Annual ReportJanuary 1, 2019 – December 31, 2019

NEWFOUNDLAND AND LABRADOR ASSOCIATION OF TECHNOLOGY AND INNOVATION

Table of Contents

1. Overview

2. Leadership

3. Message from the Chair

4. Message from the CEO

5. Sector Profile Study

7. Advocacy & Communication

9. Talent Development

11. Business Scaling

12. Digital Transformation

14. Commitment to Members

15. Audited Financial Statements

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OverviewRepresenting the province’s technology and innovation sector, the Newfoundland and Labrador Association of Technology and Innovation (NATI) works closely with industry and government partners to help shape policy and advocate for those issues that matter most to members. NATI is a not-for-profit industry association that has been working with our members to advance the sector for more than 30 years.

NATI AdvocacyAdvocacy on behalf of our NATI member companies and the tech sector is the overarching priority that permeates the work that happens at NATI. Advocacy with both provincial and federal levels of government is critical and facilitates effective communication of member needs and challenges.

Strategic PrioritiesHand in hand with advocacy is the focus on raising the profile of members and the overall sector, delivering programs and initiatives that support our three priority areas. Strategic planning sessions with members, partners, funders and the Board during 2019 resulted in clarification of the focus and priorities of NATI.

1. Talent DevelopmentIdentified as the most pressing issue facing technology companies in the province, there are far more jobs being created in this sector than can be filled locally. At NATI, advocating for change and the delivery of key talent initiatives is critical to helping address this challenge. Initiatives and programs are designed to address short, medium and long-term needs to increase the number of skilled workers in the technology and innovation sector in Newfoundland and Labrador now and in the future.

2. Business ScalingThrough advocacy and a variety of programs offered by NATI, we work with our companies to help them grow and scale. Initiatives include facilitating connections to capital, funders, mentors, and others that can support our companies on their journey. Further, innovation-related programs are executed such as internships, market access, missions, matchmaking and Innovations Days.

3. Digital Transformation Technology and innovation are critical drivers of all sectors of the economy. NATI is ideally suited to support the shift to make this province an innovation economy, driving tech adoption and digitization in other sectors, leveraging the strengths of our member companies, relationships, and capacity building activities.

NATI’s Purpose

NATI helps members create new possibilities through technology and innovation.

Commitment to NATI Members Throughout the year, NATI supported members by offering a variety of networking and informational events to enhance communication and bring together industry, government and community partners with the goal of keeping members and partners informed, engaged and connected.

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LeadershipNATI is governed by a volunteer Board of Directors that provides strategic direction to the association’s leadership and staff. The Board is comprised of leaders from a cross-section of the province’s technology and innovation sector and values the input, ideas and participation of individuals from diverse backgrounds.

Board of Directors

Dan BrakeVice-Chair

Craig Rowe Chair

Kendra MacDonaldPast Chair

Leonard Pecore

Peter Rawsthorne Sheri Wicks

NATI Staff Paul Preston, CEOMarlayne Hardy, Director, Innovation ProgramsJoselyn Woodworth, Finance ManagerMichael Howley, Specialist, Projects and Member EngagementHabin Haridas, Project Administrator

Caron Hawco Ellissa Hull Joe McKenna

Johanna Brown

Mark Cumby

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Message from the ChairIt is an interesting time to be reflecting on the previous fiscal year at NATI. As I write this letter the COVID-19 pandemic is challenging our sector and the entire NL economy. “Unprecedented times” has become a ubiquitous phrase. We are all adjusting our plans and work to meet the demands of the coronavirus crisis, and NATI is no different. We are actively liaising between members and the provincial and federal governments to advocate strongly for stimulus funding to help ensure the sustainability of the ecosystem in the long term. Despite the current precarious atmosphere, this Annual Report focuses on programming and activities at NATI for the January – December 2019 fiscal year. Last year brought many positive achievements for NATI and our province’s technology and innovation ecosystem that are important to acknowledge and build upon.

