MPHASE REPORTS RECORD QUARTERLY REVENUE DURING FIRST FISCAL QUARTER

Gaithersburg, MD, Nov. 19, 2019 (GLOBE NEWSWIRE) — mPhase Technologies, Inc. (OTC: XDSL) (“mPhase” or the “Company”) today reported financial results for its first fiscal 2020 quarter ended September 30, 2019. In conjunction with this release, the Company is also providing additional details on its strategy for the remainder of fiscal 2020. For Q1/2020, management is noting the following items of importance:Revenue set an all-time record of $7.6 million, compared to zero revenue reported in Q1/2019;Sequential Q1/2020 quarter-over-quarter revenue increased 203% compared to $2.5 million in revenue reported in the prior quarter (Q4/2019);Gross profit was 24.6%, as expected for the current revenue mix;The Company incurred $1.2 million of software development costs from the use of consultant developers as demand for the Company’s technology solutions is greater than the rate at which the Company can hire employee developers;A non-cash stock-based compensation expense of $10.0 million related to CEO and CFO stock based awards;Operating loss was $10.1 million and net loss was $10.3 million;Excluding the non-cash stock-based compensation expense ($10.0 million) and depreciation and amortization ($0.2 million), proforma operating income was $0.2 million, which is in-line with our early stage revenue cycle and includes start-up costs for multiple new business units; andThe revenue mix consisted of 81% subscription, 12% service and support, and 7% application development and implementation“This quarter was outstanding in every aspect,” said mPhase CEO Anshu Bhatnagar. “Achieving triple digit sequential revenue growth in just three quarters after taking over this business is very encouraging, but we are really just getting started. We’ve already guided to a $30 million revenue run rate, but we have some things planned that may make that a conservative forecast. Our goal is to layer on additional revenue sources via both internal development and acquisitions, while pushing forward on a number of legacy patent opportunities, so the game plan is quite ambitious.”Upcoming initiatives include:Launch the full business-to-business (B2B) segment of Travel Buddhi by calendar year-end 2019;Launch the full business-to-consumer (B2C) segment of Travel Buddhi by calendar year-end 2020;Finalize late-stage M&A and partnership discussions that will add revenue streams within one quarter of closing;Identify and partner with new channel partners, similar to the existing ETI partnership;Continue to expand the iLearningEngines relationship to generate sequential revenue growth extending beyond fiscal 2020; andComplete pending collaborations to accelerate commercialization of key patents“We started with a team so small you could count us on one hand, but in less than a year, we are already approaching 100 full-time personnel,” said CEO Bhatnagar. “We’ve scaled up quickly, because we have some tremendous product initiatives that we are getting ready to unveil. Travel Buddhi alone is something that will be carefully watched by the travel industry, because it represents a new way to use artificial intelligence in real time to improve a traveler’s experience. Over the next year, we expect to have one of the fastest growth rates in the technology sector based solely on our existing contracts, but we also have multiple projects in process that could accelerate that growth rate. For the foreseeable future, our growth will be almost entirely organic, which should provide additional evidence that mPhase is not a roll-up or turn-around, but a technology company with unique skill sets that are in high demand.”About mPhase Technologies, Inc.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. Please follow us on twitter: @mPhase_Tech for the latest updates.Safe Harbor StatementThis 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: