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07.07.2024
Dear Investors,
I'm pleased to share some exciting data from a recent installation that demonstrates the substantial value we can create for small parking lot owners. For those in Minnesota you’ll probably recognize this location.
MicroLots: Turning 30-Space Free Parking Lot Into $27K/Month Revenue Streams
Customer Spotlight: Stillwater, MN MicroLot Conversion
A previously free, 30-space lot behind a popular bar/restaurant/music venue was routinely abused by non-patrons and generated minimal income -- only during occasional special events with hired attendants. There was no payment infrastructure or enforcement in place.
MPS Solution: Rapid Monetization & Enforcement
Within days of approvals:
QR Scan-to-Pay signage was live
LPR cameras installed and enforcing in <2 weeks
Fully automated 24/7 monitoring and violation issuance
30-Day Performance Snapshot
$27.2K Total Gross Revenue
$9.8K Gross Parking Revenue
$17.4K Estimated Violation Revenue (normalized for full enforcement month: 251 violations in 14 enforcement days, $65 fine and 50% collection rate)
71.9% Compliance Rate – trending upward as behavior normalizes
Compelling Economics: <1 month Payback
Customer:
Invested ~$5k for installation/signage
$11.6k NOI (net operating income) in first month
MPS:
Invested ~$6k for equipment
$14.5k Net Revenue (after credit card fees) in first month
Unlocking $2 Million in Property Value
By activating MPS’ technology, this property is generating $11,600 in new monthly passive income with minimal upfront cost to the owner.
At a 7% cap rate, this new income stream translates to an immediate $1.99 million increase in property value ($11,600 NOI x 12 months divided by 7% cap rate).
This jump in value gives the owner real financial leverage – whether they choose to refinance, sell at a premium, or simply enjoy a dramatically higher net operating income (NOI). And as compliance increases beyond the current 72%, that value continues to grow.
Recent SafetyStick Wins.
I am also pleased to share that over the past week, MPS has secured three signed new SafetyStick contracts – in New Jersey, Virginia, and Texas.
Belleville, NJ, located just 10 miles from New York City, officially signed on after passing a city resolution to proceed with MPS. Belleville is a densely populated community where illegal parking presents serious safety and traffic challenges. (Fun fact: It's also the hometown of Joe Pesci and Frankie Valli & The Four Seasons.)
In Emporia, VA, we're expanding into a more rural, less densely populated area than our typical target. The city places a high priority on enforcing parking laws in critical safety zones, and leadership recognized the SafetyStick's value in addressing high-risk violations.
Fredericksburg, TX, located about an hour and half west of Austin, is now on board with strong support from local law enforcement. The Police Chief is an enthusiastic advocate for the SafetyStick and its impact on pedestrian and traffic safety. We are expecting more news from Texas cities, stay tuned.
These wins reflect the growing versatility and appeal of our platform across different community types – and continue to validate our mission to improve safety and support municipal operations.
We hope you had a safe and enjoyable 4th and are making the most of summer. Thank you for your continued support, we're energized and focused on driving the business forward.
Hold on to your hats!
Joe
