PTEFF - Pioneering Technology Reports Fiscal Year 2021 Financial Results

(TheNewswire)

Mississauga, ON – TheNewswire - January 28, 2022 – Pioneering Technology Corp. ( TSXV:PTE ) (“ Pioneering ” or the “ Company ”), a technology companyand North America’s leader in cooking fire prevention technologiesand products, reports its audited 2021 financial results for thefiscal year ended September 30, 2021. Pioneering’s audited financialstatements and MD&A are available on SEDAR ( www.sedar.com ).

Selected Financial Information for theTwelve Months Ended September 30, 2021

• Revenue in 2021 was$3,351,014,versus$6,540,550 in 2020. The Company’s revenue has been adverselyaffected by the impact of COVID-19 since Q3 of fiscal 2020.

• Gross margin in 2021 was 44% versus 41% in 2020. The Company hasbeen taking steps over the past year to improve gross margins (relatedto cost increases and tariffs) and believes that due to recent/ongoinginitiatives these margins will continue to improve in 2022.

• Expensesin2021were ( $2,693,125),adecreaseof22%versus2020 ($3,465,566) and adecrease of 56% versus 2018 ($6,072,092). The Company intends tocontinue to manage its costs carefully and in an appropriate mannerrelative to industry conditions.

• Lossfortheyearwas$1,315,955 versusalossof$883,267 infiscal 2020.

• Loss of$0.02persharein2021, the same amount as in 2020 despitesignificantly lower revenue.

• Balance sheet remains strong with $1.5Mincash , $2.8Minaccountsreceivableandinventory.

Revenue continued to decrease in 2021 due to the impact of COVID-19 oncustomer orders and shipments.    The Company continues to work hardto overcome these recent challenges and believesthat its current strategic plan, together with a continued returntowards pre-pandemic business conditions, will help position it forfuture growth.

Selected Financial Results - Past FourFiscal Years Ended September 30

1. (1) Adjusted EBITDA Tariff Adjusted EBITDA are non-IFRS measures. Please refer to “Non-IFRS Measures at end of this release

Pioneering CEO Kevin Callahan said of the results, “The Company hasfelt the effects of COVID-19 over the past year and a half.  Duringthis time the Company has worked hard to cut costs substantially andhas focused on building an aggressive plan for the future. TheCompany’s products are more relevant today than prior to thepandemic, but we have had to be patient.  The pipeline remains strongand is growing. Despite the many obstacles we have had to deal with,we remain confident that the future remains very promising, and we arecommitted to making this a success for all stakeholders.”

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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 lives and propertyfrom the number one cause of household fire – cooking fires. We dothis by engineering and bringing to market 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 theNational Fire Protection Association, stovetop cooking is the numberone 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 America without 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 of the more than140 million stoves/ranges and over 140 million microwave ovens in usethroughout 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 that involve a number of risks and uncertainties. These statements relate to future eventsor future performance and reflect management's current expectations and assumptions. A number of factors could causeactual events, performance or results to differ materially from the events, performance and results discussedin the forward-looking statements, such as the economy, generally, competition in Pioneering’s target markets, the demand for Pioneering’s products, the availability of funding and theefficacy of Pioneering’s technology, governmental regulation and theimpact of the COVID-19 pandemic. These forward-looking statements are made as of the date hereof an, except asrequired by applicable law, Pioneering does notassume any obligation to update or revise them to reflect new eventsor circumstances. Actual events or results could differ materially from Pioneering’s expectations and projections.

Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under International FinancialReporting Standards (“IFRS”). However, management of Pioneering believes that most shareholders,creditors, other stakeholders and investment analysts prefer to have these measures included as reported measuresof 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, impairment losses, stock-based compensation, restructuring costs included in general and administration expense, fair valuemovement – derivative liability and other non-recurring gains orlosses including transaction costs related toacquisition. Management believes Adjusted EBITDA is a useful measurethat facilitates period-to-period operating comparisons. Adjusted EBITDA does not have any standard meanings prescribed by IFRS

and therefore, may not be comparable to similarmeasures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an 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 thePioneering’s Adjusted EBITDA should be read inconjunction with the financial statements and management's discussionand analysis of Pioneering posted on SEDAR (www.sedar.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 the Pioneering’s Tariff Adjusted EBITDA should be read in conjunction with the financial statements and management'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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