Shares of ~~following~~our ~~table~~common ~~provides information~~stock asare ofquoted ~~November~~on ~~30,~~the ~~2023~~OTC ~~with~~Pink ~~respect~~Market tomaintained by OTC Markets Group under the ~~shares~~symbol of“SPRS”. Trading in our common stock ~~that~~is ~~may~~limited. beQuotations ~~issued~~represent ~~under~~inter-dealer ~~our~~prices ~~existing~~without ~~equity~~retail ~~compensation~~mark-up, mark-down, or commission and may not necessarily ~~plans:~~represent actual transactions.

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted- average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a (c)
Equity compensation plan approved by security holders (1)		345,000	$	2.54		1,162,436
Equity compensation plan not yet approved by security holders		-		-		-
Total		345,000	$	2.54		1,162,436

As of the date of the filing of this report, there are 5,582,783 shares of common stock issued and outstanding.

~~(1)~~As of ~~Represents~~the date of the ~~Company’s~~filing ~~2015~~of ~~Incentive~~this ~~Stock~~report, ~~Plan~~there are approximately 176 holders of record of our common stock.

~~Recent Sales~~ Purchases of ~~Unregistered~~Equity Securities. by the Issuer and Affiliated Purchasers

None.

~~Dividend~~Equity Compensation ~~Policy~~Plan Information

~~We have never declared or~~The ~~paid~~following ~~cash~~table ~~dividends~~provides oninformation ~~our~~as ~~common~~of ~~stock.~~November We30, ~~currently~~2024 dowith ~~not~~respect ~~anticipate~~to ~~paying any cash dividends in~~ the ~~foreseeable~~shares ~~future~~of ~~for our~~ common stock. ~~Any~~that ~~future~~may ~~determination to declare cash dividends will~~ be ~~made~~issued atunder ~~the discretion of~~ our ~~board of directors, subject to applicable~~ ~~laws,~~existing ~~and~~equity ~~will~~compensation ~~depend on our financial condition, results of operations, capital requirements, general business conditions and other factors that our board of directors may deem relevant.~~plans:

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted- average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a (c)
Equity compensation plan approved by security holders (1)		345,000	$	2.59		1,855,177

Equity compensation plan not yet approved by security holders		-		-		-

Total		345,000	$	2.59		1,855,177

~~Item~~(1) 6.Represents ~~[Reserved]~~the Company’s 2015 Incentive Stock Plan and the 2024 Equity Incentive Stock Plan.

~~We are a smaller reporting~~Recent ~~company~~Sales ~~and therefore, we are not required to provide information required by this Item~~ of ~~Form~~Unregistered ~~10-K~~Securities.

~~Item 7~~None. ~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~

~~This report contains forward-looking~~Dividend statements. All statements other than statements of historical facts contained herein, 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 statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.Policy

~~In some cases, forward-looking~~We ~~statements~~have ~~can~~never bedeclared ~~identified~~or bypaid ~~terms~~cash ~~such~~dividends ason ~~“may,”~~our ~~“will,”~~common ~~“should,”~~stock. ~~“expects,”~~We ~~“plans,” “anticipates,”~~currently ~~“could,”~~do ~~“intends,”~~not ~~“target,”~~anticipate ~~“projects,”~~paying ~~“contemplates,” “believes,”~~any ~~“estimates,”~~cash ~~“predicts,”~~dividends ~~“potential”~~in ~~or “continue” or~~ the ~~negative~~foreseeable offuture ~~these~~for ~~terms~~our orcommon ~~other~~stock. ~~similar~~Any ~~words.~~future ~~These~~determination ~~statements~~to ~~are~~declare ~~only~~cash ~~predictions.~~dividends Wewill ~~have~~be ~~based~~made ~~these~~at ~~forward-looking~~the ~~statements~~discretion ~~largely on~~of our ~~current~~board ~~expectations~~of ~~and~~directors, subject ~~projections~~to ~~about~~applicable ~~future~~laws, ~~events~~ and ~~financial~~will ~~trends~~depend ~~that~~on ~~we believe may affect~~ our ~~business,~~ financial condition, ~~and~~ results of operations., Wecapital ~~discuss~~requirements, ~~many~~general ~~of the risks in greater detail under the heading “Risk Factors.” Also,~~business ~~these~~conditions ~~forward-looking statements represent our estimates~~ and ~~assumptions~~other ~~only~~factors asthat ofour ~~the~~board ~~date~~ of ~~the~~directors ~~filing~~may ofdeem ~~this report~~relevant. ~~Except as required by law, we assume no obligation to update any forward-looking statements after the date of the filing of this report.~~

~~Overview~~15

~~The Company operates with~~Item ~~two sales groups, Surge Components (“Surge”) and Challenge Electronics (“Challenge”)~~6. Surge is a supplier of electronic products and components. These products include capacitors, which are electrical energy storage devices, and discrete semiconductor components, such as 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 sold by Surge are typically utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, audio products, temperature control products, lighting products, energy related products, computer related products, various types of consumer products, garage door openers, household appliances, power supplies and security equipment. These products 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. These products are manufactured predominantly in Asia by approximately sixteen independent manufacturers. We act as the master distribution agent utilizing independent sales representative organizations in North America to sell and market the products for one such manufacturer pursuant to a written agreement. When we act as a sales agent, our supplier who sold the product to the customer that we introduced to our supplier pays us a commission. The amount of the commission is determined on a sale by sale basis depending on the profit margin of the product. Commission revenue totaled $106,885 and $249,248 for the fiscal year ended November 30, 2023 and November 30, 2022 respectively.[Reserved]

~~Challenge is engaged~~We inare ~~the sale of electronic components. In 1999, Challenge began as~~ a ~~division~~smaller toreporting ~~sell~~company ~~audible components. We have been able to increase the types of products that we sell because some of our suppliers introduced new products,~~ and ~~we also located other products from new suppliers. Our core products include buzzers~~therefore, ~~speakers, microphones, resonators, alarms, chimes, filters, and discriminators. We now also work with our suppliers to have our suppliers customize many of the products~~ we sell for many customers through the customers’ own designs and those that we work with our suppliers to have our suppliers redesign for them at our suppliers’ factories. We have engineers on our staff who work with our suppliers on such redesigns and assists with the introduction of new product lines. We are ~~continually~~not ~~looking~~required to ~~expand~~provide ~~the~~information ~~line~~required ofby ~~products~~this ~~that~~Item we sell. We sell these products through independent representatives that earn a commission on the products we sell. We are also working with local, regional, and national distributors to sell these products to local accounts in every state. Challenge also at times handles the brokering of ~~certain~~Form ~~products, helping their customers find parts that that regular suppliers can’t deliver~~10-K.

~~The Company has a Hong Kong office to effectively handle the transfer business from United States customers purchasing and manufacturing in Asia after designing the products in the United States~~Item 7. ~~This office has strengthened the Company~~ Management’s ~~global~~Discussion ~~position,~~and ~~improving~~Analysis ~~our~~of ~~capabilities~~Financial Condition and ~~service to~~Results ~~our~~of ~~customer base.~~Operations

16This report contains forward-looking statements. All statements other than statements of historical facts contained herein, 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 statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

~~The world of business continues~~In tosome ~~change because of “disruptors~~cases,” ~~which~~forward-looking ~~are~~statements ~~significant~~can ~~changes~~be inidentified ~~traditional~~by ~~business practices that did not previously exist. For example, customers continue to centralize purchasing from regional purchasing and are stretching their payment~~ terms. ~~These changes~~such ~~also~~as ~~include customers moving their manufacturing operations from North America to Asia~~“may,” ~~and the trend of globalization. Some of our customers have been involved in mergers and acquisitions~~“will,” ~~causing consolidation. This trend makes business more complicated and~~“should,” ~~costly for the Company. The Company must have a presence in Asia to service and further develop the business. For these reasons~~“expects,” ~~we established Surge Ltd.~~“plans,” ~~our Hong Kong subsidiary. Currency fluctuations may also have an effect on doing business outside of North America. Customers have moved to reduce their supply chain~~“anticipates,” ~~which~~ “could ~~adversely affect the Company. In some market segments~~,” ~~demand for electronic components has decreased~~“intends,” ~~and in other segments~~“target, ~~the demand is still strong. Some technologies have become obsolete~~” “projects,” while customers develop new products using different kinds of components. One division in the Company has had success in designing new products for customers to better their products performance capabilities. This proactive approach separates the Company from selling commodity products to also selling more customized products Management expects 2024“contemplates,” ~~to be a period of continued challenge~~“believes,” ~~in regard to inflation and general economic conditions~~“estimates,” ~~in maintaining consistent flow of products during shortages of certain products~~“predicts,” ~~and growth as we see our customers return~~“potential” toor ~~full~~“continue” ~~production~~or ~~pace. These challenges could affect~~ the ~~Company in~~ negative ~~ways,~~of ~~possibly~~these ~~reducing~~terms ~~sales~~or ~~and~~other orsimilar ~~profitability~~words. ~~Because of~~These astatements ~~labor~~are ~~shortage,~~only ~~our customers engineering staff has been challenged, so getting our products approved has been and will continue to take longer to achieve~~predictions. ~~Additionally,~~We ~~the cost of raw materials has continued to increase, therefore our costs~~ have ~~increased. In~~based ~~the~~these ~~first~~forward-looking ~~half~~statements oflargely ~~the~~on ~~year~~our ofcurrent ~~2023,~~expectations ~~the~~and ~~Company~~projections ~~has~~about ~~been~~future ~~able~~events ~~to handle the brokering of certain semiconductor products, helping their customers to keep product lines up~~ and ~~running~~financial bytrends ~~locating products~~ that ~~their regular suppliers can’t deliver, and the Company is positioned to do this in the future as needed. In order for the Company to continue to grow,~~ we ~~will depend on, among other things,~~ ~~the~~believe ~~continued~~may ~~growth~~affect ~~of the electronics and semiconductor industries,~~ our ~~ability to withstand intense price competition~~business, ~~our~~financial ~~ability to~~condition ~~obtain new customers, our ability to retain~~ and ~~attract~~results ~~sales and other key personnel in order to expand our marketing capabilities, our ability to secure adequate sources~~ of ~~products, which are in demand on commercially reasonable terms, our success in executing and managing growth, including monitoring an expanded level of~~ operations. ~~and~~We ~~systems,~~discuss ~~controlling~~many ~~costs, the availability~~ of ~~adequate cash flow,~~ the ~~continued~~risks ~~supply~~in ofgreater ~~products~~detail ~~from our factories,~~ under the ~~ability~~heading to“Risk ~~withstand higher transportation costs and longer travel times and our ability to deal successfully, with new and future disruptors~~Factors.” ~~The tariffs continue to impact the Company~~Also, ~~although~~these ~~less~~forward-looking ~~now~~statements ~~then previously.~~represent ~~The~~our ~~general~~estimates ~~supply chain challenges present both a challenge~~ and ~~opportunity~~assumptions toonly ~~the~~as ~~Company.~~of ~~The Company is cautiously optimistic about its ability to meet these challenges with continued growth unless~~ the ~~general global or electronics industry economic conditions~~ ~~deteriorate.~~date ~~Financial~~of ~~news has been talking about~~ the ~~decreases~~filing ~~in consumer demand which impacts negatively the demand for the Company’s products, as the customers are producing less~~ of ~~their~~this ~~products~~report. ~~These~~Except ~~economic conditions could have a negative impact on sales into 202. The combination of possible disruptors such~~ as ~~increased~~required ~~costs~~by ~~and~~law, ~~longer~~we ~~lead~~assume ~~times~~no ~~from~~obligation ~~factories~~ to ~~the~~update ~~Company~~any ~~could~~forward-looking ~~also~~statements ~~have~~after ~~negative impacts on~~ the ~~business~~date in the future. The tense relations between America and China could also impact the Company’s business. China could impose rules and laws that make it more difficult to do business in Hong Kong and China. The Company is taking steps to be well prepared in case of ~~any actions from China that would cause us business disruption. For example, many of~~ the ~~Company’s~~filing ~~factory partners have opened production facilities outside~~ of China. As economic conditions have deteriorated, it has impacted the Company’s business. Customers have pushed back delivery dates, and in some cases required cancellations because they over ordered in 2022 creating a significant excess inventory. We are watching closely as customers consume their excess inventory levels to reflect this ~~new business demand, and the Company will respond accordingly~~report. ~~We expect that it could take four to six quarters for these customers to consume this excess inventory and start ordering products again which will reflect in the Company’s sales.~~

~~Critical Accounting Policies~~Overview

~~Accounts~~The Company ~~Receivable~~operates with two sales groups, Surge Components (“Surge”) and Challenge Electronics (“Challenge”). Surge is a supplier of electronic products and components. These products include capacitors, which are electrical energy storage devices, and discrete semiconductor components, such as 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 sold by Surge are typically utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, audio products, temperature control products, lighting products, energy related products, computer related products, various types of consumer products, garage door openers, household appliances, power supplies and security equipment. These products 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. These products are manufactured predominantly in Asia by approximately sixteen independent manufacturers. We act as the master distribution agent utilizing independent sales representative organizations in North America to sell and market the products for one such manufacturer pursuant to a written agreement. When we act as a sales agent, our supplier who sold the product to the customer that we introduced to our supplier pays us a commission. The amount of the commission is determined on a sale by sale basis depending on the profit margin of the product. Commission revenue totaled $95,584 and $106,885 for the fiscal year ended November 30, 2024 and November 30, 2023 respectively.

~~The~~Challenge is engaged ~~allowance~~in ~~for~~the ~~doubtful accounts~~sale isof ~~based~~electronic oncomponents. ~~the~~In ~~Company’s~~1999, ~~assessment~~Challenge ofbegan as a division to sell audible components. We have been able to increase the ~~collectability~~types of ~~specific~~products ~~customer~~that ~~accounts~~we ~~and~~sell anbecause ~~assessment~~some of ~~international~~our suppliers introduced new products, ~~political~~ and ~~economic~~we ~~risk~~also aslocated other ~~well~~products asfrom ~~the~~new ~~aging~~suppliers. ofOur ~~the~~core ~~accounts~~products ~~receivable~~include buzzers, speakers, microphones, resonators, alarms, chimes, filters, and discriminators. IfWe ~~there~~now isalso awork ~~change~~with inour ~~actual~~suppliers ~~defaults~~to ~~from~~have our suppliers customize many of the ~~Company’s~~products we sell for many ~~historical~~customers ~~experience,~~through the ~~Company~~customers’s ~~estimates~~own designs and those that we work with our suppliers to have our suppliers redesign for them at our suppliers’ factories. We have engineers on our staff who work with our suppliers on such redesigns and assists with the introduction of ~~recoverability~~new product lines. We are continually looking to expand the line of ~~amounts~~products ~~due~~that ~~could~~we besell. ~~affected~~We ~~and~~sell these products through independent representatives that earn a commission on the ~~Company~~products ~~would~~we ~~adjust~~sell. We are also working with local, regional, and national distributors to sell these products to local accounts in every state. Challenge also at times handles the brokering ~~allowance~~of ~~accordingly~~certain products, helping their customers find parts that that regular suppliers can’t deliver.

~~Revenue~~The Company ~~Recognition~~has a Hong Kong office to effectively handle the transfer business from United States customers purchasing and manufacturing in Asia after designing the products in the United States. This office has strengthened the Company’s global position, improving our capabilities and service to our customer base.

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, collectability is reasonably assured and title and risk of loss have been transferred to the customer. This occurs when product is shipped from the Company’s warehouse. For direct shipments from our suppliers to our customer, revenue is recognized when product is shipped from the Company’s supplier. The Company acts as a sales agent for certain customers buying direct from one of its suppliers. The Company reports these commissions as revenues in the period earned.16

17The world of business continues to change because of “disruptors,” which are significant changes in traditional business practices that did not previously exist. For example, customers continue to centralize purchasing from regional purchasing and are stretching their payment terms. These changes also include customers moving their manufacturing operations from North America to Asia, and the trend of globalization. Some of our customers have been involved in mergers and acquisitions, causing consolidation. This trend makes business more complicated and costly for the Company. The Company must have a presence in Asia to service and further develop the business. For these reasons, we established Surge Ltd., our Hong Kong subsidiary. Currency fluctuations may also have an effect on doing business outside of North America. Customers have moved to reduce their supply chain, which could adversely affect the Company. In some market segments, demand for electronic components has decreased, and in other segments, the demand is still strong. Some technologies have become obsolete, while customers develop new products using different kinds of components. One division in the Company has had success in designing new products for customers to better their products performance capabilities. This proactive approach separates the Company from selling commodity products to also selling more customized products. Management expects 2025, to be a period of continued challenge, in regard to inflation and general economic conditions, in maintaining consistent flow of products during shortages of certain products, and growth as we see our customers slowly return to full production pace. These challenges could affect the Company in negative ways, possibly reducing sales and or profitability. Because of a labor shortage, our customers engineering staff has been challenged, so getting our products approved has been and will continue to take longer to achieve. Additionally, the cost of some raw materials has continued to increase, therefore our costs have increased. In order for the Company to continue to grow, we will depend on, among other things, the continued growth of the electronics and semiconductor industries, our ability to withstand intense price competition, our ability to obtain new customers, our ability to retain and attract high performing sales and other key personnel in order to expand our marketing capabilities, our ability to secure adequate sources of products, which are in demand on commercially reasonable terms, our success in executing and managing growth, including monitoring an expanded level of operations and systems, controlling costs, the availability of adequate cash flow, the continued supply of products from our factories, the ability to withstand higher transportation costs, tariffs, and longer travel times and our ability to deal successfully, with new and future disruptors. The tariffs continue to impact the Company, although less now then previously. The general supply chain challenges present both a challenge and opportunity to the Company. The Company is cautiously optimistic about its ability to meet these challenges with continued growth unless the general global or electronics industry economic conditions deteriorate. Financial news has been talking about the decreases in consumer demand which may impact negatively the demand for the Company’s products, as the customers are producing less of their products. These economic conditions could have a negative impact on sales into 2025. The combination of possible disruptors such as increased costs and longer lead times from factories to the Company could also have negative impacts on the business in the future. The tense relations between America and China could also impact the Company’s business. China could impose rules and laws that make it more difficult to do business in Hong Kong and China. The Company is taking steps to be well prepared in case of any actions from China that would cause us business disruption. For example, many of the Company’s factory partners have opened production facilities outside of China. As economic conditions have deteriorated, it has impacted the Company’s business. Customers have pushed back delivery dates, and in some cases required cancellations because they over ordered in 2022 creating a significant excess inventory. We are watching closely as customers consume their excess inventory levels to reflect this new business demand, and the Company will respond accordingly. We expect that it could continue through 2025 as the customers continue to consume this excess inventory and start ordering products again more and more which will reflect in the Company’s sales.

~~The Company performs ongoing~~Critical ~~credit~~Accounting ~~evaluations of its customers and maintains reserves for potential credit losses.~~Policies

~~Inventory Valuation~~Accounts Receivable

~~Inventories are recorded~~The atallowance ~~the~~for ~~lower~~doubtful ofaccounts ~~cost~~is orbased ~~net~~on ~~realizable~~the ~~value.~~Company’s ~~Write-downs~~assessment of ~~inventories~~the tocollectability ~~net~~of ~~realizable~~specific ~~value~~customer ~~are~~accounts ~~based~~and onan assessment ~~stock~~of ~~rotation~~international, ~~historical sales~~political ~~requirements~~ and ~~obsolescence~~economic risk as well as in the ~~changes~~aging inof the ~~backlog~~accounts receivable. ~~Reserves~~If ~~required~~there ~~for~~is ~~obsolescence~~a ~~were~~change ~~not material~~ in actual ~~any~~defaults offrom the ~~periods~~Company’s inhistorical experience, the ~~financial~~Company’s ~~statements presented. Reserves related to stock rotation and future sales requirements for specific inventory parts involve subjective~~ estimates toof berecoverability ~~made by management based on current and expected market conditions. If market conditions are less favorable than those projected by management, additional write-downs~~ of ~~inventories~~amounts due could be ~~required. For example, each additional~~affected 1%and ofthe ~~obsolete~~Company ~~inventory~~ would ~~reduce~~adjust ~~operating~~the ~~income~~allowance ~~by approximately $58,000~~accordingly.

~~The~~Revenue Company does not have price protection agreements with any of its vendors and assumes the risk of changes in the prices of its products. The Company does not believe there to be a significant risk with regards to the lack of price protection agreements as many of its inventory items are purchased to fulfill purchase orders received.Recognition

~~Income~~Revenue is ~~Taxes~~recognized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, collectability is reasonably assured and title and risk of loss have been transferred to the customer. This occurs when product is shipped from the Company’s warehouse. For direct shipments from our suppliers to our customer, revenue is recognized when product is shipped from the Company’s supplier. The Company acts as a sales agent for certain customers buying direct from one of its suppliers. The Company reports these commissions as revenues in the period earned.

We have made a number of estimates and assumptions relating to the reporting of a deferred income tax asset to prepare our financial statements in accordance with generally accepted accounting principles. These estimates may have a significant impact on our valuation allowance relating to deferred income taxes. Our estimates could materially impact the financial statements.17

~~Results~~The Company performs ongoing credit evaluations of ~~Operations~~its customers and maintains reserves for potential credit losses.

~~Consolidated net sales for~~Inventory the fiscal year ended November 30, 2023 decreased by $15,634,248 or 30.1%, to $36,276,542 as compared to net sales of $51,910,790 for the fiscal year ended November 30, 2022. We attribute the decrease to a decrease in business with new customers as well as a decrease in business with existing customers. We can also attribute the decrease to customers pushing out orders due to them over ordering in 2022. The customers have excess inventory that they need to consume before re-ordering those products. Additionally, many customers, because of having this excess inventory have not launched new product development as their cash is tied up in the inventory. We can also attribute some of the decrease in sales during the fiscal year ended November 30, 2023, to one of the Company’s divisions reduction in brokering certain products of only $217,000 in Fiscal 2024 from $3.9 million in Fiscal 2022. In Brokering, the Company helps customers find parts that their regular suppliers can not deliver. Net sales for the fiscal years ended November 30, 2023 and November 30, 2022 reflect $1,032,198 and $1,477,031, respectively of tariff costs that the Company was able to pass on to its customers.Valuation

~~Our~~Inventories are ~~gross~~recorded ~~profit~~at ~~for~~ the ~~fiscal~~ ~~year~~lower ~~ended~~of ~~November~~cost ~~30, 2023 decreased by $4,388,733 to $9,928,688,~~ or ~~30.7%,~~net asrealizable ~~compared to $14,317,421 for the fiscal year ended November 30, 2022~~value. ~~Gross~~Write-downs ~~margin as a percentage~~ of ~~net~~inventories ~~sales decreased~~ to ~~27.4%~~net ~~for~~realizable ~~the~~value ~~fiscal~~are ~~year~~based ~~ended~~on ~~November~~stock 30rotation, ~~2023 compared to 27.6%~~ ~~for~~historical ~~the~~sales ~~fiscal~~requirements ~~year ended~~and ~~November~~obsolescence ~~30, 2022. The decrease can be attributed to the decrease in sales volume~~ as well as ~~certain~~in ~~products being~~the ~~sold~~changes atin athe ~~lower profit margin~~backlog. ~~Our~~Reserves ~~industry~~required ~~will continue to receive pressure from customers~~ for ~~price~~obsolescence ~~reductions.~~were Some of them further demand periodic price reductions on a quarterly or semi-annual basis, as opposed to annual fixed pricing. We work with electronic manufacturing service subcontractor customers who manufacture products for other customers who do not ~~have their own manufacturing operations.~~ Atmaterial ~~times~~in weany ~~are~~of ~~not~~the ~~able~~periods toin ~~recover~~the ~~these~~financial ~~price~~statements ~~reductions from our suppliers~~presented. ~~The~~Reserves ~~Company~~related ~~has agreements with these subcontractor customers~~ to ~~provide~~stock ~~periodic~~rotation ~~cost~~and ~~reductions through rebates in the amount of 5%. These reductions only affect~~ future ~~shipments~~sales ~~of our products,~~requirements ~~and~~for dospecific ~~not~~inventory ~~affect~~parts ~~existing~~involve ~~orders.~~subjective ~~These~~estimates ~~reductions~~to ~~can~~be ~~have~~made aby ~~negative~~management ~~impact~~based on ~~our~~current ~~profit~~and ~~margins~~expected ~~since~~market ~~they reduce the amount of commissions we can earn~~conditions. ~~Even though this rebate can impact the Company’s gross profit margin, these subcontractor customers represent~~If ~~very~~market ~~significant~~conditions ~~potential~~are ~~growth~~less ~~for~~favorable ~~the~~than ~~Company,~~those ~~because~~projected ~~they~~by ~~can help the Company become an approved supplier at the customers they manufacture for~~management, ~~and~~additional ~~they~~write-downs ~~purchase~~of ~~our~~inventories ~~components~~could ~~for~~be ~~these customers~~required. ~~We believe it would be very difficult for the Company to achieve~~For ~~business~~example, ateach ~~these~~additional ~~customers~~1% ~~without the help~~ of ~~these~~obsolete ~~subcontractor~~inventory ~~customers.~~would ~~During~~reduce ~~Fiscal~~operating ~~2023,~~income ~~the Company was impacted~~ by ~~tariff costs~~approximately ~~on certain products imported from China~~$54, ~~which went into effect as of July 6, 2018~~000. ~~The Company has been able to pass along a portion of these costs to its customers. The Company is also moving some customer deliveries directly to Hong Kong in order to mitigate some of these costs.~~

18The Company does not have price protection agreements with any of its vendors and assumes the risk of changes in the prices of its products. The Company does not believe there to be a significant risk with regards to the lack of price protection agreements as many of its inventory items are purchased to fulfill purchase orders received.

~~Selling and shipping expenses~~Income for the fiscal year ended November 30, 2023 was $3,010,509, a decrease of $295,205, or 8.9%, as compared to $3,305,714 for the fiscal year ended November 30, 2022. We attribute the decrease to decreases in sales and the resulting selling expenses such as commission expenses, messenger and delivery and entertainment expenses, offset by the hiring of new salespeople which increased sales payroll, and growing travel and trade show expenses as well as auto and freight out expenses.Taxes

~~General and administrative~~We ~~expenses~~have ~~for~~made ~~the fiscal year ended November 30, 2023 was $5,337,395,~~ a ~~decrease~~number of ~~$873,497,~~estimates orand ~~14.1%,~~assumptions asrelating ~~compared~~ to ~~$6,210,892 for~~ the ~~fiscal~~reporting ~~year~~of ~~ended~~a ~~November~~deferred ~~30,~~income ~~2022.~~tax ~~The~~asset ~~decrease is due primarily~~ to ~~decreases~~prepare inour ~~officer~~financial ~~salaries and office expenses as well as~~statements ~~health~~in ~~insurance~~accordance ~~expenses~~with ~~and~~generally ~~temporary~~accepted ~~help~~accounting ~~expenses~~principles. ~~and~~These ~~directors~~estimates ~~fees~~may ~~and~~have ~~bad~~a ~~debt~~significant ~~expenses~~impact ~~offset~~on byour ~~increases~~valuation ~~in salaries and related~~allowance ~~payroll~~relating ~~tax~~to ~~expenses,~~deferred ~~pension~~income ~~expense,~~taxes. ~~general~~Our ~~insurance,~~estimates ~~and~~could ~~maintenance~~materially ~~expenses~~impact asthe ~~well~~financial ~~as consulting and public company expenses~~statements.

