PTEFF - Pioneering Technology Reports 2023 Q3 Financial Results

(TheNewswire)

Mississauga, ON – TheNewswire - August 29 ,202 3 ) – PioneeringTechnology Corp. ( TSXV:PTE ) (“ Pioneering ” or the “ Company ”), atechnology company and North America’s leader in cooking fireprevention technology and products reports its unaudited financial results for the three and nine months ended June 30 , 20 23 . Pioneering’s unaudited condensed interim financialstatements and MD&A are available on SEDAR ( www.sedarplus.com ).

Financial Highlights:

• RevenueinQ3 was $1,012,406 versus$619,161 for the same period a yearago.

• Revenue for the first nine-months of fiscal 2023was $2,189,050 versus $1,895,292 in fiscal 2022.

• Gross margins during Q3 were better at 50.3% compared to 47.6% lastyear. Gross margins during the nine-month period were better at 48.2%compared to 47.5% last year.

• Expenses during the nine-month period increasedto $1,421,582 versus $1,309,237 a year ago, anincrease of 8.6%.  Year-to-date, administrationexpenses in the amount of $202,126 incurred in previous periods werereversed resulting in reduced expenses during the period.  However,this was offset by increased foreign exchange losses of $30,449 in thecurrent year versus a gain of $86,326 in the same period a yearearlier.  This was also offset by $162,169 of rent and wage subsidiesreceived in the nine months ended June 30, 2022 that were not receivedthis year.  Additionally, we have invested in sales and marketingexpenses to increase sales.  For the nine months ended June 30, 2023these expenses were $540,684 versus $504,812 a year earlier, resultingin an increase of $35,872.  Lastly, stock options issued tokey people (a non-cash item) increased expenses by $113,863.

• Net loss for Q3 was $(197,190) versusalossof$(117,249) a year ago. Ifwe add back the non-cash stock-based compensation expense of $113,863,the quarterly loss is ($83,327), and EBITDA improved to $801 versus$(53,074) during the same period last year.

• Net loss for the nine-month period was $(426,225)versusalossof$(472,690) a year ago. And EBITDA improved to $(66,779)versus $(261,122) during the same period last year.

• The Balance S heetremainsstrongwith currentassets of approximately $3.5 million versus current liabilities of$0.9 million.

Selected Financial Results for the Third Quarter & Nine-monthsEnded June 30, 2023 & 2022:

¹ Adjusted EBITDA & Tariff Adjusted EBITDA are non-IFRS measures and maynot be comparable to similar financial measures   disclosed by otherissuers. Please refer to “Non-IFRS Measures” at end of this press release .

Pioneering CEO Kevin Callahan said of the results, “We are verypleased with the Company’s performance in Q3. Revenue during thequarter was up 42% versus the previous quarter and up 64% versus thesame period a year ago. Gross Margin improved to 50% as did AdjustedEBITDA, which was positive.   We believe we are taking the rightsteps to support future growth and well positioned to continue thistrend in coming quarters.”

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About Pioneering TechnologyCorp: Pioneering, based in Mississauga, Ontariois an "energy smart" technology company and North America's leader in innovative cooking fire prevention technologies and products. Our mission is simple: To help save livesand property from the number one cause of household fires – cookingfires. We do this by engineering and bringing tomarket energy-smart solutions that make consumer appliances safer,smarter, and more efficient. Our patentedcooking-fire prevention products address the multi-billion-dollarproblem of cooking fires. According to the National Fire Protection Association, stovetop cooking is the number one cause of household fire and fire injuries in North America. Pioneering’s temperature limiting control (TLC) technology is now installed in over 400,000 multi-residential housing units across North Americawithout a single cooking fire, delivering peace of mind and a solid return on investment forits customers. Pioneering’s proprietary cooking fire prevention solutions include Safe-T-element, SmartBurner,RangeMinder & Safe-T-sensor and are suitable for the majority of the more than 140 million stoves/ranges and over140 million microwave ovens in use throughout North America. For more info, go to www.pioneeringtech.com .

For more information please contact:

Kevin Callahan

CEO

Phone: 647-945-7515

Email: kcallahan@pioneeringtech.com

Forward Looking Statements

The statements made in this press release includeforward-looking statements involving risks and uncertainties. Thesestatements relate to future events or future performance and reflectmanagement's current expectations andassumptions. Several factors could cause actual events, performance orresults to differ materially from the events,performance and results discussed in the forward-looking statements,such as the economy, generally, competition inPioneering’s target markets, the demand for Pioneering’s products,the availability of funding and the efficacy of Pioneering’s technology, governmental regulation and the impact of the COVID-19 pandemic. Theseforward- looking statements are made as of the date hereof and, exceptas required by applicable law, Pioneering doesnot assume any obligation to update or revise them to reflectnew events or circumstances. Actual events orresults could differ materially from Pioneering’s expectationsand projections.

Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under International Financial Reporting Standards (“IFRS”). However, management of Pioneering believes that most shareholders, creditors, other stakeholders, and investment analysts prefer to have these measures included asreported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis.Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, impairmentlosses, stock-based compensation, restructuring costs included in general and administration expense, fair valuemovement – derivative liability and other non-recurring gains or losses including transaction costs related to acquisition. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. AdjustedEBITDA does not haveany standard meanings prescribed by IFRS and therefore, may not becomparable to similar measures presented by other issuers. Readers arecautioned that Adjusted EBITDA is notan alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators ofperformance, cash flow or profitability. References to Pioneering’sAdjusted EBITDA should be read with the financial statements andmanagement’s discussion and analysis of Pioneering posted on SEDAR(www.sedarplus.com). For a reconciliation of Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering’s management’s discussion and analysis.

Tariff Adjusted EBITDA , defined as Adjusted EBITDA adjusted for tariff and tariff related costs, is used by management to measure operating performance of the Company and is a supplement to our unaudited condensed interim financial statements presented in accordance with IFRS. Tariff Adjusted EBITDA is a helpful measure of operating performance, similar to AdjustedEBITDA, enabling management and investors to gain a clearerunderstanding of the underlying financialperformance of the Company without the impact of U.S. Section 301tariffs and related costs. While management considers Tariff Adjusted EBITDA a meaningful measure for assessing the underlying financial performance of the Company,Tariff Adjusted EBITDA is a non-IFRS measure and does not have astandardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Readers are cautioned that Tariff Adjusted EBITDA is not analternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicatorsof performance, cash flow or profitability. References to thePioneering’s Tariff Adjusted EBITDA should be read with thefinancial statements and management’s discussion and analysis ofPioneering posted on SEDAR (www.sedarplus.com). For a reconciliation of Tariff Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering’s management’s discussion and analysis.

Neither the TSXV nor its RegulationServices Provider (as that term is defined under the policies of theTSXV) accepts responsibility for the adequacy or accuracy of this release.

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