mPhase Technologies, Inc. announced a private placement of 12% convertible note for gross proceeds of $40,000 on December 27, 2013. The company issued securities pursuant to exemption provided under Regulation D. The note bears an interest at the rate of 12% per annum and will mature on October 1, 2014. The note is convertible into shares of the company. The conversion price will be calculated based on that if the average trading price of the common stock for the five trading day period ending on the latest complete trading date prior to a conversion date is equal to or greater than 0.002 the conversion price shall be 65% multiplied by the market price representing a discount rate of 35%, and if the average trading price of the common stock for the five trading day period ending on the latest complete trading date prior to a conversion date is less than 0.002, the conversion price shall be 60% multiplied by the market rice representing a discount rate of 40%. The transaction involved participation from a new accredited investor, MH Investment Trust.

On January 8, 2014, mPhase Technologies, Inc. closed the transaction.