Thred reported that it has agreed terms on a Software Development Agreement (SDA) with Lateral Pty Ltd. that confirms and underpins the work begun with Lateral in 2016. The agreement is materially complete, subject to minor changes and execution. The SDA defines the software development, including intellectual property rights, resourcing, deliverables and milestones for Thred's platform build up to launch of Thred in late April 2017. It fixes the in scope cash costs for the remainder of the build at $111,000. The agreement also covers ongoing platform support by Lateral post launch to assist with the expected volume of downloads and customer usage. Further commercial arrangements for Thred's platform advancement and enhancement will be made in due course. The contract also provides Lateral with 8 million bonus options (exercisable at $0.02 each for 3 years from date of issue) which vest on the successful delivery of the platform and 1 million performance options (exercisable at $0.02 each for 3 years from date of issue) for each week the software is completed early. Both parties believe these incentive options are important, however, time and speed will not outweigh the need for quality and a great user experience. Additionally, the contract includes agreed out of scope variations which contain new UI/designs by Josephmark and Thred's first Microsoft plug-in, Microsoft Word. These additional out of scope variations will be included in the Company's commercial release and have a fixed cost to Thred of an additional $116,000. Thred's platform handover is planned for end of April, 2017.