Milestone Two Assessment Reportmodum.io AGTechnoparkstrasse 1CH - 8005 ZurichJuly 2018

Executive Summary 3A letter from the modum team

Milestone Review 4An overview of each Milestone

Assessing Milestone Two 5A summary of how modum has acheived Milestone Two

Contents

2www.modum.io Technoparkstrasse 1CH - 8005 Zurichinfo@modum.io

Executive Summary

Dear fellow MOD Token holders,

The modum team is happy to announce Milestone Two voting will occur from July 10 to July 24. This Milestone Assessment Report is being made available so that all token holders can make an informed decision on whether the goals set out in our whitepaper pertaining to Milestone Two, have been achieved.

The MOD token sale helped us to poise modum for growth, enabling us to secure the resources we need to take the company to the next level. Following the token sale, we brought Simon on as CEO. The team has since doubled in size and the space we oc-cupy has tripled. Three key collaborations have been formed with Swiss Post, Deloitte, and SAP, each will be fundamental in growing our solutions offering. With Swiss Post we are pushing forward a solution that solves their very specific needs and also allows us to collect data that will help us to build our Analytics and Predictions capabilities. De-loitte will help us to establish and integrate our monitoring solution with their customers as an implementation partner. Alongside SAP we are working on our Events and Actions services to automate notifications between parties within a supply chain that are con-nected via blockchain and SAP’s software.

We believe the MOD Token’s structure contributed to its success: dividends for share-holders are forfeited in favour of ubiquitous profit sharing through MOD Tokens. Only upon positive voting in Milestones Two through Four, will shareholders receive the tokens through which profit sharing will be paid. In this way, the shareholder’s compen-sation is aligned with the interests of the token holders.

Milestone Two is a very significant milestone. It presents the most important of objec-tives (ensuring go-to-market) and will release the first allotment of tokens to a wallet controlled by modum for distribution to shareholders. Milestone Two asks token hold-ers to decide, with a simple majority yes or no, if we have ensured go-to-market with a product that has two environmental sensors and works with two blockchains. We are very eager to have maximum participation during Milestone Two voting because we believe it is an important moment for modum. The following report provides an overview how we have indeed achieved our objectives for Milestone Two.

- The modum team

3www.modum.io Technoparkstrasse 1CH - 8005 Zurichinfo@modum.io

Milestone Review

MILESTONE ONE: Token Distribution

The objective of Milestone One was to ensure a proper minting and token distribution process, releasing 900,000 tokens to a wallet controlled by modum upon positive voting. MOD Token distribution was based on each transaction’s timestamp in the blockchain. Timestamps were used to calculate the crypto-currency to USD, which were then converted to MOD Tokens. This process was supervised by our advisor Lykke Corp. The released tokens are used for our advi-sors, consultants, and the bug bounty program.

Status: CompletedVoting Period: November 3 - 17, 2017Outcome: Successful

MILESTONE THREE - Real Time

The objective of Milestone Three is to deliver the next sensor generation with real-time interaction (via current or emerging network technologies, like LoRaWAN). In addition, at least one ad-ditional environmental sensor is integrated (eg. light or humidity) and any two additional block-chain back-ends of the following: IOTA, NEO, Fabric, ETC, Rootstock, Waves, Tezos, EOS or Cosmos, are supported. Three million tokens are released to a wallet controlled by modum upon positive voting.

Status: UnderwayVoting Period: Earliest Q1/2019Outcome: N/A

MILESTONE TWO: Go-to-Market

The objective of Milestone Two is to ensure the go-to-market of our first product line including the mass production of our dedicated sensor device and the product ecosystem. In addition, at least two environmental sensors should be in-tegrated into the hardware platform (temperature and motion) and besides Ethereum at least one of the following blockchains: IOTA, NEO, Fabric, ETC or Rootstock, should be supported. Three million tokens are released to a wallet controlled by modum upon postive voting.

Status: Voting Voting Period: July 10 - 24, 2018Outcome: N/A

MILESTONE FOUR - On-Chip Blockchain Node

The objective of Milestone Four is to deliver the next sensor generation with a real-time, on-chip blockchain node. In addition, at least one addi-tional environmental sensor (e.g. light or humidity) is integrated and the complete modum software is delivered in a fully decentralized architecture. 3 million tokens are released to a wallet controlled by modum upon positive voting.

Status: UnderwayVoting Period: Earliest Q1/2020Outcome: N/A

4www.modum.io Technoparkstrasse 1CH - 8005 Zurichinfo@modum.io

Assessing Milestone Two

5

Ensured Go-to-Market

Two Environmental Sensors

Two Blockchains Supported

W h a t i t m e a n s :

Ensuring go-to-market means that modum has provided a functional solution to select customers.

W h a t w e h a v e d o n e :

• modum’s solution is be-ing deeply integrated into Swiss Post’s track and trace system. (Press Release)

• modum was announced alongside SAP’s block-chain at their annual cus-tomer event, SAPPHIRE NOW. SAP has identified modum as a primary use case for its blockchain. The modum solution is being integrated into SAP’s ecosystem. (Presentation)

W h y t h i s i s i m p o r t a n t :

• Having ensured go-to mar-ket means that we can begin growing our customer base for our standard solution and begin adapting a proven prod-uct for large players in pharma and logistics.

W h a t i t m e a n s :

Two environmental sensors integrated into modum’s solu-tion means that our hardware is now equipped with two sensors.

W h a t w e h a v e d o n e :

• The sensing device for modum’s first solution MODsense T, is being mass produced with a tempera-ture sensor and an acceler-ometer. (Specifications)

W h y t h i s i s i m p o r t a n t :

• The integration of an ac-celerometer in addition to a temperature sensor is the first step towards proving the scalability of our hard-ware, with respect to adding sensors. Acceleration data is crucial for future applications and provides a powerful ana-lytics tool in the mean time.

W h a t i t m e a n s :

Two blockchains supported means that the modum solution now supports Ethereum and one other blockchain.

W h a t w e h a v e d o n e :

• The modum solution now sup-ports Ethereum and Hyperledger Fabric. (Presentation)

W h y t h i s i s i m p o r t a n t :

• Hyperledger Fabric is the block-chain infrastructure supported by SAP. By supporting Hyperledger Fabric modum’s solution can more easily be integrated into ERP environments. Officially supporting two blockchains rein-forces that modum is blockchain agnostic.

www.modum.io Technoparkstrasse 1CH - 8005 Zurichinfo@modum.io

Milestone Two Assessment Reportmodum.io AGTechnoparkstrasse 1CH - 8005 ZurichJuly 2018