~~Depreciation expense for~~Results ~~the fiscal year ended November 30, 2023 was $70,247, a decrease~~ of ~~$8,151, or 10.4%, as compared to $78,398 for the fiscal year ended November 30, 2022. The decrease is due to the company purchasing less new equipment during the fiscal year ended November 30, 2023.~~Operations

~~Tax~~Consolidated net ~~expense~~sales for the fiscal year ended November 30, ~~2023~~2024 ~~was~~decreased by $~~653~~5,~~397~~065,403 aor ~~decrease~~14.0%, ofto $~~518~~31,~~165~~211,139 as compared to anet ~~tax~~sales ~~expense~~ of $136,~~171~~276,~~562~~ 542 for the fiscal year ended November 30, 2023. We attribute the decrease to a decrease in business with new customers as well as a decrease in business with existing customers. We can also attribute the decrease to customers pushing out orders due to them over ordering in 2022 in response to the supply chain constraints. The ~~changes~~customers ~~result~~have ~~from~~excess ~~our~~inventory ~~decrease~~that they need to consume before re-ordering those products. Additionally, many customers, because of having this excess inventory have not launched new product development as their cash is tied up in ~~net~~the ~~income~~inventory.Net sales for the ~~2022~~fiscal ~~period~~years ended November 30, 2024 and November 30, 2023 reflect $549,564 and $1,032,198, respectively of tariff costs that the Company was able to pass on to its customers.

AsOur gross aprofit ~~result~~for of the ~~foregoing~~fiscal year ended November 30, 2024 decreased by $1,024,994 to $8,903,694 or 10.3%, as compared to $9,928,688 for the fiscal year ended November 30, 2023. Gross margin as a percentage of net ~~income~~sales increased to 28.5% for the fiscal year ended November 30, 2024 compared to 27.4% for the fiscal year ended November 30, 2023. ~~was~~The ~~$972~~increase can be attributed to the increase in sales to certain customers whose sales are at a higher gross profit margin . Our industry will continue to receive pressure from customers for price reductions. Some of them further demand periodic price reductions on a quarterly or semi-annual basis,~~110,~~ ~~compared~~as opposed to annual fixed pricing. We work with electronic manufacturing service subcontractor customers who manufacture products for other customers who do not have their own manufacturing operations. At times we are not able to recover these price reductions from our suppliers. The Company has agreements with these subcontractor customers to provide periodic cost reductions through rebates in the amount of 5%. These reductions only affect future shipments of our products, and do not affect existing orders. These reductions can have a ~~net~~negative ~~income~~impact on our profit margins since they reduce the amount of $3commissions we can earn. Even though this rebate can impact the Company’s gross profit margin,~~736~~ these subcontractor customers represent very significant potential growth for the Company,~~146~~ because they can help the Company become an approved supplier at the customers they manufacture for, and they purchase our components for these customers. We believe it would be very difficult for the ~~fiscal~~Company ~~year~~to ~~ended~~achieve business ~~November~~at 30these customers without the help of these subcontractor customers. During Fiscal 2024, ~~2022~~the Company was impacted by tariff costs on certain products imported from China, which went into effect as of July 6, 2018. The Company has been able to pass along a portion of these costs to its customers and will do so under potential tariffs imposed upon us. The Company is also moving some customer deliveries directly to Hong Kong in order to mitigate some of these costs.

~~Liquidity and Capital Resources~~18

AsSelling and ofshipping expenses for the fiscal year ended November 30, ~~2023~~2024 ~~we had~~was ~~cash of~~ $72,~~634~~739,~~799~~994, ~~marketable~~a ~~securities~~decrease inof ~~the~~$270,515, ~~amount~~or of9.0%, ~~approximately~~as compared to $3~~.2 million~~, ~~and~~010,509 ~~working~~for ~~capital~~the offiscal ~~$17~~year ended November 30,~~908,922~~ 2023. We ~~believe~~attribute ~~that~~the decrease ~~our~~to ~~working~~decreases ~~capital~~in ~~levels~~sales ~~are~~and ~~adequate~~the toresulting ~~meet~~selling expenses ~~our~~such ~~operating~~as ~~requirements~~commission ~~during the~~expenses, ~~next~~travel ~~twelve~~and ~~months. The~~trade ~~Company~~show isexpenses, ~~exploring~~offset ~~and~~by ~~evaluating~~the ~~opportunities~~hiring ~~for~~of ~~growth~~new ~~and~~salespeople ~~expansion~~which ~~using~~increased ~~the~~sales ~~Company’s~~payroll, ~~cash~~freight ~~resources~~out and entertainment expenses.

~~During~~General and administrative expenses for the fiscal year ended November 30, ~~2023,~~2024 wewas ~~had~~$5,189,369, ~~net~~a ~~cash~~decrease ~~flow provided by operating activities~~ of $2148,~~192~~026,~~899~~ or 2.8%, as compared to ~~net cash flow provided by operating activities of~~ $25,~~235~~337,~~298~~395 for the fiscal year ended November 30, ~~2022~~2023. The decrease inis ~~cash~~due ~~flow~~primarily ~~from~~to ~~operating~~decreases ~~activities~~in ~~was~~officer ~~primarily~~salaries ~~the~~and general ~~result~~insurance ofexpenses ~~lower~~as ~~net~~well ~~income~~as health insurance expenses and ~~related~~temporary ~~noncash~~help ~~items~~expenses ofand ~~deferred~~directors ~~taxes~~fees, ~~stock~~computer ~~based~~expenses ~~compensation~~and consulting expenses and ~~depreciation~~pension asexpenses ~~well~~offset asby ~~accounts receivable~~increases ~~and accounts~~in ~~payable~~salaries and ~~accrued~~related payroll tax expenses, asprofessional ~~offset~~fees, bytelephone, ~~higher~~bank ~~inventory~~charges and ~~levels~~public incompany ~~2023~~expenses.

~~We had net cash flow used~~Depreciation inexpense ~~investing activities of $(3,248,140)~~ for the fiscal year ended November 30, ~~2023~~2024 was $70,384, asan ~~compared~~increase toof ~~net~~$137, ~~cash~~or ~~flow~~less ~~used~~than in1%, ~~investing~~as ~~activities of~~compared to $~~(48~~70,~~351)~~247 for the fiscal year ended November 30, ~~2022~~2023. ~~We attribute the change to acquisition of approximately $3.2 million of marketable debt securities in the form of Treasury bills and notes issued by the United States Treasury.~~

WeOther income ~~had~~for ~~net~~the ~~cash~~fiscal ~~flow~~year ~~used in~~ended ~~financing~~November ~~activities~~30, 2024 was $331,703, an increase of $0216,733 ~~during~~as compared to $114,970 for the fiscal year ended November 30, 2023. asWe ~~compared~~attribute tothe ~~$(8,495)~~increase ~~provided~~to byincome ~~financing~~from ~~activities for~~investment in the ~~fiscal~~acquisition ~~year~~of ~~ended~~Treasury ~~November~~Bonds ~~30,~~and ~~2022~~notes issued by the United States Treasury.

19Tax expense for the fiscal year ended November 30, 2024 was $409,973, a decrease of $243,424 as compared to a tax expense of $653,397 for the fiscal year ended November 30, 2023. The changes result from our decrease in net income for the 2024 period.

As a result of the foregoing, ~~the~~ ~~Company had a~~ net ~~decrease~~income ~~in cash of $1,055,241~~ for the fiscal year ended November 30, ~~2023,~~2024 aswas $825,677, compared to a net ~~increase~~income ~~in cash~~ of $2972,~~178,452~~ 110 for the fiscal year ended November 30, ~~2022~~2023.

~~The table below sets forth~~Liquidity ~~our contractual obligations, including long-term debt, operating leases~~ and ~~other~~Capital ~~long-term obligations, as of November 30, 2023:~~Resources

			Payments due
			0 – 12		13 – 36		37 – 60		More than
Contractual Obligations	Total		Months		Months		Months		60 Months
Financing Lease Obligations	$	-	$	-	$	-	$	-	$	-
Operating leases	$	1,733,504		351,957		535,715		433,452		412,380
Total obligations	$	1,733,504	$	351,957	$	535,715	$	433,452	$	412,380

As of November 30, 2024 we had cash of $5,627,693, marketable securities in the amount of approximately $7.1 million, and working capital of $18,909,561. We believe that our working capital levels are adequate to meet our operating requirements during the next twelve months. The Company is exploring and evaluating opportunities for growth and expansion using the Company’s cash resources.

~~Inflation~~During the fiscal year ended November 30, 2024, we had net cash flow provided by operating activities of $1,812,399, as compared to net cash flow provided by operating activities of $2,192,899 for the fiscal year ended November 30, 2023. The decrease in cash flow from operating activities was primarily the result of lower net income and related noncash items of deferred taxes, stock based compensation and depreciation as well as accounts receivable as offset by increases in accounts payable and prepaid expense levels in 2024.

InWe had ~~the~~net ~~past~~cash ~~two~~flow ~~fiscal~~used ~~years, inflation~~in ~~has~~investing ~~not~~activities ~~had~~of a$(3,830,496) ~~significant~~for ~~impact~~the onfiscal ~~our~~year ~~business.~~ended ~~The~~November ~~Company~~30, ~~has~~2024, ~~been~~as ~~able~~compared to ~~pass~~net ~~along~~cash ~~increases~~flow used in ~~purchasing~~investing ~~costs~~activities ~~to their~~of ~~Customers. However~~$(3,248,140) ~~some~~for ~~logistics~~the ~~costs~~fiscal ~~such~~year asended November ~~ocean~~30, ~~and~~2023. We ~~air~~attribute ~~freight~~the ~~are~~change ~~not passed along~~ to ~~customers. Any significant increase~~acquisition inof ~~inflation~~approximately ~~and~~$5.9 ~~interest~~million ~~rates~~of ~~could~~marketable ~~have~~debt asecurities ~~significant~~in ~~effect on~~ the ~~economy~~form inof ~~general~~Treasury bills and, ~~thereby,~~notes ~~could~~issued ~~affect~~by ~~our~~the ~~future~~United ~~operating results~~States Treasury.

~~Off~~We had ~~Balance~~net ~~Sheet~~cash ~~Arrangements~~flow used in financing activities of $0 during the fiscal year ended November 30, 2024 as compared to $0 provided by financing activities for the fiscal year ended November 30, 2023.

~~We do not have any off balance sheet arrangements.~~19

~~Item~~As 7Aa result of the foregoing, the Company had a net decrease in cash of $2,007,106 for the fiscal year ended November 30, 2024, as compared to a net decrease in cash of $1,055,241 for the fiscal year ended November 30, 2023. ~~Quantitative~~The ~~and~~net ~~Qualitative~~decrease ~~Disclosures~~in ~~About~~cash ~~Market~~is ~~Risk~~mainly as compared to the prior fiscal year ended November 30, 2023 is due to an increase in purchases of marketable debt securities as detailed above.

WeThe table ~~are~~below asets ~~smaller~~forth ~~reporting company~~our ~~and~~contractual ~~therefore~~obligations, weincluding ~~are~~long-term ~~not~~debt, ~~required~~operating toleases ~~provide~~and ~~information~~other ~~required~~long-term byobligations, ~~this~~as ~~Item~~ of November ~~Form~~30, ~~10-K.~~2024:

Item 8. Financial Statements and Supplementary Information

			Payments due
			0 – 12		13 – 36		37 – 60		More than
Contractual Obligations	Total		Months		Months		Months		60 Months
Financing Lease Obligations	$	-	$	-	$	-	$	-	$	-
Operating leases	$	1,386,372		330,166		424,952		442,122		189,132

Total obligations	$	1,386,372	$	330,166	$	424,952	$	442,122	$	189,132

~~Our financial statements, together with the independent registered public accounting firm’s report of Seligson & Giannattasio, LLP, begin on page F-1, immediately after the signature page.~~Inflation

~~Item~~In the 9past two fiscal years, inflation has not had a significant impact on our business. ~~Changes~~The Company has been able to pass along increases in purchasing costs to their Customers. However, some logistics costs such as ocean and ~~Disagreements~~air ~~with~~freight ~~Accountants~~are not passed along to customers. Any significant increase in inflation and interest rates could have a significant effect on ~~Accounting~~the economy in general and, ~~Financial~~thereby, ~~Disclosure~~could affect our future operating results.

~~None.~~Off Balance Sheet Arrangements

20We do not have any off balance sheet arrangements.

Item 9A 7A. Quantitative ~~Controls~~ and ~~Procedures~~Qualitative Disclosures About Market Risk.

~~Evaluation~~We are ofa ~~Disclosure~~smaller ~~Controls~~reporting company and ~~Procedures~~therefore, we are not required to provide information required by this Item of Form 10-K.

~~We maintain “disclosure~~Item 8. controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial ~~Officer,~~Statements ~~as appropriate, to allow timely decisions regarding required disclosure. In designing~~ and ~~evaluating our~~Supplementary disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.Information

~~As of November 30, 2023 we~~Our ~~carried~~financial ~~out an evaluation~~statements, ~~under~~together ~~the supervision and~~ with the ~~participation~~independent ofregistered ~~our~~public ~~Chief~~accounting ~~Executive~~firm’s ~~Officer~~report ~~and~~of ~~Chief~~Seligson ~~Financial~~& ~~Officer~~Giannattasio, ofCPAs ~~the~~PC, ~~effectiveness~~begin ~~of our disclosure controls and procedures. Based~~ on ~~this~~page ~~evaluation~~F-1, ~~our~~immediately ~~Chief~~after ~~Executive~~the ~~Officer~~signature ~~and Chief Financial Officer concluded that our disclosure controls and procedures were effective~~page.

~~Management’s~~Item 9. Changes ~~Report~~in ofand ~~Internal~~Disagreements ~~Control over~~with Accountants on Accounting and Financial ~~Reporting~~Disclosure.

~~We are responsible for establishing and maintaining adequate internal control over financial reporting in accordance with Exchange Act Rule 13a-15~~None. With the participation of our Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of November 30, 2023 based on the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal control over financial reporting was effective as of November 30, 2023. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

~~Changes in Internal Controls.~~20

~~During the quarter ended~~Item ~~November~~9A. ~~30,~~Controls ~~2023,~~and there were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or Rule 15d-15 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reportingProcedures.

~~Item~~Evaluation of ~~9B.~~Disclosure ~~Other~~Controls ~~Information~~and Procedures.

~~None~~We maintain “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

~~Item~~As of 9CNovember 30, 2024 we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. ~~Disclosure~~Based ~~Regarding~~on ~~Foreign~~this ~~Jurisdictions~~evaluation, ~~That~~our ~~Prevent~~Chief ~~Inspections~~Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective.

~~None~~Management’s Report of Internal Control over Financial Reporting.

21We are responsible for establishing and maintaining adequate internal control over financial reporting in accordance with Exchange Act Rule 13a-15. With the participation of our Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of November 30, 2024 based on the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal control over financial reporting was effective as of November 30, 2024. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

~~PART~~Changes in ~~III~~Internal Controls.

~~Item~~During the ~~10.~~quarter ~~Directors~~ended November 30, ~~Executive~~2024, ~~Officers~~there were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or Rule 15d-15 that has materially affected, ~~and~~or ~~Corporate~~is ~~Governance~~reasonably likely to materially affect, our internal control over financial reporting.

~~Our board of directors have~~Item ~~a term of office of one year and were all reelected at the 2023 annual meeting of stockholders~~9B. InOther ~~2024, each director will be up for reelection for a term of one year to end at the next annual meeting of shareholders.~~Information

~~Our executive officers and directors, and their ages, positions and offices with us are as follows:~~None.

Name	Age	Position
Ira Levy	67	Chief Executive Officer, Chief Financial Officer, President and Director
Steven J. Lubman	68	Vice President, Secretary, Treasurer and Director
Alan Plafker* (2)(3)	65	Director
Martin Novick* (2)(3)	87	Director
Lawrence Chariton* (2)(3)	66	Director
Gary Jacobs* (1)(2)(3)	66	Director
Peter Levy* (1)(2)(3)	63	Director

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

* Independent directorNone.

~~(1) Member of Compensation Committee.~~21

~~(2) Member of Audit Committee~~PART III

~~(3)~~Item 10. ~~Member~~Directors, ofExecutive ~~Nominating~~Officers, and Corporate Governance ~~Committee~~.

~~Directors~~Our board of directors have a term of office of one year and were all reelected at the 2024 annual meeting of stockholders. In 2024, each director will be up for reelection for a term of one year to end at the next annual meeting of shareholders.

~~Ira Levy has~~Our ~~served~~executive asofficers ~~our President, Chief Executive Officer~~ and ~~director since our inception in November 1981~~directors, and astheir ~~our Chief Financial Officer since March 2010. From 1976 to 1981~~ages, ~~Mr.~~positions ~~Levy was employed by Capar Components Corp., an importer~~ and ~~supplier~~offices ofwith ~~capacitor~~us ~~and~~are ~~resistor products. Mr. Levy has served on the board of trustees of the Bellmore Jewish Center since 2002 and served~~ as its president from 2006 to 2008. From 2000 to 2004, he served as a member of the board of trustees of METNY, the governing body of the Conservative movement of Judaism for New York, New Jersey, and Connecticut. Mr. Levy studied Business Management at Hofstra University. Mr. Levy’s experience in, and knowledge of, the electronics components business led to the conclusion that he should serve on our board.follows:

Steven J. Lubman has served as our Vice President, Secretary and a director since our inception in November 1981. In June 1988, Mr. Lubman founded Challenge Electronics, a division of the Company. From 1980 through 1981, he served as the sales manager for NIC Components Corp., a division of Nu Horizons Electronics Corp., a distributor of electronic components which was acquired by Arrow Electronics, Inc. (NYSE: ARW) in January 2011. From 1976 through 1980, Mr. Lubman served as both an inside and then outside salesperson for Capar Components Corp., a division of Diplomat Electronics Inc., a broad line distributor of electronic components including integrated circuits, diodes, transistors, and capacitor products. Mr. Lubman’s more than 35 years of experience in, and knowledge of the electronics components business, led to the conclusion that he should serve on our board.

Name	Age	Position
Ira Levy	68	Chief Executive Officer, Chief Financial Officer, President and Director
Steven J. Lubman	69	Vice President, Secretary, Treasurer and Director
Alan Plafker* (2)(3)	66	Director
Lawrence Chariton* (2)(3)	67	Director
Gary Jacobs* (1)(2)(3)	67	Director
Peter Levy* (1)(2)(3)	64	Director

~~Alan~~* Plafker has served as a director since June 2001. Since November 2016, he has served as Vice President of Garber Atlas Fries & Associates, Inc., an insurance agency providing commercial and personal insurance coverage. From July 2000 to November 2016, Mr. Plafker served as President and Chief Executive Officer of Member Brokerage Service LLC, a credit union service organization, and also served as director of business services for the Credit Union. From January 1993 to July 2000, he served as a member of the credit union’s board of directors and supervisory committee. Mr. Plafker has more than 35 years of executive and management experience in the insurance and credit union industries. He is a New York State licensed insurance agent and broker. Mr. Plafker has earned certification as a Certified Professional Insurance Agent from the AIMS Society and earned the CIC designation from the Society of Certified Insurance Counsellors. He has also earned the CUBLP (Credit Union Business Lending Professional) designation from the CUNA Business Lending Certification Institute. In addition, he is a past President of the Professional Insurance Agents Association of New York State. He currently serves as Treasurer and as a member of the Board of Directors for the New York Independent Livery Drivers Benefit Fund, a New York State benefit fund providing injury benefits for livery drivers, to comply with the Workers’ Compensation Board regulations. Mr. Plafker received a Bachelor’s degree in business administration from Adelphi University. Mr. Plafker’s experience in the insurance industry, knowledge of financial matters, and Board Member experience led to the conclusion that he should serve on our board.director

22(1) Member of Compensation Committee.

Martin Novick is a real estate investor and was appointed to the Board in September 2016. He served as a vice president of Audiovox Electronic Corp., an international distributor and value-added service provider in the accessory, mobile and consumer electronics industries, from 1969 to 2008. He previously served on the board of directors of Audiovox Electronic Corp., Nu Horizons Electronics Corp., a distributor of electronic components which was acquired by Arrow Electronics, Inc. (~~NYSE: ARW~~2) inMember January 2011 and Arielle Electronics, a company that sold bluetooth and wireless products. Mr. Novick holds a Bachelor’s Degree in Marketing from New York University. Mr. Novick’s significant experience in the electronics industry and as a director of aAudit ~~public company led to the conclusion that he should serve on our board.~~Committee

~~Lawrence~~(3) ~~Chariton has served~~Member as a director since 2001. He worked for 50 years in the retail jewelry industry at Linda Shop Jewelry and Great American Jewelry as Chief Operating Officer. Since February 2018 Mr. Chariton has served as a member of ~~the~~Nominating Board of Trustees of the State University of Old Westbury in New York. Mr. Chariton has served previously from 1998 as a member of the Board of Directors of New Island Hospital in Bethpage, N.Y. Subsequently he remained after the merger as a member of the Board of Directors with St. Joseph’s Hospital until December 2010. Mr. Chariton served as a member of The Board of Directors of the Jewish National Fund of Long Island. Mr. Chariton has a Bachelor’s Degree in Accounting from Hofstra University. He is a graduate of The Gemological Institute of America in Diamonds and ~~Color~~Corporate ~~Stones.~~Governance ~~Mr. Chariton’s experience on several Boards of Directors as well as running a small business led to the conclusion that he should serve on our board.~~Committee

~~Gary M. Jacobs has~~Directors served as a director since July 2003. Since October 2014, Mr. Jacobs has served as President of Bar Bakers, LLC, a commercial food manufacturer of nutritional bars, cookies and other baked goods. From March 2011 to October 2014, he served as a consultant to several companies, providing advisory services in the areas of turn-around and financial and operational efficiencies. Mr. Jacobs served as the Chief Financial Officer of Chem Rx from June 2008 until March 2011. From May 2005 to June 2008, Mr. Jacobs was the Chief Financial Officer and Chief Operating Officer of Gold Force International, Ltd., a supplier of gold, silver and pearl jewelry to U.S. retail chains, and Karat Platinum LLC, a developer of an alternative to platinum. From July 2003 to April 2005, Mr. Jacobs served as President of The Innovative Companies, LLC, a supplier of natural stone. From October 2001 to February 2003, Mr. Jacobs served as Executive Vice President of Operations and Corporate Secretary of The Hain Celestial Group, Inc., a food and personal care products company. Mr. Jacobs also served as Executive Vice President of Finance, Chief Financial Officer and Treasurer of The Hain Celestial Group, Inc. from September 1998 to October 2001. Prior to that, Mr. Jacobs was the Chief Financial Officer of Graham Field Health Products, Inc., a manufacturing and distribution company. Mr. Jacobs served for 13 years as a member of the audit staff of Ernst & Young LLP, where he attained the position of senior manager. He is a certified public accountant and holds a Bachelor’s of Business Administration in Accounting from Adelphi University. Mr. Jacobs’s experience as a certified public accountant and as a chief financial officer led to the conclusion that he should serve on our board.

~~Peter A. Levy~~Ira Levy has ~~been~~served aas ~~director~~our ~~of the Company since April 2017. He is an equity shareholder at the law firm of Mandelbaum Barrett~~President, ~~one~~Chief ofExecutive ~~the~~Officer ~~region’s oldest~~ and ~~most~~director ~~renowned~~since ~~law~~our ~~firms.~~inception ~~He joined Mandelbaum as a member~~ in ~~September~~November ~~of 2015~~1981, and ~~now~~as ~~serves on the firm’s Executive~~our ~~Committee~~Chief ~~with~~Financial ~~the~~Officer ~~responsibility~~since ~~for~~March ~~all department practices within the firm~~2010. InFrom ~~addition~~1976 to ~~practicing law for 15 years~~1981, Mr. Levy ~~spent~~ 12was ~~years~~employed asby aCapar ~~partner~~Components ~~at a regional accounting firm~~Corp., ~~Sobel~~an &importer ~~Company,~~ and ~~has served as the chief operating officer~~ supplier of ~~two different~~capacitor ~~public companies, The Empire Sports & Entertainment~~ and ~~MYOS~~resistor ~~Corporation~~products. ~~As the president of MYOS Corporation, he successfully positioned the company on the NASDAQ stock exchange.~~ Mr. Levy has ~~significant~~served ~~experience~~on inthe ~~mergers~~board ~~and~~of ~~acquisitions,~~trustees ~~joint venture partnering, corporate governance, business processes, and strategic planning. Community service is an important aspect~~ of ~~Mr.~~the ~~Levy’s life. For~~Bellmore ~~over~~Jewish 20Center ~~years~~since he2002 ~~has been on the Board~~ and ~~also~~ served as ~~the~~its ~~Corporate~~president ~~Liaison~~from 2006 to ~~Easter~~2008. ~~Seals~~From –2000 ~~Camp~~to ~~ASCCA~~2004, ~~America’s flagship camp~~he ~~for~~served ~~People~~as ~~with~~a ~~Disabilities,~~member ~~and~~of ~~he is~~ the ~~co-builder~~board of ~~the~~trustees ~~Roswal-Levy~~of ~~Tower~~METNY, the ~~world’s~~governing ~~largest~~body ~~wheelchair-accessible~~of ~~interactive~~the ~~climbing~~Conservative ~~tower for~~movement ~~the~~of ~~disabled. For~~Judaism ~~over~~for aNew ~~decade~~York, ~~Mr.~~New ~~Levy~~Jersey, ~~has~~and ~~been~~Connecticut. onMr. ~~the~~Levy ~~Board~~studied ofBusiness ~~Hamp’s~~Management ~~Camp,~~at aHofstra ~~charity~~University. ~~founded by former N~~Mr.Y. ~~Giants~~Levy’s ~~running~~experience ~~back Rodney Hampton, which is dedicated to providing leadership tools to underprivileged children~~ in ~~Atlanta~~, ~~Newark,~~ and ~~Houston.~~knowledge ~~Mr.~~of, ~~Levy’s~~the ~~financial~~electronics ~~experience~~components business led to the conclusion that he should serve on our board.

23Steven J. Lubman has served as our Vice President, Secretary and a director since our inception in November 1981. In June 1988, Mr. Lubman founded Challenge Electronics, a division of the Company. From 1980 through 1981, he served as the sales manager for NIC Components Corp., a division of Nu Horizons Electronics Corp., a distributor of electronic components which was acquired by Arrow Electronics, Inc. (NYSE: ARW) in January 2011. From 1976 through 1980, Mr. Lubman served as both an inside and then outside salesperson for Capar Components Corp., a division of Diplomat Electronics Inc., a broad line distributor of electronic components including integrated circuits, diodes, transistors, and capacitor products. Mr. Lubman’s more than 35 years of experience in, and knowledge of the electronics components business, led to the conclusion that he should serve on our board.

