Investor Presentation 9841 Washingtonian Blvd, Suite 390 Gaithersburg MD 20878 Email: info@mPhaseTech.com Stock: XDSL (OTCMKTS) Tel: 973-256-3737 June 2020
mPhase Technologies: AI-Based Technology mPhase is an AI-focused technology company that currently operates in five business segments: Co Consu sumer Tr Travel On Online Data Da Battery Ba Engag En ageme ment Pl Plan anning Training Tr Analysis An Te Technology mP mPhase ex e expec pects t to h have mu e multipl ple r e rev even enue s e sources es b by y yea ear-en end 20 2020 20. 2
First Goal: Establish Strategic Expertise mP mPhase Headcount 107 120 96 100 80 57 46 60 40 22 20 2 0 MAR-19 JUN-19 SEP-19 DEC-19 MAR-20 JUN-20 February 2019 – formed May 2020 – acquired March 2019 – added a June 2019 – added a mPhase Technologies assets of CloseComms , team of travel software team of data specialists India and created Center gaining experts in specialists via Travel via Alpha Predictions of Excellence (COE). consumer engagement. Buddhi acquisition. acquisition. 3
The Result: Consistent Revenue Streams Key financial metrics Fiscal 2019 Fiscal 2020 Our core learning Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 business produces Revenue $ - $ - $2,500,000 $ 7,569,612 $ 7,561,967 $7,556,507 Cost of revenue - - - 5,706,514 5,623,930 5,624,876 consistent revenue Gross profit - - 2,500,000 1,863,098 1,938,037 1,931,631 Operating expenses 54,754 1,422,737 2,723,926 11,945,636 8,028,453 711,459 mPhase has completed Operating (loss) income (54,754) (1,422,737) (223,926) (10,082,538) (6,090,416) 1,220,172 Other (expense) income (8,397) (15,870) (68,582) (222,973) 155,652 171,968 its period of non-cash (Loss) income from charges continuing operations (63,151) (1,438,607) (292,508) (10,305,511) (5,934,764) 1,392,140 before income taxes Income taxes - - - - - - Q3 Fiscal 2020 was the (Loss) income from (63,151) (1,438,607) (292,508) (10,305,511) (5,934,764) 1,392,140 continuing operations first profitable quarter in Net (loss) income $(56,249) $(1,442,412) $ (277,795) $(10,250,817) $(5,934,764) $1,392,140 company history Gross margin % n/a n/a n/a 24.6% 25.6% 25.6% 4
The Revenue Growth Stage Has Arrived The first quarter (Q4/19) under the new revenue-centric strategy exceeded the sum total of all revenue generated in the company’s prior history. Th The c current r t revenue $30M annual run rate is on track mPHASE REVENUE HISTORY str strate tegy is s focuse used on for fiscal 2020. ($USD) Soft So ftware as a Se Service $35,000,000 (SaaS) (S ) type contra racts 2020E Q4, $7.6M $30,000,000 $25,000,000 th that h t have 8 80%+ 2020 Q1-Q3, $22.7M $20,000,000 recurri re urring re reve venue ue and $15,000,000 po pote tenti tial e expa pansi sion $10,000,000 2009, $186,579 2019, $2,500,000 2015, $1,142,785 $5,000,000 op oppor ortunities es. . $- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5
Revenue Stream #1 -- Online Training Technology Key initiatives include: • May 2019 – Partnered with the fastest growing company in online training, iLearningEngines Th The Le Learning Tr Track d division • July 2019 – Acquired Learning Track , an India- ha has developed a product based provider of real-time online training platf pl tform d desi signed to to • August 2019 – Signed $30M annual contract to provide software, training, and support services to mo monitor the effectiveness an IT solutions and services company of of training in rea eal-ti time. 6
Collaborations & Partnerships May 17, 2019 – mPhase Technologies, Inc. announced that it had entered into a non- binding Memorandum of Understanding with iLearningEngines, Inc. a leader in Mission Critical Training services and the 5 th fastest growing technology company in North America. This a Th arrangement w t will c create te Sa SaaS S revenu nue streams, tied to in industry-le leadin ing growth rates. 7
Revenue Stream #2 – Customer Engagement Acquired in May 2020, currently in deployment phase: Pr Predi dictive • Developed and tested – Commercial ready, entering algorithms al ms revenue generation stage under the “21:32” brand help tailor he • Successful - 30% increase in conversion rates during pr promoti tions s pilot with Subway to m to maximize • Open-ended, recurring revenue model – Per location subscription service targeting the Quick Service suc success. ss. Restaurant (QSR) sector 8
