May 2021 Shareholders Update

Hello Shareholders,

MPP celebrates its first anniversary today (May 11th), and I would like to take some time to reflect on where we are as a business exiting our first year.

Our first year of operations was solidly in the red, as expected for a startup, and closely following the heels of closing our year-end is our first projected cash flow positive month right here in May. Beyond getting Eligere to market, our team invested a lot of time over 2020-21 in establishing an operating structure that will allow us to scale rapidly and respond to new market opportunities. That investment is now paying off as we have closed two strategic development partnership agreements over April and are preparing to scale the team to deliver on this work. As I look back on our first year, we have faced challenges associated with operating business in COVID times like many companies. Unlike many, we have done so without the support afforded to established companies. I am very proud of what the team has accomplished to this point in light of these challenges and look forward to a year of rapid growth ahead.

Strategic Partnerships

I am happy to share that our Strategic Partnership efforts have borne fruit over the last month. I mentioned CalTen in my last update and can share the news that we have signed contracts for that deal at this time. CalTen grants us exposure to the Calgary software market and the oil and gas sectors. As part of this agreement, MPP Software has secured an equity stake in CalTen and long-term recurring revenue opportunities through implementation, support, and ongoing development work. We have also presented the solution to NRC-IRAP. Once we complete the system's architectural design, we will be positioned to receive grants for some of this work as a PPP to solve an industry-specific problem for oil and gas.

I can also share today that we have reached an agreement on a two-phase engagement with Just Ring The Bell (JRTB), a realtor tool similar in design to Eligere Estate but with a very different market and business case. Using our experience developing Eligere, we will be adopting the JRTB prototype and complete commercialization work on it as partners with the system owners. We have secured an equity stake in JRTB and have the potential for long-term recurring revenue through service delivery once the commercial product is deployed.

This early diversification of our software portfolio insulates MPP from industry-specific blips. It allows us to apply our development aptitude and product management expertise to a broad range of problems.

Grants and Student Partnerships

MPP has successfully qualified for several grant programs to offset our growth costs. We have qualified under the Canada Summer Jobs Grant program, Alberta SMERG program, and TechNation, allowing us to live our value of creating opportunities for young Canadians in a diversified economy.

We are happy to have strong relationships we have established with the University of Alberta’s coop program, focusing on their Computer Science program to source employment of student developers to augment our team. Kevin Li, one of our first hires through this program, has led the Eligere mobile app development. We have a similar relationship with the University of Lethbridge’s coop program, which grants us access to business and marketing resourcing who are augmenting our head office team in Lethbridge. Finally, the University of Lethbridge’s leading New Media program has an internship program we are tapping into for resources to assist with social media management and online content creation for our different brands.

Working with these partners lets us add resource capacity at a low cost while giving tomorrow’s technology leaders real-world experience and coaching.

Consulting Agreements

MPP Software has established two key consulting agreements, leveraging two of our senior resources for part-time advisory roles with other organizations. These agreements are sufficient in scope to cover 50% of MPP’s operating costs for 2021-22 on their own.

Eligere Estate Sales

April was our best month yet for Eligere sales. Our user base grew by 40% and our subscriptions by 50% in April. We booked our highest revenue to date also, which is very exciting news. We also achieved a major milestone in April with the signing of our first Eligere Corporate sale. Charmed Family Resorts have selected Eligere as their booking and payment platform for their unique Resort property. If you aren’t familiar with them, definitely check out this Canadian success story and their grand vision for a full resort property development in Western Canada over the next few years. Charmed is a great fit for Eligere as each of their bookable properties is different, making their site a poor fit for traditional direct booking software systems targeted at hotels.

Update to Revenue Projections

On the strength of our partnership agreements, Eligere Corporate sale, and continuing growth of the Eligere user base, we have increased our revenue projections for FY 21-22 to $1MM CDN and FY22-23 to $1.6MM.

Staff and Expanded Team

In closing, I’d like to share who we have working on our team going into 2021-22:

Colin Moreland – CEO

Vincent Sundar – COO

Francisco Castillo – CFO

Paige Sarrasin – VP Customer Experience

Scott Campbell – VP Product Development

Annelize Foster – HR Contractor

Isaac Argueta – QA Analyst

Sharon Rowan – Sales and Consulting

Kevin Li – Software Engineer Intern

Arlene Tablan – Marketing Finance Analyst (Coop)

Afaq Nabi – Software Engineer Intern

Bryan Meniru – Social Media Intern

And our third-party experts supporting us on specific functions:

Digital Persona – Social Media, Web and IT

Modern Sage Legal Services – Legal representatives

Shaw & Associates – Accountants

RDP Associates – Grant and SRED Experts

Together, we are driving MPP forward and aiming to make our second year our breakout year as a business.

Equity Available

There remain 850,000 of the total of 1.3MM private shares available for sale from our private sellers currently. If you are interested in acquiring a larger portion of the company before our next wave of growth kicks in, please feel free to contact me.

As always, thank you to everyone who has backed us this far.

Colin Moreland, CEO, MPP Software