A Clear, Actionable Plan

The OneMove nominees, upon election, will oversee Sylogist under a clear governance and capital allocation framework with measurable targets and defined accountability at each stage.

Four Governing Principles

Every decision at Sylogist will be measured against these principles. No exceptions.

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Zero-Based Budget Review

The operating budget is rebuilt from zero after the Board transition. Every line of expense is justified against a return, or it is removed.

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FCF Hurdle Rate

Every dollar of FCF is measured against a stated after-tax IRR target. Capital that cannot be deployed at the hurdle is retained or returned to shareholders.

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M&A as Primary Vehicle

At Sylogist's stage, disciplined vertical-market-software consolidation produces a higher return on each incremental dollar than organic reinvestment.

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Comprehensive Strategic Review

A full review of portfolio, business segments, and competitive position. Capital concentrated on defensible verticals. Non-core segments divested. Open to a sale if it maximizes value.

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Fixing Sylogist's Go-to-Market Strategy

The Issue: Sylogist's go-to-market function has lost its economic discipline. Partner-channel gross margin has fallen well below its pre-2022 level of 38-40% and has not recovered. The channel is structured as a coverage model: a large partner roster measured by logo counts and "attached revenue." It produces partner logos without producing deals, absorbs support capacity that would be better spent on fewer strong relationships, and obscures the distinction between partners who source revenue and partners who simply appear in slide decks.

The Commitment: Run go-to-market as a capital allocation decision. Every dollar invested in direct sales or the partner channel is measured against a strict IRR hurdle, with capital flowing exclusively to the initiatives that produce the highest return on incremental investment. This is fundamentally a cost-discipline and stewardship exercise: every dollar deployed must earn its place, or it is reallocated.

DisciplineWhat Changes
Micro-vertical organizationEach partner owns one specific niche, not a territory. Examples: Catholic diocese ERP, K-12 district finance, municipal finance within a defined state.
Profitability-first measurementWe measure gross margin and profit per partner. Any unprofitable partner is demoted or removed.

Partner Scorecard

  • Contribution margin per partner, net of Sylogist co-selling, services, and implementation support
  • Partner-sourced pipeline (not "partner-attached revenue")
  • Close rate on partner-sourced deals
  • Services and implementation margin by partner
MetricQ4 2025End FY 2027
Partner-channel gross margin−20%35%+
Partners with positive contribution marginEstablish baseline>75% of roster
Partner roster strategyCoverage modelPrecision model
Deliverable: Within 180 days of election, the new CEO will bring to the Board a pruning plan and the first partner-profitability scorecard.
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Rebalancing R&D Returns

The Issue: Sylogist's R&D spend is disproportionate to shipped value. In FY 2025 the Company spent $10.9M on R&D, or 24.3% of recurring revenue. For a company of this size operating inside the Microsoft Dynamics and Enterprise Resource Planning ecosystem, that level of R&D intensity is not defensible. Sylogist has not taken structural advantage of the shared Microsoft platform and AI engineering tools.

The Commitment: Bring R&D spend below 13% of recurring revenue, representing $5M+ in annual savings versus FY 2025. The mechanism is the integration of AI into how the product is built, tested, and supported. Headcount will be reduced deliberately, in proportion to the productivity AI delivers, rather than through a reckless across-the-board cut.

PriorityWhat Changes
Protect the core productKeep the existing product stable. No rewrites or re-platforming driven by taste rather than customer retention or economics.
Cloud modernization, only where it paysCloud migration is executed only where it preserves customer retention or improves unit economics. Modernization is not a vanity exercise.
AI built into engineering, testing, and supportSylogist uses AI throughout engineering, testing, implementation, and customer support. This drastically reduces the cost of building, shipping, and running the product. R&D spend falls while output rises.
Every R&D dollar priced on IRREvery R&D initiative is priced on IRR before it is funded. Low-IRR work is cut. R&D capital concentrates on a small number of high-return products with measurable revenue or retention impact.

R&D Scorecard

  • IRR on R&D initiatives, applied as a hurdle rate before funding
  • R&D spend in dollars and as a percentage of recurring revenue
  • Engineering output per head, using AI-forward SaaS peers as the baseline
MetricFY 2025FY 2027 Target
R&D as % of recurring revenue24.3%<13%
Annual R&D spend reduction vs FY 2025Baseline$5M+
AI tooling adoption across engineeringAd hocStandard operating practice
IRR hurdle applied to R&D spendNot appliedEvery initiative
Deliverable: Immediately after appointment, the new CEO will conduct a comprehensive audit of R&D spend, benchmark it against comparable software peers, and execute the cost reductions identified.
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Restarting the M&A Engine

The Issue: Sylogist was built as a vertical software consolidator. The current Board abandoned that playbook in favor of an organic-growth thesis the Company was not equipped to execute, and the M&A function has been dormant. Revenue growth has stalled while the Company continues to generate free cash flow without a disciplined use for it. The strategy Sylogist was originally designed to run has been left behind.

The Commitment: Restart M&A as the primary lens on capital allocation. Free cash flow is a finite resource and will be deployed against the highest-IRR opportunity available. In today's environment, that is disciplined roll-up M&A in Sylogist's core verticals, not organic investment in a cost base that has failed to grow.

PriorityWhat Changes
Strategic review firstConduct a full strategic review of the Company and its three segments (Government, Education, Nonprofit). Retain the most congruent and divest ones that no longer fit.
Vertical-market consolidator thesisExecute a disciplined roll-up in the retained verticals. The goal is to be the premier consolidator in gov tech, ed tech, and nonprofit tech.
Strict IRR hurdle on M&AEvery acquisition must clear a defined IRR floor, enforcing capital discipline at every stage of the consolidator journey.
FCF deployed into M&AFree cash flow funds the roll-up, prioritized over organic spend wherever IRR comparison favors M&A. Organic investments compete for capital at the same bar.
Our belief: Sylogist's best future lies in restarting the consolidator engine that originally built the Company. Capital is best deployed with discipline, measured against strict IRR standards, and with a deep respect for shareholders' free cash flow.

By comparison: The Board's Q4 2025 earnings release and call in March 2026 committed to no revenue growth target, no margin target, no CEO timeline, no AI roadmap, and no forward guidance. The Board's current plan is, in substance, to stay the course. That course has destroyed more than 75% of shareholder value.

Vote FOR Change. Vote FOR Gold.

Support the plan that puts shareholder value first. Vote on your GOLD proxy card at the May 12, 2026 Annual and Special Meeting.

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