As a Board, we were pleased to begin the year with a member engagement process to renew NATI’s strategic priorities. Our Board session analyzed feedback and provided the foundation for our renewed purpose and strategic priorities which were developed directly from member feedback. Reinforcing the focus on our members and their challenges ensures we are in a strong position to help the NL tech sector grow and scale through advocacy and innovative programming.

Advocacy continues to guide our work at NATI especially the significant focus on talent development. We continually work with the provincial and federal governments, to position the technology and innovation industry as a priority sector for the province. The industry has the potential to transform our province with an aggressive growth trajectory, even considering the current COVID-19 challenges.

NATI is grateful to our many partners and the extraordinary community collaboration we have seen over the last year. We have been working well with our partners and strengthening our relationships which has placed us in an excellent position to advocate for the sector now when we need collaboration and support most.

Thanks to NATI Board members for their engagement, generosity and dedication to fostering the growth of the technology and innovation sector in Newfoundland and Labrador. Thanks also to Paul and the NATI staff who continue to demonstrate their commitment and talent.

To our members, we appreciate all that you bring to the tech sector and the province as a whole. Your priorities are NATI’s priorities. We look forward to continuing to build momentum and celebrating our progress and accomplishments together as a globally competitive industry.

Craig RoweNATI Board Chair

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Message from the CEOIn January 2019, NATI kicked off a strategic review process, focusing on renewed vision and direction. The Board of Directors, members, partners, and funders participated in a series of focus group sessions and provided input to help shape the future of NATI. This process provided an opportunity for reflection on past successes and renewal of the NATI purpose, which is to advocate for our members and the sector to create new possibilities for growth and success. The process provided for the identification of three strategic priorities that would best serve our members: talent, business scaling, and digital transformation.

NATI and the technology and innovation sector has seen significant momentum throughout 2019. We have expanded our communications with members and provided needed support through our advocacy and programming efforts. Fueling the talent pipeline in Newfoundland and Labrador remains the top priority so that our members and sector can continue to grow and scale here in our province. The variety of programs and activities highlighted in this report showcase opportunities for training and growth while celebrating the positive impact technology has on our province’s economy.

Our NATI members consistently demonstrate incredible strength and ingenuity. Together we are creating a vital and strong technology and innovation ecosystem in our province. We encourage members to continue to reach out and share successes, challenges, and suggestions for working together so NATI can continue providing support to individual companies and the entire sector.

While this report focuses on the fiscal year 2019, at the time I am writing this letter our provincial, national and global economies are facing unparalleled struggles due to the COVID-19 pandemic. NATI members and the challenges they are facing remain our priority as we move throughout 2020. Our current focus is steadfast: to advocate for support and stimulus that will sustain the tech sector during this crisis, striving toward the goal of emerging stronger. Our members and the sector at large are poised to play a much larger and vital role in the growth, diversification, and revitalization of the NL economy. I look forward to working with each of you, our members, on realizing this vision.

Paul PrestonCEO, NATI

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$1.6BILLION

INDUSTRY

Sector Profile Study

In the fall of 2019, NATI commissioned MQO to execute an Information, Communications and Technology (ICT) sector profile study. To support NATI’s ability to foster growth and development of the ICT sector, it was determined that an in-depth industry study was needed. The findings are used to inform the advocacy, programs, and direction of NATI moving forward. Highlights from the survey are included here.

Labour Force

Male 77% Female 23%

Under 35 years of age 55%Ages 25-54 38%

55+ 7%

$48,000 Average starting salary

40.3 Average #FTE

12% Newcomers to NL

84% Export outside of NL

$71,800Average salary

6,436Tech sector jobs in NL

85%Local tech companies founded in NL

Tech Sector Profile

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Optimism

69%

of respondents were optimistic about the

future of the industry.

Annual Sales

Future GrowthBased on member feedback, survey results will provide direction for growth and will inform future NATI programs and activities.

24%

9-10: Champions

44%

7-8: Optimistic27%

5-6:Neutral

4%

62% 36%

11%13%13%18%

13%7%7%

16%

Non-Revenue Generating

Less than $100,000

$100,000 to $499,999

$500,000 to $999,999

$1 million to $2 million

$2 million to $5 million

$5 million to $10 million

More than $10 million

Of that, 75% plan to both increase workforce and expand to other markets.

