PTEFF - Pioneering Technology Reports Fiscal Year 2022 Financial Results

(TheNewswire)

Mississauga, ON - TheNewswire - January 30, 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 audited 2022 financial results for the year ended September 30 , 20 22 . Pioneering’s audited condensed annual financialstatements and MD&A are available on SEDAR ( www.sedar.com ).

Financial Highlights:

• Revenuein fiscal 2022 was $2,437,866versus$3,351,014 in 2021.  The Company’s revenue has been adverselyaffected by the impact of COVID-19 since Q3 of fiscal 2020.

• Gross margin in fiscal 2022 improved to 50% versus 44%in 2021.  The Company continues to take steps to improve grossmargins.

• Expenses in fiscal 2022 were $1,761,070, a decrease of35% versus 2021 ($2,693,125), a decrease of 49% versus 2020($3,465,566), and a decrease of 64% versus 2019 ($4,890,909).The Company intends to continue to manage its costs carefully and inanappropriatemannerrelativetoindustryconditions.

• Loss for the fiscal year decreased to $625,233 versusalossof$1,315,955in fiscal 2021.

• Loss of $0.01 per share in fiscal 2022, compared to a loss of $0.03per share in fiscal 2021.

• The balance sheet remains strong with $0.9M in cash and $3.0M in networking capital.

Revenue saw further declines in 2022 due to the continuing effects ofCOVID-19 on customer orders and shipments.  The Company continues towork hard to overcome these recent challenges and believes that itscurrent strategic plan, together with a return to pre-pandemicbusiness conditions, will help position it for future growth (see theCompany’s MD&A for more information).  With sales continuing tobe well below pre-COVID levels the Company is pleased with the resultsit has achieved in increasing gross profits and decreasing costs.

Selected Financial Results – Past Four Fiscal Years EndedSeptember 30:

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, “The Companycontinues to work hard managing product margins and expenses which isresulting in significant improvements in adjusted EBITDA.  TheCompany will continue to execute against its plan.  Despite the manyobstacles we have had to deal with, we remain confident that thefuture remains very promising, and we are committed to making ourbusiness successful for all stakeholders.”

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 fire – cookingfires. We do this by engineering and bringingto 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 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 include forward-looking statements that involve a number of risks anduncertainties. These statements relate to future events or futureperformance and reflect management's currentexpectations and assumptions. A number of factors could cause actualevents, performance or results to differmaterially from the events, performance and results discussed in theforward-looking statements, such as the economy,generally, competition in Pioneering’s target markets, the demandfor 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 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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