CloseComms – Key Technology A patented platform that helps businesses increase app acquisition, retention and engagement by converting their guest Wi-Fi into a customer engagement tool. Stores learn their customers’ preferences to send the right promotional deals at the right times. Connect Locate Engage Anonymously & Learn Intelligently A dashboard AI builds a deep Intelligent predictive AI tracks the Customers download Anonymous provides a detailed understanding of the campaigns can be run to customer as they go the app to receive technology is laid view of target customer’s achieve specific about their day. Wi-Fi, creating an over an existing app customer’s purchasing business goals, such as anonymous profile. or built into a new preferences. behaviors. targeting competitor one to provide a share. seamless connection. 9
Future Revenue #3: Travel Buddhi Key Features: Travel Bu Buddhi • Addresses all four stages in a travel experience adju ad justs in in real al-ti time lifecycle - explore, plan, book and in-destination to to a tr traveler’s engagement (beta completed). timeta ti table and • Technology driven, with elements of AI, pref pr efer eren ences ces, wi with blockchain, chatbot, dynamic itinerary, & location cu custom omer er technologies. enga en gagemen gement from om • Built on a scalable ecosystem of content start st rt to finish. sh. providers, travel suppliers, retailers, and fulfilment partners. 10
Travel Buddhi: End to End Engagement Growth Drivers: • B2B (subscription revenue) and B2C (commissions from advertisements and bookings) • Year-one goal, 8000 destinations • Partnerships 11
#4 Alpha Predictions LLP – Data Specialists Alpha Predictions is developing a suite of software-based tools covering diverse data with global potential. Al Alpha Predictions has developed de d a a re recommendation Sentiment Marketing engine th en that c t can b become a a Analysis Optimization platf pl tform te technology w with th Customer Inventory applicat ap ations in man many indu dustries. Segmentation & Behavior Agro-tech Electrocardiogram Automation 12
Other Assets: Intellectual Property and Patents Prior management spent more than $211 million on technology development, creating a valuable IP portfolio. De Deficit accumulated during development stage ($ ($USD) ($185,000,000) 2010 2011 2012 2013 2014 2015 2016 2017 2018 ($190,000,000) ($195,000,000) De Decades of R&D D yielded ($200,000,000) pr primarily pa pate tents a ts and ($205,000,000) proto pr toty type pes, s, so some o of w which 2018 ($211,678,692) ($210,000,000) ha have commercial potent ntial. ($215,000,000) 13
First Legacy Candidate: The mPhase Smart NanoBattery Background: The mPhase Smart NanoBattery features a unique architecture that enables: • a shelf life measured in decades • remote activation • programmable control Strong patent protection • scalable manufacturing – with multiple patents • and adaptability to multiple issued from 2001-2010 configurations (lithium, rechargeable, green, etc.) 14
mPhase Model – Revenue Diversity, Operational Synergy Discovery Phase Revenue Phase Team Building Phase We We ar are now staf affed d Phase 2 Phase 3 Analyze the mPhase Recurring revenue Build out the mPhase with in-ho wi house exp xperts legacy portfolio for already in place in two team to include monetizable assets divisions, with transaction professionals with skill wh who can an serve as as a a and IP. Explore M&A and contract revenue to sets to support a mix in high growth fields. follow. of tech businesses. re resourc urce acro ross the en entire e mPhase e R Battery technology is Headcount is now at Goal: Add new e the first candidate to 107 employees. revenue sources infr in frastruct cture. s u show progress. every quarter. Q4/19 l was the first true t s revenue quarter in company history. 15
Meeting Strategic Goals Year One 2019 Goals: 2020 Goals: • Fix the share structure via a • Create two uncorrelated sources of reverse split (completed) recurring revenue by mid-2020 • Build a team of experts (completed) (completed) • Generate first revenue stream in • Expand customer base (in process) company history (completed) • Full commercial launch of Travel • Successfully run Travel Buddhi Buddhi (pending) beta ( completed) • Advance battery IP (in process) • Restart legacy IP (completed) • Top $30M in annual revenue (on track) AI was a buzzword in 201 AI 019, but a necessity in software development in in 2020. mPhase now has the tale lent to exce cel l in in AI applica licatio ions. 16
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