92%Plan on

expanding

3Fostering procurement opportunities for NL companies

2Fostering growth in tech-related grads, immigration, & re-training

1Supporting tech sector growth

1-4:Detractors

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Advocacy & CommunicationAdvocacy is at the core of all NATI activities to ensure the needs of our member companies are being represented. Advocacy goals are achieved in a variety of ways including: ongoing meetings with government representatives, press releases, earned media spots, social media engagement and other online communication tools.

By providing leadership as we shape and influence policy and advocating on those issues that matter most to our members, these activities will help position the technology sector as a key driver in the local economy.

NATI Advocacy Activities • Issued a NATI news release during the 2019 election

urging all parties to prioritize the technology sector in NL and clarify their commitment to the ecosystem.

• Engaged with the Office of the Chief Information Officer (OCIO) on digital procurement initiatives, encouraging the provincial government to strategically outsource IT services using local firms instead of hiring additional staff.

• Championed the adoption of technology curriculum in high schools.

• Tabled an action-oriented Innovation Strategy with the province to provide a comprehensive strategic plan for growth of the tech sector.

On April 29th, the Premier addressed the Tech Transformation Summit, calling the tech sector the “foremost growing industry” in the province, acknowledging the need to address the talent gap and to generate greater awareness to fuel continued growth in the sector.

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NATI website A new website was launched in October which is member-oriented, both from a content and user perspective. It contains a featured members section, a refreshed member directory, and access to the membership application and newsletter signup.

Engage with NATI

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Talent Development NATI International Women’s Day Event Together with St. John’s Bosco Junior High, NATI and the Women in Resource Development Corporation came together in March to host an event to celebrate International Women’s Day. A panel of amazing women doing extraordinary things shared their stories! The panelists represented ocean tech with Genoa Design, biotech with Sequence Bio, agritech with SucSeed and game development with Other Ocean Interactive. The junior high school students of St. John Bosco had the opportunity to engage with the women and left the session feeling inspired and empowered.

Youth in Technology Conference NATI in partnership with College of the North Atlantic, hosted the 11th annual Youth in Technology Conference in May. This exclusive conference for 250 grade nine students promoted advanced technologies as a rewarding career and academic choice. This conference helps students realize the full range of opportunity that exists and boosts interest in the technology sector among youth. Presenters included: Sandler Training, Other Ocean, Axiom Emerging Technologies, Mysa, Celtx, SucSeed, Seaformatics, Cisco, Brilliant Labs, Virtual Marine, Sassy Tuna & Sequence Bio!

Partner Profile: College of the North Atlantic (CNA)NATI has been working closely with provincial educational facilities on the important issue of talent development and advocating for more opportunities to fuel the province’s talent pipeline with skilled knowledge workers. CNA has developed two new software programs, a three-year Software Development (co-op) program and a one-year Accelerated Software Development (Post Diploma) program, both launching in September 2020.

“NATI has been instrumental in the design of both new programs and is an extremely valuable member of our CNA advisory committee. NATI has a finger on the pulse of the burgeoning ICT sector and rely we heavily on their input for current and forecasted labour market demands.”

Stephen WarrenDean, College of the North Atlantic

NATI and Brilliant LabsNATI has been delighted to partner with Brilliant Labs to reach more than 11,000 youth, offering events for students promoting technology and innovations and celebrating the creativity and imagination of youth throughout our region. This past year included activities such as a Scratch competition for grades 4 to 9 students across Atlantic Canada and high school coding workshops, such as Holy Heart High School in St. John’s and Exploits Valley High School in Grand Falls-Windsor.

Commitment to NL Students

NATI is a member of the Memorial University Working Committee for Computer Science and Computer Engineering focusing on increasing the number of technology graduates in the province.

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“NATI has been an invaluable partner of Brilliant Labs since our very first discussions to our partnership on Youth In Technology Day. These efforts were not only successful, they helped us build tremendous momentum in the region. Without a doubt, NATI’s connections to the ICT industry and their willingness to help with hands-on training has enabled us to create many collaborative learning sessions. From Scratch competitions to career development workshops, NATI has been a tremendous community partner and we’re looking forward to creating more opportunities for all Newfoundland and Labrador youth.”

