June 2021 Shareholders Update

Hello Shareholders,

I am pleased to write to you today in June, as we will end the month with June 2021 being MPP Software’s first profitable month as a business. 12 months to get to this point, but our diversification efforts have borne fruit, and we have submitted invoicing for over $200,000 to kick off our second fiscal year.

Big Changes Entering Year 2

I want to take a moment and explain our business restructuring going into our second year and some strategic shifts we have made to increase cash flow and diversify our revenue streams.

Over our first year, our focus was to establish a team, processes, systems and the rest of the foundation needed to support rapid growth in the future. Those goals were established, and we have a company today that is agile, has strong technical skills suited to a variety of problems, and connected to industry partners who will help amplify our growth going forward. As we go into our second year and have closed several key partnership agreements and major contracts in May and early June, our focus is shifting from setting up a strong company to managing our growth sustainably.

MPP Software’s most conservative forecasts project us booking $400,000 in sales and services revenue in our shortened fiscal year 2, which will end on December 31st. We have already invoiced over half of that. As we pursue a healthy pipeline of additional opportunities and start to execute on our new partnerships, we will be focused on doing so in a way that lets us scale our business without taking on too much too fast.

Diversification and Revenue Streams

We have reconfigured the business to generate revenue from multiple avenues based on our teams’ talents.

Consultancy

We have signed a handful of consultancy agreements whereby our leaders will spend some of their time sharing their experience and technical aptitude with other companies on a contract basis.

Eligere – Individual

Our flagship product, Eligere, for private property sharing for individual subscribers has been growing slower than we had originally forecast. We remain committed to evolving and supporting the Eligere product as our first product, but we will be subsidizing this line of business with other revenue streams while we give the community of homeowners time to grow. While that occurs, we have invested in our marketing leadership and partners to work with us on increasing the growth rate of the Eligere community.

Eligere – Corporate

We closed our first major client for Eligere Corporate in May and are in active negotiations with several other parties to use the system for niche commercial properties and online communities.

Development Partnerships

MPP Software has arranged for equity and support contracts as we advance with the partners we are developing solutions for. As these products go live, they will contribute direct revenue and indirect value growth through our equity holdings in their parent companies, which in turn has double benefit to the value of MPP Software itself.

Grants and Credits

We continue to actively engage provincial and federal partners in grant requests and opportunities. In particular, we are working with these partners to scale our team, leveraging 3rd party strategically to create job opportunities.

Altogether, opening these revenue streams and unlocking the earning potential of our leadership team through consultancy is multiplying our growth and allowing MPP to stay largely in line with the revenue projections of the original business plan outlined in early 2020. In fact, MPP is set to achieve a profitable position a year ahead of the original plan and exceed the original business plan revenues in 2022.

Remaining Equity Available

75,000 Founder Shares, 300,000 Class A shares, and 300,000 Class B shares remain available for sale from existing shareholders at $1/share for any parties interested in buying into MPP Software before our next wave of growth impacts the valuation again. This is a non-dilutive offering, and MPP Software is simply brokering transactions between private parties for any sales.

Colin Moreland, CEO, MPP Software