Fabrice Taylor Route 1 Inc. ROI-X HOLD Apr 21, 2014

It is like watching paint dry as it trades between $0.04 and $0.05. Has been profitable, which is very good for a small company. Their product is an equivalent of a memory stick i.e. you put it in your computer giving you access to your other computers anywhere in the world. The US government is continuing to roll the product out. Thinks there is testing going on in the UK with the banking community. If they were to sign a significant contract, there would be a dramatic improvement for their outlook.

A top 5 personal holding. They have their costs in Canadian dollars and their revenues in US dollars. They are improving approximately 20% because of declining currency. The catalysts are getting a large number of clients. They are already profitable and they have cash in the bank. They are hoping for increased sales to the US government. They don’t have stiff completion.

Have a USB stick that you put into a laptop, tablet, etc. at any location globally, and on a totally secure basis, you can reach into your home computer without having to have a huge IT base. Just announced it now for Android, so that some of the Samsung phones as well as tablets and laptops are now able to get access. Clients include US Department of Homeland Security, Defence and others. Their product offers simplified security without a ton of overhead.

Just announced that their average revenue per subscriber is up 8%, the average number of subscribers is up about 12% and the average dollars year-over-year is up about 17%. For the 1^st time, a Canadian legal firm has used this because people are becoming more concerned about security. US government is now starting to embrace it. The big catalyst is looking for a huge uptake in US government users. There is pretty good quarter on quarter increases in underlying subscribers. Hopefully you can Buy, throw in a box and a year from now see it at more than $0.04-$0.05.

You have to remember that the company is profitable. That is really important, particularly with smaller companies, because it is hard for small companies to raise money these days. You want to have them free cash flow positive, and this one is. They are not ripping the leather off the ball as far as growth, but what they have is a product called MobiKey which allows you to remotely, on a totally secure basis, reach into a computer from anywhere. US and Cdn governments uses this in a big way. The question is, will there be a broad rollout beyond the existing government users. Profitable.

Makes specialty software for extremely robust and secure access. They have a high recurring revenue model. Currently working extremely well with the US government. Everyone is hopefully expecting a dramatic increase in the number of installations. If that happens, it will flow immediately to the bottom line.

Their product is a USB stick that you push into computers. Unfortunately, the US government and many others have looked at this as a security risk. VIQ Solutions (VQS-X) just introduced new SAS models, which you should consider instead.

They continue to lose subscribers. A great product, though, which he uses. But the decline in subscribers make this a non-buy.

Route1 provides security services to companies, including letting you safely use your computer in a public place, like a cafe, and letting you totally delete the contents of a laptop at a distance. He uses this company’s services. They are also using their technology as a basis for expanding into new areas, providing potential growth over the next year. He has owned the stock in the past, doesn’t own it now, but sees a lot of potential.