mPhase Technologies, Inc. announced that it has entered into a securities purchase agreement with AJB Capital Investments LLC for private placement of a 10% convertible promissory note for gross proceeds of $300,000 on August 22, 2022. The company will issue warrants to purchase 250,000 shares. The August Note matures on February 22, 2023, bears interest at the rate of 10% per annum and beginning 180 days after the issuance of the Note and only upon the occurrence of an Event of Default.

The Company has the right to prepay all or any portion of the outstanding balance of the August Note. The August Note provides that the Company has 90 days to cure any events of default resulting from the CompanyÆs failure to timely make filings with the Security Exchange Commission for the quarter ending March 31, 2022 and a further 30 days to cure any events of default for any other filings failures.