Pioneering Technology Reports 2021 Q3 Financial Results

(TheNewswire)

Mississauga, ON – TheNewswire -August 30, 2021– Pioneering Technology Corp. (TSXV: PTE) (“Pioneering” or the “Company”), a technology company and North America’s leader in cooking fire prevention technology and productsreportsitsunauditedfinancialresultsforthethree and nine months endedJune 30,2021.Pioneering’s unaudited condensed interim financial statements and MD&A are available on SEDAR(www.sedar.com).

Financial Highlights:

• - Revenue in Q3 was $837,929 versus $822,321 for the same period last year.

  - Revenue for the nine months of fiscal 2021 was $2,981,799 versus $5,538,263 in fiscal 2020.

  - AdjustedEBITDA during Q3 was($170,052) versus ($457,131) during the same period year ago.

  - Gross margins continue to improve due to the elimination of special incentives and price increases.

  - Balance sheet remains strong with $1.6M in cash and $3.2M in accounts receivables & inventory.

TheCOVID-19 pandemic continues to affect the timing of shipments and reported revenue and U.S. tariffs on goods manufactured in China have adversely affected gross margins over the past five quarters. However, given the prospect of widespread vaccinations in 2021 in the Company’s primary market, and an internal strategic plan focused on addressing these challenges by also managing expenses, increasing prices, and creating new opportunities means the Company is positioned to overcome these challenges.

Selected Financial Results for the Third Quarter & Nine-months Ended June 30, 2021 & 2020:

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

Pioneering CEO Kevin Callahan said, “Despite many challenges over the past year, we remain confident that our focus on the core business and developing new products, while taking proactive steps tomanage expenses, pricing, cost of goods and gross profit, will position us well.”

##

About Pioneering Technology Corp:Pioneering, based in Mississauga, Ontario is an "energy smart" technology companyandNorthAmerica'sleaderininnovativecookingfirepreventiontechnologiesandproducts.Ourmission is simple: To help save lives and property from the number one cause of household fire – cooking fires. We do thisbyengineeringandbringingtomarketenergy-smartsolutionsthatmakeconsumerappliancessafer,smarter, and more efficient. Our patented cooking-fire prevention products address the multi-billion-dollar problem 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 300,000 multi-residential housing units across North America without a single cooking fire being reported, delivering peace of mind and a solid return on investment for its customers. Pioneering’s proprietarycookingfirepreventionsolutionsincludeSafe-T-element,SmartBurner,RangeMinder&Safe-T-sensor and are suitable for the majority of the more than 140 million stoves/ranges and over 140 million microwave ovens in use throughout North America. For more info, go towww.pioneeringtech.com.

For investor relations please contact:

Michael Quast

Chief Operating Officer

Phone: 647-945-7521

Email: michaelquast@pioneeringtech.com

Forward Looking Statements

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in 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 the efficacy of Pioneering’s technology, governmental regulation and the impact of the COVID-19 pandemic. These forward- looking statements are made as of the date hereof an, except as required by applicable law, Pioneering does not assume any obligation to update or revise them to reflect new events or 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 Financial Reporting Standards (“IFRS”). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported 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, impairment losses, stock-based compensation, restructuring costs includedingeneralandadministrationexpense,fairvaluemovement–derivativeliabilityandothernon-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. Adjusted EBITDA does not have any standard meanings prescribed by IFRS and therefore may not be comparable to similar measures 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 of performance, cash flow or profitability. References to the Pioneering’s 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 Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering’s management’s discussion andanalysis.

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 Adjusted EBITDA, enabling management and investors to gain a clearer understanding of the underlying financial performance of the Company without the impact of U.S. Section 301 tariffs 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 a standardized 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 an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of 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 andanalysis.

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

Copyright (c) 2021 TheNewswire - All rights reserved.