~~The~~Alan Plafker ~~Board~~has served as a director since June 2001. Since November 2016, he has ~~determined that~~served ~~each~~as Vice President of ~~Messrs.~~Garber ~~Chariton~~Atlas Fries & Associates, ~~Jacobs~~Inc., an insurance agency providing commercial and personal insurance coverage. From July 2000 to November 2016, Mr. Plafker served as President and Chief Executive Officer of Member Brokerage Service LLC, ~~Novick~~a credit union service organization, and ~~Peter~~also served ~~Levy~~as ~~qualify~~director of business services for the Credit Union. From January 1993 to July 2000, he served as ~~“independent”~~a ~~under~~member of the ~~Nasdaq~~credit ~~Stock~~union’s board ~~Market~~of directors and supervisory committee. Mr. Plafker has more than 35 years of executive and management experience in the insurance ~~Rules~~and credit union industries. He is a New York State licensed insurance agent and broker. Mr. Plafker has earned certification as ~~well~~a Certified Professional Insurance Agent from the AIMS Society and earned the CIC designation from the Society of Certified Insurance Counsellors. He has also earned the CUBLP (Credit Union Business Lending Professional) designation from the CUNA Business Lending Certification Institute. In addition, he is a past President of the Professional Insurance Agents Association of New York State. He currently serves as ~~Rule~~Treasurer and ~~10A-3~~as ~~promulgated~~a ~~under~~member of the ~~Exchange~~Board ~~Act~~of Directors for the New York Independent Livery Drivers Benefit Fund, a New York State benefit fund providing injury benefits for livery drivers, to comply with the Workers’ Compensation Board regulations. Mr. Plafker received a Bachelor’s degree in business administration from Adelphi University. Mr. Plafker’s experience in the insurance industry, knowledge of financial matters, and Board Member experience led to the conclusion that he should serve on our board.

~~Board and Committee Meetings~~22

~~During~~Lawrence Chariton has served as a director since 2001. He worked for 50 years in the ~~fiscal~~retail ~~year~~jewelry ~~ended~~industry at Linda Shop Jewelry ~~November~~and ~~30,~~Great ~~2023,~~American ~~the~~Jewelry ~~Board~~as ~~held~~Chief ~~five~~Operating ~~meetings~~Officer. ~~Each~~Since ofFebruary ~~the~~2018 ~~directors~~Mr. ~~attended~~Chariton athas ~~least~~served ~~75%~~as a member of the ~~aggregate~~Board of ~~(i)~~Trustees of the ~~total~~State ~~number~~ University of ~~meetings~~Old Westbury in New York. Mr. Chariton has served previously from 1998 as a member of the Board ~~(held~~of ~~during~~Directors of ~~the~~New ~~period~~Island ~~for~~Hospital ~~which~~in Bethpage, N.Y. Subsequently he ~~served~~remained after the merger as a ~~director),~~member ~~and~~of ~~(ii)~~ the ~~total~~Board ~~number~~ of ~~meetings~~Directors ~~held~~with bySt. ~~all~~Joseph’s ~~committees~~Hospital ofuntil ~~the~~December ~~Board~~2010. onMr. ~~which~~Chariton he served ~~(during~~as a member of The Board of Directors of the ~~periods~~Jewish ~~that~~National heFund ~~served~~of onLong ~~such~~Island. ~~committees)~~Mr. Chariton Wehas ~~have~~a noBachelor’s ~~written~~Degree ~~policy~~in ~~regarding director~~Accounting ~~attendance~~from atHofstra ~~annual~~University. ~~meetings~~He is a graduate of ~~stockholders~~The Gemological Institute of America in Diamonds and Color Stones. ~~Our~~Mr. ~~last~~Chariton’s ~~annual~~experience ~~meeting~~on several Boards of ~~stockholders~~Directors ~~was~~as ~~held~~well onas ~~November~~running ~~30,~~a ~~2023~~small ~~and~~business ~~all~~led ofto ~~our~~the ~~directors~~conclusion ~~attended~~that ~~such~~he ~~meeting~~should serve on our board.

~~Board~~Gary M. ~~Committees~~Jacobs has served as a director since July 2003. Mr. Jacobs is currently serving as Chief Commercial Officer of AOG, LLC d/b/a Tandem Foods, the acquirer of Bar Bakers, LLC effective May 2, 2024. Previously, since October 2014, he served as President of Bar Bakers, LLC, a commercial food manufacturer of nutritional bars, cookies and other baked goods. From March 2011 to October 2014, he served as a consultant to several companies, providing advisory services in the areas of turn-around and financial and operational efficiencies. Mr. Jacobs served as the Chief Financial Officer of Chem Rx from June 2008 until March 2011. From May 2005 to June 2008, Mr. Jacobs was the Chief Financial Officer and Chief Operating Officer of Gold Force International, Ltd., a supplier of gold, silver and pearl jewelry to U.S. retail chains, and Karat Platinum LLC, a developer of an alternative to platinum. From July 2003 to April 2005, Mr. Jacobs served as President of The Innovative Companies, LLC, a supplier of natural stone. From October 2001 to February 2003, Mr. Jacobs served as Executive Vice President of Operations and Corporate Secretary of The Hain Celestial Group, Inc., a food and personal care products company. Mr. Jacobs also served as Executive Vice President of Finance, Chief Financial Officer and Treasurer of The Hain Celestial Group, Inc. from September 1998 to October 2001. Prior to that, Mr. Jacobs was the Chief Financial Officer of Graham Field Health Products, Inc., a manufacturing and distribution company. Mr. Jacobs served for 13 years as a member of the audit staff of Ernst & Young LLP, where he attained the position of senior manager. He is a certified public accountant and holds a Bachelor’s of Business Administration in Accounting from Adelphi University. Mr. Jacobs’s experience as a certified public accountant and as a chief financial officer led to the conclusion that he should serve on our board.

~~The~~Peter A. ~~composition~~Levy ~~and~~has ~~responsibilities~~ been a director of ~~each~~the Company since April 2017. He is an equity shareholder at the law firm of Mandelbaum Barrett, one of the ~~Audit~~region’s ~~Committee~~oldest and most renowned law firms. He joined Mandelbaum as a member in September of 2015, and now serves on the ~~Compensation~~firm’s Executive Committee ~~and~~with the ~~Nominating~~responsibility for all department practices within the firm. In addition to practicing law for 15 years, Mr. Levy spent 12 years as a partner at a regional accounting firm, Sobel & Company, and ~~Corporate~~has ~~Governance~~served ~~Committee~~as ~~are~~the ~~described~~chief operating ~~below~~officer of two different public companies, The Empire Sports & Entertainment and MYOS Corporation. As the president of ~~Members~~MYOS ~~will~~Corporation, ~~serve~~he successfully positioned the company on ~~these~~the NASDAQ ~~committees~~stock ~~until~~exchange. ~~their~~Mr. ~~resignation~~Levy orhas ~~until~~significant ~~otherwise~~experience ~~determined~~in bymergers and ~~the~~acquisitions, ~~Board~~joint venture partnering, corporate governance, business processes, and strategic planning. ~~Each~~Community ~~committee~~service ~~operates~~is ~~under~~an aimportant ~~charter~~aspect ~~that~~of Mr. Levy’s life. For over 20 years he has been ~~approved~~on by the Board and also served as the Corporate Liaison to Easter Seals – Camp ASCCA, America’s flagship camp for People with Disabilities, and ~~which~~he is ~~available~~the onco-builder ~~our~~of ~~website~~the Roswal-Levy atTower, the world’s largest wheelchair-accessible interactive climbing tower ~~https://surgecomponents~~for the disabled.~~com/about/investors/~~ For over a decade, Mr. Levy has been on the Board of Hamp’s Camp, a charity founded by former N.Y. Giants running back Rodney Hampton, which is dedicated to providing leadership tools to underprivileged children in Atlanta, Newark, and Houston. Mr. Levy’s financial experience led to the conclusion that he should serve on our board.

~~Audit Committee~~23

~~Our~~The Board ~~Audit~~has ~~Committee~~determined isthat ~~comprised~~ each of Messrs. Chariton, ~~Plafker~~Jacobs, ~~Novick~~Plafker, ~~Jacobs~~ and Peter Levy, ~~each~~qualify ~~of whom is an independent director of the Board. Mr. Jacobs serves~~ as ~~chairman of the Audit Committee. Our Board has determined that Mr. Jacobs is an~~ “~~audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-K. The audit committee members are “~~independent” ~~as that term is defined~~ under the Nasdaq Stock Market Rules. ~~During~~as ~~the~~well ~~fiscal~~as ~~year~~Rule ~~ended~~10A-3 ~~November~~promulgated ~~30,~~under ~~2023,~~ the ~~Audit~~Exchange ~~Committee held four meetings~~Act.

~~The~~Board and ~~Audit~~ Committee ~~is authorized to:~~Meetings

●During the ~~approve~~fiscal year ended November 30, 2024, the Board held five meetings. Each of the directors attended at least 75% of the aggregate of (i) the total number of meetings of the Board (held during the period for which he served as a director), and ~~retain~~(ii) the ~~independent~~total ~~auditors~~number toof meetings ~~conduct~~held by all committees of the Board on which he served (during the periods that he served on such committees). We have no written policy regarding director attendance at annual ~~audit~~meetings of ~~our~~stockholders. ~~books~~Our last annual meeting of stockholders was held on November 26, 2024 and ~~records;~~all of our directors attended such meeting.

~~● review the proposed scope and results of the audit;~~Board Committees

●The composition ~~review~~and responsibilities of each of the Audit Committee, the Compensation Committee and ~~pre-approve~~the Nominating and Corporate Governance Committee are described below. Members will serve on these committees until their resignation or until otherwise determined by the ~~independent~~Board. Each ~~auditor’s~~committee ~~audit~~operates under a charter that has been approved by the Board, and ~~non-audit~~which ~~services~~is ~~rendered;~~available on our website at https://surgecomponents.com/about/investors/.

~~● approve the audit fees to be paid;~~Audit Committee

●Our Audit ~~review~~Committee ~~accounting~~is comprised of Messrs. Chariton, Plafker, Jacobs and ~~financial~~Peter ~~controls~~Levy, ~~with~~each ~~the~~of whom is an independent ~~auditors~~director ~~and~~of ~~our~~the Board. Mr. Jacobs serves as chairman of the Audit Committee. Our Board has determined that Mr. Jacobs is an “audit committee financial expert” ~~and~~as ~~accounting~~defined ~~staff;~~in Item 407(d)(5)(ii) of Regulation S-K. The audit committee members are “independent” as that term is defined under the Nasdaq Stock Market Rules. During the fiscal year ended November 30, 2024, the Audit Committee held four meetings.

●The Audit ~~review~~Committee ~~and~~is ~~approve~~authorized ~~transactions between us and our directors, officers and affiliates;~~to:

● ~~recognize~~approve and ~~prevent~~retain ~~prohibited~~the ~~non-~~independent auditors to conduct the annual audit ~~services~~of our books and records;

● ~~establish~~review ~~procedures~~the ~~for~~proposed ~~complaints~~scope ~~received~~and byresults usof ~~regarding~~the ~~accounting matters~~audit;

● ~~oversee~~review ~~internal~~and ~~audit~~pre-approve ~~functions;~~the independent auditor’s audit and non-audit services rendered;

● ~~prepare~~approve the ~~report~~audit offees ~~the Audit Committee that SEC rules require~~ to be ~~included in our annual meeting proxy statement.~~paid;

24● review accounting and financial controls with the independent auditors and our financial and accounting staff;

~~Compensation~~● ~~Committee~~review and approve transactions between us and our directors, officers and affiliates;

~~Our~~● ~~Compensation~~recognize ~~Committee is comprised of Peter Levy~~ and ~~Gary~~prevent ~~Jacobs,~~prohibited ~~each~~non-audit ~~of whom is an independent director. Mr. Levy serves as chairman of the Compensation Committee. During the fiscal year ended November 30, 2023, the Compensation Committee held two meetings.~~services;

~~The~~● ~~Compensation~~establish ~~Committee is~~procedures ~~authorized~~for ~~to:~~complaints received by us regarding accounting matters;

● ~~review~~oversee ~~and~~internal ~~recommend~~audit ~~the compensation arrangements for management, including the compensation for our chief executive officer~~functions; ~~● establish~~ and review general compensation policies with the objective of attracting and retaining superior talent, rewarding individual performance and achieving our financial goals; ● administer our stock incentive plans; and ● prepare the report of the Compensation Committee that SEC rules require to be included in our annual meeting proxy statement.

~~Nominating~~● ~~and~~prepare ~~Corporate~~the ~~Governance~~report of the Audit Committee that SEC rules require to be included in our annual meeting proxy statement.

Our Nominating and Corporate Governance Committee is comprised of Messrs. Chariton, Plafker Novick, Peter Levy and Jacobs, each of whom is an independent director. Mr. Jacobs serves as chairman of the Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee held one meeting during the fiscal year ended November 30, 2023.24

~~The Nominating and Corporate~~Compensation ~~Governance~~ Committee ~~is authorized to:~~

●Our Compensation ~~identify~~Committee ~~and~~is ~~nominate~~comprised ~~members~~ of ~~the~~Peter ~~board~~Levy ofand ~~directors;~~Gary ●Jacobs, ~~oversee~~each ~~the evaluation~~ of ~~the~~whom ~~board~~is ofan ~~directors~~independent ~~and~~director. ~~management;~~Mr. ●Levy ~~develop~~serves ~~and~~as ~~recommend corporate governance guidelines to the board~~ chairman of ~~directors; ● evaluate~~ the ~~performance~~Compensation ofCommittee. ~~the~~During ~~members of~~ the ~~board~~fiscal ofyear ~~directors;~~ended ~~and~~November ●30, ~~make recommendations to the board of directors as to the structure~~2024, ~~composition and functioning of~~ the ~~board~~Compensation ofCommittee ~~directors~~held ~~and~~two ~~its committees~~meetings.

~~Director~~The Compensation ~~Nominations~~Committee is authorized to:

In● ~~evaluating~~review and ~~determining whether~~recommend tothe ~~nominate~~compensation aarrangements ~~candidate~~ for amanagement, ~~position~~including on the ~~Board,~~compensation ~~the~~for ~~Nominating~~our ~~and~~chief ~~Corporate~~executive ~~Governance~~officer; ~~Committee~~● ~~utilizes~~establish aand ~~variety~~review ~~of methods~~general ~~and~~compensation ~~considers~~policies ~~criteria~~with ~~such~~the asobjective ~~high~~of ~~professional~~attracting ~~ethics~~ and ~~values,~~retaining ~~experience~~superior ontalent, ~~the~~rewarding ~~policy-making~~individual ~~level~~performance inand ~~business~~achieving ~~or experience relevant to~~ our ~~product~~financial ~~candidates~~goals; ~~and~~● aadminister ~~commitment~~our tostock ~~enhancing~~incentive ~~stockholder~~plans; ~~value.~~and ~~Candidates~~● ~~may~~prepare ~~be brought to~~ the ~~attention~~report of the ~~Nominating~~ ~~and~~Compensation ~~Corporate Governance~~ Committee bythat ~~current~~SEC ~~Board~~rules ~~members,~~require ~~stockholders,~~to ~~officers~~be orincluded ~~other persons. The Nominating and Corporate Governance Committee will review all candidates~~ in ~~the~~our ~~same~~annual ~~manner~~meeting ~~regardless~~proxy ~~of the source of the recommendation~~statement.

~~We have no formal policy regarding board diversity. Our~~ Nominating ~~and Corporate Governance Committee and Board may therefore consider a broad range of factors~~ ~~relating to the qualifications~~ and ~~background of nominees, which may include diversity, which is not only limited to race, gender or national origin. Our Nominating and~~ Corporate Governance Committee’s and Board’s priority in selecting board members is identification of persons who will further the interests of our stockholders through his or her established record of professional accomplishment, the ability to contribute positively to the collaborative culture among board members and professional and personal experiences and expertise relevant to our growth strategy.

25Our Nominating and Corporate Governance Committee is comprised of Messrs. Chariton, Plafker, Peter Levy and Jacobs, each of whom is an independent director. Mr. Jacobs serves as chairman of the Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee held one meeting during the fiscal year ended November 30, 2024.

The Nominating and Corporate Governance Committee also considers stockholder recommendations for director nominees that are properly received in accordance with our Bylaws and applicable rules and regulations of the SEC. In order to validly nominate a candidate for election or reelection as a director, stockholders must give timely notice of such nomination in writing to our Corporate Secretary and include, as to each person whom the stockholder proposes to nominate, all information relating to such person that is ~~required~~authorized to be disclosed in solicitations of proxies for election of directors in an election contest, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act, and the rules and regulations thereunder (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected). For more information on director candidate nominations by stockholders, see “Procedures for Nominating Directors”.:

~~Procedures~~● ~~for~~identify ~~Nominating~~and ~~Directors~~nominate members of the board of directors; ● oversee the evaluation of the board of directors and management; ● develop and recommend corporate governance guidelines to the board of directors; ● evaluate the performance of the members of the board of directors; and ● make recommendations to the board of directors as to the structure, composition and functioning of the board of directors and its committees.

~~Effective December 30, 2021,~~Director ~~the Company began to be governed by newly adopted bylaws (the “Bylaws”).The Bylaws provide, among other things, for advance notice of director nominations.~~Nominations

~~The~~In evaluating ~~exclusive~~and ~~means~~determining bywhether ~~which a~~to ~~stockholder may~~ nominate a ~~director~~candidate isfor ~~as follows: (1) was~~ a ~~stockholder~~position ~~of record at the time of the giving of the notice required by Section 2.4(ii) of the Bylaws and~~ on the ~~record~~Board, ~~date for~~ the ~~determination~~Nominating ~~of stockholders entitled to vote at the annual meeting~~ and ~~(2) has~~Corporate ~~complied~~Governance ~~with the notice procedures set forth in this Section 2.4(ii) of the Bylaws. In addition to any~~Committee ~~other~~utilizes ~~applicable requirements, for~~ a ~~nomination~~variety ~~to be made by a stockholder, the stockholder must have given timely notice thereof in proper written form to the secretary~~ of ~~the~~methods ~~corporation. To comply with clause (B) of Section 2.4(ii) of the Bylaws, a nomination to be made by a stockholder must set forth all information required under Section 2.4(ii) of the Bylaws~~ and ~~must be~~considers ~~received~~criteria bysuch ~~the~~as ~~secretary~~high ofprofessional ~~the~~ethics ~~corporation at the principal executive offices of the corporation at the time set forth in,~~ and ~~in accordance with~~values, ~~the~~experience ~~final~~on ~~three sentences of Section 2.4(i)(a) of~~ the ~~Bylaws.~~policy-making ~~This includes how a stockholder’s notice~~level ain ~~stockholder’s~~business ~~notice~~or ~~must~~experience ~~set~~relevant ~~forth~~to ~~all~~our ~~information~~product ~~required~~candidates ~~under this Section 2.4(i)~~ and ~~must~~a becommitment ~~timely~~to ~~received by~~enhancing ~~the~~stockholder ~~secretary of the corporation~~value. ToCandidates bemay ~~timely, a stockholder’s notice must~~ be ~~received by the secretary at the principal executive~~brought offices of the corporation not later than the 45th day nor earlier than the 75th day before the one-year anniversary of the date on which the corporation first mailed its proxy materials or a notice of availability of proxy materials (whichever is earlier) for the preceding year’s annual meeting; provided, however, that in the event that no annual meeting was held in the previous year or if the date of the annual meeting is advanced by more than 30 days prior to ~~or delayed by more than 60 days after~~ the ~~one-year~~attention ~~anniversary~~ of the ~~date~~Nominating ofand ~~the~~Corporate ~~previous~~Governance ~~year’s~~Committee ~~annual meeting, then, for notice~~ by ~~the~~current ~~stockholder to~~Board ~~be timely~~members, it must be so received by the secretary not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of (i) the 90th day prior to such annual meetingstockholders, officers or ~~(ii) the~~other ~~tenth day following the day on which Public Announcement (as defined below) of the date of such annual meeting is first made~~persons. ~~In no event shall~~ ~~any~~The ~~adjournment~~Nominating orand ~~postponement~~Corporate ofGovernance anCommittee ~~annual~~will ~~meeting~~review orall ~~the~~candidates ~~announcement thereof commence a new time period for the giving of a stockholder’s notice as described~~ in ~~this Section 2.4(i)(a). “Public Announcement” shall mean disclosure in a press release reported by~~ the ~~Dow~~same ~~Jones~~manner ~~News~~regardless ~~Service,~~of ~~Associated Press or a comparable national news service or in a document publicly filed by~~ the ~~corporation~~ ~~with~~source ~~the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d)~~ of the ~~1934 Act~~recommendation.

~~Additionally, to be in proper~~We ~~written~~have ~~form,~~no ~~such~~formal ~~stockholder’s~~policy ~~notice~~regarding toboard ~~the~~diversity. ~~secretary~~Our ~~must~~Nominating ~~set forth: (1) as to each person (a “nominee”) whom the stockholder proposes to nominate for election or re-election as a director: (A) the name, age, business address~~ and ~~residence address~~Corporate ofGovernance ~~the~~Committee ~~nominee, (B) the principal occupation or employment of the nominee, (C) the class~~ and ~~number~~Board ofmay ~~shares~~therefore ofconsider ~~the~~a ~~corporation~~broad ~~that~~range ~~are held~~ of ~~record~~factors orrelating ~~are beneficially owned by the nominee and any derivative positions held or beneficially held by the nominee, (D) whether and the extent~~ to ~~which any hedging or other transaction or series of transactions has been entered into by or on behalf of~~ the ~~nominee~~qualifications ~~with respect to any securities of the corporation,~~ and abackground ~~description~~ of ~~any other agreement~~nominees, ~~arrangement or~~which ~~understanding~~may ~~(including~~include ~~any short position or any borrowing or lending of shares)~~diversity, ~~the effect or intent of~~ which is tonot ~~mitigate~~only ~~loss~~limited to, ~~or to manage the risk or benefit of share price changes for~~race, orgender ~~to increase~~ or ~~decrease~~national ~~the~~origin. ~~voting~~Our ~~power~~Nominating ofand ~~the~~Corporate ~~nominee,~~Governance ~~(E) a description~~Committee’s ~~of all arrangements or understandings between the stockholder~~ and ~~each~~Board’s ~~nominee~~priority ~~and~~in ~~any other person or persons (naming such~~selecting ~~person~~board ormembers ~~persons)~~is ~~pursuant~~identification ~~to which the nominations are to be made by the stockholder, (F) a written statement executed by the nominee acknowledging that as a director~~ of ~~the~~persons ~~corporation,~~who ~~the nominee~~ will ~~owe~~further ~~a fiduciary duty under Nevada law with respect to~~ the ~~corporation~~ ~~and~~interests ~~its stockholders, and (G) any other information relating to the nominee that would be required to be disclosed about such nominee if proxies were being solicited for the election or re-election~~ of ~~the~~our ~~nominee~~stockholders asthrough ahis ~~director,~~ or ~~that~~her isestablished ~~otherwise~~record ~~required,~~of inprofessional ~~each case pursuant to Regulation 14A under the 1934 Act (including without limitation the nominee’s written consent to being named in the proxy statement~~accomplishment, ~~if any, as a nominee and to serving as a director if elected or re-elected, as~~ the ~~case~~ability ~~may be); and (2) as~~ to ~~such~~contribute ~~stockholder~~positively ~~giving notice, (A) the information required~~ to ~~be provided pursuant to clauses (2) through (5) of Section 2.4(i)(b) above, and~~ the ~~supplement~~collaborative ~~referenced~~culture inamong ~~the~~board ~~second~~members ~~sentence of Section 2.4(i)(b) above (except that the references to “business” in such clauses shall instead refer to nominations of directors for purposes of this paragraph),~~ and ~~(B) a~~professional ~~statement whether either such stockholder or Stockholder Associated Person will deliver a proxy statement~~ and ~~form of~~ ~~proxy~~personal toexperiences ~~holders~~and ofexpertise arelevant ~~number of the corporation’s voting shares reasonably believed by such stockholder or Stockholder Associated Person~~ to beour ~~necessary~~growth ~~to elect or re-elect such nominee(s) (such information provided and statements made as required by clauses (A) and (B) above, a “Nominee Solicitation Statement”)~~strategy.

2625

InThe Nominating ~~addition~~and toCorporate ~~all~~Governance ~~other requirements~~Committee ~~set~~also ~~forth~~considers stockholder recommendations for director nominees that are properly received in ~~the~~accordance with our Bylaws, aand ~~nominating~~applicable ~~stockholder~~rules ~~(including~~and ~~its~~regulations ~~affiliates)~~of ~~and~~the ~~each~~SEC. In order to validly nominate a candidate for election or reelection as a director, ~~nominee~~stockholders must ~~also~~give ~~comply~~timely notice of such nomination in writing to our Corporate Secretary and include, ~~with~~as to each person whom the stockholder proposes to nominate, all ~~applicable~~information ~~requirements~~relating to such person that is required to be disclosed in solicitations of ~~state~~proxies ~~law~~for ~~and~~election of directors in an election contest, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act, and the rules and regulations thereunder ~~with~~(including ~~respect~~such person’s written consent to being named in the ~~matters~~proxy statement as a nominee and to serving as a director if elected). For more information on director candidate nominations by ~~set~~stockholders, ~~forth~~see in“Procedures ~~the~~for ~~Bylaws~~Nominating Directors”.

~~Board~~Procedures for ~~Leadership~~Nominating ~~Structure and Role in Risk Oversight~~Directors

~~Although we have not adopted~~Effective aDecember ~~formal~~30, ~~policy~~2021, ~~on whether~~ the ~~Chairman~~Company ~~and~~began ~~Chief~~to ~~Executive Officer positions should~~ be ~~separate~~governed orby ~~combined,~~newly weadopted ~~have~~bylaws ~~traditionally determined that it is in our best interests and in~~ (the ~~best interests of our stockholders to combine these roles~~“Bylaws”).The ~~Mr.~~Bylaws ~~Levy~~provide, ~~has~~among ~~served as our Chairman~~other ~~since November 1981. Due to our small size~~things, wefor ~~believe~~advance itnotice isof ~~currently~~director ~~most effective to have the Chairman and Chief Executive Officer positions combined~~nominations.

~~Our~~The exclusive ~~board~~means ofby ~~directors~~which a stockholder may nominate a director is as follows: (1) was a stockholder of record at the time of the ~~primarily~~giving ~~responsible~~of the notice required by Section 2.4(ii) of the Bylaws and on the record date for ~~overseeing~~the ~~our~~determination ~~risk~~of ~~management~~stockholders entitled ~~processes.~~to ~~The~~vote ~~Board~~at ~~receives~~the annual meeting and ~~reviews~~(2) has ~~periodic~~complied ~~reports~~with ~~from~~the ~~management,~~notice procedures set forth in this Section 2.4(ii) of ~~auditors~~the Bylaws. In addition to any other applicable requirements, ~~legal~~for ~~counsel~~a nomination to be made by a stockholder, the stockholder must have given timely notice thereof in proper written form to the secretary of the corporation. To comply with clause (B) of Section 2.4(ii) of the Bylaws, a nomination to be made by a stockholder must set forth all information required under Section 2.4(ii) of the Bylaws and must ~~others~~be received by the secretary of the corporation at the principal executive offices of the corporation at the time set forth in, and asin ~~considered~~accordance ~~appropriate~~with, ~~regarding~~the ~~our~~final ~~assessment~~three sentences of ~~risks~~Section 2.4(i)(a) of ~~The~~the ~~Board~~Bylaws. ~~focuses~~This onincludes ~~the~~how ~~most~~a ~~significant~~stockholder’s ~~risks~~notice ~~facing~~a usstockholder’s notice must set forth all information required under this Section 2.4(i) and ~~our~~must ~~general~~be ~~risk~~timely ~~management~~received by ~~strategy~~the secretary of the corporation. To be timely, ~~and~~a ~~also~~stockholder’s ~~ensures~~notice ~~that~~must ~~risks~~be ~~undertaken~~received by ~~management~~the ~~are~~secretary ~~consistent~~at ~~with~~the principal executive offices of the corporation not later than the 45th day nor earlier than the 75th day before the one-year ~~board~~anniversary of the date on which the corporation first mailed its proxy materials or a notice of availability of proxy materials (whichever is earlier) for the preceding year’s ~~appetite~~annual ~~for~~meeting; provided, however, ~~risk.~~that ~~While~~in the ~~Board~~event ~~oversees~~that ~~our~~no ~~risk~~annual meeting ~~management,~~was ~~management~~held in the previous year or if the date of the annual meeting is ~~responsible~~advanced by more than 30 days prior to or delayed by more than 60 days after the one-year anniversary of the date of the previous year’s annual meeting, then, for notice by the stockholder to be timely, it must be so received by the secretary not earlier than the close of business on the 120th day- prior to- such annual meeting and not later than the close of business on the later of (i) the 90th day ~~risk~~prior ~~management~~to such annual meeting, or (ii) the tenth day ~~processes.~~following Wethe ~~believe~~day ~~this~~on ~~division~~which Public Announcement (as defined below) of ~~responsibilities~~the date of such annual meeting is first made. In no event shall any adjournment or postponement of an annual meeting or the ~~most~~announcement ~~effective~~thereof ~~approach~~commence a new time period for ~~addressing~~the giving of a stockholder’s notice as described in this Section 2.4(i)(a). “Public Announcement” shall mean disclosure in a press release reported by the ~~risks~~Dow ~~facing~~Jones usNews ~~and~~Service, ~~that~~Associated ~~our~~Press or a comparable national news service or in a document publicly filed by the ~~board~~corporation ~~leadership~~with ~~structure~~the ~~supports~~Securities ~~this~~and ~~approach~~Exchange Commission pursuant to Section 13, 14 or 15(d) of the 1934 Act.

