Route1 Inc.: The Company Disrupting the Data Security Industry (ROIUF)

At Stock Day Media, we’ve identified one of the most undervalued and disruptive data
security companies in its industry: Route1, Inc. An advanced data security and
technology company, Route1 is focused on empowering its clients with data-centric
solutions. With revenues that have more than quadrupled over the past three years and
patented technology that is unlike any other in the data security industry, Route1 is a
company that investors will want to consider.

Route1 trades on the OTCQB under the ticker symbol ‘ROIUF’, and began as a SaaS
startup company in 2004. Since then, Route1 has evolved into an advanced data
security solutions company offering a range of technology including proprietary data
acquisition, data analytics, and data visualization technology and solutions that serve
communities, enterprises, and government. These solutions go beyond security and are
used to improve profitability, maximize efficiency, and ensure sustainable competitive
advantages. Over the past 30 months, Route1 has acquired two companies, which has
allowed them to expand their customer base, their solution offerings, their engineering
and services team and offices to five locations in the United States and one in Canada.
The effectiveness of their business model and innovative technology has been clearly
reflected through their significant revenue and cash flow growth over the past several

In 2017, Route1 generated over $6 million CAD in total revenue, and by 2019 the
company had drastically increased this number to over $24 million CAD. In August of
2020, Route1 released its Q2 financial report, which reflected approximately $7 million
CAD in total revenue, $2.8 million CAD in gross profit and $0.6 million CAD in EBITDA.
While their full year financial report is not yet available, the company’s Q1 and Q2
reports combine for total revenues of more than $13.3 million CAD, gross profit of $5.1
million CAD and $0.9 million CAD of EBITDA. The CAD to US dollar exchange during
2020 has fluctuated between 1.3 and 1.35.

MobiKEY, Route1’s flagship data security technology, has been called the “un-VPN,”
providing remote workers with a mobile access solution that uses comprehensive
smartcard-based, multi-factor authentication and identity management to securely
connect an organization’s assets with their employees, mobile workers, and contractors.
An authorized user can securely access company data from any device whether it be a
phone, tablet or laptop, from any location. Unlike VPNs, MobiKEY technology is not
vulnerable to man-in-the-middle attacks, browser exploits, viruses or other malware. It is
now an instrumental technology for several branches of the United States government.
In fact, Route1 recently secured a 4,000-user enterprise license agreement from a

component of the Department of Defense. This contract will provide an annual value of
$1.5 million US with the opportunity for Route1 to increase their user base with this new
client in increments of 1,000. As it pertains to operating performance impact, historical
gross margins on subscription-based revenue have been in excess of 85% suggesting
this new contract will have a highly positive incremental gross profit impact when
considering the company’s actual Q2 2020 results.

The MobiKEY technology is also beginning to win over enterprises needing to better
secure personally identifiable information (PII) and other sensitive files accessed by
their remote workforce, and with the number of remote workers on the rise, the potential
for growth within this market is substantial. According to Pew Research Center, only 7%
of Americans regularly worked remotely prior to the COVID-19 pandemic. However, a
study conducted by Gallup Research has shown that today an estimated 62% of
Americans are now working remotely. During this time cyberattacks have reached an
all-time high, and many are wondering whether the future of the workforce will remain at
home. In a follow-up study, Gallup Research found that 59% of Americans surveyed
would prefer to continue working remotely once COVID-19 restrictions have been lifted.
As working from home grows in popularity, the need for truly secure, easily deployable,
remote solutions will only continue to increase, and Route1 is well positioned to meet
this demand.

Outside of security solutions for remote workers, Route1 has applied their expertise to
providing Industry 4.0 technology solutions for the automotive and manufacturing
sectors in the form of data acquisition and analytics solutions called ScreenSTOP and
ActionPLAN. ScreenSTOP is a patent-pending intelligent in-motion technology that
eliminates the hazards associated with in-vehicle computer displays installed on lift
trucks and other vehicles. ActionPLAN is a secure technology that delivers real time
industrial analytics on data collected from Programmable Logic Controller and Internet
of Things inputs and prioritizes the fixable issues including the exact location, root
cause, and cost. In initial trials, ActionPLAN has performed outstandingly by
substantially and measurably improving productivity and profitability for Route1’s clients.

Route1 is also heavily involved in providing video intelligence solutions like Automatic
License Plate Recognition (ALPR) systems and body worn cameras for communities in
North America. These solutions are providing organizations with enhanced security,
transparency and efficiencies for parking, law enforcement, homeowner’s associations,
universities, and schools. Route1 was recently awarded a three-year contract with
seven, one-year contract renewal option years by the State of California to provide
Genetec’s AutoVu ALPR solution to law enforcement officers in California.

However, despite these factors and a steady stream of income from rugged device
sales, Route1 remains substantially undervalued. The company is currently trading on
the OTCQB at just under 50 cents US per share with a market cap of $16.4 million US,
yet will be adding $1.5 million US annually in subscription-based revenue starting in Q3.

Overall, the company’s MobiKEY subscription revenue has grown by more than
80% over the past year. While full year financial reports are not yet available, Route1 is
on pace to exceed its 2019 revenues, which totaled over $24 million CAD.

For investors, Route1 not only represents a company with relevant and innovative
technology that meets the needs of today’s pressing demands, but also a company
with the revenue and growth to back it up.
Investors looking for a company developing disruptive data security solutions that serve
a broad range of communities, enterprises, and government sectors should consider
Route1 for their investment portfolio before its true valuation is accurately reflected on
the market. To learn more about this company, visit Investors
can also check out Stock Day Media’s latest podcast interview with Route1, Inc., here.