Gaithersburg, MD, Oct. 13, 2021 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”), a technology company developing the mPower 5G-enhanced electric vehicle (EV) charging network and consumer engagement platform, today reported financial results for both its fiscal 2021 fourth quarter and full year ended June 30, 2021. The fiscal 2021 filing represents a major milestone as the first profitable annual results in the Company’s 25 years as a public company.

Fiscal Fourth Quarter 2021 Financial Highlights:

• Revenue increased slightly to $7.8 million compared to $7.6 million in the prior year quarter
• Gross profit margin increased 190 basis points to 27.8%, compared to 25.9% in the same year-ago quarter
• Operating loss of ($0.5 million) was directly affected by a significant increase in software development, which jumped 205% to $1.8 million compared to $0.6 million in the prior quarter
• Net loss of ($0.4 million), compared to net income of $0.75 million in the year-ago quarter
• The Company’s cash position doubled quarter-over-quarter to $2.5 million
  

Fiscal 2021 Full Year Financial Highlights:

• Net income set an all-time record of $1.7 million, compared to a loss of $14.1 million in Fiscal 2020
• Annual EPS was $0.02 compared to negative ($1.08) in the prior year
• During April 2021, mPhase recapitalized with $4.6 million in new financing, and negotiated a one-time payment of $235,000 to eliminate its largest legacy debt ($784,000), which resulted in a $549,000 gain upon its settlement
• The Company’s working capital strengthened significantly to $9.8 million
• Stockholders’ equity established a new record of $11.7 million, a 112% increase over the $5.5 million at year end 2020
• Due to continued improvement in the Company’s financial condition and its plans for future profitability and capital, there is no longer substantial doubt as to the Company’s ability to continue as a going concern, as reflected in the recently filed Form 10-K.

Management Commentary

“We had substantial financing and housekeeping activity in the fourth quarter as part of our effort to position mPhase for our coming growth phase, so our results included a higher-than-average number of one-time charges and adjustments,” explained CEO Anshu Bhatnagar. “The end result is that we are now well positioned to take our company to the next stage, with a strong, clean balance sheet and improved receivables. While all of our revenue currently comes from our core learning track technology platform and services business, our future growth is centered on the implementation of our EV-focused mPower ecosystem.”

“We recognize that investors are anxiously waiting to see first-hand what that ecosystem will look like. I was pleased this week to provide several examples of the kind of scale that we have ahead of us, via announcements that will give us more than 2,600 sites under our mPower brand. Additionally, we are in active partnership discussions with companies across the EV spectrum, including firms in EV transportation, real estate, traditional gas stations, restaurant and retail, higher education, grocery stores, utility and other consumer services. We intend to move toward more rapid coverage in several geographies where we have the highest concentrations of multi-site customers, where several states look to be excellent candidates for significant penetration during our initial rollout.”

“Our mPower ecosystem is resonating with companies looking to increase their green footprint and ESG (Environmental, Social and Corporate Governance) activities, while also increasing sales to their locations. This is a very flexible package, enabling chain operators to implement EV charging and ultra-high speed 5G in locations that are site appropriate, while layering our consumer engagement platform across their entire chain. Our revenue streams will vary by location under a variety of plans and configurations, but mPhase will generate monthly recurring revenue from each site. We are currently staffing up in anticipation of our first installations and expect to announce additional contracts through the end of the year.”

Conference Call Information

mPhase management will host a conference call and live webcast on October 14, 2021 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the company's financial results.

To access the live call, dial 877-451-6152 (local) or 201-389-0879 (international).

A live webcast of the conference call can be accessed by clicking on the following link: mPhase FY2021 Earnings Call Webcast. Webcast Audio will stream through your selected device. A full replay of the presentation will be available at the same link shortly after the conclusion of the live presentation.

The live and archived webcast of the conference call will also be accessible on the Investor Relations section of the company's website at ir.mphasetech.com. The phone replay will be available approximately two hours following the end of the call, and will remain available for one week. To access the call replay dial-in information, please use the following link: 844-512-2921, passcode: 13724281.

About mPhase Technologies

mPhase is an emerging EV-centric technology company focused on consumer engagement using data analytics and artificial intelligence to create a monetizable link between consumers and retailers at opportunistic times and places. The Company is currently building a connected ecosystem of EV charging, 5G internet connectivity and software solutions that optimize consumer engagement within the framework of a SaaS/TaaS model. Branded under the mPower name, this ecosystem will empower the way people shop, dine, fuel and interact with the world to create a richer life experience. The mPower ecosystem is tailored to each individual’s tastes and needs, with particular emphasis on empowering tomorrow’s green consumer. mPhase also has data driven business units generating recurring revenue outside of its consumer ecosystem, in addition to legacy nanobattery technology and a related patent portfolio that are slated for future development. Additional information can be found at the mPhase website, www.mphasetech.com; and at www.mpower.co. 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.

Investor Contact:
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Investor Contact
Brian M. Prenoveau, CFA
MZ Group - MZ North America
561-489-5315
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