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05.30.2024
Dear Shareholder,
Momentum continues to build at MPS. The last few weeks have delivered meaningful customer wins and positive developments on the IP front. Below is a sales and business update on our SafetyStick, Lot/Garage and Microlot businesses, followed by commentary on a significant newly awarded patent.
SafetyStick: Broad Customer Reordering Activity.
We are encouraged by recent business secured through sole-source procurement methods, bypassing the traditional RFP process that can take 12+ months. This acceleration is helping cities adopt SafetySticks more efficiently and affordably.
You are going to see the word “resolution” quite a bit in this update. Understanding the Role of City Council Resolutions – Especially in New Jersey is important.
Under the Local Public Contracts Law (LPCL), municipalities must follow formal procedures to award contracts for goods and services. In New Jersey, city council resolutions are critical to this process. They:
Authorize procurement: A resolution must be passed before a municipality can solicit bids or proposals for services such as parking enforcement.
Award contracts: A resolution is also required to officially award the contract to a selected vendor.
Promote transparency: These resolutions create a public record of decisions, ensuring accountability in the use of public funds.
Simply put, positive resolutions represent municipal trust in our technology. While resolutions help bring in new customers, I’m happy to report we are seeing a steady stream of reorders from satisfied customers. We’re pleased to report that in the past few weeks, every MPS customer in Massachusetts, Michigan, Maryland, and Pennsylvania has placed reorder batches of SafetySticks. Additionally, half of our New Jersey customers have reordered at least once.
Recent Wins & Key Developments
Jersey City, NJ:
The City Council approved a resolution awarding MPS a contract, marking our expansion into one of New Jersey’s most high-profile municipalities – right across the river from Manhattan.Cambridge, MA:
The City Council approved a home rule petition to enable automated enforcement. This paves the way for SafetySticks in one of Massachusetts’ most forward-thinking cities.Waltham, MA:
The City Council discussed deploying SafetySticks after hearing of their success in nearby Somerville. A resolution vote is anticipated.Newburyport, MA:
The city signed a contract for off-street enforcement on Plum Island, a major summer destination near Boston. This marks our first municipal parking lot contract in Massachusetts and our fourth customer in the state.Honesdale, PA:
On May 1, the City Council approved the use of camera enforcement, clearing the way for an MPS contract resolution in June.Cranford, NJ:
On May 5, the City Council subcommittee unanimously recommended proceeding with SafetySticks.Emporia, VA:
On May 24th, the City Council passed a resolution to move forward with our SafetySticks throughout the city. This is our second city in the state of Virginia.
Continued Momentum in Lots & Garages
Back in November we announced the ASM Global contract. We are starting to put these locations in now. Last week we went live at the Tucson Arizona Convention Center and the Superdome in New Orleans should be live in July. We’ve seen strong operational momentum with numerous other new installations in recent weeks. Here are just a few of the highlights, with many more currently underway:
Minnesota:
Norhart Oakdale Parking Garage.
Parking at Canterbury Racetrack.
Texas:
Waco Bank Lot (Waco)
Florida:
P8801 – West Palm Beach – Delta Hotels by Marriott
P2548 – Miami: Whole Foods
P2973 – Lakes Regional Park – Lee Count
P2961 – Boat Ramp – Lee County
P2967 – Caloosahatchee Regional Park – Lee County
P2970 – Boat Ramp – Lee County
P2971 – Hickey’s Creek Mitigation Park – Lee County
P2969 - Caloosahatchee Regional Park – Lee County.
P2968 - Caloosahatchee Regional Park – Lee County.
Illinois:
P5322 – Chicago Garage (MPS FUSIONAI™ Node installed here)
Ohio:
P8676 – Garfield Cincinnati Garage (550 spaces)
Arizona:
Tucson Convention Center
Oklahoma:
P6914 – Tulsa, OK (The Williams Companies
P6918 – Tulsa, OK (The Williams Companies)
P6921 – Tulsa, OK (The Williams Companies)
North Carolina:
P6403 – Raleigh Parking Garage
Washington:
P5547 – Seattle -230 spaces
Microlot Momentum: Expanding the Frontier of Automated Parking Management
Building on recent success with larger commercial deployments, we’re excited to report growing traction with “microlots” – a rapidly emerging segment of the market we are uniquely positioned to serve.
