MPHASE REPORTS THIRD CONSECUTIVE PROFITABLE QUARTER AND BEGINS CONVERTIBLE NOTE REPAYMENTS

Gaithersburg, MD, Jan. 20, 2021 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”) reported financial results for its fiscal 2021 first quarter, which ended September 30, 2020. The first quarter of fiscal 2021 financial results achieved the Company’s third consecutive profitable quarter. In conjunction with this release, the Company is also providing additional operational developments.

For fiscal Q1 2021, management is noting the following items of importance:

• Revenue remained steady at $7.6 million, a continuation of the recurring revenue trend in recent quarters and in line with the $7.6 million reported in fiscal Q1 2020;

• Gross profit margin of 25.9% was 130 basis points higher than the 24.6% reported in fiscal Q1 2020;

• Operating income of $1.2 million achieved the Company’s third consecutive profitable quarter compared to a loss of $10.1 million in fiscal Q1 2020;

• Net income of $0.7 million achieved the Company’s third consecutive profitable quarter, compared to a net loss of $10.3 million in fiscal Q1 2020;

• Basic and diluted net income per common share of $0.01 significantly improved from basic and diluted net loss per share of ($0.85) in Q1 2020; and

• Stockholders’ equity achieved a new record at $7.0 million, a 27% increase over the $5.5 million reported at prior fiscal year-end June 30, 2020.

Following the fiscal Q1 2021 reporting period, the Company is pleased to report additional positive developments:

• Receipt of the $14.2 million in receivables reported in fiscal Q1 2021 is underway, reducing this outstanding balance;

• Increased cash flows enabled the Company to pay off two convertible promissory notes in early January, significantly strengthening the balance sheet and avoiding dilution; and

• Upon yesterday’s filing of the fiscal Q1 2021 Form 10-Q for the quarter ended September 30, 2020, the Company is current in its filings with the Securities and Exchange Commission.

“As this quarter shows, our base learning management system (“LMS”) business is exceptionally steady, and we expect that to continue,” explained mPhase CEO Anshu Bhatnagar. “The benefit of this recurring revenue stream is finally starting to show, as we were able to generate sufficient cash flow recently to pay off multiple convertible notes, significantly strengthening our financial standing for the coming year. Now that we have caught up on our reporting, we are ready to commence some exciting initiatives designed to build on and leverage our historic presence in the battery space. Our goal for this year is to bring on additional revenue streams, so we look forward to sharing more details on this plan in the near future.”

Financial Results and Corporate Update Conference Call

Due to expected near-term corporate events, mPhase plans to hold a combined earnings and operational update call that will provide a better forum for discussion of its strategic plan for 2021. The date and dial in information will be provided in a subsequent corporate communication. The Company expects to schedule this call before the end of January 2021.

About mPhase Technologies

mPhase is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. The Company is assembling industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com; and at www.learningtrack.com. Please follow us on twitter: @mPhase_Tech for the latest updates.

Safe Harbor Statement

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Contacts:

Investor Contact:
ir@mphasetech.com