~~Code~~Additionally, to be in proper written form, such stockholder’s notice to the secretary must set forth: (1) as to each person (a “nominee”) whom the stockholder proposes to nominate for election or re-election as a director: (A) the name, age, business address and residence address of ~~Ethics~~the nominee, (B) the principal occupation or employment of the nominee, (C) the class and number of shares of the corporation that are held of record or are beneficially owned by the nominee and any derivative positions held or beneficially held by the nominee, (D) whether and the extent to which any hedging or other transaction or series of transactions has been entered into by or on behalf of the nominee with respect to any securities of the corporation, and a description of any other agreement, arrangement or understanding (including any short position or any borrowing or lending of shares), the effect or intent of which is to mitigate loss to, or to manage the risk or benefit of share price changes for, or to increase or decrease the voting power of the nominee, (E) a description of all arrangements or understandings between the stockholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nominations are to be made by the stockholder, (F) a written statement executed by the nominee acknowledging that as a director of the corporation, the nominee will owe a fiduciary duty under Nevada law with respect to the corporation and its stockholders, and (G) any other information relating to the nominee that would be required to be disclosed about such nominee if proxies were being solicited for the election or re-election of the nominee as a director, or that is otherwise required, in each case pursuant to Regulation 14A under the 1934 Act (including without limitation the nominee’s written consent to being named in the proxy statement, if any, as a nominee and to serving as a director if elected or re-elected, as the case may be); and (2) as to such stockholder giving notice, (A) the information required to be provided pursuant to clauses (2) through (5) of Section 2.4(i)(b) above, and the supplement referenced in the second sentence of Section 2.4(i)(b) above (except that the references to “business” in such clauses shall instead refer to nominations of directors for purposes of this paragraph), and (B) a statement whether either such stockholder or Stockholder Associated Person will deliver a proxy statement and form of proxy to holders of a number of the corporation’s voting shares reasonably believed by such stockholder or Stockholder Associated Person to be necessary to elect or re-elect such nominee(s) (such information provided and statements made as required by clauses (A) and (B) above, a “Nominee Solicitation Statement”).

We have adopted a code of ethics that applies to our officers, directors and employees. A copy of the code of ethics is accessible on our website at https://surgecomponents.com/about/investors/. Additional copies of the code of ethics may be obtained without charge, from us by writing or calling: 95 East Jefryn Blvd., Deer Park, New York 11729, Attention: Corporate Secretary, Telephone: (631) 595-1818.26

~~Stockholder~~In addition ~~Communications~~to all other requirements set forth in the Bylaws, a nominating stockholder (including its affiliates) and each director nominee must also comply with all applicable requirements of state law and of the ~~Board~~Exchange Act and the rules and regulations thereunder with respect to the matters set forth in the Bylaws.

~~Stockholders who wish to~~Board doLeadership soStructure ~~may~~and ~~communicate~~Role ~~directly~~in ~~with~~Risk ~~the Board or specified individual directors by writing to:~~Oversight

~~Board~~Although we ofhave ~~Directors~~not (adopted a formal policy on whether the Chairman and Chief Executive Officer positions should be separate or ~~name~~combined, we have traditionally determined that it is in our best interests and in the best interests of ~~individual~~our stockholders to combine these roles. ~~director)~~Mr. Levy has served as our Chairman since November 1981. Due to our small size, we believe it is currently most effective to have the Chairman and Chief Executive Officer positions combined.

~~c/o~~Our board ~~Corporate~~of ~~Secretary~~directors is primarily responsible for overseeing our risk management processes. The Board receives and reviews periodic reports from management, auditors, legal counsel, and others, as considered appropriate regarding our assessment of risks. The Board focuses on the most significant risks facing us and our general risk management strategy, and also ensures that risks undertaken by management are consistent with the board’s appetite for risk. While the Board oversees our risk management, management is responsible for day-to-day risk management processes. We believe this division of responsibilities is the most effective approach for addressing the risks facing us and that our board leadership structure supports this approach.

~~Surge~~Code of ~~Components, Inc.~~Ethics

~~Deer~~Stockholder Communications ~~Park,~~with ~~New~~the ~~York 11729~~Board

~~The Board of Directors maintains a process for stockholders or other interested parties to communicate with the Board or any Board member.~~ Stockholders ~~or interested~~ ~~parties~~ who ~~desire~~wish to ~~communicate~~do ~~with~~so ~~the~~may ~~Board~~communicate ~~should~~directly ~~send~~with ~~any communication to~~ the ~~Company’s Corporate Secretary, Surge Components, Inc., 95 East Jefryn Blvd., Deer Park, New York 11729. We will forward all communications from security holders and interested parties to the full~~ Board, toor ~~non-management~~specified ~~directors, to an~~ individual director or to the chairperson of the Board committee that is most closely related to the subject matter of the communication, except for the following types of communications: (i) communications that advocate that we engage in illegal activity; (ii) communications that, under community standards, contain offensive or abusive content; (iii) communications that have no relevance to our business or operations; and (iv) mass mailings, solicitations and advertisements. The Corporate Secretary will determine when a communication is not to be forwarded. Our acceptance and forwarding of communications to directors ~~does not~~by ~~imply~~writing ~~that directors owe or assume any fiduciary duties~~ to ~~persons submitting the communications.~~:

27Board of Directors (or name of individual director)

~~Additionally, the Audit Committee~~c/o ~~has~~Corporate established procedures for the receipt, retention and confidential treatment of complaints received by Surge regarding accounting, internal accounting controls or auditing matters, including procedures for confidential, anonymous submissions by employees with respect to such matters. Employees and stockholders may raise a question or concern to the Audit Committee regarding accounting, internal accounting controls or auditing matters by writing to:Secretary

~~Chairman~~Surge Components, ~~Audit Committee~~Inc.

~~c/o~~95 East ~~Corporate~~Jefryn ~~Secretary~~Blvd.

~~Surge Components~~Deer Park, ~~Inc.~~New York 11729

The Board of Directors maintains a process for stockholders or other interested parties to communicate with the Board or any Board member. Stockholders or interested parties who desire to communicate with the Board should send any communication to the Company’s Corporate Secretary, Surge Components, Inc., 95 East Jefryn Blvd., Deer Park, New York 11729. We will forward all communications from security holders and interested parties to the full Board, to non-management directors, to an individual director or to the chairperson of the Board committee that is most closely related to the subject matter of the communication, except for the following types of communications: (i) communications that advocate that we engage in illegal activity; (ii) communications that, under community standards, contain offensive or abusive content; (iii) communications that have no relevance to our business or operations; and (iv) mass mailings, solicitations and advertisements. The Corporate Secretary will determine when a communication is not to be forwarded. Our acceptance and forwarding of communications to directors does not imply that directors owe or assume any fiduciary duties to persons submitting the communications.

~~Deer Park, New York 11729~~27

~~Section~~Additionally, the ~~16(~~Audit Committee has established procedures for the receipt, retention and confidential treatment of complaints received by Surge regarding accounting, internal accounting controls or auditing matters, including procedures for confidential, anonymous submissions by employees with respect to such matters. Employees and stockholders may raise a) ~~Beneficial~~question ~~Ownership~~or ~~Reporting~~concern to the Audit Committee regarding ~~Compliance~~accounting, internal accounting controls or auditing matters by writing to:

~~Section 16(a) of the Securities Exchange Act of 1934 requires that our officers and directors~~Chairman, ~~and persons who own more than ten percent of a registered class of our~~ ~~equity~~Audit securities, file reports of ownership and changes in ownership with the Securities and Exchange Commission. Officers, directors and persons owning more than ten percent of such securities are required by Commission regulation to file with the Commission and furnish the Company with copies of all reports required under Section 16(a) of the Exchange Act. To our knowledge, based solely upon our review of the copies of such reports furnished to us, during the fiscal year ended November 30, 2022, all Section 16(a) filing requirements applicable to our officers, directors and greater than 10% beneficial owners were complied with.Committee

28c/o Corporate Secretary

~~Item~~Surge Components, 11Inc. ~~Executive Compensation.~~

~~Summary~~95 East ~~Compensation~~Jefryn ~~Table~~Blvd.

~~The following table sets~~Deer ~~forth information regarding compensation paid to our executive officers for the years ended November 30~~Park, ~~2023~~New ~~and~~York ~~November 30, 2022:~~11729

Name and Position	Fiscal Year	Salary ($)		Bonus ($)		Stock Awards ($)		Option Awards ($)		All Other Compensation ($)(1)		Total ($)
Ira Levy	2023		300,000		150,000		-		-		64,957		514,957
President CEO and CFO	2022		300,000		318,400		60,000		-		61,473		739,873
Steven J. Lubman	2023		250,000		112,000		-		-		48,331		410,331
Vice President and Secretary	2022		250,000		192,877		37,500		-		48,308		528,685

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(1a) ~~Amounts~~of inthe ~~this~~Securities ~~column~~Exchange ~~include~~Act ~~payments~~of ~~for~~1934 ~~medical~~requires ~~insurance~~that our officers and directors, ~~automobile~~and ~~allowance~~persons who own more than ten percent of a registered class of our equity securities, file reports of ownership and ~~life~~changes in ownership with the Securities and ~~personal~~Exchange ~~insurance~~Commission. Officers, ~~With~~directors ~~respect~~and persons owning more than ten percent of such securities are required by Commission regulation to ~~Fiscal~~file ~~2023,~~with the Commission ~~amounts~~and ~~were~~furnish ~~comprised~~the Company with copies of all reports required under Section 16(a) of the ~~following~~Exchange ~~items:~~Act. To our knowledge, based solely upon our review of the copies of such reports furnished to us, during the fiscal year ended November 30, 2024, all Section 16(a) filing requirements applicable to our officers, directors and greater than 10% beneficial owners were complied with.

	Medical Insurance		Automobile Allowances		Life and Personal Insurance
Ira Levy	$	36,724	$	18,756	$	9,477
Steven J. Lubman	$	28,216	$	12,300	$	7,815

~~2022~~Item 11. ~~Base~~Executive ~~Salary and Bonus~~Compensation.

~~In February 2016, the Company~~Summary ~~entered~~Compensation into revised employment agreements with two officers of the Company. Pursuant to these agreements, the base salary for Ira Levy is $275,000 and the base salary for Steven Lubman is $225,000. The agreements continue until terminated by either party. In April 2021, the employment agreements for Ira Levy and Steven Lubman were amended to increase the base salary to $300,000 and $250,000, respectively.Table

The ~~Company’s compensation~~ ~~committee~~following ~~may~~table ~~award~~sets ~~these~~forth ~~officers~~information ~~with~~regarding ~~bonuses~~compensation ~~and~~paid ~~will review the base salary amounts for each of the officers on an annual basis~~ to ~~determine~~ ifour ~~any~~executive ~~changes to the base salary amounts need to be made. Pursuant to the employment agreements, the~~ officers ~~are prohibited from engaging in activities which are competitive with those of the Company during their employment with the Company and~~ for ~~one year following termination. If~~ the ~~agreement~~years isended ~~terminated~~November ~~other than for cause~~30, ~~the~~2024 ~~officer would be entitled to all base salary earned through the date of termination, accrued but unused vacation, all vested equity,~~ and ~~bonus amounts payable to the officer through the date of~~ ~~termination.~~November The officers would also be entitled to receive an additional thirty-six months of annual compensation equal to the average of his base salary and bonus for the three calendar years prior to the date of termination30, ~~payable in accordance with the Company’s regular payroll practice over a 52-week period.~~2023:

The bonus granted to the named executive officers for 2022 was based on certain performance goals that were set prior to the year by the Compensation Committee and the executive, but ultimately the bonus is discretionary, as the Compensation Committee has the authority to make all final decisions regarding the amount and form of bonuses provided to the executive officers. For Mr. Levy, his target bonus amount is equal to fifty percent (50%) of his base salary, and Mr. Lubman’s target is equal to forty-five percent (45%) of his base salary.

Name and Position	Fiscal Year	Salary ($)		Bonus ($)		Stock Awards ($)		Option Awards ($)		All Other Compensation ($)(1)		Total ($)
Ira Levy	2024		320,000		150,000		-		-		65,890		535,890
President CEO and CFO	2023		300,000		37,500		15,000		-		64,957		417,457

Steven J. Lubman	2024		266,667		123,752		-		-		49,545		439,964
Vice President and Secretary	2023		250,000		110,624		-		-		48,331		408,955

In(1) ~~2022~~Amounts ~~the~~in ~~Compensation Committee~~this ~~used~~column ~~four~~include ~~performance~~payments ~~markers to guide their decisions regarding bonus amounts. The performance guidelines that were applicable to Messrs. Levy and Lubman’s bonuses~~ for ~~the~~medical ~~2022 year included individual performance goals~~insurance, ~~revenue~~automobile ~~growth,~~allowance ~~achieving~~and ~~the~~life ~~operating plan goals for specific divisions of the company,~~ and ~~achieving~~personal ~~the operating plan for the company as a whole~~insurance. ~~Each~~With ~~performance~~respect ~~guideline was generally intended~~ to ~~make~~Fiscal ~~up twenty-five percent of the potential bonus amount for each executive. Based upon the Company’s and the executives’ performance during the 2022 year~~2024, the ~~Compensation~~amounts ~~Committee granted awards that~~ were ~~approximately~~comprised ~~one hundred percent (100%)~~ of the ~~executives’~~following ~~target award amount.~~items:

	Medical Insurance		Automobile Allowances		Life and Personal Insurance
Ira Levy	$	37,323	$	18,756	$	9,811
Steven J. Lubman	$	28,216	$	12,300	$	9,029

~~2023~~2024 Base ~~Equity~~Salary ~~Compensation~~and ~~Awards~~Bonus

WeIn February ~~have~~2016, ~~historically~~the ~~granted fully~~Company ~~vested~~entered ~~stock~~into ~~awards~~revised ~~and~~employment ~~stock~~agreements ~~option~~with ~~awards.~~two ~~The~~officers ~~amount~~ of ~~awards~~the ~~granted~~Company. inPursuant ~~any~~to ~~given~~these ~~year~~agreements, the isbase ~~determined~~salary ~~based~~for onIra ~~the~~Levy ~~performance of~~is ~~the~~$275,000 ~~company~~ and the ~~executive~~base insalary ~~the~~for ~~previous~~Steven ~~year.~~Lubman ~~Performance~~ is ~~generally~~$225,000. ~~based~~The ~~upon~~agreements ~~the~~continue ~~same~~until ~~performance~~terminated by ~~guidelines~~either ~~that~~party. In ~~are~~April ~~used for~~2021, the ~~annual~~employment ~~cash~~agreements ~~bonus award~~ for ~~that~~Ira ~~year.~~Levy ~~The~~and ~~Compensation~~Steven ~~Committee~~Lubman ~~sets~~were aamended ~~target~~to ~~award~~increase ~~amount based upon a percentage of~~ the ~~executive’s~~ base salary. to At$300,000 ~~the~~and ~~end of the year~~$250,000, ~~the~~respectively. ~~Compensation~~In ~~Committee~~April ~~determines~~2024, the ~~cash~~employment ~~amount~~agreements ~~that~~for ~~resulted~~Ira ~~from~~Levy ~~the~~and ~~previous~~Steven ~~year’s performance,~~Lubman ~~with~~were ~~any~~amended ~~discretionary~~to ~~adjustments that~~ increase the ~~Compensation~~base ~~Committee~~salary ~~deems~~ to ~~be appropriate~~$330,000 and ~~converts that cash amount into a number of shares of stock awards or stock option awards~~$275,000, ~~as applicable~~respectively.

~~During~~The Company’s ~~the~~compensation ~~2022~~committee ~~year,~~may ~~the Compensation~~award ~~Committee~~these ~~set~~officers awith ~~target~~bonuses ~~amount~~and ofwill ~~twenty~~review ~~percent~~the ~~(20%) of~~ base salary amounts for ~~Mr.~~each ~~Levy~~of ~~and~~the officers aon ~~target~~an ofannual ~~fifteen~~basis ~~percent~~to ~~(15%) of~~determine if any changes to the base salary ~~for~~amounts ~~Mr.~~need ~~Lubman.~~to ~~Following~~be ~~the~~made. ~~end~~Pursuant ofto the ~~2022~~employment ~~year~~agreements, the ~~Compensation~~officers ~~Committee~~are ~~determined~~prohibited ~~that~~from ~~Messrs.~~engaging ~~Levy~~in ~~and~~activities ~~Lubman should~~which ~~receive~~are ~~equity~~competitive ~~awards~~with ~~equal~~those inof ~~value~~the toCompany ~~one~~during ~~hundred~~their ~~percent~~employment ~~(100%)~~with the ofCompany ~~their~~and ~~target~~for ~~award~~one ~~amount.~~year ~~The~~following ~~Compensation~~termination. ~~Committee~~If ~~used~~ the ~~Company’s~~agreement ~~stock~~is ~~price~~terminated ofother ~~$3.46~~than onfor ~~April 10~~cause, ~~2023~~the officer would be entitled to ~~convert~~all ~~the~~base ~~resulting~~salary ~~cash~~earned ~~award~~through ~~into~~the 17date of termination,~~341~~ ~~stock~~accrued ~~awards~~but ~~for~~unused ~~Mr.~~vacation, ~~Levy and~~all 10vested equity,~~838~~ ~~stock~~and ~~awards~~bonus ~~for~~amounts ~~Mr.~~payable to ~~Lubman.~~the ~~The~~officer ~~equity~~through ~~awards,~~the ifdate ~~any,~~of ~~that~~termination. ~~will~~The officers would also be ~~granted~~entitled to ~~the~~receive ~~named~~an ~~executive~~additional ~~officers~~thirty-six ~~with~~months ~~respect~~of annual compensation equal to ~~2023~~the ~~year~~average ~~performance~~of ~~will~~his ~~not~~base besalary ~~granted~~and ~~until~~bonus for the ~~2024~~three ~~year,~~calendar ~~therefore~~years ~~they~~prior ~~will~~to bethe ~~included~~date of termination, payable in accordance with the ~~compensation~~Company’s ~~disclosures~~regular ~~that we~~payroll ~~file~~practice ~~for~~over ~~the~~a ~~2024~~52-week ~~year~~period.

~~Employment~~The bonus ~~Agreements~~granted to the named executive officers for 2023, paid in 2024was based on certain performance goals that were set prior to the year by the Compensation Committee and the executive, but ultimately the bonus is discretionary, as the Compensation Committee has the authority to make all final decisions regarding the amount and form of bonuses provided to the executive officers. For Mr. Levy, his target bonus amount is equal to fifty percent (50%) of his base salary, and Mr. Lubman’s target is equal to forty-five percent (45%) of his base salary.

In 2024 ~~February~~the ~~2016,~~Compensation ~~the~~Committee ~~Company entered~~used ~~into~~four ~~revised~~performance ~~employment~~markers ~~agreements~~to ~~(the~~guide ~~“Levy~~their ~~Agreement”~~decisions ~~and~~regarding ~~the~~bonus ~~“Lubman~~amounts. ~~Agreement”,~~The ~~individually,~~performance ~~and~~guidelines ~~collectively,~~that ~~the~~were ~~“Employment~~applicable ~~Agreements”)~~to ~~with~~Messrs. ~~Ira~~ Levy and ~~Steven~~ Lubman,’s ~~respectively~~bonuses for the 2023 year included individual performance goals, ~~which~~revenue ~~provides~~growth, achieving the ~~executives~~operating ~~with a~~plan ~~base~~goals ~~salary~~for specific divisions of ~~$275~~the company,~~000~~ and ~~$225,000,~~achieving ~~respectively~~the ~~(“Base~~operating ~~Salary”)~~plan for the company as a whole. Each Inperformance ~~April~~guideline ~~2021,~~was generally intended to make up twenty-five percent of the ~~employment~~potential ~~agreements~~bonus amount for ~~Ira~~each ~~Levy~~executive. Based upon the Company’s and ~~Steven~~the ~~Lubman~~executives’ performance during the 2023 year, the Compensation Committee granted awards in 2024 that were ~~amended~~approximately toone ~~increase~~hundred ~~their~~percent ~~base~~(100%) ~~salaries~~of tothe ~~$300,000~~executives’ ~~and~~target ~~$250,000,~~award ~~respectively~~amount.

The executives shall receive an annual bonus as shall be determined by the Board or the Compensation Committee, as applicable, in its sole discretion, based upon criteria to be established in its sole discretion. The executives shall also be entitled to receive additional cash, equity or other compensation or benefits in consideration for their services to the Company, at such times and in such amounts as shall be determined in the sole discretion of the Board or the Compensation Committee. In addition, the executives shall be entitled to receive grants of stock options, stock and/or any other equity incentive awards available to senior executives, under the Company’s equity incentive plans, at such times and in such amounts as shall be determined in the sole discretion of the Board or the Compensation Committee.29

~~The Employment Agreements~~2024 ~~will~~Equity ~~remain~~Compensation in effect until terminated by either the Company or the executive. In the event an executive’s employment is terminated by the Company for Cause (as defined in the Employment Agreements), or if an executive resigns other than for Good Reason (as defined in the Employment Agreements), he shall be entitled to receive (i) any earned but unpaid salary, all vested equity, and any earned but unpaid bonus awards through the date of termination, and (ii) reimbursement for any unreimbursed business expenses incurred by him in accordance with the Company’s policy prior to the date of termination.Awards

~~In the event an executive’s~~We ~~employment~~have ishistorically ~~terminated~~granted byfully ~~the~~vested ~~Company~~stock ~~other~~awards ~~than~~and ~~for~~stock ~~Cause~~option orawards. ifThe anamount ~~executive resigns for Good Reason, including a Change~~ of ~~Control (as~~awards ~~defined~~granted in ~~the~~any ~~Employment~~given ~~Agreements)~~year ~~that~~ is ~~accompanied~~determined based byon the ~~executive’s~~performance ~~resignation within a twelve month period following that Change~~ of ~~Control,~~the ~~such~~company ~~executive shall be entitled to any earned but unpaid salary, all vested equity,~~ and ~~any~~the ~~earned~~executive ~~but~~in ~~unpaid bonus awards through~~ the ~~date~~previous ~~of termination~~year. ~~Such~~Performance ~~executive~~is ~~will~~generally ~~also~~based beupon ~~paid~~the ansame ~~additional~~performance guidelines ~~thirty-six~~that ~~months~~are ofused ~~annual~~for ~~compensation equal to~~ the ~~average~~annual ofcash ~~his base salary and~~ bonus award for ~~the~~that ~~three~~year. ~~calendar~~The ~~years~~Compensation ~~prior~~Committee tosets ~~the~~a ~~date~~target ofaward ~~termination,~~amount ~~payable~~based ~~in accordance~~upon ~~with~~a percentage of the ~~Company~~executive’s ~~regular~~base ~~payroll practice over a 52-week period~~salary. ~~The~~At ~~Company shall also (i) accelerate~~ the ~~vesting~~end ~~on any~~ of the ~~executive’s unvested stock options~~year, ~~restricted~~the ~~stock~~Compensation ~~grants~~Committee ordetermines ~~other~~the ~~equity~~cash ~~incentive~~amount ~~awards; and (ii) reimburse the executive~~that ~~for~~resulted ~~any~~from ~~unreimbursed business expenses incurred by him in accordance with~~ the ~~Company~~previous year’s ~~policy~~performance, ~~prior~~with toany ~~the~~discretionary ~~date~~adjustments ~~of termination. In the event~~ that the ~~executive~~Compensation isCommittee ~~terminated~~deems ~~without Cause due~~ to ~~our~~be ~~inability to pay our debts when they generally become due~~appropriate, we ~~will~~and ~~not~~converts bethat ~~liable for the~~ cash ~~severance~~amount ~~payments~~into ora ~~the~~number ~~payment~~ of ~~annual~~shares ~~bonuses~~of ~~due~~stock toawards ~~the executive. The severance benefits potentially payable upon a termination other than for Cause~~ or ~~for~~stock ~~Good~~option ~~Reason~~awards, ~~will~~as ~~be provided subject to the executive signing a general release of claims in our favor prior to payment~~applicable.

30During the 2023 year, the Compensation Committee set a target amount of twenty percent (20%) of base salary for Mr. Levy and a target of fifteen percent (15%) of base salary for Mr. Lubman. Following the end of the 2023 year, the Compensation Committee determined that Messrs. Levy and Lubman should receive equity awards equal in value to twenty five percent (25%) and fifty percent (50%), respectively, of their target award amount. The Compensation Committee used the Company’s stock price of $2.95 on April 10, 2024 to convert the resulting cash award into 5,085 stock awards for Mr. Levy. The equity awards, if any, that will be granted to the named executive officers with respect to 2024 year performance will not be granted until the 2025 year, therefore they will be included in the compensation disclosures that we file for the 2025 year.

~~In the event an executive’s~~Generally, ~~employment~~meetings isof ~~terminated by~~ the ~~Company~~Compensation ~~upon~~Committee ~~death~~are orscheduled ~~disability,~~far ~~the executive or his estate shall be entitled to receive his salary then~~ in ~~effect~~advance ~~along~~and ~~with~~generally ~~all~~occur ~~other~~after ~~fringe~~earnings ~~benefits~~are ~~(including,~~announced ~~without~~and ~~limitation,~~do ~~family~~not ~~medical benefits) for a period of one year~~time ~~following~~ the ~~date~~disclosure of ~~such~~material ~~termination.~~non Inpublic ~~addition,~~information ~~the~~for ~~executive or his estate shall have~~ the ~~right~~purpose ~~to exercise any unexercised and vested options for a period~~ of ~~ninety~~affecting ~~days following~~ the ~~date~~value of ~~termination~~executive ~~and to receive payment for any accrued but unpaid vacation time~~compensation.