John BarronProvincial Program Coordinator, Brilliant Labs

NATI-ACOA Internship Program One of NATI’s flagship programs, the NATI-ACOA Internship Program assists provincial technology companies in placing recent graduates in business development roles. The program provides hands-on work experience for local university and college graduates while supporting the growth and performance of the industry by encouraging local technology companies to initiate and expand export activities.

Featured NATI Member: PolyUnity PolyUnity is a biomedical 3D-printing company focusing on applications of the technology in healthcare. The company produces software to increase access to equitable medical training globally, allowing end-users to 3D-print training models for healthcare professionals. Recently, PolyUnity pivoted to meet the needs of Newfoundland and Labrador’s PPE shortage for frontline workers by manufacturing face shields.

NATI has been a supporter of PolyUnity since its inception. Throughout 2019-2020 Chief Business Officer, Tahrin Maruf, has been supported through the NATI Internship Program, which has supported his salary. NATI has also provided educational opportunities at our first international conference in San Diego, California.

“Through the support of our friends at NATI, we have been able to retain a skilled and motivated individual allowing us to move into our next stage of growth. Tahrin Maruf brings enthusiasm, a team-oriented mentality, a great work ethic, and new ideas to PolyUnity daily. Without Tahrin, or his support through NATI, we simply would not be where we are today.”

Travis PickettCOO of PolyUnity and 2020 MD Candidate

NATI-ACOA Internship Program

16 university and college graduates were hired in 2019 as part of the Internship Program!

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Business ScalingInnovation Week Our inclusive Innovation Week event in May incorporated many collaborative partner organizations in St. John’s as well as in Grand Falls-Windsor and Corner Brook. Numerous start-ups were able to set-up displays throughout the events – including Seaformatics, SucSeed, Fytics, Polyamyna, UCS, A-S Works, and IMMI. This year, CBC, the official media partner for Innovation Week, had special coverage throughout the week on radio, television and online. Over 25 events took place across the province, showcasing and promoting the tremendous innovation happening in industry, business and community.

Tech Transformation SummitNATI’s Tech Transformation Summit launched Innovation Week again this year with extensive media coverage, an address by the Premier of NL, and celebration of the tech sector. Nik Badminton delivered the morning keynote on The Exponential Technology Revolution, followed by panels on Accessing Global Markets, Digital Transformation in Key Sectors, and Closing the Talent Gap in the technology sector. The lunchtime keynote address was delivered by Canada’s Ocean Supercluster CEO, Kendra MacDonald.

ConferencesNATI Attends Oceanology International Americas ConferenceNATI along with other provincial industry associations and local ocean tech companies attended the Oceanology International Americas Conference in San Diego in February. The conference provided valuable information regarding new technology and research, as well as identifying international opportunities and challenges around ocean tech.

Game Developers Conference NATI led a pan-Atlantic delegation of eight companies to the Game Developer’s Conference in San Francisco in March. The delegation accessed in-person and online matchmaking services, conference sessions and networking.

BSides St. John’s ConferenceNATI participated on the planning committee for the annual BSides St. John’s Conference in September. At this year’s event NATI provided volunteers and had a booth presence. The conference was an opportunity to reach an audience of engaged professionals, students, and educators in the ICT data and security sectors.

“Other Ocean has deep roots in the Global videogame industry so our business development tentacles are far reaching. That said the support of NATI to help access publishers who operate in hubs far away from NL has been tremendous. They understand that each company is different and don’t take a boilerplate approach to their support but rather tailor what they offer to the needs of the member. This makes NATI a valued industry organization that I know we can rely on.”

Deirdre AyreHead of Operations, Other Ocean Group Canada

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Digital TransformationBounce Health InnovationBounce’s mission is to accelerate the growth of the health innovation sector in Newfoundland and Labrador (NL) to help the province become the testbed for medical technology innovation in North America. Bounce engages with and supports medical innovators and entrepreneurs by leveraging resources within a unique health innovation ecosystem.

