Surge Components is a small distributor of electronic components, buying parts from Asian manufacturers and reselling them to OEM customers and other distributors across North America. Surge operates two business units: the core Surge unit, which sells capacitors (primarily aluminum electrolytic) and discrete components like rectifiers, transistors, and diodes; and Challenge, which sells audible components including buzzers, speakers, microphones, and alarms. These components are commodity building blocks used in power supplies, computers, appliances, automotive electronics, and consumer products. Surge sells through in-house staff, roughly 30 independent sales rep organizations paid ~5% commission on net sales, and three of the world's top four electronics distributors. Surge also acts as the exclusive North American sales agent for Lelon Electronics of Taiwan, earning commissions on introduced sales without taking inventory risk. Surge's core margin depends on the spread between what it pays Asian suppliers and what it charges customers. Surge holds one-to-two months of inventory across 3,000+ part numbers and generally waives price protection and return rights, meaning it bears full inventory risk if component prices fall. Lelon capacitors alone account for ~28% of consolidated sales. Challenge also does some component brokering and employs engineers to help customers customize parts, adding some account stickiness. Surge targets small and mid-sized OEMs that larger distributors tend to overlook.