~~The~~ Employment ~~Agreements~~ contain customary non-competition and non-solicitation provisions that extend to one year after the date of termination of the executives’ employment with the Company. The executives also agreed to customary terms regarding confidentiality and ownership of product ideas.Agreements

~~Outstanding~~In February ~~Equity~~2016, ~~Awards~~the atCompany ~~November~~entered 30into revised employment agreements (the “Levy Agreement” and the “Lubman Agreement”, ~~2023~~individually, and collectively, the “Employment Agreements”) with Ira Levy and Steven Lubman, respectively, which provides the executives with a base salary of $275,000 and $225,000, respectively (“Base Salary”). In April 2021, the employment agreements for Ira Levy and Steven Lubman were amended to increase their base salaries to $300,000 and $250,000, respectively. In April 2024, the employment agreements for Ira Levy and Steven Lubman were amended to increase the base salary to $330,000 and $275,000, respectively.

Name	Number of securities underlying options, Unexercisable (#)		Number of Securities Underlying Unexercised Options, Exercisable (#)		Option Exercise Price ($)		Option Expiration Date
Ira Levy		50,000		50,000		1.41	04/23/2025
Steven Lubman		50,000		50,000		1.41	04/23/2025
Ira Levy		40,000		40,000		3.55	03/15/2027
Steven Lubman		40,000		40,000		3.55	03/15/2027

~~Director~~The Employment ~~Compensation~~Agreements will remain in effect until terminated by either the Company or the executive. In the event an executive’s employment is terminated by the Company for ~~Year~~Cause ~~Ending~~(as ~~November~~defined in the Employment Agreements), or if an executive resigns other than for 30Good Reason (as defined in the Employment Agreements), ~~2023~~he shall be entitled to receive (i) any earned but unpaid salary, all vested equity, and any earned but unpaid bonus awards through the date of termination, and (ii) reimbursement for any unreimbursed business expenses incurred by him in accordance with the Company’s policy prior to the date of termination.

~~The~~In the ~~following~~event ~~table~~an ~~summarizes~~ executive’s employment is terminated by the ~~compensation~~Company other than for ~~our~~Cause ~~non-employee~~or ~~board~~if ofan ~~directors~~executive resigns for ~~the~~Good Reason, ~~fiscal~~including ~~year~~a ~~ended~~Change ~~November~~of ~~30,~~Control ~~2023.~~(as ~~All~~defined ~~compensation~~in ~~paid~~the toEmployment ~~our~~Agreements) ~~employee directors~~that is ~~included~~accompanied ~~under~~by the ~~summary~~executive’s resignation ~~compensation~~within ~~table~~a ~~above.~~twelve ~~With~~month ~~respect~~period tofollowing ~~the~~that ~~2023~~Change ~~fiscal~~of ~~year~~Control, ~~the~~such ~~director~~executive ~~compensation~~shall ~~program~~be entitled to any earned but unpaid ~~consisted~~salary, all vested equity, and any earned but unpaid bonus awards through the date of atermination. ~~monthly~~Such ~~cash~~executive ~~fee~~will also be paid an additional thirty-six months of ~~$2,500~~annual ~~per~~compensation ~~month,~~equal ~~with~~to the ~~amount~~average ~~increased~~of tohis ~~$3,500~~base ~~per~~salary ~~month~~and bonus for athe ~~non-employee~~three ~~director~~calendar years ~~that~~prior ~~serves as~~to the ~~chairman~~date of ~~more~~termination, ~~than~~payable ~~two~~in ~~committees~~accordance onwith the ~~Board~~Company’s ofregular ~~Directors.~~payroll ~~The~~practice ~~non~~over a 52-~~employee~~week period. ~~directors~~The ~~are~~Company shall also ~~eligible~~(i) toaccelerate ~~receive~~the ~~equity awards~~vesting on any of the executive’s unvested stock options, ~~although~~restricted ~~there~~stock grants isor noother ~~annual~~equity ~~target~~incentive ~~amount~~awards; ~~set~~and (ii) reimburse the executive for any unreimbursed business expenses incurred by him in accordance with the ~~non-employee~~Company’s ~~directors~~policy prior to the date of termination. In ~~July~~the ~~2021~~event that the ~~directors~~executive ~~received~~is anterminated ~~increase~~without ~~making~~Cause ~~the~~due ~~new~~to ~~monthly~~our ~~cash~~inability ~~fee~~to $3pay our debts when they generally become due,~~000~~ ~~per~~we ~~month~~will ~~and~~not ~~the~~be ~~amount~~liable for athe ~~non-employee~~cash ~~director~~severance ~~that~~payments ~~serves~~or the aspayment aof ~~chairman~~annual onbonuses ~~more~~due to the executive. The severance benefits potentially payable upon a termination other than ~~two~~for ~~committees~~Cause onor for Good Reason will be provided subject to the ~~Board~~executive signing a general release of ~~Directors~~claims ~~$4,000~~in ~~per~~our ~~month~~favor prior to payment.

Name	Fees Earned or Paid in Cash ($)		Total ($)
Alan Plafker		36,000		36,000
Martin Novick		36,000		36,000
Lawrence Chariton		36,000		36,000
Gary Jacobs		48,000		48,000
Peter Levy		36,000		36,000

31In the event an executive’s employment is terminated by the Company upon death or disability, the executive or his estate shall be entitled to receive his salary then in effect along with all other fringe benefits (including, without limitation, family medical benefits) for a period of one year following the date of such termination. In addition, the executive or his estate shall have the right to exercise any unexercised and vested options for a period of ninety days following the date of termination and to receive payment for any accrued but unpaid vacation time.

~~Item~~The Employment ~~12.~~Agreements ~~Security~~contain ~~Ownership~~customary non-competition and non-solicitation provisions that extend to one year after the date of ~~Certain~~termination of ~~Beneficial~~the ~~Owners~~executives’ employment with the Company. The executives also agreed to customary terms regarding confidentiality and ~~Management~~ownership of product ideas.

~~Under Rule 13d-3, a beneficial~~Outstanding ~~owner~~Equity ofAwards aat ~~security~~November ~~includes any person who~~30, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights.2024

The following table sets forth as of February 21, 2024, information regarding the beneficial ownership of our common stock by: (i) each person known by the Company to be the beneficial owner of than five percent of the outstanding shares of common stock, (ii) each of our directors and officers and (iii) all officers and directors, as a group:

Name	Number of securities underlying options, Unexercisable (#)		Number of Securities Underlying Unexercised Options, Exercisable (#)		Option Exercise Price ($)		Option Expiration Date
Ira Levy		50,000		50,000		1.41	04/23/2025
Steven Lubman		50,000		50,000		1.41	04/23/2025
Ira Levy		40,000		40,000		3.55	03/15/2027
Steven Lubman		40,000		40,000		3.55	03/15/2027

	Amount and Nature of			Percentage of
	Common Stock			Common Stock
	Beneficially			Beneficially
Name and address of Beneficial Owner(1)	Owned			Owned(2)
Ira Levy		1,365,202	(3)		24.4	%
Steven J. Lubman		1,111,952	(3)		19.9	%
Lawrence Chariton		192,573	(5)		3.5	%
Alan Plafker		46,334	(6)		-
Martin Novick		20,000	(6)		-
Gary Jacobs		182,000	(4)		3.3	%
Peter Levy		35,000	(5)		-
All directors and executive officers as a group (7 persons)		2,953,061			52.9	%

Director Compensation for Year Ending November 30, 2024

*The following ~~Less~~table summarizes the compensation for our non-employee board of directors for the fiscal year ended November 30, 2024. All compensation paid to our employee directors is included under the summary compensation table above. With respect to the 2024 fiscal year, the director compensation program consisted of a monthly cash fee of $3,000 per month, and $4,000 per month for a non-employee director that serves as the chairman of more than 1%two committees on the Board of Directors. The non-employee directors are also eligible to receive equity awards, although there is no annual target amount set for the non-employee directors.

(1) Except as otherwise indicated, the address of each beneficial owner is c/o Surge Components, Inc., 95 East Jefryn Boulevard, Deer Park, NY 11729.

Name	Fees Earned or Paid in Cash ($)		Total ($)
Alan Plafker		36,000		36,000
Peter Levy		36,000		36,000
Lawrence Chariton		36,000		36,000
Gary Jacobs		48,000		48,000

~~(2) Applicable percentage ownership is based on 5,577,698 shares of common stock outstanding as of February 21, 2024.~~31

~~(3) Includes 50,000 shares issuable upon exercise of options with an exercise price of $1~~Item 12.~~41,~~ ~~which~~Security ~~are~~Ownership ~~exercisable within 60 days. Also includes 40,000 shares issuable upon exercise~~ of ~~options~~Certain ~~with~~Beneficial anOwners ~~exercise~~and ~~price of $3~~Management.~~55, which are exercisable within 60 days.~~

Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (4i) ~~Includes~~voting 25power,~~000~~ ~~shares~~which ~~issuable~~includes ~~upon~~the ~~exercise~~power to vote, or to direct the voting of ~~options~~shares; ~~with~~and (ii) aninvestment ~~exercise~~power, ~~price~~which includes the power to dispose or direct the disposition of $1shares.41 Certain shares may be deemed to be beneficially owned by more than one person (if, ~~which~~for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are ~~exercisable~~deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. ~~Also~~In ~~includes~~computing 30the percentage ownership of any person,~~000~~ the amount of shares ~~issuable~~outstanding ~~upon~~is ~~exercise~~deemed to include the amount of ~~options~~shares ~~with~~beneficially anowned ~~exercise~~by ~~price~~such ofperson ~~$3.55,~~(and ~~which~~only ~~are~~such ~~exercisable~~person) ~~within~~by reason 60of ~~days~~these acquisition rights.

~~(5)~~The following ~~Includes~~table ~~15,000~~sets ~~shares~~forth ~~issuable~~as ~~upon~~of ~~exercise~~February of21, ~~options~~2025, ~~with~~information anregarding ~~exercise~~the ~~price~~beneficial ownership of ~~$1.41,~~our ~~which~~common ~~are~~stock ~~exercisable~~by: ~~within~~(i) 60each ~~days.~~person known ~~Also~~by ~~includes~~the ~~20,000~~Company ~~shares~~to ~~issuable~~be ~~upon~~the ~~exercise~~beneficial owner of ~~options~~than ~~with~~five anpercent ~~exercise~~of ~~price~~the outstanding shares of ~~$3.55~~common stock, ~~which~~(ii) ~~are~~each ~~exercisable~~of ~~within~~our 60directors and ~~days.~~officers and (iii) all officers and directors, as a group:

(6) Includes 20,000 shares issuable upon exercise of options with an exercise price of $3.55, which are exercisable within 60 days.

	Amount and Nature of			Percentage of
	Common Stock			Common Stock
	Beneficially			Beneficially
Name and address of Beneficial Owner⁽¹⁾	Owned			Owned⁽²⁾
Ira Levy		1,370,287	(3)		24.5	%
Steven J. Lubman		1,111,952	(3)		19.9	%
Lawrence Chariton		192,573	(5)		3.4	%
Alan Plafker		46,334	(6)		-
Peter Levy		35,000	(5)		-
Gary Jacobs		182,000	(4)		3.3	%
All directors and executive officers as a group (6 persons)		2,938,146			52.6	%

32* Less than 1%

~~Item~~(1) ~~13.~~Except ~~Certain~~as ~~Relationships~~otherwise ~~And~~indicated, ~~Related~~the ~~Transactions~~address of each beneficial owner is c/o Surge Components, ~~and~~Inc., ~~Director~~95 ~~Independence~~East Jefryn Boulevard, Deer Park, NY 11729.

~~Certain~~(2) ~~Relationships~~Applicable ~~and~~percentage ~~Related~~ownership ~~Transactions~~is based on 5,582,783 shares of common stock outstanding as of February 21, 2025.

~~Surge~~(3) ~~and~~Includes ~~Challenge~~50,000 ~~each lease~~shares ~~their~~issuable ~~current~~upon ~~executive~~exercise ~~offices from Great American Realty~~ of ~~Jefryn~~options ~~Blvd.,~~with ~~LLC,~~ an ~~entity~~exercise ~~owned~~price ~~50%~~of ~~by Ira Levy~~$1.41, ~~our~~which ~~Chief~~are ~~Executive Officer,~~exercisable ~~and~~within ~~President~~60 ~~and~~days. ~~Steven~~Also ~~Lubman,~~includes ~~our Vice President~~40,000 ~~Secretary~~shares ~~and~~issuable ~~Treasurer.~~upon ~~Our~~exercise ~~lease~~of isoptions ~~through~~with ~~September~~an ~~2030~~exercise ~~and~~price ~~our~~of ~~annual rent payments were approximately~~ $~~278~~3.55,~~599~~ ~~and~~which ~~$275,042~~are ~~for~~exercisable ~~Fiscal~~within ~~2023~~60 ~~and Fiscal 2022, respectively~~days.

~~Item~~(4) 14Includes 25,000 shares issuable upon exercise of options with an exercise price of $1.41, ~~Principal~~which ~~Accounting~~are ~~Fees~~exercisable ~~And~~within ~~Services~~60 days. Also includes 30,000 shares issuable upon exercise of options with an exercise price of $3.55, which are exercisable within 60 days.

~~Fees~~(5) ~~Billed~~Includes by15,000 ~~Our~~shares ~~Independent~~issuable ~~Registered Public~~upon ~~Accounting~~exercise ~~Firm~~of ~~During~~options ~~Fiscal~~with ~~2021~~an ~~and~~exercise ~~2022~~price of $1.41, which are exercisable within 60 days. Also includes 20,000 shares issuable upon exercise of options with an exercise price of $3.55, which are exercisable within 60 days.

~~The~~(6) ~~following~~Includes ~~table~~20,000 ~~sets forth~~shares ~~the~~issuable ~~aggregate~~upon ~~fees~~exercise ~~billed~~of tooptions uswith ~~for~~an ~~the~~exercise ~~fiscal~~price ~~years~~of ~~ended November 30~~$3.55, ~~2022~~which ~~and~~are ~~2023~~exercisable bywithin ~~Seligson~~60 ~~& Giannattasio, LLP (PCAOB ID 759)~~days.

	2022		2023
Audit Fees(1)	$	171,650	$	171,650
Tax Fees(2)	$	12,600	$	12,600

~~(1)~~Item 13. ~~Audit~~Certain ~~Fees~~Relationships ~~represent~~And ~~the~~Related ~~aggregate~~Transactions, ~~fees for professional services for the audit of our annual financial statements~~ and ~~review~~Director ~~of financial statements included in our quarterly reports on Form 10-Q or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years~~Independence.

~~(2)~~Certain Relationships ~~Tax fees represent the aggregate fees billed for tax compliance, tax advice,~~ and ~~tax~~Related ~~planning.~~Transactions

~~Audit~~Surge and ~~Committee~~Challenge ~~Pre-Approval~~each ~~Policies~~lease their current executive offices from Great American Realty of Jefryn Blvd., LLC, an entity owned 50% by Ira Levy, our Chief Executive Officer, and President and Steven Lubman, our Vice President, Secretary and Treasurer. Our lease is through ~~Procedures~~September 2030 and our annual rent payments were approximately $282,900 and $278,600 for Fiscal 2024 and Fiscal 2023, respectively.

~~Pursuant to its charter,~~Item ~~the Audit Committee is responsible for the pre-approval of all audit and permissible non-audit services provided by our principal independent accountants on a case-by-case basis~~14. ~~Our~~Principal ~~Audit~~Accounting ~~Committee~~Fees ~~has~~And established a policy regarding approval of all audit and permissible non-audit services provided by our principal independent accountants. Our Audit Committee pre-approves these services by category and service. Our Audit Committee has preapproved all of the services provided by our principal independent accountants in the fiscal year ending November 30, 2023.Services

33Fees Billed by Our Independent Registered Public Accounting Firm During Fiscal 2023 and 2024

~~PART~~The following IVtable sets forth the aggregate fees billed to us for the fiscal years ended November 30, 2023 and 2024 by Seligson & Giannattasio, CPAs PC (PCAOB ID 759)

Item 15. Exhibits and Financial Statement Schedules.

	2023		2024
Audit Fees⁽¹⁾	$	171,650	$	171,650
Tax Fees⁽²⁾	$	12,600	$	12,600

~~The~~(1) ~~following~~Audit ~~documents~~Fees ~~are filed~~represent asthe aaggregate ~~part~~fees for professional services for the audit of ~~this~~our ~~report~~annual financial statements and review of financial statements included in our quarterly reports on Form 10-Q or ~~incorporated~~services ~~herein~~that byare ~~reference:~~normally provided in connection with statutory and regulatory filings or engagements for those fiscal years.

1.(2) ~~Our~~Tax ~~Consolidated~~fees ~~Financial~~represent ~~Statements~~the ~~commencing~~aggregate onfees ~~page~~billed ~~F-1~~for oftax ~~this~~compliance, ~~Annual~~tax ~~Report~~advice, and tax planning.

2.Audit Committee ~~Exhibits:~~Pre-Approval Policies and Procedures

~~The~~Pursuant to ~~following~~its ~~documents~~charter, ~~are~~the Audit Committee is responsible for the pre-approval of all audit and permissible non-audit services provided by our ~~included~~principal asindependent ~~exhibits~~accountants toon ~~this~~a ~~Annual~~case-by-case ~~Report:~~basis. Our Audit Committee has established a policy regarding approval of all audit and permissible non-audit services provided by our principal independent accountants. Our Audit Committee pre-approves these services by category and service. Our Audit Committee has preapproved all of the services provided by our principal independent accountants in the fiscal year ending November 30, 2024.

Exhibit Number		Description
3.1		Articles of Incorporation of Surge Components, Inc. (filed as exhibit 3.3 to Form 8-K filed on January 24, 2022 and incorporated herein by reference).
3.2		Bylaws of Surge Components, Inc. (filed as exhibit 3.4 to Form 8-K filed on January 24, 2022 and incorporated herein by reference).
4.1		Rights Agreement dated as of October 7, 2016 between Surge Components, Inc., as the Company, and Continental Stock Transfer & Trust Company, as Rights Agent (filed as exhibit to Form 8-K filed on October 7, 2016 and incorporated herein by reference).
10.1		Lease between Surge Components and Great American Realty of 95 Jefryn Blvd., LLC (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)
10.2		Lease between Challenge Electronics and Great American Realty of 95 Jefryn Blvd., LLC (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)
10.3		Employment Agreement between Surge Components, Inc. and Ira Levy (filed as exhibit to Form 8-K filed on February 24, 2016 and incorporated herein by reference)
10.4		Employment Agreement between Surge Components Inc. and Steven Lubman (filed as exhibit to Form 8-K filed on February 24, 2016 and incorporated herein by reference)
10.5		Declaration of Trust (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)
10.6		2010 Incentive Stock Plan (filed as exhibit to Amendment No. 2 to Form 10 filed on November 4, 2010 and incorporated herein by reference)
10.7		2015 Incentive Stock Plan (filed as exhibit to Form 10-K filed on February 26, 2016 and incorporated herein by reference)
10.8		Lease Agreement, dated October 1, 2010, between Great American Realty of Jefryn Boulevard, LLC and Surge Components, Inc. (filed as exhibit to Amendment No. 2 to Form 10 filed on November 4, 2010 and incorporated herein by reference)
10.9		Lease Agreement, dated October 1, 2010, between Great American Realty of Jefryn Boulevard, LLC and Challenge Electronics, Inc. (filed as exhibit to Amendment No. 2 to Form 10 filed on November 4, 2010 and incorporated herein by reference)
10.10		Agreement, dated March 18, 1999 between Surge Components, Inc. and Future Electronics Incorporated (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)
10.11		Addendum A, dated March 18, 1999, between Surge Components, Inc. and Future Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)
10.12		Agreement, dated October 21, 2009, between Challenge Electronics, Inc. and Cam RPC Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)

34PART IV

Exhibit Number		Description
10.13		Agreement, dated October 21, 2009, between Challenge Electronics, Inc. and Nu-Way Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)
10.14		Agreement, dated October 19, 2009 between Challenge Electronics, Inc. and Aesco Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)
10.15		Agreement, dated May 5, 2009, between Challenge Electronics, Inc. and TLC Electronics, Inc. (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)
10.16		Distributor Agreement, dated August 14, 2012, between Surge Components, Inc. and TTI, Inc. (filed as exhibit to Form 10-K filed on February 28, 2013 and incorporated herein by reference)
10.17		Sole Agent Agreement, dated January 1, 2007, between Surge Components, Inc. and Lelon Electronics (filed as exhibit to Form 10-K filed on February 28, 2012 and incorporated herein by reference)
10.18		Master Distributor Agreement, dated February 7, 2011, between Surge Components, Inc. and Avnet, Inc. (filed as exhibit to Form 10-K filed on February 28, 2012 and incorporated herein by reference)
10.19		First Amendment to Master Distributor Agreement, dated February 17, 2011, between Surge Components, Inc. and Avnet, Inc. (filed as exhibit to Form 10-K filed on February 28, 2012 and incorporated herein by reference)
10.20		Rental Agreement with Adcock Investment Company Limited dated May 5, 2013 (filed as exhibit to Form 10-Q filed on July 15, 2013 and incorporated herein by reference)
10.21		Settlement Agreement, dated as of December 22, 2016, by and among Surge Components, Inc., Ira Levy, Steven J. Lubman, Alan Plafker, Lawrence Chariton, Gary Jacobs and Martin Novick, and Messrs. Michael D. Tofias and Bradley P. Rexroad (filed as exhibit to Form 8-K filed on December 23, 2016 and incorporated herein by reference).
10.22		Amendment to Settlement Agreement, dated as of August 16, 2018, by and among Surge Components, Inc., Ira Levy, Steven J. Lubman, Alan Plafker, Lawrence Chariton, Gary Jacobs and Martin Novick, and Messrs. Michael D. Tofias and Bradley P. Rexroad (filed as exhibit 10.1 to Form 8-K filed on August 22, 2018 and incorporated herein by reference).
21.1		Subsidiaries (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)
23.1		Consent of Seligson & Giannattasio, Independent Registered Public Accounting Firm
31		Certification of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32		Certification of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Item 15. Exhibits and Financial Statement Schedules.

~~Item~~The following ~~16.~~documents ~~Form~~are ~~10-K~~filed ~~Summary.~~as a part of this report or incorporated herein by reference:

~~None~~1. Our Consolidated Financial Statements commencing on page F-1 of this Annual Report.

352. Exhibits:

~~SIGNATURES~~The following documents are included as exhibits to this Annual Report:

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Exhibit Number		Description
3.1		Articles of Incorporation of Surge Components, Inc. (filed as exhibit 3.3 to Form 8-K filed on January 24, 2022 and incorporated herein by reference).

3.2		Bylaws of Surge Components, Inc. (filed as exhibit 3.4 to Form 8-K filed on January 24, 2022 and incorporated herein by reference).

4.1		Rights Agreement dated as of October 7, 2016 between Surge Components, Inc., as the Company, and Continental Stock Transfer & Trust Company, as Rights Agent (filed as exhibit to Form 8-K filed on October 7, 2016 and incorporated herein by reference).

10.1		Lease between Surge Components and Great American Realty of 95 Jefryn Blvd., LLC (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)

10.2		Lease between Challenge Electronics and Great American Realty of 95 Jefryn Blvd., LLC (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)

10.3		Employment Agreement between Surge Components, Inc. and Ira Levy (filed as exhibit to Form 8-K filed on February 24, 2016 and incorporated herein by reference)

10.4		Employment Agreement between Surge Components Inc. and Steven Lubman (filed as exhibit to Form 8-K filed on February 24, 2016 and incorporated herein by reference)

10.5		Declaration of Trust (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)

10.6		2010 Incentive Stock Plan (filed as exhibit to Amendment No. 2 to Form 10 filed on November 4, 2010 and incorporated herein by reference)

10.7		2015 Incentive Stock Plan (filed as exhibit to Form 10-K filed on February 26, 2016 and incorporated herein by reference)

10.8		Lease Agreement, dated October 1, 2010, between Great American Realty of Jefryn Boulevard, LLC and Surge Components, Inc. (filed as exhibit to Amendment No. 2 to Form 10 filed on November 4, 2010 and incorporated herein by reference)

10.9		Lease Agreement, dated October 1, 2010, between Great American Realty of Jefryn Boulevard, LLC and Challenge Electronics, Inc. (filed as exhibit to Amendment No. 2 to Form 10 filed on November 4, 2010 and incorporated herein by reference)

10.10		Agreement, dated March 18, 1999 between Surge Components, Inc. and Future Electronics Incorporated (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)

10.11		Addendum A, dated March 18, 1999, between Surge Components, Inc. and Future Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)

10.12		Agreement, dated October 21, 2009, between Challenge Electronics, Inc. and Cam RPC Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)

	SURGE COMPONENTS, INC.
Date: February 28, 2024	By:	/s/ Ira Levy
		Ira Levy
		Chief Executive Officer and Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Exhibit Number		Description
10.13		Agreement, dated October 21, 2009, between Challenge Electronics, Inc. and Nu-Way Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)

10.14		Agreement, dated October 19, 2009 between Challenge Electronics, Inc. and Aesco Electronics (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)

10.15		Agreement, dated May 5, 2009, between Challenge Electronics, Inc. and TLC Electronics, Inc. (filed as exhibit to Amendment No. 3 to Form 10 filed on January 11, 2011 and incorporated herein by reference)

10.16		Distributor Agreement, dated August 14, 2012, between Surge Components, Inc. and TTI, Inc. (filed as exhibit to Form 10-K filed on February 28, 2013 and incorporated herein by reference)

10.17		Sole Agent Agreement, dated January 1, 2007, between Surge Components, Inc. and Lelon Electronics (filed as exhibit to Form 10-K filed on February 28, 2012 and incorporated herein by reference)

10.18		Master Distributor Agreement, dated February 7, 2011, between Surge Components, Inc. and Avnet, Inc. (filed as exhibit to Form 10-K filed on February 28, 2012 and incorporated herein by reference)

10.19		First Amendment to Master Distributor Agreement, dated February 17, 2011, between Surge Components, Inc. and Avnet, Inc. (filed as exhibit to Form 10-K filed on February 28, 2012 and incorporated herein by reference)

10.20		Rental Agreement with Adcock Investment Company Limited dated May 5, 2013 (filed as exhibit to Form 10-Q filed on July 15, 2013 and incorporated herein by reference)

10.21		Settlement Agreement, dated as of December 22, 2016, by and among Surge Components, Inc., Ira Levy, Steven J. Lubman, Alan Plafker, Lawrence Chariton, Gary Jacobs and Martin Novick, and Messrs. Michael D. Tofias and Bradley P. Rexroad (filed as exhibit to Form 8-K filed on December 23, 2016 and incorporated herein by reference).

10.22		Amendment to Settlement Agreement, dated as of August 16, 2018, by and among Surge Components, Inc., Ira Levy, Steven J. Lubman, Alan Plafker, Lawrence Chariton, Gary Jacobs and Martin Novick, and Messrs. Michael D. Tofias and Bradley P. Rexroad (filed as exhibit 10.1 to Form 8-K filed on August 22, 2018 and incorporated herein by reference).