Hacking Health EventsNATI promoted three Hacking Health events in 2019. In January, a Hacking Health Cafe with Eastern Health focused on creating patient-centric hospitals and developing potential solutions to improve communication processes for patients. The third annual Health Hackathon happened in March at the Health Sciences Centre to address pressing challenges in healthcare. The October Hacking Health Café facilitated discussion on strokes.

January also marked the end of the Embryo Grant phase-3 pre-seed funding. Through the Embryo Grant funding, Bounce invested $90,000 in three Medtech startups which include VitalMIST, BreatheSuite and Polyamyna. BreatheSuite has gone on to raise a $550,000 round of equity financing led by Venture N.L.

The entrepreneur-in-residence, executive-in-residence, senior medical device designer, mid-level software developer and project manager served as key resources within the Bounce Innovation Lab, to work with students, faculty and individuals to explore the feasibility of early-stage projects, support preliminary R&D efforts as well as contribute to large-scale funding applications for commercial and technically-oriented endeavors. More than 31 entrepreneurs were supported on their business ideas in the project year.

“The support from the Bounce Lab has helped to provide guidance on a clear path to success. Starting a medical technology company in Newfoundland is not a common thing, but the experience of everyone in the Bounce Lab helps make the road to commercialization much easier for the company.”

Brett VokeyFounder, BreatheSuite

Digital Oil and Gas ProjectThe Digital Oil and Gas Initiative, a partnership between NATI and Noia, brings the expertise and talents of our members and the technology sector to the oil and gas sector, helping companies access supply opportunities and drive digital transformation. This initiative receives support from ACOA and the Government of NL.

Bounce is an innovative collaboration with the following organizations:

• NATI (Project Lead)

• ACOA

• Eastern Health

• The Genesis Centre

• Memorial University

• NL Centre for Health Information (NLCHI)

• NL Provincial Government

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Oil and Gas HackathonNATI and Noia combined forces to create the first hackathon for the oil and gas industry here in the province in May. Focusing on digital innovation opportunities has become increasingly important as we look for new ways to solve problems, improve outcomes and remain competitive on a global scale.

Local designers, developers and entrepreneurs joined by industry experts collaborated on new ideas and solutions to help advance the digitalization of oil and gas operations to streamline process and provide new insights to the industry.

“Collaboration across industries is imperative for our sectors to evolve and provide value to our members. The partnership established between NATI and Noia has already yielded impressive results and we look forward to continuing our work together and enhancing the capabilities of, and opportunities for, our members.”

Charlene JohnsonCEO, Noia

Innovation Day: Building an Innovative Fishery for the FutureOn the 27th anniversary of the Cod Moratorium in July, NATI partnered with the Offshore Fishery Association and hosted a special Innovation Day event on the topic of Building an Innovative Fishery for the Future.

Moderated by Genoa Design CEO, Gina Pecore, participants had the opportunity to hear from experts from the fishery, technology, and academia in a session that explored the opportunities for growth and sustainability for the NL fishery in a globally competitive industry through technology and innovation.

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Commitment to our MembersNATI organizes opportunities to network and explore collaboration options throughout the year as well as informational and training opportunities for members. Several workshops were offered including media training and lunch and learn sessions on the topics of Computer Science Co-op Opportunities & Doing Business with the Government of Canada.

NATI Town HallNATI members and partners attended the first annual NATI Town Hall event in January to learn more about strategic direction, upcoming programs and services, and advocacy efforts.

NATI SocialsNATI’s two annual socials provide opportunities for members to connect with others in the ecosystem in a relaxed environment. The summer social took place at Bannerman Brewery and the Holiday social at the Alt Hotel.

Featured NATI Member: Sequence Bio Sequence Bio is a local biotech company leading the NL Genome Project to research the unique genetic makeup of Newfoundland and Labrador and improve how we treat and prevent the diseases that impact us most.

“By working together, I believe that Newfoundlanders and Labradorians can improve healthcare here at home and around the world. Organizations committed to supporting local healthcare and life science innovations is an important part of helping realize that potential.”

Chris GardnerPresident & CEO, SEQUENCE BIO

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AUDITED FINANCIAL STATEMENTS

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