PIO - Pioneering Technology Reports Fiscal Year 2023 Financial Results

(TheNewswire)

M ississauga, ON– TheNewswire -- January 29, 202 4 – PioneeringTechnology Corp. ( TSXV:PTE ) (“ Pioneering ” or the “ Company ”), atechnology company and North America’s leader in cooking fireprevention technology and products reports its audited 2023 financial results for the year ended September 30 , 20 23 . Pioneering’s audited annual financial statements andMD&A are available on SEDAR ( www.sedarplus.ca)

Financial Highlights:

• Revenuein fiscal 2023 was $2,872,013versus$2,437,866 in fiscal 2022, an increase of 18%, and revenue forthe three months ended September 30 th was $682,964 versus $542,574 in 2022, an increase of 26%.The Company’s revenue is once again growing with the pandemic behindus and investments being made in sales and marketing.

• Gross margin in fiscal 2023 declined to 47% versus 50%in fiscal 2022. This is as a result of the Company selling some nowobsolete product at a discount.  The Company continues to take stepsto improve gross margins with its main product offerings.

• Expenses in fiscal 2023 were $1,982,744 (an increase of12.6% or $221,674) versus $1,761,070 in fiscal 2022.  Despite thisincrease, the Company continues to control its costs and expensesremain 26% lower than fiscal 2021 ($2,693,125), and 43% lowerthan in fiscal 2020 ($3,465,566). The increase in fiscal 2023 wasmainly due to foreign exchange costs as a result of the U.S. dollarweakening during the year and increased investments in sales andmarketing resources, which were partially offset by lower general andadministration costs.

• Loss for the year increased to $671,813 versusalossof$625,233 infiscal 2022.

• Loss of $0.01 per share in fiscal 2023, compared to a loss of $0.01per share in fiscal 2022.

• The balance sheet remains strong with $0.75M in cash and $2.5M in networking capital.

Selected Financial Results – PastFour Fiscal Years Ended September 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, “We are headingin the right direction. We have addressed many of the challenges wehave faced over the past three years and made good use of the time tohone our go forward strategic plan. With the pandemic behind us theCompany is focused on a return to profitability and future growth. Webelieve we will achieve these objectives by leveraging our competitiveadvantages and optimizing our newly acquired resources to achievebroader customer reach and partnerships and drive higher close ratesamongst our growing qualified lead base. We continue tobe committed to making our business successful for allstakeholders.”

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 protect people andproperty from the number one cause of household fire – cookingfires. We do this by engineering and bringing to market energy-smartsolutions that make consumer appliances safer, smarter, and moreefficient. Our patented cooking-fire prevention products address themulti-billion-dollar problem 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 installed in over 400,000 multi-residentialhousing units across North America without a single cooking fire,delivering peace of mind and a solid return on investment for itscustomers. Pioneering’s proprietary cooking fire preventionsolutions include SmartElement, SmartBurner, RangeMinder, SmartMicro,Safe-T-sensor and are suitable for the majority of the more than 140million 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 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 Pioneering’sAdjusted EBITDA should be read in conjunctionwith the financial statements and management's discussion and analysisof 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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