21.1		Subsidiaries (filed as exhibit to Amendment No. 1 to Form 10 filed on August 20, 2010 and incorporated herein by reference)

23.1		Consent of Seligson & Giannattasio, Independent Registered Public Accounting Firm

31		Certification of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32		Certification of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

/s/ Ira Levy
Ira Levy	February 28, 2024
Chief Executive Officer, Chief Financial Officer and Chairman of the Board (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)
/s/ Steven J. Lubman
Steven J. Lubman	February 28, 2024
Vice President, Secretary, Treasurer and Director
/s/ Alan Plafker
Alan Plafker	February 28, 2024
Director
/s/ Martin Novick
Martin Novick	February 28, 2024
Director
/s/ Lawrence Chariton
Lawrence Chariton	February 28, 2024
Director
/s/ Peter A. Levy
Peter A. Levy	February 28, 2024
Director
/s/ Gary M. Jacobs
Gary M. Jacobs	February 28, 2024
Director

Item 16. Form 10-K Summary.

36None.

~~REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM~~35

~~To the Board of Directors and Stockholders of Surge Components, Inc.~~SIGNATURES

~~Opinion~~Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the ~~Financial~~undersigned, ~~Statements~~thereunto duly authorized.

We have audited the accompanying consolidated balance sheets of Surge Components, Inc. and subsidiaries (the “Company”) as of November 30, 2023 and 2022, and the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended November 30, 2023, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of November 30, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the two-year period ended November 30, 2023, in conformity with accounting principles generally accepted in the United States of America.

	SURGE COMPONENTS, INC.

Date: February 28, 2025	By:	/s/ Ira Levy
		Ira Levy
		Chief Executive Officer and Chief Financial Officer

~~Basis~~Pursuant to ~~for~~the ~~Opinion~~requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

/s/ Ira Levy
Ira Levy		February 28, 2025
Chief Executive Officer, Chief Financial Officer and Chairman of the Board (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

/s/ Steven J. Lubman
Steven J. Lubman		February 28, 2025
Vice President, Secretary, Treasurer and Director

/s/ Alan Plafker
Alan Plafker		February 28, 2025
Director

/s/ Lawrence Chariton
Lawrence Chariton		February 28, 2025
Director

/s/ Peter A. Levy
Peter A. Levy		February 28, 2025
Director

/s/ Gary M. Jacobs
Gary M. Jacobs		February 28, 2025
Director

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.36

~~Our audits included performing procedures to~~REPORT ~~assess~~OF ~~the~~INDEPENDENT ~~risks~~REGISTERED ofPUBLIC ~~material~~ACCOUNTING misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.FIRM

~~Critical~~To the ~~Audit~~Board ~~Matters~~of Directors and Stockholders of Surge Components, Inc.

~~The critical audit matters communicated below~~Opinion are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the ~~financial~~Financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Statements

We have ~~identified~~audited the ~~determination~~accompanying consolidated balance sheets of Surge Components, Inc. and subsidiaries (the ~~valuation~~ “Company”) as of November 30, 2024 and 2023, and the ~~inventory~~related ~~reserves~~consolidated asstatements aof ~~critical~~operations, ~~audit~~comprehensive ~~matter~~income, ~~because~~changes in shareholders’ equity, and cash flows for each of the ~~subjectivity~~years in the ~~estimates~~two-year period ended November 30, 2024, and the related notes (collectively referred to as the ~~creation~~“financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the ~~inventory~~Company as of November 30, 2024 and 2023, and the results of its operations and its cash flows for each of ~~reserves~~the years in the two-year period ended November 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

~~The primary procedures performed to address this~~Basis ~~critical audit matter included the following: We identified inventory parts~~ for reserve through the inspection of parts and packaging during the observation of the Company inventory counts to identify potential inventory that may be old. We performed significant testing for parts that were slow moving by obtaining schedules for inventory by part number and the number of sales for each part for the past year. Inventory parts were tested for slow moving reserves by testing all parts with inventory in excess of one year and were tested further to determine if there were sales orders for the part that would cover the excess amount.Opinion

AThese financial ~~calculated~~statements ~~reserve~~are ~~was~~the ~~prepared~~responsibility ~~from~~of ~~those parts~~the ~~where~~Company’s ~~the~~management. ~~inventory~~Our inresponsibility ~~excess~~is ofto ~~one~~express ~~year~~an ~~and~~opinion ~~that~~on ~~did~~the ~~not~~Company’s financial ~~have~~statements ~~sales~~based ~~orders~~on ~~for~~our ~~all~~audits. orWe ~~any~~are ~~part~~a ofpublic ~~that~~accounting ~~excess.~~firm ~~The~~registered ~~calculated~~with the Public Company Accounting Oversight Board ~~amount~~(United ~~was~~States) ~~compared~~(PCAOB) and are required to be independent with respect to the ~~reserve~~Company asin ~~recorded~~accordance bywith the ~~Company~~U.S. Wefederal ~~proposed~~securities laws anand ~~adjustment~~the ~~totaling~~applicable ~~$99,583~~rules ~~for~~and ~~this~~regulations ~~difference~~of inthe Securities and Exchange Commission and the ~~reserves~~ PCAOB.

/We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s/ ~~Seligson~~internal &control ~~Giannattasio~~over financial reporting. Accordingly, ~~LLP~~we express no such opinion.

WeOur audits ~~have~~included ~~served~~performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the ~~Company’s~~overall ~~auditor~~presentation ~~since~~of ~~2002~~the financial statements. We believe that our audits provide a reasonable basis for our opinion.

~~White~~Critical Audit ~~Plains, New York~~Matters

~~February~~The critical 28audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, ~~2024~~subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

~~F-1~~We identified the determination of the valuation of the inventory reserves as a critical audit matter because of the subjectivity in the estimates related to the creation of the inventory reserves.

~~SURGE~~The primary ~~COMPONENTS,~~procedures ~~INC~~performed to address this critical audit matter included the following: We identified inventory parts for reserve through the inspection of parts and packaging during the observation of the Company inventory counts to identify potential inventory that may be old. We performed significant testing for parts that were slow moving by obtaining schedules for inventory by part number ~~AND~~and ~~SUBSIDIARIES~~the number of sales for each part for the past year. Inventory parts were tested for slow moving reserves by testing all parts with inventory in excess of one year and were tested further to determine if there were sales orders for the part that would cover the excess amount.

~~Consolidated~~A calculated ~~Balance~~reserve ~~Sheets~~was prepared from those parts where the inventory in excess of one year and that did not have sales orders for all or any part of that excess. The calculated amount was compared with the reserve as recorded by the Company. We proposed an adjustment totaling $26,210 for this difference in the reserves.

	November 30, 2023		November 30, 2022
ASSETS
Current assets:
Cash	$	7,634,799	$	8,690,040
Marketable Securities		3,204,772		-
Accounts receivable - net of allowance for doubtful accounts of $79,341 and $173,565		6,097,411		7,230,635
Inventory, net		5,422,824		6,408,551
Prepaid expenses and income taxes		520,104		470,847
Total current assets		22,879,910		22,800,073
Fixed assets – net of accumulated depreciation and amortization of $1,757,772 and $1,687,525		170,120		196,999
Operating Lease Right of Use Asset		1,350,998		1,362,305
Deferred income taxes		241,328		229,098
Other assets		34,299		34,299
Total assets	$	24,676,655	$	24,622,774

/s/ Seligson & Giannattasio, CPAs PC

~~F-2~~We have served as the Company’s auditor since 2002.

~~SURGE COMPONENTS~~White Plains, ~~INC. AND~~New ~~SUBSIDIARIES~~York

~~Consolidated~~February 28, ~~Balance Sheets~~2025

~~(Continued)~~F-1

	November 30, 2023		November 30, 2022
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,216,590	$	4,147,595
Operating lease liabilities, current maturities		351,957		309,216
Accrued expenses and taxes		735,383		899,259
Accrued salaries		667,058		598,519
Total current liabilities		4,970,988		5,954,589
Operating lease liabilities net of current maturities		1,136,766		1,164,722
Total liabilities		6,107,754		7,119,311
Commitments and contingencies
Shareholders’ equity:
Preferred stock - $.001 par value, 5,000,000 shares authorized:
Series C–100,000 shares authorized, 10,000 and 10,000 shares issued and outstanding, redeemable, convertible, and a liquidation preference of $5 per share		10		10
Series D – 75,000 shares authorized, none issued or outstanding, voting, convertible, redeemable.
Common stock - $.001 par value, 50,000,000 shares authorized, 5,577,698 and 5,541,342 shares issued and outstanding		5,576		5,541
Additional paid-in capital		17,710,525		17,613,060
Accumulated other comprehensive income – unrealized gain on marketable debt securities		828		-
Accumulated equity (deficit)		851,962		(115,148	)
Total shareholders’ equity		18,568,901		17,503,463
Total liabilities and shareholders’ equity	$	24,676,655	$	24,622,774

SURGE COMPONENTS, INC. AND SUBSIDIARIES

~~F-3~~Consolidated Balance Sheets

SURGE COMPONENTS, INC. AND SUBSIDIARIES

	November 30, 2024		November 30, 2023

ASSETS
Current assets:
Cash	$	5,627,693	$	7,634,799
Marketable Securities		7,108,979		3,204,772
Accounts receivable - net of allowance for credit losses of $80,297 and $79,341		5,960,418		6,097,411
Inventory, net		5,000,707		5,422,824
Prepaid expenses and income taxes		290,401		520,104
Total current assets		23,988,198		22,879,910

Fixed assets – net of accumulated depreciation and amortization of $1,828,156 and $1,757,772		110,727		170,120
Operating lease right of use asset		1,050,445		1,350,998
Deferred income taxes		260,856		241,328
Other assets		34,299		34,299
Total assets	$	25,444,525	$	24,676,655

~~Consolidated Statements of Operations~~F-2

	Year Ended November 30,
	2023		2022
Net sales	$	36,276,542	$	51,910,790
Cost of goods sold		26,347,854		37,593,369
Gross profit		9,928,688		14,317,421
Operating expenses:
Selling and shipping expenses		3,010,509		3,305,714
General and administrative expenses		5,337,395		6,210,892
Depreciation and amortization		70,247		78,398
Total operating expenses		8,418,151		9,595,004
Income before other income and income taxes		1,510,537		4,722,417
Other income (expense):
Interest expense		-		(405	)
Other income		114,970		185,696
Other income (expense):		114,970		185,291
Income before income taxes		1,625,507		4,907,708
Income taxes		653,397		1,171,562
Net income	$	972,110	$	3,736,146
Dividends on preferred stock		5,000		5,000
Net income available to common shareholders	$	967,110	$	3,731,146
Net income per share available to common shareholders:
Basic	$	.17	$	.67
Diluted	$	.17	$	.65
Weighted Shares Outstanding:
Basic		5,559,609		5,534,361
Diluted		5,745,058		5,734,852

SURGE COMPONENTS, INC. AND SUBSIDIARIES

~~See~~Consolidated Balance ~~notes to consolidated financial statements.~~Sheets

~~F-4~~(Continued)

SURGE COMPONENTS, INC. AND SUBSIDIARIES

	November 30, 2024		November 30, 2023

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,344,952	$	3,216,590
Operating lease liabilities, current maturities		330,166		351,957
Accrued expenses and taxes		688,640		735,383
Accrued salaries		714,879		667,058
Total current liabilities		5,078,637		4,970,988
Operating lease liabilities net of current maturities		876,808		1,136,766
Total liabilities		5,955,445		6,107,754

Commitments and contingencies

Shareholders’ equity:
Preferred stock - $.001 par value, 5,000,000 shares authorized:
Series C–100,000 shares authorized, 10,000 and 10,000 shares issued and outstanding, redeemable, convertible, and a liquidation preference of $5 per share		10		10
Series D – 75,000 shares authorized, none issued or outstanding, voting, convertible, redeemable.
Common stock - $.001 par value, 50,000,000 shares authorized, 5,582,783 and 5,577,698 shares issued and outstanding		5,581		5,576
Additional paid-in capital		17,725,520		17,710,525
Accumulated other comprehensive income – unrealized gain on marketable debt securities		85,330		828
Accumulated equity		1,672,639		851,962
Total shareholders’ equity		19,489,080		18,568,901

Total liabilities and shareholders’ equity	$	25,444,525	$	24,676,655

~~Consolidated Statements of Comprehensive Income~~F-3

~~(Unaudited)~~SURGE COMPONENTS, INC. AND SUBSIDIARIES

	Year Ended November 30,
	2023		2022
Net income	$	972,110	$	3,736,146
Other comprehensive income:
Unrealized gain on marketable debt securities,net of tax		828		-
Net comprehensive income	$	972,938	$	3,736,146

Consolidated Statements of Operations

See notes to Consolidated financial statements

	Year Ended November 30,
	2024		2023
Net sales	$	31,211,139	$	36,276,542

Cost of goods sold		22,307,445		26,347,854

Gross profit		8,903,694		9,928,688

Operating expenses:
Selling and shipping expenses		2,739,994		3,010,509
General and administrative expenses		5,189,369		5,337,395
Depreciation and amortization		70,384		70,247
Total operating expenses		7,999,747		8,418,151

Income before other income and income taxes		903,947		1,510,537

Other income (expense):
Interest expense		-		-
Investment income		331,703		114,970

Other income (expense):		331,703		114,970

Income before income taxes		1,235,650		1,625,507

Income taxes		409,973		653,397

Net income	$	825,677	$	972,110
Dividends on preferred stock		5,000		5,000

Net income available to common shareholders	$	820,677	$	967,110

Net income per share available to common shareholders:

Basic	$	.15	$	.17
Diluted	$	.14	$	.17

Weighted Shares Outstanding:
Basic		5,580,949		5,559,609
Diluted		5,757,987		5,745,058

~~F-5~~See notes to consolidated financial statements.

~~SURGE COMPONENTS, INC. AND SUBSIDIARIES~~F-4

~~Consolidated~~SURGE COMPONENTS, ~~Statements~~INC. ofAND ~~Changes in Shareholders’ Equity~~SUBSIDIARIES

~~Years~~Consolidated Statements ~~ended~~of ~~November~~Comprehensive ~~30, 2022 and November 30, 2023~~Income

	Series C Preferred					Common				Additional Paid-In			Other Comprehensive		Accumulated
	Year Ended November 30,
	Shares			Amount		Shares		Amount		Capital			Income		Equity (Deficit)			Total
	2024			2023
Balance – December 1, 2021		10,000		$	10		5,515,342	$	5,515	$	17,023,454		$	-	$	(3,846,294	)	$	13,182,685
Net income	$	825,677		$	972,110
Preferred stock dividends		-			-		-		-		-			-		(5,000	)		(5,000	)
Other comprehensive income:
Issuance of shares as compensation		-			-		26,000		26		97,474			-		-			97,500
Reclassification of realized gain on investment securities		(200	)		-
Stock option exercise		-			-		-		-		492,132			-		-			492,132
Unrealized gain on marketable debt securities,net of tax		84,502			828
Net Income		-			-		-		-		-			-		3,736,146			3,736,146
Net comprehensive income	$	909,979		$	972,938
Balance – November 30, 2022		10,000			10		5,541,342		5,541		17,613,060			-		(115,148	)		17,503,463
Preferred stock dividends		-			-		-		-		-			-		(5,000	)		(5,000	)
Issuance of shares as compensation		-			-		28,179		27		97,473			-		-			97,500
Change in unrealized gain in available for sale debt securities		-			-		-		-		-			828		-			828
Stock option exercise		-			-		8,177		8		(8	)		-		-
Net Income		-			-		-		-		-			-		972,110			972,110
Balance – November 30, 2023		10,000		$	10		5,577,698		5,576	$	17,710,525		$	828	$	851,962		$	18,568,901

~~F-6~~See notes to Consolidated financial statements

~~SURGE COMPONENTS, INC. AND SUBSIDIARIES~~F-5

~~Consolidated~~SURGE COMPONENTS, ~~Statements~~INC. ofAND ~~Cash Flows~~SUBSIDIARIES

	Year Ended November 30,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	972,110		$	3,736,146
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		70,247			78,398
Deferred income taxes		(12,230	)		178,152
Allowance for doubtful accounts		(94,224	)		23,072
Stock Compensation Expense		97,500			589,632
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable		1,227,448			245,059
Inventory		985,727			(1,115,466	)
Prepaid expenses and income taxes		(49,257	)		(225,570	)
Other assets		26,092			37,580
Accounts payable		(931,005	)		(1,300,954	)
Accrued expenses		(99,509	)		(10,751	)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES		2,192,899			2,235,298
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets	$	(43,368	)	$	(48,351	)
Acquisition of marketable securities		(3,204,772	)		-
NET CASH FLOWS USED IN INVESTING ACTIVITIES	$	(3,248,140	)	$	(48,351	)

Consolidated Statements of Changes in Shareholders’ Equity

~~F-7~~Years ended November 30, 2023 and November 30, 2024

SURGE COMPONENTS, INC. AND SUBSIDIARIES

	Series C Preferred				Common				Additional Paid-In			Other Comprehensive		Accumulated
	Shares		Amount		Shares		Amount		Capital			Income		Equity (Deficit)			Total
Balance – December 1, 2022		10,000	$	10		5,541,342	$	5,541	$	17,613,060		$	-	$	(115,148	)	$	17,503,463

Preferred stock dividends		-		-		-		-		-			-		(5,000	)		(5,000	)

Issuance of shares as compensation		-		-		28,179		27		97,473			-		-			97,500

Stock option exercise		-		-		8,177		8		(8	)		-		-			-

Charge in unrealized gain in available for sale debt securities		-		-		-		-		-			828		-			828

Net Income		-		-		-		-		-			-		972,110			972,110

Balance – November 30, 2023		10,000		10		5,577,698		5,576		17,710,525			828		851,962			18,568,901

Preferred stock dividends		-		-		-		-		-			-		(5,000	)		(5,000	)

Issuance of shares as compensation		-		-		5,085		5		14,995			-		-			15,000

Change in unrealized gain in available for sale debt securities		-		-		-		-		-			84,502		-			84,502

Stock option exercise		-		-		-		-		-			-		-			-

Net Income		-		-		-		-		-			-		825,677			825,677

Balance – November 30, 2024		10,000	$	10		5,582,783	$	5,581	$	17,725,520		$	85,330	$	1,672,639		$	19,489,080

~~Consolidated Statements of Cash Flows~~F-6

~~(Continued)~~SURGE COMPONENTS, INC. AND SUBSIDIARIES

	Year Ended November 30,
	2023			2022
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of financing lease obligations	$	-		$	(8,495	)
NET CASH FLOWS USED IN FINANCING ACTIVITIES		-			(8,495	)
NET CHANGE IN CASH		(1,055,241	)		2,178,452
CASH AT BEGINNING OF PERIOD		8,690,040			6,511,588
CASH AT END OF PERIOD	$	7,634,799		$	8,690,040
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	$	797,378		$	992,563
Interest paid	$	-		$	405
NONCASH INVESTING AND FINANCING ACTIVITIES:
Accrued dividends on preferred stock	$	5,000		$	5,000

Consolidated Statements of Cash Flows

See notes to consolidated financial statements.

	Year Ended November 30,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	825,677		$	972,110
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		70,384			70,247
Gain on marketable securities		(200	)
Deferred income taxes		(19,528	)		(12,230	)
Allowance for credit losses		956			(94,224	)
Stock Compensation Expense		15,000			97,500

CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable		136,037			1,227,448
Inventory		422,117			985,727
Prepaid expenses and income taxes		229,703			(49,257	)
Other assets		18,804			26,092
Accounts payable		128,362			(931,005	)
Accrued expenses		(3,922	)		(99,509	)

NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES		1,823,390			2,192,899

CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets	$	(10,991	)	$	(43,368	)
Acquisition of marketable securities		(5,949,505	)		(3,204,772	)
Proceeds from the sale of marketable securities		2,130,000			-
NET CASH FLOWS USED IN INVESTING ACTIVITIES	$	(3,830,496	)	$	(3,248,140	)

F-87

SURGE COMPONENTS, INC. AND SUBSIDIARIES

~~Notes to~~ Consolidated Statements ~~Financial~~of ~~Statements~~Cash Flows

~~NOTE A – ORGANIZATION, DESCRIPTION OF COMPANY’S BUSINESS AND BASIS OF PRESENTATION~~(Continued)

Surge Components, Inc. (“Surge”) was incorporated in the State of New York and commenced operations on November 24, 1981 as an importer of electronic products, primarily capacitors and discrete semi-conductors selling to customers located principally throughout North America. On June 24, 1988, Surge formed Challenge/Surge Inc. (“Challenge”), a wholly-owned subsidiary to engage in the sale of electronic component products and sounding devices from established brand manufacturers to customers located principally throughout North America.

	Year Ended November 30,
	2024			2023
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of financing lease obligations	$	-		$	-

NET CASH FLOWS USED IN FINANCING ACTIVITIES		-			-

NET CHANGE IN CASH		(2,007,106	)		(1,055,241	)

CASH AT BEGINNING OF PERIOD		7,634,799			8,690,040

CASH AT END OF PERIOD	$	5,627,693		$	7,634,799

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Income taxes paid	$	353,806		$	797,378

Interest paid	$	-		$	-

NONCASH INVESTING AND FINANCING ACTIVITIES:
Accrued dividends on preferred stock	$	5,000		$	5,000

~~In May 2002, Surge and an officer of Surge founded~~See ~~and~~notes ~~became sole owners of Surge Components, Limited (“Surge Limited”), a Hong Kong corporation. Under current Hong Kong law, Surge Limited is required~~ to have at least two shareholders. Surge owns 999 shares of the outstanding common stock and the officer of Surge owns 1 share of the outstanding common stock. The officer of Surge has assigned his rights regarding his 1 share to Surge. Surge Limited started doing business in July 2002. Surge Limited operations have been consolidated ~~with~~financial ~~the Company~~statements. ~~Surge Limited is responsible for the sale of Surge’s products to customers located in Asia.~~

~~On August 31, 2010, the Company changed its corporate domicile by merging into a newly~~F-~~formed corporation, Surge Components, Inc. (Nevada), which was formed in the State of Nevada for that purpose. Surge Components Inc. is the surviving entity.~~8

~~In February 2019~~SURGE COMPONENTS, ~~the Company converted into a Delaware corporation~~INC. ~~The~~AND ~~number of authorized shares of common stock was decreased to 50,000,000 shares.~~SUBSIDIARIES

~~In December 2021, the Company changed its corporate~~Notes ~~domicile~~ to ~~Nevada.~~Consolidated Financial Statements

NOTE A B – ~~SUMMARY~~ORGANIZATION, DESCRIPTION OF ~~SIGNIFICANT~~COMPANY’S ~~ACCOUNTING POLICIES~~BUSINESS AND BASIS OF PRESENTATION

Surge Components, Inc. (1“Surge”) ~~Principles~~was incorporated in the State of ~~Consolidation:~~New York and commenced operations on November 24, 1981 as an importer of electronic products, primarily capacitors and discrete semi-conductors selling to customers located principally throughout North America. On June 24, 1988, Surge formed Challenge/Surge Inc. (“Challenge”), a wholly-owned subsidiary to engage in the sale of electronic component products and sounding devices from established brand manufacturers to customers located principally throughout North America.

~~The~~In May ~~consolidated~~2002, ~~financial~~Surge ~~statements~~and ~~include the~~an ~~accounts~~officer of Surge, ~~Challenge,~~founded and became sole owners of Surge Components, Limited (~~collectively the~~ “~~Company~~Surge Limited”), a Hong Kong corporation. ~~All~~Under ~~material~~current ~~intercompany~~Hong ~~balances~~Kong law, Surge Limited is required to have at least two shareholders. Surge owns 999 shares of the outstanding common stock and the officer of Surge owns 1 share of the outstanding common stock. The officer of Surge has assigned ~~transactions~~his rights regarding his 1 share to Surge. Surge Limited started doing business in July 2002. Surge Limited operations have been ~~eliminated~~consolidated with the Company. Surge Limited is responsible for the sale of Surge’s products to customers located in ~~consolidation~~Asia.

On August 31, 2010, the Company changed its corporate domicile by merging into a newly-formed corporation, Surge Components, Inc. (2Nevada), which ~~Accounts~~was ~~Receivable:~~formed in the State of Nevada for that purpose. Surge Components Inc. is the surviving entity.

~~Trade accounts receivable are recorded at the~~In ~~net~~February ~~invoice~~2019, ~~value net of~~ the ~~allowance for credit losses in the consolidated balance sheet and are not interest bearing. The~~ Company ~~considers~~ ~~receivables~~converted ~~past~~into ~~due~~a ~~based~~Delaware ~~on the payment terms~~corporation. The ~~Company~~number ~~reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage~~ of ~~its~~authorized ~~trade~~shares ~~receivable balance based on collection history and current economic trends that might impact the level~~ of ~~future~~common ~~credit~~stock ~~losses.~~was ~~The~~decreased ~~Company~~to ~~re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base~~50, ~~bad~~000,000 ~~debts to date have not been material~~shares.

~~(3)~~In December ~~Revenue~~2021, ~~Recognition:~~the Company changed its corporate domicile to Nevada.

~~In May 2014, the Financial Accounting Standards~~NOTE ~~Board~~B ~~(“FASB”)~~– ~~issued~~SUMMARY ~~Accounting~~OF ~~Standard~~SIGNIFICANT ~~Update~~ACCOUNTING (“ASU”) No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU replaces nearly all existing U.S. generally accepted accounting principles guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment by the Company. The Company adopted the standard using the modified retrospective approach in its fiscal year beginning December 1, 2017. The preponderance of the Company’s contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment.POLICIES

~~F-9~~(1) Principles of Consolidation:

~~SURGE~~The consolidated ~~COMPONENTS~~financial statements include the accounts of Surge, ~~INC~~Challenge, and Surge Limited (collectively the “Company”). All ~~AND~~material ~~SUBSIDIARIES~~intercompany balances and transactions have been eliminated in consolidation.

~~Notes~~(2) Accounts ~~to Consolidated Financial Statements~~Receivable:

~~NOTE~~Trade accounts Breceivable –are ~~SUMMARY~~recorded OFat ~~SIGNIFICANT~~the ~~ACCOUNTING~~net invoice value net of the allowance for credit losses in the consolidated balance sheet and ~~POLICIES~~are ~~(Continued)~~not interest bearing. The Company considers receivables past due based on the payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base, bad debts to date have not been material. Repayment terms vary from customer to customer and range from 15 days to 120 days.

(3) Revenue Recognition ~~(continued)~~:

~~Revenue~~In May is2014, ~~recognized~~the ~~for~~Financial ~~products~~Accounting ~~sold~~Standards byBoard ~~the Company~~(“FASB”) ~~when~~issued ~~persuasive~~Accounting ~~evidence~~Standard ofUpdate an(“ASU”) ~~arrangement~~No. ~~exists~~2014-09, “Revenue ~~delivery~~from ~~has~~Contracts ~~occurred,~~with ~~the~~Customers: ~~price~~Topic is606.” ~~fixed~~This ~~and~~ASU ~~determinable,~~replaces ~~collectability~~nearly all existing U.S. generally accepted accounting isprinciples ~~reasonably~~guidance ~~assured~~on ~~and~~revenue ~~title~~recognition. ~~and~~The ~~risk~~standard prescribes a five-step model for recognizing revenue, the application of ~~loss~~which will ~~have~~require ~~been~~significant ~~transferred~~judgment toby the ~~customer~~Company. ~~This~~The ~~occurs~~Company ~~when~~adopted ~~product~~the isstandard ~~shipped~~using ~~from~~ the modified retrospective approach in its fiscal year beginning December 1, 2017. The preponderance of the Company’s ~~warehouse~~contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment.

