Route1 Inc. · TSXV:ROI
Route1 — OTCQB Virtual Investor Conference August 2020
31 slides from Route1's conference presentation, Aug 6, 2020
Slide 1: OTCQB Virtual Investor Conference
North America’s most advanced provider of custom data intelligence solutions to drive your business forward. OTCQB Virtual Investor Conference August 6, 2020
Slide 2: Legal Notices
Legal Notices This presentation contains statements that are not current or historical factual statements that may constitute forward-looking statements. These statements are based on certain factors and assumptions, including, expected financial performance, business prospects, technological develo
Slide 3: Company Snapshot
Company Snapshot Incorporation 2004 About Us Year Route1 Inc., also operating under the Stock Price CAD $0.63 as at July 31, 2020 tradenames GroupMobile and PCS Mobile is an advanced North American 52 Week High / technology company that empowers CAD $0.25 to $0.77 Low their clients with data-centric
Slide 4: A Quick History
A Quick History • 2004: Founded by Andrew White, Tim Hyland and Jerry Iwanski • 2008: Released first software application leveraging the MobiNET service delivery platform, MobiKEY • 2009: Board turnover – Michael Harris, Tony Busseri and Peter Chodos • 2010: Tony Busseri named CEO • 2012: First year
Slide 5: Route1 Executive Team
Route1 Executive Team Tony Busseri – CEO and Director, Chandler, AZ • Route1 Director since 2009 and CEO since 2010 • Former principal of Growth Equity Partners • President, CEO and board member of EnGlobe from 2004 to 2008 • President, CEO and Chairman of Waste Services from 1997 to 2000 Peter Chod
Slide 6: Route1 Board of Directors
Route1 Board of Directors • Route1 Director since 2009 and CEO since 2010 Tony Busseri, CEO and • President, CEO and board member of EnGlobe from 2004 to 2008 Director • President, CEO and Chairman of Waste Services from 1997 to 2000 • Over 35 years experience in corporate finance and mergers & acqu
Slide 7: Our Focus is Our Clients
Our Focus is Our Clients Gain Actionable Intelligence, Generate Exceptional Outcomes. Route1 partners with our clients to assist them in securing and then leveraging their data to make better decisions that lead to: INCREASED IMPROVED ENHANCED GREATER SUSTAINABLE PROFITABILITY EFFICIENCIES MARKET SH
Slide 8: Our Four Pillars of Strength
We Are an “Outcomes” Based Company We deliver exceptional client outcomes. Data Security and User Authentication Our IP: MobiNET (DEFIMNET), MobiKEY, DerivID Data Acquisition and Analytics Technology Our IP: MobiNET, ActionPLAN, ScreenSTOP What we resell: Fixed and mobile video systems including ALP
Slide 9: MobiNET: Our Service Delivery Platform
MobiNET: Our Service Delivery Platform What is MobiNET? DEFIMNET Facts • Multi-Tenant (MobiNET) or Single Tenant • High Availability (DEFIMNET) • Designed for scalability; unlimited • Secure Cloud: Best in class implementation of a granular horizontal scalability system and networking framework acro
Slide 10: Security Software: MobiKEY
Security Software: MobiKEY : Secure Access to Data, Anytime, Anywhere and on Any Device. Technology Differentiators: • PIV card-based multi-factor authentication in compliance with HSPD-12 mandate • Your data stays within your network’s perimeter. No DAR. No risk of data leakage • Not a browser-base
Slide 11: COVID-19 Impact at a High Level
COVID-19 Impact at a High Level The coronavirus pandemic has resulted in: • Substantially increased MobiKEY sales as government and business customers quickly moved to work- from-home scenarios and looked to Route1 for a highly secure remote computing technology. • Slowed the delivery of rugged devi
Slide 12: Understanding the MobiKEY Impact: Subscribers
Understanding the MobiKEY Impact: Subscribers MobiKEY Subscriptions 17,000 16,000 Paid, Active Users 15,000 14,000 13,000 12,000 11,000 Dec 31-19 A Jan 31-20 A Feb 29-20 A Mar 31-20 A Apr 30-20 A May 31-20 A Jun 30-20 A Jul 31-20 F Note: 1. The MobiKEY user count does not include the surge 15,000 us
Slide 13: Understanding the MobiKEY Impact: Revenue
Understanding the MobiKEY Impact: Revenue MobiKEY Subscription Revenue By Month 600 CAD $000s 500 400 300 Jan-20 A Feb-20 A Mar-20 A Apr-20 A May-20 A Jun-20 A Jul-20 F Note: 1. The MobiKEY user count does not include the surge 15,000 users granted to JSP at no additional revenue; 2. The MobiKEY use
Slide 14: User Authentication Software: DerivID
User Authentication Software: DerivID What are derived credentials? • Derived Credentials. The National Institute of Standards and Technology (NIST) has coined the term derived credentials to refer to cryptographic credentials that are derived from those in a Personal Identity Verification (PIV) car
Slide 15: User Authentication Software: DerivID
User Authentication Software: DerivID • DerivID validates the identity of mobile users: government employees who need to access networks and applications or to digitally sign documents and more, in a secure manner. • Leverages deployed and fully accredited infrastructures (MobiNET or DEFIMNET) hoste
