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10.31.2023
Dear Shareholder,
Today is trick or treat day and boy do I come bearing treats. Since we last spoke, a ton of great things have come our way. Once again, I would like to apologize in advance for the length of this email. This will be a long one. So many great things to talk about.
We continue to close deals at a record pace and our sales pipeline is also the largest it has ever been. I have never been more excited about this company as I am today. We are on fire.
Let’s jump into the update.
SafetySticks
On the stick front we continue to land new deals. We now have our first city under contract in the state of Texas. McAllen, TX is now our customer. Texas is a very large part of our business plan and as you have noticed, once we land one deal in a state, other cities start to follow, and quickly. We now have verbal commitments from some of the biggest cities in Texas and will continue to work those until close. Stay tuned for more great news on Texas.
Deals we reported in the last update have been installed and violations are now flowing in new states like VA and PA. In PA we signed our third agreement in three months, Pottsville, PA.
Re-orders: One good indicator of market acceptance and success is customers in PA and NJ are reordering sticks and finding new applications for them i.e., Time Parking and modifying local ordinances to maximize the safety and fiscal value of SafetySticks. Linden, Little Falls, and Guttenberg, NJ all ordered more sticks in the last few weeks. Guttenberg uses our sticks in no parking areas but have now expanded them into their 15 min only parking spots. I am excited to see how this works. My hunch it that is will be a grand slam. Up until this point, the SafetySticks have only been used in no parking spots such as fire hydrants and bus stops. If you stop and think about how many cities have parking spots that are for short-term parking like 15 min only, there are tons, and no one is doing anything to enforce.
Ordinance changes this quarter:
Several cities in New Jersey have changed their parking rules and city ordinances to raise the prices on local ordinances that enable the city to keep more of the violation and not have to pay a higher fee to the state for “state” violations.
North Plainfield passed a local ordinance for SafetySticks only, changing the amount to $80 from $55 for all locations monitored by sticks.
Little Falls passed an ordinance that is going into effect November 5th that will change the violation amount for all SafetySticks to local ordinances for $50 each
Linden went live with 24 sticks to enforce Title 39 and is changing all to local ordinances in December to $60
Guttenberg - added more sticks that went live early September to enforce local ordinances for $55
Just these simple ordinance changes should increase MPS revenue in those cities by $1,500 per day. Other cities in Massachusetts have changed multiple ordinances to accommodate tickets by mail and the first ever use of cameras. This is anticipation of a contract with MPS so we will comment further in our next updates.
We continue to install lots as fast as we can. In the last several weeks, below is what has gone in:
Premium:
Installed 4 lots in West Haven, CT and live with enforcement
Installed lot in Ocala, FL and live with enforcement
Installed additional garage in Rock Hill, SC and live with enforcement
Installed 5 lots at Westgate Entertainment District in Glendale, AZ and live with enforcement
Installed 2 lots at Westgate District Shops in Glendale, AZ and live with enforcement
Installed 1 garage in Lexington, KY (our first deal in Kentucky) and live with enforcement.
Installed 2 lot in Excelsior, MN and live with enforcement
Installed 1 garage in Cincinnati, OH (our deal in Ohio) and working on going live next month
Installed 3 more lots in New Orleans and working on going live next month.
Installing another garage in Seattle, WA. and working on going live next month
And many more being finalized for installation before the year end
ParkPlace(Chavez):
Working on final installation plans for 2 more lots and 1 garage in Atlanta with expectations of having them fully installed by end of year. They have told us to expect an additional 4 to 6 lots before the year is out.
Interstate Parking:
Jointly testing manual ticketing importing and processing between our two systems and we will be doing on the manual enforcement for them across all their assets starting Dec 1st
Finalizing design for Open Lot Automated enforcement API between our two systems to support 3rd party cameras already installed and working to have in production by Jan. 1st, 2024
Augsburg University
Augsburg University went live in September. Augsburg is leveraging all aspects of the MPS platform, including Permit Management, SafetyStick and Fixed Based Automated Enforcement for lots and garages on campus. They continue to express gratitude and excitement regarding the partnership, especially around the MPS team. They are seeing newfound success around compliance which they contribute to MPS. Soon, MPS will be launching scan to pay which will allow Augsburg to monetize visitor parking.
New Manufacturing Facility
We are now up and running with our new SafetyStick manufacturing faciality in Temple, Texas. We have been working on this for months and it is finally complete. This is the biggest news of the entire update (in my opinion). We are very excited about this because it lets us grow the business to scale. Our current setup in Minnesota only allows for production of 50 sticks per week. Our new facility will allow us to produce up to 3,600 sticks per week. That is a big jump. This is what we need to start building the company to scale.
As we sit here today, MPS technology is up and running in 30 states and 84 cities. I think back just a couple years ago when we were only in 3 states and 4 cities. We will continue to grow the business. As of this morning there are 466 deals in our sales pipeline. This number continues to climb.
As always if you have questions call my cell.
Hold onto your hat!
Joe