Reports strong growth in government sales pipeline
Herndon, VA (GLOBE NEWSWIRE) - Sysorex (OTCQB: SYSX) (“Sysorex” or the “Company”), the preeminent, U.S.-based, publicly traded Ethereum mining and technologies company, today announced that its wholly owned subsidiary, Sysorex Government Services, Inc. (SGS) has been awarded multiple government contracts totaling more than $16 million during this third quarter of 2021, to date. These new orders are from the U.S. Department of Justice, Bureau of Prisons (BOP) and the U.S. Department of Agriculture (USDA).
The new contracts include five BOP orders totaling approximately $11.3 million and two USDA orders totaling approximately $4.9 million. Revenue recognition for these orders is expected as the contracts are performed during the next four-to-six months, subject to accounting standards prior to invoicing.
Under the SecurPASS® Full Body Security Screening Program, SGS previously installed more than 100 Canon® body scanners in federal correctional facilities and one of the BOP contracts is for annual maintenance of these scanners totaling approximately $1.5 million. The balance of the BOP contracts, which total approximately $9.8 million, are for security assessment services.
Pursuant to the USDA contracts, SGS will procure, customize and deliver tablet computers to the USDA supporting Food Safety and Inspection Service (FSIS) and the U.S. Forest Service (USFS). The FSIS contract totals approximately $3.1 million and the USFS contract totals approximately $1.8 million.
“These latest contracts from the USDA were entered into as part of SGS’s nearly $30 million Blanket Purchase Agreement and prior to these awards, SGS was awarded $3 million in USDA contracts earlier this year,” said Zaman Khan, President of SGS. “We are also excited to report that the new BOP contracts were competitively solicited and awarded to SGS and are in addition to the $10 million contract for secure video relay systems previously announced on July 13, 2021.”
“Our recent merger and capital offering, producing gross proceeds of approximately $12.4 million, has greatly improved SGS’s position with our suppliers and partners,” continued Mr. Khan. “These contracts are a clear indicator that our strategy is working, and we are allocating resources towards business development initiatives that are providing a favorable return on investment. We are in an excellent position to secure further orders through SGS’ government contracts.”
Wayne Wasserberg, Chief Executive Officer of Sysorex said, “By working closely with management of our SGS subsidiary, we have been able to offer resources that have expanded SGS’ access to suppliers, resulting in competitive pricing and favorable terms that mitigate the need for upfront cash. Onboarding of new original equipment manufacturers has also improved SGS’ offerings, translating into new business lines. At the same time, we continue to pursue opportunities to work with smart contracts on the Ethereum Blockchain, especially in the public sector, and we are capitalizing on SGS’ experience and best-in-class contracts. We are confident that we will add to our portfolio of services to include blockchain implementation for government clients in the near future.”
About Sysorex, Inc.
Sysorex, Inc. (“Company”) is a data center owner and operator and is the preeminent U.S.-based, publicly traded Ethereum mining and Ethereum Blockchain technologies company. Following the Company’s merger with TTM Digital Assets & Technologies, Inc. (“TTM”), the Company shifted its primary business focus to the mining of Ether (ETH) and opportunities related to the Ethereum Blockchain. The Company currently owns and operates approximately 10,000 NVIDIA GPUs generating approximately 500 Gigahash of computing power, which GPUs include thousands of Cryptocurrency Mining Processors (“CMPs”). These GPUs are currently online and securing the Ethereum Blockchain and generating ETH around the clock with industry leading efficiency. In addition to the mining of ETH, the Company continues to operate its wholly owned subsidiary, Sysorex Government Services, Inc. (“SGS”), a business that provides information technology products, solutions and services to federal, state, and local government, including system integrators. The Company is also advancing strategies to leverage decentralized finance (“De-Fi”) and Non-Fungible Token (“NFT”) opportunities powered by the Ethereum Blockchain.
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While the Company has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of the Company and its subsidiaries, which could cause actual results to materially differ from such statements, including the uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all, the other factors discussed in the “Risk Factors” section of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 24, 2021 and the Company’s subsequent periodic reports, and the risks and uncertainties described in other filings that the Company made or may make with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
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