Slide 16: ActionPLAN, Powered by MobiNET
ActionPLAN, Powered by MobiNET ActionPLAN is a secure technology that: • Delivers real-time industrial data analytics on data collected from Programmable Logic Controllers (PLCs) and other automation devices (including IoT) Identifies the priority faults • Provides quantitative-based actionable info
Slide 17: Data Acquisition and Analytics: ActionPLAN
Data Acquisition and Analytics: ActionPLAN 17
Slide 18: ScreenSTOP, Powered by MobiNET
ScreenSTOP, Powered by MobiNET The Problem: Current screen blanking technologies that are based on accelerometers or GPS signal have significant deficiencies: Forklift accidents LONG REACTION TIMES result in 34,900 serious LACK OF injuries annually; ACCURACY operator distraction WEAK is a leading ca
Slide 19: Data Acquisition and Analytics: ScreenSTOP
Data Acquisition and Analytics: ScreenSTOP The Solution: ScreenSTOP ScreenSTOP is a patent-pending intelligent in-motion technology solution that eliminates the hazards associated with in-vehicle computer displays installed on lift trucks and other vehicles. ScreenSTOP reduces operator distraction b
Slide 20: Data Acquisition and Analytics: Genetec AutoVu
Data Acquisition and Analytics: Genetec AutoVu TM AutoVu™ • Automatic license plate recognition (ALPR) system • Automates license plate reading and identification, making it easier for law enforcement and for municipal and commercial organizations to locate vehicles of interest and enforce parking r
Slide 21: CA Department of General Services Contract
CA Department of General Services Contract • In June 2020, Route1 was awarded a three-year contract with seven, one-year contract renewal option years by the State of California. • The contract is to provide the State of California’s officers with a state-of-the-art Automatic License Plate Recogniti
Slide 22: New Technology and Services
January 7, 2019 New Technology and Services We are building a robust Data Services The approach can be broken down into Group three principal areas of focus • Materially contributes to revenue and 1. Software development profitability 2. Managed and professional services • Strengthens relationships
Slide 23: Annual Operating Performance
Annual Operating Performance FY 19 FY 18 FY 17 FY 16 FY 15 FY 14 FY 13 In 000s of CAD Dollars A A A A A A A Revenue 24,009 26,231 6,070 7,447 6,397 6,078 5,433 Subscription Revenue and Services 7,455 6,209 5,698 7,080 6,218 5,470 4,948 Gross Margin 9,031 7,499 4,745 5,973 5,233 4,932 4,296 Gross Mar
Slide 24: Quarterly Operating Performance
Quarterly Operating Performance Q1 A Q4 A Q3 A Q2 A Q1 A Q4 A Q3 A In 000s of CAD Dollars 2020 2019 2019 2019 2019 2018 2018 Revenue 6,363 8,403 8,714 3,430 3,462 4,074 14,895 Subscription Revenue and Services 1,958 2,511 2,136 1,610 1,576 1,628 1,684 Devices, Appliances and Other 4,405 5,891 6,578
Slide 25: Subscription Revenue and Services
Subscription Revenue and Services Q1 A Q4 A Q3 A Q2 A Q1 A Q4 A In 000s of CAD Dollars 2020 2019 2019 2019 2019 2018 Application Software 1,217 1,202 1,182 1,196 1,186 1,169 Technology as a Service 321 353 322 311 306 329 Other Services 420 956 632 103 84 130 Total 1,958 2,511 2,136 1,610 1,576 1,62
Slide 26: Operating Expenses
Operating Expenses Q1 A Q4 A Q3 A Q2 A Q1 A Q4 A In 000s of CAD Dollars 2020 2019 2019 2019 2019 2018 General and Administration 1,359 1,133 1,157 1,015 997 942 Research and Development 171 192 186 147 85 164 Selling and Marketing 804 1,035 993 662 612 608 Total 2,334 2,360 2,336 1,824 1,693 1,714 2
Slide 27: Gross Profit to Sales and Marketing Cost Ratio
Gross Profit to Sales and Marketing Cost Ratio 3.5 2.88 2.94 3 2.78 2.66 2.66 2.5 2 1.5 1 0.5 0 Q1 19 A Q2 19 A Q3 19 A Q4 19 A Q1 20 A Gross Profit in CAD $MMs Sales and Marketing in CAD $MMs Ratio 27
Slide 28: Balance Sheet
Balance Sheet Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 In 000s of CAD Dollars 2020 A 2019 A 2019 A 2019 A 2019 A Cash 116 125 320 702 367 Total current assets 4,391 6,206 6,106 6,219 5,106 Total current liabilities 7,532 9,034 8,749 8,626 6,033 Contract liability 1,571 1,750 2,422 2,258 2,626 (incl. in cu
Slide 29: Capital Expenditures
Capital Expenditures Q1 A FY A Q4 A Q3 A Q2 A Q1 A In 000s of CAD Dollars 2020 2019 2019 2019 2019 2019 Leasehold Improvements - 1 - - (3) 4 Furniture and Equipment 22 - - - - - Computer Hardware (including 13 578 56 172 152 198 TaaS) Computer Software - 53 11 2 - - Intangibles 175 60 10 - 70 11 Tot
Slide 30: From Pivot to Strong Execution
From Pivot to Strong Execution 1. Advance and close on enterprise MobiKEY orders • 85%+ gross margin on each new subscription dollar of revenue • Recurring revenue, paid in advance 2. Win and market the “gateway” law enforcement bid win in California 3. Drive operational performance; growing EBITDA
Slide 31: OTCQB Virtual Investor Conference August 6, 2020
North America’s most advanced provider of custom data intelligence solutions to drive your business forward. OTCQB Virtual Investor Conference August 6, 2020
Route1 — OTCQB Virtual Investor Conference August 2020 on 6ix