Sysorex Reports Eight-Fold Increase in Revenue for Q3 2021

Ends Q3 with greater than $4.3 million in Money

Present Market Worth of Mined Ethereum Exceeds $6.1 million

HERNDON, Va., Nov. 15, 2021 (GLOBE NEWSWIRE) — Sysorex (OTCQB: SYSX), the preeminent, U.S.-based, publicly traded Ethereum mining and applied sciences firm, at this time offered a enterprise replace and reported monetary outcomes for the third quarter ended September 30, 2021.

Wayne Wasserberg, CEO of Sysorex, commented, “We proceed to make strong progress following the merger between Sysorex and TTM Digital Belongings & Applied sciences in April of this yr. Notably, our Q3 income elevated greater than eight-fold to $4.9 million, in comparison with $0.6 million for a similar interval final yr. We proceed to implement our technique of mining Ethereum and holding the Ethereum we mine in our Ethereum treasury wallets at Coinbase and Gemini, and the present worth of the Firm’s Ethereum holdings exceeds $6.1 million. By strategically holding our Ethereum, we consider the Firm will develop its alternatives for income era above the anticipated appreciation within the worth of Ethereum however we could regulate this technique relying on quite a lot of market elements.”

“Earlier this month, we bought the remaining pursuits in our major information middle situated in upstate New York. With 100% possession of our information middle, and the information middle and all GPUs owned free and clear by Sysorex, now we have since elevated our Ethereum mining capability by roughly 10%, and we count on to realize price financial savings as we centralize our mining operations. We’re additionally within the strategy of implementing a sophisticated administration system to additional maximize the efficiencies of our GPUs.”

“Moreover, our Sysorex Authorities Companies (SGS) enterprise was awarded a number of authorities contracts in Q3 totaling greater than $16 million in worth, which quantity ought to be realized within the coming months as SGS executes on these agreements, and the work is underway. We proceed to pursue alternatives to make the most of good contracts on the Ethereum Blockchain, by leveraging SGS’s authorities presence and contract portfolio.”

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“The Firm maintains a strong steadiness sheet with over $4.3 million of money on the finish of the quarter. Our internet earnings for the primary 9 months of 2021 was negatively impacted by one-time bills associated to the acquisition of TTM and transaction prices. Nevertheless, we nonetheless generated over $3 million of adjusted EBITDA (see reconciliation beneath), year-to-date. General, now we have constructed a extremely scalable enterprise mannequin, and, given our robust income development, we look ahead to driving vital worth for shareholders in 2022. Moreover, we stay centered on up-listing to a nationwide trade, which we consider will assist drive elevated consciousness throughout the funding neighborhood. The Firm is extraordinarily inspired by the outlook for the enterprise and appears ahead to offering additional updates within the weeks and months forward, as we execute on quite a lot of key upcoming milestones.”

Revenues for the three months ended September 30, 2021, and 2020 had been $4.9 million and $0.6 million, respectively. Achieve (losses) from operations for the three months ended September 30, 2021, and 2020 had been $(2.5) million and $0.2 million, respectively. Internet positive factors (losses) for the three months ended September 30, 2021, and 2020 had been $(3.5) million, or ($0.02) per share, and $0.2 million, or $0.00 per share, respectively.

The whole financials will likely be out there within the Firm’s Kind 10-Q, which will likely be filed with the Securities and Trade Fee.

EBITDA Reconciliation

The Firm presents adjusted EBITDA as a result of it believes it conveys helpful data to traders relating to the working outcomes as an extra means for traders to view operations, when thought of with each GAAP outcomes and the reconciliation to internet earnings (loss). By together with this data, the Firm believes it may well present traders with a extra full understanding of the enterprise. The Firm believes Adjusted EBITDA is a great tool for traders to evaluate the working efficiency of the enterprise with out the impact of curiosity, earnings taxes, depreciation and amortization and different non-cash objects together with inventory based mostly compensation, amortization of intangibles, change within the honest worth of shares to be issued, impairment of goodwill and one time fees, together with achieve/loss on the settlement of obligations, severance prices, provision for uncertain accounts, acquisition prices and the prices related to public choices. The Firm believes that it’s helpful to supply to traders a typical working metric utilized by administration to guage our working efficiency. Regardless that the Firm believes Adjusted EBITDA is helpful for traders, it does have limitations as an analytical instrument. Thus, the Firm urges traders to not think about this metric in isolation or as an alternative choice to internet earnings (loss) and the opposite mixed carve-out assertion of operations information ready in accordance with GAAP. Adjusted EBITDA shouldn’t be thought of a measure of discretionary money out there to put money into the expansion of the enterprise or as a measure of efficiency in compliance with GAAP. The Firm compensates for these limitations by relying totally on our GAAP outcomes and offering Adjusted EBITDA solely as supplemental data.

ABOUT SYSOREX, INC.

Sysorex, Inc. (“Firm”) is an information middle proprietor and operator and is the preeminent U.S.-based, publicly traded Ethereum mining and Ethereum Blockchain applied sciences firm. Following the Firm’s merger with TTM Digital Belongings & Applied sciences, Inc. (“TTM”), the Firm shifted its major enterprise focus to the mining of Ethereum (“Ether” or “ETH”) and alternatives associated to the Ethereum Blockchain. The Firm at the moment owns and operates roughly 11,000 NVIDIA GPUs producing greater than 550 Gigahash of computing energy, which GPUs embrace 1000’s of Cryptocurrency Mining Processors (“CMPs”). These GPUs are at the moment on-line and securing the Ethereum Blockchain and producing ETH across the clock with business main effectivity. Along with the mining of ETH, the Firm continues to function its wholly owned subsidiary, Sysorex Authorities Companies, Inc. (“SGS”), a enterprise that gives data know-how merchandise, options and providers to federal, state, and native authorities, together with system integrators. The Firm can be advancing methods to leverage decentralized finance (“De-Fi”) and Non-Fungible Token (“NFT”) alternatives powered by the Ethereum Blockchain.

Secure Harbor Assertion

All statements on this launch that aren’t based mostly on historic truth are “forward-looking statements” throughout the which means of the Personal Securities Litigation Reform Act of 1995 and the provisions of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended. Whereas administration has based mostly any forward-looking statements included on this launch on its present expectations, the knowledge on which such expectations had been based mostly could change. These forward-looking statements depend on quite a lot of assumptions regarding future occasions and are topic to quite a lot of dangers, uncertainties and different elements, a lot of that are outdoors of the management of Sysorex, Inc. and its subsidiaries, which may trigger precise outcomes to materially differ from such statements. Such dangers, uncertainties, and different elements embrace, however aren’t restricted to, the fluctuation of financial situations, the affect of COVID-19 on Sysorex’s outcomes of operations, Sysorex’s potential to combine the merchandise and enterprise from current acquisitions into its current enterprise, the efficiency of administration and staff, the regulatory panorama because it pertains to privateness laws and their applicability to Sysorex’s know-how. Different elements which are detailed in Sysorex’s periodic and present stories out there for evaluate at sec.gov. Moreover, Sysorex operates in a extremely aggressive and quickly altering setting the place new and unanticipated dangers could come up. Accordingly, traders shouldn’t place any reliance on forward-looking statements as a prediction of precise outcomes. Sysorex disclaims any intention to, and undertakes no obligation to, replace or revise forward-looking statements.

Investor Relations
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
E-mail: SYSX@crescendo-ir.com