As a reminder, over the past 12+ months, we streamlined and repackaged our core parking lot and garage technology into a compact, cost-effective format tailored to smaller lots (~10–50 spaces). These locations have traditionally been overlooked due to the operational and technological costs constraints. Our solution – anchored by 1-2 LPR cameras, scan-to-pay and text-to-pay functionality – now unlocks new passive income streams for commercial property owners of all sizes.
As highlighted in our recent white paper, we believe this is a multi-billion-dollar market opportunity – a long-under-served segment now made accessible through MPS's patented technology.
Recent Installations & Expansion Highlights
Bar, Restaurant and Event Venue at Canterbury Downs (Shakopee, MN). We’re thrilled to announce a new installation at a high-profile venue situated near the starting gate at Canterbury Downs racetrack. This new bar, restaurant and entertainment venue is just a few feet from the horses and jockeys and will host special events year-round, generating high parking demand. With over 200 spaces, this site exemplifies how our hassle-free, fully automated parking system appeals not only to small lot owners but also to larger venues seeking operational simplicity. Go-live is expected by the end of June.
Waco, TX – Follow-On Lot. Following the successful launch of our first 35-space lot in Waco, the customer quickly greenlit a second lot – now installed and set to go live by mid-June. The original location paid for itself within three months and is on pace to generate $50,000+ in incremental annual income for the customer. At a 7% cap rate, that equates to a $700,000+ increase in property valuation – a powerful example of what rapid, passive ROI can look like.
This was previously a free parking lot. Using our integrated parking validation tools, dozens of on-site tenants/businesses now manage guest and employee parking seamlessly through mobile-based monthly permitting, self-validation, and promo codes.
New Market Beachheads
St. Paul – Iconic Cafe
Our first installation in St. Paul will be live in June at an iconic breakfast and lunch dining spot. The restaurant’s lot was often filled by freeloading non-customers after hours – until now. With a couple of LPR cameras and our AI-powered backend software, this formerly free lot is being transformed into a high-performing, automated income generator with expected passive NOI in the tens of thousands annually. Go-live is scheduled within two weeks.
Stillwater, MN – Bar & Music Venue
A 25 space Microlot, at one of Stillwater’s historic bar and entertainment venues, will go live in early June. This lot, previously free and frequently abused by neighboring business patrons, is now transitioning to 24/7 paid access. We're in conversations with additional property owners in Stillwater. Special thanks to one of our investors for the introduction!
Scaling to Larger Portfolios
Looking ahead, we anticipate launching multiple microplots in Minneapolis this summer, supported by property owners managing dozens of parking assets across the Midwest. In parallel, we're engaging in early-stage discussions with a couple national commercial real estate developers and managers, whose interest is being driven by the success of these early deployments.
To support this anticipated growth, we’re actively building out our sales team, systems infrastructure, and deployment capabilities. While some scale-up time and investment is required, the direction is clear: the market is rapidly moving toward frictionless, AI-powered parking – and MPS is uniquely positioned to lead this shift.
Expanding Our IP Portfolio: Another Key Patent Awarded
We’re excited to share that MPS has been awarded a new U.S. patent – No. 12,315,30 – further strengthening our intellectual property portfolio and reinforcing our leadership in smart parking technology.
This latest patent centers on our core use case: capturing a vehicle’s license plate upon entry and exit using cameras and linking that data to a cloud-based system, kiosk, and user device (such as a mobile phone). The patented process enables a parker to:
Request and purchase parking time via mobile app or kiosk
Receive a digital confirmation and countdown based on the timestamp of vehicle entry
Be notified when time is running out and extend their session remotely
Automatically exit via license plate recognition (LPR), or pay any remaining balance at the kiosk or via mobile
The patent also covers configurations with and without exit gates, highlighting the flexibility and scalability of our platform.
This innovation reflects the depth and foresight of MPS’s R&D, combining LPR, mobile payments, kiosks, and optional gating to deliver a seamless parking experience. It’s another strong addition to our growing IP portfolio and a clear marker of the defensibility and value of our technology stack. I think we are going to have a few of our competitors poop their old pants when they find about this patent.
Speaking about our competitors it is now time to turn up the heat on them. Our major victory in the US Patent office several weeks ago, has given us a big hammer to swing. We are starting to swing it. I want to be very clear here, we will enforce our patents. More details to come on this topic. Stand bye.
We will be having another shareholder update on June 9th.
As always if you have questions call me, notice how I did not say email me or text me.
Hold on to your hat!!
Joe