For direct shipments, revenue is recognized when product is shipped from the Company’s supplier. The Company has a long term supply agreement with one of our suppliers. The Company purchases the merchandise from the supplier and has the supplier directly ship to the customer through a freight forwarder. Title passes to customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $4,192,768 and $3,198,000 for the years ended November 30, 2023 and November 30, 2022 respectively.F-9

~~The Company also acts as a sales agent to certain~~SURGE ~~customers~~COMPONENTS, ~~in North America for one of its suppliers~~INC. ~~The~~AND ~~Company reports these commissions as revenues in the period earned. Commission revenue totaled $106,885 and $249,248 for the years ended November 30, 2023 and November 30, 2022 respectively.~~SUBSIDIARIES

~~The Company performs ongoing credit evaluations~~Notes ofto ~~its~~Consolidated ~~customers~~Financial ~~and maintains reserves for potential credit losses.~~Statements

~~The Company and its subsidiaries currently have~~NOTE ~~agreements~~B ~~with~~– ~~several~~SUMMARY ~~distributors.~~OF ~~There~~SIGNIFICANT ~~are~~ACCOUNTING noPOLICIES provisions for the granting of price concessions in any of the agreements. Revenues under these distribution agreements were approximately $7,810,000 and $13,858,000 for the years ended November 30, 2023 and November 30, 2022 respectively.(Continued)

(43) Revenue ~~Inventories~~Recognition (continued):

~~Inventories,~~Revenue is ~~which~~recognized ~~consist~~for ~~solely of~~ products ~~held~~ ~~for~~sold ~~resale,~~by ~~are~~the ~~stated~~Company atwhen ~~the~~persuasive ~~lower~~evidence of ~~cost~~an ~~(first-in~~arrangement exists, ~~first-out~~delivery ~~method)~~has oroccurred, ~~net~~the ~~realizable~~price ~~value.~~is fixed ~~Products~~and ~~are~~determinable, ~~included~~collectability inis ~~inventory when~~reasonably ~~the~~assured ~~Company~~and ~~obtains~~ title and risk of loss onhave ~~the~~been ~~products,~~transferred ~~primarily~~to ~~when shipped from~~ the ~~supplier~~customer. ~~Inventory~~This ~~in transit principally~~occurs ~~from~~when ~~foreign~~product ~~suppliers~~is atshipped ~~November~~from ~~30, 2023 was $1,532,374. The Company, at November 30, 2023 has a reserve against slow moving and obsolete inventory of $440,645. From time to time~~ the Company’s ~~products are subject to legislation from various authorities on environmental matters~~warehouse.

~~(5)~~For direct ~~Depreciation~~shipments, revenue is recognized when product is shipped from the Company’s supplier. The Company has a long term supply agreement with one of our suppliers. The Company purchases the merchandise from the supplier and ~~Amortization:~~has the supplier directly ship to the customer through a freight forwarder. Title passes to customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $4,540,576 and $4,192,768 for the years ended November 30, 2024 and November 30, 2023 respectively.

~~Fixed~~The Company ~~assets~~also ~~are~~acts ~~recorded~~as ata ~~cost.~~sales ~~Depreciation is~~agent ~~generally~~to ~~calculated~~certain oncustomers ain ~~straight~~North ~~line~~America ~~method~~for ~~and~~one ~~amortization~~ of ~~leasehold~~its ~~improvements~~suppliers. isThe ~~provided~~Company ~~for~~reports onthese ~~the~~commissions as ~~straight-line~~revenues ~~method over~~in the ~~estimated~~period ~~useful~~earned. ~~lives~~Commission ofrevenue totaled $95,584 and $106,885 for the ~~various~~years ~~assets~~ended asNovember ~~follows:~~30, 2024 and November 30, 2023 respectively.

Furniture, fixtures and equipment		5 - 7 years
Computer equipment		5 years
Leasehold Improvements		Estimated useful life or lease term, whichever is shorter

The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses.

~~Maintenance~~The Company and ~~repairs~~its subsidiaries currently have agreements with several distributors. There are ~~expensed~~no asprovisions ~~incurred~~for the granting of price concessions ~~while~~in ~~renewals~~any of the agreements. Revenues under these distribution agreements were approximately $5,204,000 and ~~betterments~~$7,810,000 ~~are~~for ~~capitalized~~the years ended November 30, 2024 and November 30, 2023 respectively.

(64) ~~Concentration of Credit Risk~~ Inventories:

~~Financial~~Inventories, which ~~instruments~~consist ~~that~~solely ~~potentially~~of ~~subject the~~products ~~Company~~held tofor ~~concentrations~~resale, ofare ~~credit~~stated ~~risk~~at ~~consist~~the ~~principally~~lower of ~~accounts~~cost ~~receivable~~(first-in, first-out method) or net realizable value. Products ~~The~~are included in inventory when the Company ~~maintains~~obtains ~~substantially~~title ~~all~~and risk of ~~its cash~~loss ~~balances~~on inthe aproducts, ~~limited~~primarily ~~number~~when ofshipped ~~financial~~from ~~institutions~~the supplier. Inventory Atin transit principally from foreign suppliers at November 30, ~~2023~~2024 ~~and~~was $1,802,762. The Company, at November 30, ~~2022~~2024 has a reserve against slow moving and obsolete inventory of $415,054. From time to time the Company’s ~~uninsured cash~~products ~~balances~~are ~~totaled~~subject ~~$6,569,806~~to ~~and~~legislation from ~~$7,375,544,~~various ~~respectively~~authorities on environmental matters.

~~F-10~~(5) Depreciation and Amortization:

~~SURGE~~Fixed ~~COMPONENTS,~~assets ~~INC~~are recorded at cost. ~~AND~~Depreciation ~~SUBSIDIARIES~~is generally calculated on a straight line method and amortization of leasehold improvements is provided for on the straight-line method over the estimated useful lives of the various assets as follows:

Notes to Consolidated Financial Statements

Furniture, fixtures and equipment		5 - 7 years
Computer equipment		5 years
Leasehold Improvements		Estimated useful life or lease term, whichever is shorter

~~NOTE~~Maintenance Band –repairs ~~SUMMARY~~are OFexpensed ~~SIGNIFICANT~~as ~~ACCOUNTING~~incurred ~~POLICIES~~while ~~(Continued)~~renewals and betterments are capitalized.

(76) ~~Income~~Concentration ~~Taxes~~of Credit Risk:

~~The~~Financial ~~Company’s~~instruments ~~deferred~~that ~~income~~potentially ~~taxes~~subject ~~arise primarily from~~ the ~~differences~~Company into ~~the~~concentrations ~~recording~~ of ~~allowances~~credit ~~for~~risk ~~bad~~consist ~~debts,~~principally ~~inventory~~of ~~reserves and~~accounts ~~depreciation~~receivable. ~~expense~~The ~~for~~Company maintains ~~financial~~substantially ~~reporting~~all ~~and~~of ~~income~~its ~~tax~~cash ~~purposes.~~balances Ain ~~valuation~~a ~~allowance~~limited isnumber ~~provided~~of ~~when~~financial itinstitutions. ~~has~~At ~~been~~November ~~determined to~~30, be2024 ~~more~~and ~~likely~~November ~~than~~30, 2023, ~~not that~~ the ~~likelihood~~Company’s ofuninsured ~~the~~cash ~~realization~~balances oftotaled ~~deferred~~$4,563,198 ~~tax~~and ~~assets~~$6,569,806, ~~will not be realized~~respectively. ~~See Note I.~~

The Company follows the provisions of the Accounting Standards Codification topic, ASC 740, “Income Taxes” (ASC 740). There have been no unrecognized tax benefits and, accordingly, there has been no effect on the Company’s financial condition or results of operations as a result of ASC 740.F-10

~~The~~SURGE Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years before fiscal years ending November 30COMPONENTS, ~~2019, and state tax examinations for years before fiscal years ending November 30, 2018~~INC. ~~Management~~AND ~~does not believe there will be any material changes in our unrecognized tax positions over the next twelve months.~~SUBSIDIARIES

~~The~~Notes ~~Company’s policy is~~ to ~~recognize~~Consolidated ~~interest~~Financial and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740, there was no accrued interest or penalties associated with any unrecognized benefits, nor was any interest expense recognized during the years ended November 30, 2023 and November 30, 2022.Statements

~~(8)~~NOTE ~~Cash~~B ~~Equivalents:~~– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

~~The~~(7) ~~Company~~Income ~~considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.~~Taxes:

~~(9)~~The ~~Use~~Company’s deferred income taxes arise primarily from the differences in the recording of ~~Estimates:~~allowances for bad debts, inventory reserves and depreciation expense for financial reporting and income tax purposes. A valuation allowance is provided when it has been determined to be more likely than not that the likelihood of the realization of deferred tax assets will not be realized. See Note H.

The ~~preparation~~Company offollows ~~financial~~the ~~statements~~provisions inof ~~conformity~~the ~~with~~Accounting ~~accounting~~Standards ~~principles~~Codification ~~generally~~topic, ~~accepted~~ASC in740, ~~the~~“Income ~~United~~Taxes” ~~States~~(ASC of740). ~~America~~There ~~requires~~have ~~management~~been tono ~~make~~unrecognized ~~estimates~~tax ~~and~~benefits ~~assumptions that affect the reported amounts of assets~~ and, ~~liabilities~~accordingly, ~~and~~there ~~disclosure~~has ofbeen ~~contingent assets~~no ~~and~~effect ~~liabilities~~on at the ~~date~~Company’s ~~of the~~ financial ~~statements~~condition ~~and~~or ~~the~~results ~~reported amounts~~ of ~~revenue and expenses during the reporting~~ ~~period.~~operations ~~Actual~~as ~~results~~a ~~could~~result ~~differ~~of ~~from~~ASC ~~those estimates~~740.

~~(10)~~The ~~Marketing~~Company files income tax returns in the U.S. federal jurisdiction and ~~promotional~~various ~~costs:~~state and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years before fiscal years ending November 30, 2020, and state tax examinations for years before fiscal years ending November 30, 2019. Management does not believe there will be any material changes in our unrecognized tax positions over the next twelve months.

~~Marketing~~The ~~and~~Company’s ~~promotional~~policy ~~costs~~is ~~are~~to ~~expensed~~recognize asinterest ~~incurred~~ and ~~have~~penalties ~~not~~accrued ~~been~~on ~~material~~any tounrecognized ~~date.~~tax ~~The~~benefits ~~Company~~as ~~has~~a ~~contractual~~component ~~arrangements~~of ~~with~~income ~~several~~tax expense. As of ~~its~~the ~~distributors~~date ~~which~~of ~~provide~~adoption ~~for~~of ~~cooperative~~ASC ~~advertising~~740, ~~rights~~there towas ~~the~~no ~~distributor~~accrued asinterest aor ~~percentage~~penalties ofassociated ~~sales.~~with ~~Cooperative~~any ~~advertising~~unrecognized benefits, nor was isany ~~reflected~~interest asexpense arecognized ~~reduction~~during inthe ~~revenues~~years ~~and~~ended ~~has~~November ~~not~~30, ~~been~~2024 ~~material~~and toNovember ~~date~~30, 2023.

(118) ~~Fair~~Cash ~~Value of Financial Instruments~~Equivalents:

The ~~carrying~~Company ~~amount~~considers ofall ~~cash~~highly ~~balances,~~liquid ~~accounts~~investments ~~receivable,~~with ~~accounts~~an ~~payable~~original ~~and~~maturity ~~accrued expenses approximate their fair value based on the nature~~ of ~~those~~three ~~items.~~months ~~Estimated~~or ~~fair~~less ~~values of financial instruments are determined using available market information and appropriate valuation methodologies. Considerable judgment is required~~ to ~~interpret the market data used to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative of the amounts that could~~ be ~~realized~~cash ~~in a current market exchange~~equivalents.

(129) ~~Marketable~~Use ~~securities~~of ~~and other investments~~Estimates:

~~Our~~The ~~marketable~~preparation ~~securities~~of ~~are~~financial ~~stated~~statements ~~at fair value~~ in ~~accordance~~conformity with ~~ASC~~accounting ~~Topic~~principles ~~321,~~generally ~~Investments-~~accepted ~~Equity Securities. Any changes~~ in ~~the~~ ~~fair value of~~ the ~~Company’s~~United ~~marketable~~States ~~debt securities are included in the statement~~ of ~~other~~America ~~comprehensive income. The~~requires ~~market~~management ~~value~~to ofmake ~~the~~estimates ~~securities~~and isassumptions ~~determined~~that ~~using~~affect ~~prices~~the asreported ~~reflected~~amounts onof anassets ~~established~~and ~~market.~~liabilities ~~Realized~~ and ~~unrealized~~disclosure ~~gains~~of ~~and losses~~contingent ~~are~~assets ~~determined~~and onliabilities anat ~~average~~the ~~cost~~date ~~basis.~~of ~~The~~the ~~marketable~~financial ~~securities~~statements ~~are~~and ~~investments~~the ~~predominately~~reported inamounts ~~Treasury~~of ~~bills~~revenue ~~treasury~~and ~~notes~~expenses ~~which are~~during ~~being invested until such time~~ the ~~funds~~reporting period. ~~are~~Actual ~~needed~~results ~~for~~could ~~operations~~differ ~~and~~from ~~reflected~~those ~~as available for sale debt securities~~estimates.

~~The~~(10) ~~value~~Marketing ~~of these marketable securities at November 30, 2023~~ and ~~November~~promotional ~~30, 2022 is as follows~~costs:

	November 30,		November 30,
	2023		2022
Cost	$	3,203,944	$	-
Gross unrealized gain		828		-
Gross unrealized loss		-		-
Fair value	$	3,204,772	$	-

Marketing and promotional costs are expensed as incurred and have not been material to date. The Company has contractual arrangements with several of its distributors which provide for cooperative advertising rights to the distributor as a percentage of sales. Cooperative advertising is reflected as a reduction in revenues and has not been material to date.

F-(11) Fair Value of Financial Instruments:

~~SURGE~~The ~~COMPONENTS~~carrying amount of cash balances, ~~INC~~marketable securities, accounts receivable, accounts payable and accrued expenses approximate their fair value based on the nature of those items. ~~AND~~Estimated ~~SUBSIDIARIES~~fair values of financial instruments are determined using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret the market data used to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative of the amounts that could be realized in a current market exchange.

~~Notes~~(12) toMarketable ~~Consolidated~~securities ~~Financial~~and ~~Statements~~other investments

~~NOTE~~Our Bmarketable –securities ~~SUMMARY~~are OFstated ~~SIGNIFICANT~~at ~~ACCOUNTING~~fair ~~POLICIES~~value ~~(Continued)~~in accordance with ASC Topic 321, Investments- Equity Securities. Any changes in the fair value of the Company’s marketable debt securities are included in the statement of other comprehensive income. The market value of the securities is determined using prices as reflected on an established market. Realized and unrealized gains and losses are determined on an average cost basis. The marketable securities are investments predominately in Treasury bills treasury notes which are being invested until such time the funds are needed for operations and reflected as available for sale debt securities.

~~(13)~~The ~~Shipping~~value ~~Costs~~of these marketable securities at November 30, 2024 and November 30, 2023 is as follows:

The Company classifies shipping costs as a component of selling expenses. Shipping costs totaled $2,182 and $4,206 for the years ended November 30, 2022 and November 30, 2021 respectively.

	November 30,			November 30,
	2024			2023
Cost	$	7,023,649		$	3,203,944
Gross unrealized gain		89,701			828
Gross unrealized loss		(4,371	)		-
Fair value	$	7,108,979		$	3,204,772

~~(14) Earnings Per Share~~F-11

~~Basic~~SURGE ~~earnings~~COMPONENTS, ~~per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period~~INC. ~~The~~AND difference between reported basic and diluted weighted-average common shares results from the assumption that all dilutive stock options and convertible preferred stock exercised into common stock. Total potentially dilutive shares excluded from diluted weighted shares outstanding at November 30, 2023 and November 30, 2022 totaled 266,282 and 259,509, respectively.SUBSIDIARIES

~~(15)~~Notes ~~Stock~~to ~~Based~~Consolidated ~~Compensation~~Financial Statements

~~Stock~~NOTE ~~Based~~B ~~Compensation~~– toSUMMARY ~~Employees~~OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

~~The Company accounts for its stock-based compensation for employees in accordance with Accounting Standards Codification~~ (~~“ASC”~~13) ~~718.~~Shipping The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees over the related vesting period.Costs

~~Stock~~The ~~Based~~Company ~~Compensation~~classifies toshipping ~~Other~~costs ~~than~~as ~~Employees~~a component of selling expenses. Shipping costs totaled $2,747 and $2,182 for the years ended November 30, 2024, and November 30, 2023 respectively.

~~The~~(14) ~~Company~~Earnings ~~accounts~~Per for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.Share

~~(16)~~Basic ~~Leases:~~earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. The difference between reported basic and diluted weighted-average common shares results from the assumption that all dilutive stock options and convertible preferred stock exercised into common stock. Total potentially dilutive shares excluded from diluted weighted shares outstanding at November 30, 2024 and November 30, 2023 totaled 282,962 and 266,282, respectively.

~~In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases~~ (~~Topic 842~~15) ~~(“Topic 842”).~~ ~~Topic~~Stock ~~842~~Based requires the entity to recognize the assets and liabilities for the rights and obligations created by leased assets. Leases will be classified as either finance or operating, with classification affecting expense recognition in the income statement.Compensation

OnStock ~~December~~Based 1,Compensation ~~2019, the Company adopted Topic 842 applying the optional transition method, which allows an entity~~ to apply the new standard at the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of adopting Topic 842, the Company recognized assets and liabilities for the rights and obligations created by operating leases totaling approximately $290,000.Employees

The Company ~~determines~~accounts iffor aits ~~contract contains a lease at inception~~ stock-based oncompensation ~~whether~~for itemployees ~~conveys~~in ~~the~~accordance ~~right~~with toAccounting ~~control~~Standards ~~the~~Codification ~~use of an identified~~(“ASC”) ~~asset~~718. ~~Substantially~~The ~~all of the~~ Company’s ~~leases~~recognizes ~~are~~in ~~classified~~the asstatement ~~operating~~of ~~leases.~~operations ~~The~~the ~~Company~~grant-date ~~records~~fair ~~operating~~value ~~lease right-~~of~~-use assets~~ ~~within~~stock ~~“Other~~options ~~assets”~~ and ~~lease~~other ~~liabilities~~equity-based ~~are recorded within “current and noncurrent liabilities” in~~compensation ~~the~~issued ~~consolidated~~to ~~balance~~employees ~~sheets. Lease expenses are recorded within “General~~ and ~~administrative~~non-employees ~~expenses”~~over in the ~~consolidated statements~~related ofvesting ~~operations~~period. ~~Operating lease payments are presented within “Operating cash flows” in the consolidated statements of cash flows.~~

~~F-12~~Stock Based Compensation to Other than Employees

~~SURGE~~The ~~COMPONENTS~~Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, ~~INC~~whichever is more reliably determinable. ~~AND~~The ~~SUBSIDIARIES~~value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

~~Notes~~(16) ~~to Consolidated Financial Statements~~Leases:

~~NOTE~~In BFebruary –2016, ~~SUMMARY~~the OFFASB ~~SIGNIFICANT~~issued ~~ACCOUNTING~~Accounting ~~POLICIES~~Standards Update No. 2016-02, Leases (~~Continued~~Topic 842) (“Topic 842”). Topic 842 requires the entity to recognize the assets and liabilities for the rights and obligations created by leased assets. Leases will be classified as either finance or operating, with classification affecting expense recognition in the income statement.

~~(16)~~On ~~Leases~~December ~~(continued):~~1, 2019, the Company adopted Topic 842 applying the optional transition method, which allows an entity to apply the new standard at the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of adopting Topic 842, the Company recognized assets and liabilities for the rights and obligations created by operating leases totaling approximately $290,000.

~~Operating~~The ~~lease~~Company ~~right-of-use~~determines ~~assets~~if ~~and~~a ~~lease~~contract ~~liabilities~~contains ~~are~~a ~~recognized based on the net present value of future minimum~~ lease ~~payments~~at ~~over~~inception ~~the lease~~based ~~term starting~~ on ~~the~~whether ~~commencement~~it ~~date.~~conveys ~~The~~the ~~Company~~right ~~generally is not able~~ to ~~determine~~control the ~~rate~~use ~~implicit~~of inan ~~its leases and, as~~identified ~~such,~~asset. ~~applies~~Substantially anall ~~incremental~~of ~~borrowing rate based on~~ the Company’s ~~cost~~leases ofare ~~borrowing~~classified ~~for~~as ~~the~~operating ~~relevant terms of each lease~~leases. ~~Lease expense~~The ~~for~~Company ~~minimum~~records operating lease ~~payments is recognized on a straight~~right-~~line~~of-use assets ~~basis~~within ~~over~~“Other ~~the~~assets” and lease ~~term.~~liabilities ~~Lease~~are ~~terms~~recorded ~~may~~within ~~include~~“current anand ~~option~~noncurrent toliabilities” ~~extend~~in ~~or terminate a lease if it is reasonably certain that~~ the ~~Company~~consolidated ~~will~~balance ~~exercise such options~~sheets. ~~The~~Lease ~~Company~~expenses ~~has~~are ~~elected~~recorded ~~the~~within ~~practical~~“General ~~expedient to not separate lease components from non-lease components,~~ and ~~also~~administrative ~~has~~expenses” ~~elected~~in ~~not~~the ~~to record a right-of-use asset or lease liability~~consolidated ~~for~~statements ~~leases which, at inception, have a term~~ of ~~twelve months or less~~operations. ~~Variable~~Operating lease payments are ~~recognized~~presented inwithin ~~the~~“Operating ~~period~~cash flows” in ~~which~~ the ~~obligation~~ ~~for~~consolidated ~~those~~statements of ~~payments~~cash ~~is incurred~~flows.

~~NOTE C – FIXED ASSETS~~F-12

~~Fixed~~SURGE ~~assets~~COMPONENTS, ~~consist~~INC. ofAND ~~the following:~~SUBSIDIARIES

	November 30,			November 30,
	2023			2022
Furniture and Fixtures	$	329,186		$	327,971
Leasehold Improvements		1,070,044			1,062,449
Computer Equipment		528,662			494,104
Less-Accumulated Depreciation		(1,757,772	)		(1,687,525	)
Net Fixed Assets	$	170,120		$	196,999

Notes to Consolidated Financial Statements

~~Depreciation~~NOTE ~~and~~B ~~amortization~~– ~~expense~~SUMMARY ~~for~~OF ~~the~~SIGNIFICANT ~~years~~ACCOUNTING ~~ended~~POLICIES ~~November 30, 2023 and November 30, 2022 was $70,247 and $78,398, respectively.~~(Continued)

~~NOTE~~(16) DLeases ~~– FINANCING LEASE OBLIGATIONS~~(continued):

~~The~~Operating ~~Company~~lease isright-of-use ~~obligated~~assets ~~under~~and ~~financing~~lease ~~leases~~liabilities ~~for~~are ~~telephone~~recognized ~~equipment.~~based ~~The~~on ~~Company~~the ~~leases~~net ~~equipment~~present ~~under~~value ~~two~~of ~~capital~~future minimum lease ~~arrangements~~payments over the ~~with~~lease ~~NEC~~term ~~Financial~~starting ~~Services~~on the commencement date. ~~Pursuant~~The Company generally is not able to determine the rate implicit in its leases and, ~~the~~as such, ~~lessor~~applies ~~retains~~an ~~actual~~incremental ~~title~~borrowing torate based on the ~~leased~~Company’s ~~property~~cost ~~until~~of borrowing for the ~~termination~~relevant terms of each lease. Lease ~~the~~expense for minimum lease, atpayments ~~which~~is ~~time~~recognized on a straight-line basis over the ~~equipment~~lease ~~can~~term. beLease ~~purchased~~terms ~~for~~may ~~one~~include ~~dollar~~an ~~for~~option ~~each~~to extend or terminate a lease if it is reasonably certain that the Company will exercise such options. The ~~terms~~Company ofhas elected the ~~leases~~practical ~~are~~expedient to 60not ~~months~~separate ~~with~~lease components from non-lease components, and also has elected not to record a ~~combined~~right-of-use asset or lease liability ~~monthly~~for ~~payment~~leases ofwhich, ~~$815~~at inception, ~~respectively.~~have ~~The~~a ~~assumed~~term ~~interest~~of ~~rates~~twelve onmonths ~~the~~or ~~leases~~less. Variable lease payments are ~~9.342%.~~recognized ~~The~~in ~~leases~~the ~~terminated~~period in ~~2022~~which the obligation for those payments is incurred.

~~F-13~~NOTE C – FIXED ASSETS

~~SURGE~~Fixed ~~COMPONENTS,~~assets ~~INC.~~consist ~~AND~~of ~~SUBSIDIARIES~~the following:

Notes to Consolidated Financial Statements

	November 30,			November 30,
	2024			2023
Furniture and Fixtures	$	329,186		$	329,186
Leasehold Improvements		1,078,985			1,070,044
Computer Equipment		530,712			528,662
Less-Accumulated Depreciation		(1,828,156	)		(1,757,772	)
Net Fixed Assets	$	110,727		$	170,120

~~NOTE~~Depreciation Eand –amortization ~~LOANS~~expense ~~PAYABLE~~for the years ended November 30, 2024 and November 30, 2023 was $70,384 and $70,247, respectively.

In February 2017, the Company obtained a line of credit with a bank for up to $3,000,000 (the “Credit Line”). Borrowings under the Credit Line are due upon demand and accrue interest at the greater of the prime rate or the LIBOR rate plus two percent (and may be increased by three percent in the event the Company fails to (i) repay all amounts due on the Credit Line upon demand or (ii) comply with any terms or conditions relating to the Credit Line). The Credit Line is collateralized by substantially all the assets of the Company. As of November 30, 2023, the balance on the Credit Line was $0. As of November 30, 2023, the Company was in compliance with the covenant for the debt service coverage ratio for the Credit Line. Effective July 1, 2023, the use of the LIBOR rate was discontinued and replaced with the secured overnight financing rate (SOFR).F-13

~~NOTE~~SURGE FCOMPONENTS, –INC. ~~ACCRUED~~AND ~~EXPENSES~~SUBSIDIARIES

~~Accrued~~Notes ~~expenses~~to ~~consist~~Consolidated ofFinancial ~~the following:~~Statements

	November 30,		November 30,
	2023		2022
Commissions	$	229,882	$	366,766
Preferred stock dividends		166,569		161,569
Other accrued expenses		338,932		370,924
	$	735,383	$	899,259

NOTE D – LOANS PAYABLEIs this still in effect?

~~NOTE~~In GFebruary ~~– RETIREMENT~~2017, ~~PLAN~~the Company obtained a line of credit with a bank for up to $3,000,000 (the “Credit Line”). Borrowings under the Credit Line are due upon demand and accrue interest at the greater of the prime rate or the LIBOR rate plus two percent (and may be increased by three percent in the event the Company fails to (i) repay all amounts due on the Credit Line upon demand or (ii) comply with any terms or conditions relating to the Credit Line). The Credit Line is collateralized by substantially all the assets of the Company. As of November 30, 2024, the balance on the Credit Line was $0. As of November 30, 2024, the Company was in compliance with the covenant for the debt service coverage ratio for the Credit Line. Effective July 1, 2023, the use of the LIBOR rate was discontinued and replaced with the secured overnight financing rate (SOFR).

