mPhase Renews Primary Revenue-Producing Software License Agreement for Additional Three-Year Term

Rhea-AI Summary

mPhase Technologies (XDSL) announced on May 19, 2022, that it has renewed its primary technology contract with a channel partner for an additional three years. This contract, initially established on June 30, 2019, generates approximately $8.4 million quarterly and more than $33 million annually. The licensing agreement allows the partner to utilize mPhase's cloud-based software, enhancing their business solutions. The company's Chairman and CEO emphasized the importance of this contract in solidifying a recurring revenue base while expanding the mPower EV charging platform.

Positive

• Secured contract renewal for three years, ensuring revenue predictability.
• Current agreement generates approximately $8.4 million quarterly and $33 million annually.
• Strengthens the transition towards subscription-based revenue models.
• Supports expansion of the mPower EV charging and consumer engagement ecosystem.

Negative

• None.

Rockville, MD, May 19, 2022 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC Pink: XDSL) (“mPhase” or the “Company”), a technology company developing the mPower EV+ (electric vehicle) charging network and consumer engagement platform, today announced that it has amended and renewed its primary technology contract with its channel partner for an additional three-year term. This important contract is a follow-on to the original three-year license agreement dated June 30, 2019. The agreement currently generates about $8.4 million in quarterly revenue and more than $33 million in annual revenue.

Under this renewed license, the channel partner gains the right to utilize the mPhase proprietary cloud-based software as part of its platform of global business solutions. The mPhase Intelligent AI platform is a powerful system that includes real time tracking of skill development, making it highly attractive for industry-specific business training applications. In addition to a monthly software subscription, mPhase is also providing training, maintenance, updates and other support functions for a monthly fee.

“Renewing this license for another three-year term is an important achievement, because it demonstrates the value of our software on a global basis,” said mPhase Chairman and CEO Anshu Bhatnagar. “This agreement also gives us an operational advantage, because it generates highly predictable Software as a Service (SaaS) and monthly fee revenue, enabling us to maintain a solid recurring revenue base as we build out promising new revenue streams in our mPower EV charging and consumer engagement ecosystem. With today’s announcement, we’ve locked down an important segment of our revenue forecast for the next three years. We are well on our way to realizing our goal of having multiple sources of income, more than 85% of which will be generated by highly desirable, subscription-based contracts. We expect this strategy to really come into focus during the remainder of 2022, as our new mPower revenue sources expand via the full launch of our EV charging platform.”

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.

Investor Contact:
ir@mphasetech.com

FAQ

What is the significance of the contract renewal announced by mPhase Technologies on May 19, 2022?

The contract renewal secures a three-year revenue stream of approximately $8.4 million quarterly for mPhase Technologies.

How much revenue does the renewed contract generate for mPhase Technologies?

The renewed contract generates about $8.4 million in quarterly revenue, totaling over $33 million annually.

What technology does mPhase Technologies provide under the renewed contract?

mPhase Technologies provides a proprietary cloud-based software platform as part of the renewed contract.

What are the future plans for mPhase Technologies following the contract renewal?

mPhase Technologies plans to expand its mPower EV charging platform and enhance subscription-based revenue models.