PTE:CC - Pioneering Technology Reports 2024 Q2 Financial Results

(TheNewswire)

Mississauga, ON – TheNewswire - (May 30, 2024) – Pioneering TechnologyCorp. ( TSXV: PTE ) (“ Pioneering ” or the “ Company ”), a technology companyand North America’s leader in cooking fire prevention technologiesand products, reports its unaudited financial results for the threeand six-months ended March 31, 2024. Pioneering’s un audited condensed interim financialstatements and MD&A are available on SEDAR ( www.sedarplus.com ).

Financial Highlights:

• RevenueinQ2 was $523,628 versus$713,811 for the same period a yearago.

• Revenue for the first six-months of fiscal 2024was $1,177,289 versus $1,176,644 in fiscal 2023.

• Gross margins for the first 6 months were better at 54% compared to46% last year.

• Expenses during the six-month period increasedto $1,198,225 versus $774,908 a year ago. Thisincrease in expenses is attributed to the reversal of a general administration expense in the amount of $202,126 in Q2 2023and an investment in sales and marketing in 2024 year to date topre-pandemic spending levels.

• Net loss for Q2 was $(347,380) versusalossof$5,916 a year ago andEBITDA decreased to $(279,975) versus $88,555 during the same periodlast year.

• The Company has current assets of approximately $2.5 million.

Selected Financial Results for the Second Quarter & Six-monthsEnded March 31, 2024 & 2023:

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 .

² Expenses in Q2 2023 include a reversal ofa previous G&A expense of $202,126.

Pioneering CEO Kevin Callahan said of the results, “The Company’srevenue saw a decline in the second quarter of 2024 versus Q2 2023 andyear to date revenue is roughly flat versus the same period year ago,while gross profit has increased 17%. The Company has been successfulyear to date in getting its costs under control but that has beenoffset by a return to pre-pandemic sales and marketing spending. The Company, while disappointed with its revenueresults in Q2, believes that short term results arebeing affected by increased competitive activity that reflects both the magnitude of the cooking fire problem/opportunity and increasedawareness of the need for customers to meet new standards. Pioneeringis focused on leveraging its return-on-investment advantage againstits main competitors (who offer only mitigation products where therewill always be a fire) and its superior performance and track recordcompared with the  new cooking fire prevention offerings that haveentered the market. The Company believes that its currentbusiness development activities will help the Company grow in future.We are committed to making our business successful for allstakeholders.”

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About Pioneering TechnologyCorp: Pioneering, based in Mississauga, Ontario is an"energy smart" technology company and North America's leaderin innovative cooking fire prevention technologies and products. Ourmission is simple: To help save lives and property from the number onecause of household fire – cooking fires. We do this by engineeringand bringing to market energy-smart solutions that make consumerappliances safer, smarter, and more efficient. Our patentedcooking-fire prevention products address the multi-billion-dollarproblem of cooking fires. According to the National Fire ProtectionAssociation, stovetop cooking is the number one cause of household fire and fire injuries in North America. Pioneering’stemperature limiting control (TLC) technology is now  installed inover 450,000 multi-residential housing units across North Americawithout a single cooking fire, delivering peace of mind and a solidreturn on investment for its customers. Pioneering’s proprietarycooking fire prevention solutions include Safe-T-element, SmartBurner,RangeMinder & Safe-T-sensor and are suitable for the majority ofthe more than 140 million stoves/ranges and over 140 million microwaveovens 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 include forward-lookingstatements that involve a number of risks and uncertainties. Thesestatements relate to future events or future performance and reflectmanagement's current expectations and assumptions. A number of factorscould cause actual events, performance or results to differ materiallyfrom the events, performance and results discussed in theforward-looking statements, such as the economy, generally,competition in Pioneering’s target markets, the demand forPioneering’s products, the availability of funding and the efficacyof Pioneering’s technology, governmental regulation and the impactof the COVID-19 pandemic. These forward- looking statements are madeas of the date hereof and, except as required by applicable law,Pioneering does not assume any obligation to update or revise them toreflect new events or circumstances. Actual events or results coulddiffer materially from Pioneering’s expectations and projections.

Non-IFRS Measures

Adjusted EBITDA is a measure not recognizedunder International Financial Reporting Standards (“IFRS”).However, management of Pioneering believes that most shareholders,creditors, other stakeholders and investment analysts prefer to havethese measures included as reported measures of operating performance,a proxy for cash flow, and to facilitate valuation analysis. AdjustedEBITDA is defined as earnings before interest income, taxes,depreciation and amortization, impairment losses, stock-basedcompensation, restructuring costs included in general andadministration expense, fair value movement – derivative liabilityand other non-recurring gains or losses including transaction costsrelated to acquisition. Management believes Adjusted EBITDA is auseful measure that facilitates period-to-period operatingcomparisons. Adjusted EBITDA does not have any standard meaningsprescribed by IFRS and therefore, may not be comparable to similarmeasures presented by other issuers. Readers are cautioned thatAdjusted EBITDA is not an alternative to measures determined inaccordance with IFRS and should not, on its own, be construed asindicators of performance, cash flow or profitability. References toPioneering’s Adjusted EBITDA should be read in conjunction with thefinancial statements and management's discussion and analysis ofPioneering posted on SEDAR (www.sedar.com). For a reconciliation of Adjusted EBITDA as presented byPioneering to net income, please refer to Pioneering’smanagement’s discussion and analysis.

Tariff Adjusted EBITDA , defined as Adjusted EBITDAadjusted for tariff and tariff related costs, is used by management tomeasure operating performance of the Company and is a supplement toour unaudited condensed interim financial statements presented inaccordance with IFRS. Tariff Adjusted EBITDA is a helpful measure ofoperating performance, similar to Adjusted EBITDA, enabling managementand investors to gain a clearer understanding of the underlyingfinancial performance of the Company without the impact of U.S.Section 301 tariffs and related costs.

While management considers Tariff Adjusted EBITDA a meaningful measurefor 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 becomparable to similar measures presented by other companies. Readersare cautioned that Tariff Adjusted EBITDA is not an alternative tomeasures determined in accordance with IFRS and should not, on itsown, be construed as indicators of performance, cash flow orprofitability. References to the Pioneering’s Tariff Adjusted EBITDAshould be read in conjunction with the financial statements andmanagement's discussion and analysis of Pioneering posted on SEDAR(www.sedar.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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