InNOTE ~~June~~E ~~1997,~~– ~~the~~ACCRUED Company adopted a qualified 401(k) retirement plan for all full-time employees who are twenty-one years of age and have completed twelve months of service. The plan allows total employee contributions of up to fifteen percent (15%) of the eligible employee’s salary through salary reduction. The Company makes a matching contribution of twenty percent (20%) of each employee’s contribution for each dollar of employee deferral up to five percent (5%) of the employee’s salary. Net assets for the plan, as estimated by Axa Equitable, Inc., which maintains the plan’s records, were approximately $2,069,000 at November 30, 2023. Pension expense for the years ended November 30, 2023 and November 30, 2022 was $64,864 and $2,491, respectively, The increase is due in part to the implementation of a new safe harbor plan..EXPENSES

~~F-14~~Accrued expenses consist of the following:

SURGE COMPONENTS, INC. AND SUBSIDIARIES

	November 30,		November 30,
	2024		2023
Commissions	$	242,515	$	229,882
Preferred stock dividends		171,569		166,569
Other accrued expenses		274,556		338,932
	$	688,640	$	735,383

~~Notes~~NOTE toF ~~Consolidated~~– RETIREMENT ~~Financial Statements~~PLAN

~~NOTE~~In HJune –1997, ~~SHAREHOLDERS~~the Company adopted a qualified 401(k) retirement plan for all full-time employees who are twenty-one years of age and have completed twelve months of service. The plan allows total employee contributions of up to fifteen percent (15%) of the eligible employee’s salary ~~EQUITY~~through salary reduction. The Company makes a matching contribution of twenty percent (20%) of each employee’s contribution for each dollar of employee deferral up to five percent (5%) of the employee’s salary. Net assets for the plan, as estimated by Axa Equitable, Inc., which maintains the plan’s records, were approximately $2,147,000 at November 30, 2024. Pension expense for the years ended November 30, 2024 and November 30, 2023 was $47,989 and $64,864, respectively, The decrease is due in part to the implementation of a new safe harbor plan.

~~[1] Preferred Stock:~~F-14

InSURGE ~~February 1996~~COMPONENTS, ~~the Company amended its Certificate of Incorporation to authorize the issuance of 1,000,000 shares of preferred stock in one or more series~~INC. InAND ~~August 2010, the number of preferred shares authorized for issuance was increased to 5,000,000 shares.~~SUBSIDIARIES

InNotes November 2000, the Company authorized 100,000 shares of preferred stock as Non-Voting Redeemable Convertible Series C Preferred Stock (“Series C Preferred”). Each share of Series C Preferred is automatically convertible into 10 shares of our common stock upon shareholder approval. If the Series C Preferred were converted into common stock on or before April 15, 2001, these shares were entitled to ~~cumulative~~Consolidated ~~dividends~~Financial at the rate of $.50 per share per annum commencing April 15, 2001 payable on June 30 and December 31 of each year. In November 2000, 70,000 shares of the Series C Preferred were issued in payment of financial consulting services to its investment banker and a shareholder of the Company.Statements

~~Dividends~~NOTE ~~aggregating~~G ~~$166,569~~– ~~have~~SHAREHOLDERS’ not been paid for the semi-annual periods ended December 31, 2001 through the semi-annual payment due June 30, 2023. The Company has accrued these dividends. At November 30, 2023, there are 10,000 shares of Series C Preferred issued and outstanding.EQUITY

In[1] ~~October 2016, the Company authorized 75,000 shares of preferred stock as Voting Non-Redeemable Convertible Series D~~ Preferred Stock ~~(“Series D Preferred”). None of the Series D Preferred Stock is outstanding as of November 30, 2023.~~:

~~[2]~~In ~~2015~~February ~~Incentive~~1996, ~~Stock~~the ~~Plan~~Company amended its Certificate of Incorporation to authorize the issuance of 1,000,000 shares of preferred stock in one or more series. In August 2010, the number of preferred shares authorized for issuance was increased to 5,000,000 shares.

In November ~~2015~~2000, the Company ~~adopted~~authorized ~~and~~100,000 ~~the~~shares ~~shareholders~~of ~~ratified,~~preferred ~~the~~stock ~~2015~~as ~~Incentive~~Non-Voting ~~Stock~~Redeemable ~~Plan~~Convertible Series C Preferred Stock (“~~2015~~Series ~~Stock~~C ~~Plan~~Preferred”). ~~The 2015~~Each ~~Stock~~share ~~Plan~~of ~~provides~~Series ~~for~~C ~~the~~Preferred ~~grant~~is automatically convertible into 10 shares of ~~options~~our tocommon ~~officers~~stock upon shareholder approval. If the Series C Preferred were converted into common stock on or before April 15, ~~employees~~2001, ~~directors~~these orshares ~~consultants~~were entitled to cumulative dividends at the ~~Company~~rate toof ~~purchase~~$.50 anper ~~aggregate~~share per annum commencing April 15, 2001 payable on June 30 and December 31 of 1each year. In November 2000,~~500~~ 70,000 ~~common~~ shares of the Series C Preferred were issued in payment of financial consulting services to its investment banker and a shareholder of the Company.

InDividends ~~April~~aggregating ~~2021~~$171,569 ahave ~~total~~not ofbeen ~~26,786~~paid ~~shares~~for ~~were issued to~~ the ~~Company’s~~semi-annual ~~officers~~periods asended aDecember ~~part~~31, of2001 ~~their~~through ~~2021~~the ~~bonus~~semi-annual ~~compensation~~payment ~~under~~due ~~the~~June ~~2015~~30, ~~stock plan~~2024. The Company ~~recorded~~has aaccrued ~~cost~~these ofdividends. ~~$75,000~~At ~~relating~~November to30, ~~the~~2024, ~~issuance~~there ofare ~~these~~10,000 shares inof ~~the~~Series ~~second~~C ~~quarter~~Preferred ofissued ~~2021~~and outstanding.

In ~~March~~October ~~2022~~2016, athe ~~total~~Company ofauthorized 2675,000 shares ~~were~~of ~~issued~~preferred tostock ~~the Company’s officers~~ as ~~part~~Voting ofNon-Redeemable ~~their~~Convertible ~~bonus~~Series ~~compensation~~D ~~under~~Preferred ~~the~~Stock ~~2015 stock~~(“Series ~~plan~~D Preferred”). ~~The~~None ~~Company recorded a cost~~ of ~~$97,500 relating to~~ the ~~issuance~~Series ofD ~~these~~Preferred ~~shares~~Stock inis ~~the~~outstanding ~~second~~as ~~quarter~~ of ~~2022~~November 30, 2024.

In[2] ~~March~~2015 ~~2022,~~Incentive ~~the~~Stock Company granted stock options to (a) four non-employee directors to each purchase 20,000 shares of common stock, (b) one non-employee-director to purchase 30,000 shares of common stock, and (c) two Company officers to each purchase 40,000 shares of common stock at an exercise price of $3.55 per share, the market price of the common stock on the date of the grant. These options vest immediately and expire five years from the grant date. The Company recorded a cost of $492,132 related to the granting of these options.Plan

In ~~April~~November ~~2023~~2015, athe ~~total~~Company ofadopted ~~28,179~~and ~~shares~~the ~~were~~shareholders ~~issued~~ratified, to the ~~Company’s~~2015 ~~officers~~Incentive asStock ~~part~~Plan of(“2015 ~~their~~Stock ~~bonus~~Plan”). ~~compensation under the~~ The 2015 ~~stock plan.~~Stock ~~The~~Plan ~~Company~~provides ~~recorded~~for athe ~~cost~~grant of ~~$97,500~~options ~~relating~~ to ~~the~~officers, ~~issuance~~employees, ofdirectors ~~these~~or ~~shares~~consultants into the ~~second~~Company ~~quarter~~to purchase an aggregate of ~~2023~~1,500,000 common shares.

~~F-15~~In April 2021, a total of 26,786 shares were issued to the Company’s officers as a part of their 2021 bonus compensation under the 2015 stock plan. The Company recorded a cost of $75,000 relating to the issuance of these shares in the second quarter of 2021.

~~SURGE~~In ~~COMPONENTS~~March 2022, ~~INC~~a total of 26,000 shares were issued to the Company’s officers as part of their bonus compensation under the 2015 stock plan. ~~AND~~The ~~SUBSIDIARIES~~Company recorded a cost of $97,500 relating to the issuance of these shares in the second quarter of 2022.

~~Notes~~In March 2022, the Company granted stock options to ~~Consolidated~~(a) ~~Financial~~four ~~Statements~~non-employee directors to each purchase 20,000 shares of common stock, (b) one non-employee-director to purchase 30,000 shares of common stock, and (c) two Company officers to each purchase 40,000 shares of common stock at an exercise price of $3.55 per share, the market price of the common stock on the date of the grant. These options vest immediately and expire five years from the grant date. The Company recorded a cost of $492,132 related to the granting of these options.

~~NOTE~~In HApril –2023, ~~SHAREHOLDERS~~a total of 28,179 shares were issued to the Company’s ~~EQUITY~~officers ~~(Continued)~~as part of their bonus compensation under the 2015 stock plan. The Company recorded a cost of $97,500 relating to the issuance of these shares in the second quarter of 2023.

~~[2]~~In April 2024, a total of 5,085 shares were issued to one of the Company’s officers as part of their bonus compensation under the 2015 ~~Incentive~~stock ~~Stock~~plan. ~~Plan~~The ~~(continued)~~Company recorded a cost of $15,000 relating to the issuance of these shares in the second quarter of 2024.

~~Activity~~ In inNovember 2024, the Company’s ~~stock~~adopted ~~plans~~and the shareholders ratified, the 2024 Incentive Stock Plan (“2024 Stock Plan”). The 2024 Stock Plan provides for the ~~period~~grant ~~ended~~of ~~November~~options 30to officers, ~~2023~~employees, isdirectors ~~summarized~~or asconsultants ~~follows:~~to the Company to purchase an aggregate of 1,000,000 common shares. No grants were made under the 2024 Plan in 2024

	Shares			Weighted Average Exercise Price
Options outstanding December 1, 2022		360,000		$	2.59
Options issued in the fiscal year ended November 30, 2023		-		$	-
Options exercised in the fiscal year ended November 30, 2023		(15,000	)	$	-
Options cancelled in the fiscal year ended November 30, 2023		-		$	-
Options outstanding at November 30, 2023		345,000		$	2.59
Options exercisable at November 30, 2023		345,000		$	2.59

F-15

~~The~~SURGE ~~intrinsic value of the exercisable options at November 30~~COMPONENTS, ~~2023 totaled $178,250~~INC. AtAND November 30, 2023 the weighted average remaining life of the stock options is 2.40 years. At November 30, 2023, there was no unrecognized compensation cost related to the stock options granted under the plan.SUBSIDIARIES

~~[3]~~Notes ~~Compensation~~to ofConsolidated ~~Directors~~Financial Statements

~~Compensation~~NOTE ~~for~~G ~~each~~– ~~non-employee~~SHAREHOLDERS’ ~~director~~EQUITY ~~is $3,000 per month~~ (~~and $4,000 per month for a non-employee director that serves as the chairman of more than two committees of the Board of Directors~~Continued).

~~NOTE~~[2] I2015 –Incentive ~~INCOME~~Stock ~~TAXES~~Plan (continued)

~~Deferred~~Activity ~~income~~in ~~taxes reflect~~ the ~~net~~Company’s ~~tax~~stock ~~effects~~plans ~~of temporary differences between the carrying amount of assets and liabilities~~ for ~~financial reporting purposes and~~ the ~~amounts~~period ~~used~~ended ~~for~~November ~~income~~30, ~~tax~~2024 ~~purposes~~is ~~using~~summarized ~~the~~as ~~enacted tax rates in effect in the years in which the differences are expected to reverse.~~follows:

The Company’s deferred income taxes are comprised of the following:

	Shares		Weighted Average Exercise Price
Options outstanding December 1, 2023		345,000	$	2.59
Options issued in the fiscal year ended November 30, 2024		-	$	-
Options exercised in the fiscal year ended November 30, 2024			$	-
Options cancelled in the fiscal year ended November 30, 2024		-	$	-
Options outstanding at November 30, 2024		345,000	$	2.59
Options exercisable at November 30, 2024		345,000	$	2.59

	November 30,		November 30,
	2023		2022
Deferred Tax Assets
Depreciation	$	35,684	$	35,771
Allowance for bad debts		17,309		36,651
Inventory		84,450		81,523
Facilities rental		35,473		28,523
Other		68,412		46,630
Total deferred tax assets		241,328		229,098
Valuation allowance		-		-
Deferred Tax Assets	$	241,328	$	229,098

The intrinsic value of the exercisable options at November 30, 2024 totaled $130,200. At November 30, 2024 the weighted average remaining life of the stock options is 1.45 years. At November 30, 2024, there was no unrecognized compensation cost related to the stock options granted under the plan.

~~F-16~~[3] Compensation of Directors

~~SURGE~~Compensation ~~COMPONENTS~~for each non-employee director is $3,000 ~~INC.~~per ~~AND~~month ~~SUBSIDIARIES~~(and $4,000 per month for a non-employee director that serves as the chairman of more than two committees of the Board of Directors).

~~Notes~~NOTE toH ~~Consolidated~~– ~~Financial~~INCOME ~~Statements~~TAXES

~~NOTE~~Deferred Iincome –taxes ~~INCOME~~reflect ~~TAXES~~the ~~(Continued)~~net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the enacted tax rates in effect in the years in which the differences are expected to reverse.

AThe ~~valuation~~Company’s ~~allowance for the~~ deferred ~~tax~~income ~~assets~~taxes ~~relates~~are ~~principally~~comprised ~~to the uncertainty~~ of the utilization of deferred tax assets and was calculated in accordance with the provisions of ASC 740, which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized.following:

The Company’s income tax expense consists of the following:

	November 30,		November 30,
	2024		2023
Deferred Tax Assets
Depreciation	$	43,847	$	35,684
Allowance for bad debts		17,493		17,309
Inventory		84,450		84,450
Facilities rental		39,668		35,473
Other		75,398		68,412

Total deferred tax assets		260,856		241,328
Valuation allowance		-		-
Deferred Tax Assets	$	260,856	$	241,328

	Years Ended
	November 30, 2023			November 30, 2022
Current:
Federal	$	444,557		$	723,992
States		221,070			269,418
		665,627			993,410
Deferred:
Federal		(9,662	)		138,959
States		(2,568	)		39,193
		(12,230	)		178,152
Provision for income taxes	$	653,397		$	1,171,562

F-16

~~The~~SURGE ~~Company~~COMPONENTS, ~~files a consolidated income tax return with its wholly-owned subsidiaries~~INC. A ~~reconciliation~~AND ~~of the difference between the expected income tax rate using the statutory federal tax rate and the Company’s effective rate is as follows:~~SUBSIDIARIES

	Years ended
	November 30,			November 30,
	2023			2022
U.S Federal Income tax statutory rate		21	%		21	%
State income taxes		9	%		7	%
Other		10	%		(4	)%
Effective tax rate		40	%		24	%

Notes to Consolidated Financial Statements

~~F-17~~NOTE H– INCOME TAXES (Continued)

~~SURGE~~A ~~COMPONENTS~~valuation allowance for the deferred tax assets relates principally to the uncertainty of the utilization of deferred tax assets and was calculated in accordance with the provisions of ASC 740, ~~INC.~~which ~~AND~~requires ~~SUBSIDIARIES~~that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized.

~~Notes~~The toCompany’s ~~Consolidated~~income ~~Financial~~tax ~~Statements~~expense consists of the following:

NOTE J – OPERATING LEASE COMMITMENTS

	Years Ended
	November 30, 2024			November 30, 2023
Current:
Federal	$	301,928		$	444,557
States		127,573			221,070
		429,501			665,627

Deferred:
Federal		(14,912	)		(9,662	)
States		(4,616	)		(2,568	)
		(19,528	)		(12,230	)
Provision for income taxes	$	409,973		$	653,397

The Company ~~leases~~files ~~its~~a ~~office~~consolidated ~~and~~income ~~warehouse~~tax ~~space~~return ~~through~~with ~~2030~~its ~~from a corporation that is partly~~ wholly-owned bysubsidiaries. A ~~officers/shareholders~~reconciliation of the ~~Company (“Related~~difference ~~Company”).~~between ~~Annual minimum rental payments to~~ the expected ~~Related~~income ~~Company~~tax ~~approximated~~rate ~~$194,000~~using ~~for~~ the ~~year~~statutory ~~ended~~federal ~~November 30,~~tax ~~2023,~~rate and ~~increase~~the atCompany’s ~~the~~effective rate ofis ~~two~~as ~~per cent per annum throughout the lease term.~~follows:

Pursuant to the lease, rent expense charged to operations differs from rent paid because of scheduled rent increases. Accordingly, the Company has recorded deferred rent. Rent expense is calculated by allocating to rental payments, including those attributable to scheduled rent increases, on a straight line basis, over the lease term.

	Years ended
	November 30,			November 30,
	2024			2023
U.S Federal Income tax statutory rate		21	%		21	%
State income taxes		9	%		9	%
Other		3	%		10	%
Effective tax rate		33	%		40	%

~~The Company has a lease to rent office space and a warehouse in Hong Kong through June 2025. Annual minimum rental payments for this space are approximately $73,580.~~F-17

~~The~~SURGE ~~Company has a lease to rent additional warehouse space in Hong Kong through November 30~~COMPONENTS, ~~2025~~INC. ~~Annual~~AND ~~minimum rental payments for this space are approximately $76,170.~~SUBSIDIARIES

~~The~~Notes ~~Company’s~~to ~~future~~Consolidated ~~minimum~~Financial ~~rental commitments at November 30, 2023 are as follows:~~Statements

~~Twelve~~NOTE ~~Months~~I ~~Ended~~– ~~November~~OPERATING ~~30,~~LEASE COMMITMENTS

2024	$	351,957
2025		325,343
2026		210,372
2027		214,580
2028		218,872
2029 and after		412,380
	$	1,733,504

The Company leases its office and warehouse space through 2030 from a corporation that is partly owned by officers/shareholders of the Company (“Related Company”). Annual minimum rental payments to the Related Company approximated $194,000 for the year ended November 30, 2024, and increase at the rate of two per cent per annum throughout the lease term.

~~Net~~Pursuant ~~rental~~to the lease, rent expense ~~for~~charged ~~the~~to ~~years~~operations ~~ended~~differs ~~November~~from ~~30,~~rent ~~2023~~paid ~~and~~because ~~November~~of ~~30,~~scheduled ~~2022~~rent ~~were~~increases. ~~$449~~Accordingly,~~057~~ ~~and~~the ~~$446,474~~Company has ~~respectively,~~recorded ofdeferred ~~which~~rent. ~~$278,599 and~~Rent ~~$275,042~~expense ~~respectively~~is calculated by allocating to rental payments, ~~was~~including ~~paid~~those attributable to scheduled rent increases, on a straight line basis, over the ~~Related~~lease ~~Company~~term.

~~NOTE~~The KCompany –has ~~EMPLOYMENT~~a ~~AND~~lease ~~OTHER~~to ~~AGREEMENTS~~rent office space and a warehouse in Hong Kong through June 2025. Annual minimum rental payments for this space are approximately $73,580.

InThe ~~February 2016, the~~ Company ~~entered~~has ~~into~~a ~~revised~~lease ~~employment agreements with two officers of the Company. Pursuant~~ to ~~these~~rent ~~agreements, the~~additional ~~base~~warehouse ~~salary~~space ~~for~~in ~~one~~Hong ~~officer~~Kong isthrough ~~$275,000~~November ~~and the base salary for the other officer is $225~~30,~~000.~~ ~~The agreements continue until terminated by either party~~2025. In ~~April~~Annual ~~2021,~~minimum ~~the~~rental ~~base~~payments ~~salaries~~ for ~~the~~this space ~~two~~are ~~officers~~approximately ~~were amended to~~ $~~300~~76,~~000 for one officer and $250,000 for the other officer~~170.

The Company’s ~~compensation~~future ~~committee~~minimum ~~may~~rental ~~award~~commitments ~~these~~at ~~officers~~November with bonuses and will review the base salary amounts for each of the officers on an annual basis to determine if any changes to the base salary amounts need to be made and may also award these officers with annual bonuses. Pursuant to the employment agreements30, ~~the~~2024 ~~officers~~ are ~~prohibited~~as from engaging in activities which are competitive with those of the Company during their employment with the Company and for one year following termination. If the agreement is terminated other than for cause, the officer would be entitled to all base salary earned through the date of termination, accrued but unused vacation, all vested equity, and bonus amounts payable to the officer through the date of termination. The officers would also be entitled to receive an additional thirty-six months of annual compensation equal to the average of his base salary and bonus for the three calendar years prior to the date of termination, payable in accordance with the Company’s regular payroll practice over a 52-week period.follows:

~~F-18~~Twelve Months Ended November 30,

SURGE COMPONENTS, INC. AND SUBSIDIARIES

2025	$	330,166
2026		210,372
2027		214,580
2028		218,872
2029		223,250
2030 and after		189,132
	$	1,386,372

~~Notes~~Net rental expense for the years ended November 30, 2024 and November 30, 2023 were $452,019 and $449,057 respectively, of which $282,894 and $278,599 respectively, was paid to ~~Consolidated~~the ~~Financial~~Related ~~Statements~~Company.

~~NOTE~~The Lremaining –weighted ~~MAJOR~~average ~~CUSTOMERS~~lease term is 5 years at November 30, 2024. The weighted average discount rate is 5.25% at November 30, 2024.

~~The~~NOTE ~~Company~~J ~~had~~– ~~two~~EMPLOYMENT ~~customers~~AND ~~who~~OTHER respectively accounted for 20% and 18% of net sales for the year ended November 30, 2023 and two customers who accounted for 12% and 21% of net sales for the year ended November 30, 2022. The Company had one customer who accounted for 27% of accounts receivable at November 30, 2023 and one customer who accounted for 26% of accounts receivable at November 30, 2022.AGREEMENTS

~~NOTE~~In MFebruary –2016, ~~MAJOR~~the ~~SUPPLIERS~~Company entered into revised employment agreements with two officers of the Company. Pursuant to these agreements, the base salary for one officer is $275,000 and the base salary for the other officer is $225,000. The agreements continue until terminated by either party. In April 2021, the base salaries for the two officers were amended to $300,000 for one officer and $250,000 for the other officer. In April 2024, the employment agreements for Ira Levy and Steven Lubman were amended to increase the base salary to $330,000 and $275,000, respectively.

~~During~~The Company’s compensation committee may award these officers with bonuses and will review the ~~years~~base ~~ended~~salary ~~November~~amounts ~~30,~~for ~~2023~~each of the officers on an annual basis to determine if any changes to the base salary amounts need to be made and ~~November~~may 30also award these officers with annual bonuses. Pursuant to the employment agreements, ~~2022~~the ~~there~~officers ~~was~~are prohibited from engaging in activities which are competitive with those of the Company during their employment with the Company and for one ~~foreign~~year ~~supplier~~following ~~accounting~~termination. If the agreement is terminated other than for ~~31%~~cause, the officer would be entitled to all base salary earned through the date of termination, accrued but unused vacation, all vested equity, and ~~33%~~bonus amounts payable to the officer through the date of ~~total~~termination. ~~inventory~~The officers would also be entitled to receive ~~purchased~~an additional thirty-six months of annual compensation equal to the average of his base salary and bonus for the three calendar years prior to the date of termination, payable in accordance with the Company’s regular payroll practice over a 52-week period.

The Company purchases substantially all of its products overseas. For the year ended November 30, 2023, the Company purchased 34% of its products from Taiwan, 21% from Hong Kong, 38% from elsewhere in Asia and less than 1% overseas outside of Asia. The Company purchases the balance of its products in the United States.F-18

~~NOTE~~SURGE NCOMPONENTS, –INC. ~~EXPORT~~AND ~~SALES~~SUBSIDIARIES

~~The~~Notes ~~Company’s~~to ~~export~~Consolidated ~~sales~~Financial ~~were as follows:~~Statements

	Years Ended
	November 30,		November 30,
	2023		2022
Canada		5,606,222		9,211,350
China		5,869,886		8,302,001
Other Asian Countries		1,288,598		2,674,309
South America		188,220		149,225
Europe		1,133,838		2,120,165

NOTE K – MAJOR CUSTOMERS

~~Revenues~~The ~~are~~Company ~~attributed~~had totwo ~~countries~~customers ~~based~~who onrespectively ~~location~~accounted for 19% and 15% of net sales for the year ended November 30, 2024 and two customers who accounted for 20% and 18% of net sales for the year ended November 30, 2023. The Company had one customer who accounted for 34% of accounts receivable at November 30, 2024 and one customer who accounted for 27% of accounts receivable at November 30, 2023.

~~F-19~~NOTE L – MAJOR SUPPLIERS

During ~~NONE false FY 0000747540 true 0000747540 2022-12-01 2023-11-~~the years ended November 30 ~~0000747540 2023-05-31 0000747540~~ , 2024~~-02-24 0000747540 2023-11-~~ and November 30 ~~0000747540 2022-11-30 0000747540 us-gaap:SeriesCPreferredStockMember~~ , 2023-11-30 0000747540 us-gaap:SeriesCPreferredStockMember 2022-11-30 0000747540 us-gaap:SeriesDPreferredStockMember 2023-11-30 0000747540 us-gaap:SeriesDPreferredStockMember 2022-11-30 0000747540 2021-12-01 2022-11-30 0000747540 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2021-11-30 0000747540 us-gaap:CommonStockMember 2021-11-30 0000747540 us-gaap:AdditionalPaidInCapitalMember 2021-11-30 0000747540 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-11-30 0000747540 us-gaap:RetainedEarningsMember 2021-11-30 0000747540 2021-11-30 0000747540 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2021-12-01 2022-11-30 0000747540 us-gaap:CommonStockMember 2021-12-01 2022-11-30 0000747540 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sprs:InventoryPurchasedMember us-gaap:SupplierConcentrationRiskMember 2022-12-01 2023-11-30 0000747540 sprs:OverseasOutsideOfAsiaMember sprs:InventoryPurchasedMember us-gaap:SupplierConcentrationRiskMember 2022-12-01 2023-11-30 0000747540 country:CA 2022-12-01 2023-11-30 0000747540 country:CA 2021-12-01 2022-11-30 0000747540 country:CN 2022-12-01 2023-11-30 0000747540 country:CN 2021-12-01 2022-11-30 0000747540 sprs:ElsewhereInAsiaMember 2022-12-01 2023-11-30 0000747540 sprs:ElsewhereInAsiaMember 2021-12-01 2022-11-30 0000747540 srt:SouthAmericaMember 2022-12-01 2023-11-30 0000747540 srt:SouthAmericaMember 2021-12-01 2022-11-30 0000747540 srt:EuropeMember 2022-12-01 2023-11-30 0000747540 srt:EuropeMember 2021-12-01 2022-11-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure purchased.

The Company purchases substantially all of its products overseas. For the year ended November 30, 2024, the Company purchased 31% of its products from Taiwan, 15% from Hong Kong, 49% from elsewhere in Asia and less than 1% overseas outside of Asia. The Company purchases the balance of its products in the United States.

NOTE M – EXPORT SALES

The Company’s export sales were as follows:

	Years Ended
	November 30,		November 30,
	2024		2023
Canada		3,563,825		5,606,222
China		8,577,535		5,869,886
Other Asian Countries		773,311		1,288,598
South America		86,193		188,220
Europe		1,459,678		1,133,838
Mexico		43,860		-

Revenues are attributed to countries based on location of customer.

F-19

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