2018...

This past year has been a time of significant evolution for Servato and our customers. Customer feedback from our SPS line of products has driven us to create the first integrated rectifier with battery management, which we call the SPS-R. Customer impact is at the core of our product design philosophy. The SPS-R embodies this philosophy in a way that makes its development the highlight of our year. In 2019 we look forward to continuing our unrelenting mission of Ensuring The Internet is Always On by strengthening partner relationships, adding new ones, and looking to our customers for feedback and guidance on new functionality and capabilities.

By The Numbers:

We want to take a moment to reflect on some accomplishments:

• Added several service providers in new states this year, increasing our footprint into 30 states
• Increased batteries managed by over 2,000
• Grew total site count by 88%
• The week of October 15th saw the most installs of any other week in the year... great choice in weather!
• Sent thousands of alerts for various alarms
• Identified over 200 failed or failing batteries for replacement
• Attended over 50 different conferences/trade shows
• Announced the 2019 general availability of the first integrated rectifier with battery management
• Cumulated an additional 40 million hours of battery operating data

2018 Timeline:

The year of evolution came to a close last week for the Servato team. The team traveled thousands of miles spreading the message of managed DC power, developed multiple new products, announced customers and partnerships that invest in hardening the networks in their communities, and spoke at conferences across the country including ISE EXPO in Denver, CO.

Evolution by definition is the change in the heritable characteristics of a population over successive generations. Intelligent infrastructure as our subject, advancements in hardware continue to push limits for what comes next. From ideations such as Sidewalk Labs in Toronto to now widely adopted 3-D printed goods such as dental braces, our physical world has a roadmap.

Servato prides ourselves on innovation. Our future-minded designers and engineers take customer feedback to drive what comes next. As we begin 2019, we take some time to reflect on what happened this past year.

January

Commercial availability of the SPS-248 drove unprecedented market acceptance for intelligent infrastructure systems in a DC power network. The highest selling Smart Power System to date by volume, this product exemplifies customer-centric design featuring the most economical fit and Anderson Power Connectors.

February

Andrew Burger at Energy Central interviews CEO Chris Mangum. Infrastructure investments have not kept up with consumer demands, creating a fragile communications network in the United States.

March

New Lisbon makes commitment to providing a more resilient network to the people they serve in their community.

April

The $200 billion infrastructure proposal sparked controversy and caused Servato to dig deeper into past private investment in the United States.

May

Power Product Services recognizes the intense demand for resiliency in a widely distributed networks creating a long-lasting partnership between our two organizations.

June

Temperatures rise and batteries flare, as the saying goes. A Servato blog resurfaces to educate customers on the influence of hot days and warm nights on a backup power investment.

July

Despite the date on the press release, In July Valley Telephone invests in long-term active battery management equipment.

August

The SPS-R announcement gains national attention as the first integrated rectifier with Servato's patented battery management technology.

September

Servato publishes a recap of ISE EXPO in Denver, CO this year. After cancelling the 2017 show in Orlando, vendors and providers showed out in masses to support.

October

100 million hours of battery operating hours marks a huge milestone for Servato's analytics team. We continue to learn everyday from the incoming piles of data, aiming to serve our customers better.

November

Start the reporting engine! After the previous month's milestone, the Servato team turned to building more robust reports for our customers. The support team now leverages this data as well to spot network deficiencies from an outage and battery perspective.

December

Frost and Sullivan announces Servato as the 2018 Global Entrepreneurial Company of the Year in the Energy Storage space. The honor caps off a year full of achievements that continue to fuel our mission To Ensure Service is Never Interrupted.

Looking Ahead

We plan to build on our momentum in 2019 by reaching more customers, improving our current products, and bringing new innovative ideas to market particularly those based on data analytics.

We wish you all a wonderful New Year and a prosperous 2019.

The government shutdown has everyone's attention regardless of their proximity to Mexico or views on the need for a wall. The effects extend across all county populations in this country. Furloughed workers will need to find other means of work or make due until a bipartisan agreement is reached. For rural America, these effects are not new. We have seen an exodus of people from rural counties to urbanized areas in pursuit of technology-influenced jobs. In the last seven years, there has been an average decrease of 2%of these rural populations, and related productivity drops creating fewer and fewer opportunities for those who stay.

Large, outside entities control economic activity in most rural areas across America. 1 in every 8 jobs stems from manufacturing. There are hundreds of millions of farmland acres that provide numerous jobs in rural communities unless they are automated. These acres also provide $63 million of farm subsidy payments to almost 18,000 people that don't live in rural areas or near this farmland. Government employment accounts for a significant portion of the remaining jobs in rural areas, especially where there are universities present. The point is that rural America does not have control of its job creation potential, that control is concentrated in the hands of outside interests.

The Farm Bill epitomizes what's wrong with supporting these swaths of population-dwindling counties. 180 million acres of farmland is dedicated toward (industrial) corn and soy production, whereas, only 10 million acres are dedicated to fruit production and an even smaller amount for organic plots. The subsidy payments mostly support the large corporate farming organizations that sell these raw or processed goods under market value. As we think about the many proposed solutions for how to best empower this distressed demographic, broadband connectivity glares right into our faces. One day there will be greater rural participation in the high-skill tech job market, but access to these opportunities depends on the success of rural broadband providers. Just look at North Dakota.

Servato's SPS (Smart Power Systems) product line builds on innovative design and proprietary technology. Adaptive Charging forms the central nucleus of our approach to better battery management, driven by the intelligent algorithm that charges and rests batteries to maximize life expectancy and availability. We are pleased to announce that we are using the performance data gathered from managed batteries to provide our customers insights into how their networks perform from a power perspective.  As much as power utilities track the frequency and duration of power outages, our SPS solutions enable network service providers to track the same.  This allows them to quickly identify problem sites and prioritize them to address availability issues. Imagine having detailed outage data identifying which sites are more problematic than others.  How would that improve the field's ability to request capital to address these issues?  Now stop imagining and let's discuss in more detail.