Krepling <> SVB

Dear Shareholders,

I hope this email finds you well. As you may be aware, Krepling has been a client of Silicon Valley Bank since its inception. Unfortunately, in light of the recent financial collapse of Silicon Valley Bank, I am writing to inform you that we have taken necessary measures to ensure the safety of the company's cash balances.

Silicon Valley Bank has been our only operating and investment account for the past two years, in light of the news that transpired on Thursday, the threat of a collapse had left us with concerns regarding our financial stability. Over the last 24 hours, we have been working diligently to move funds from our operating and savings account at Silicon Valley Bank to a recently set up account on Mercury. We have successfully set up and transferred 95.2% of our cash balances to Mercury.

However, Krepling’s current revenue and billing channels are still currently clearing customer funds over to Silicon Valley Bank. We are taking all the necessary precautions to ensure that Krepling's billing APIs will begin transferring funds over to Mercury by Monday morning.

In light of recent events, we have unfortunately been unable to gain access to our Silicon Valley Bank account and no longer have visibility into the cash balance in our operating account. As a result, we will be pausing customer billing for the next three days while we take the necessary steps to redirect all payments to our new banking partner, Mercury.

Delaying customer renewals will have no effect on any of our merchants' services on Krepling. Accounts that are up for renewal spanning Friday, March 10th until Monday, March 13th, will be pushed back accordingly.

However, all new merchant subscriptions, within that same time frame, who self-onboard will still have funds transferred to Silicon Valley Bank until Krepling's billing APIs are updated and approved under our new banking partner.

The FDIC has stated that all insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. We are closely monitoring this situation and once this access is provided, we will move the remaining balance, including the newly processed customer funds spanning Friday, March 10th until Monday, March 13th, over to Mercury.

I want to emphasize that this method will ensure there will be no service or business disruption to our merchants, and that Krepling can continue to realize revenue as usual. We are working around the clock to make sure that our billing APIs are updated and that funds are transferred seamlessly from Silicon Valley Bank to Mercury.

As a result of the actions we took on Thursday, the deposits currently left in our Silicon Valley Bank operating account, which pertains strictly to customer funds, are well below the $250k threshold. This means that these funds are insured and will be open for withdrawal come Monday morning.

In addition, funds pertaining to the company’s savings/investment account, which includes all of the company's shareholder funds, have been fully transferred over to Mercury. As a result, this account on Silicon Valley Bank is now at a $0 balance.

I would like to express my personal sadness over the collapse of Silicon Valley Bank. They have been an important long-term driver of many tech and VC-enabled companies, and have played a key role in shifting a new paradigm of change in the tech ecosystem. We always maintained a strong and fruitful relationship with our account managers over at Silicon Valley Bank, and their support had been instrumental in our success thus far.

If there are any concerns or uncertainties regarding what has been outlined above, please do not hesitate to reach out to me directly via email or phone.

Thank you for your continued support,

Liam