Pioneering Technology Reports 2024 Q2 Financial Results

(TheNewswire)

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

Financial Highlights:

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

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

• Gross margins for the first 6 months were better at 54% compared to 46% last year.

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

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

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

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

¹ AdjustedEBITDA&Tariff AdjustedEBITDAarenon-IFRSmeasures and may not be comparable to similar financial measures disclosed by other issuers.Pleasereferto“Non-IFRSMeasures”atendofthispressrelease.

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

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

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About Pioneering Technology Corp: Pioneering, based in Mississauga, Ontario is 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 property from the number one cause of household fire – cooking fires. We do this by engineering and bringing to market energy-smart solutions that make consumer appliances safer, 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 householdfireandfireinjuriesinNorthAmerica. Pioneering’s temperature limiting control (TLC) technology is now installed in over 450,000 multi-residential housing units across North America without a single cooking fire, delivering peace of mind and a solid return on investment for its 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 over 140 million microwave ovens in use throughout North America. For more info, go to www.pioneeringtech.com.

Formoreinformationpleasecontact:

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 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 and, 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

AdjustedEBITDA 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 included in general and administration expense, fair value movement – 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. 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 Pioneering’s Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Pioneering postedonSEDAR(www.sedar.com).ForareconciliationofAdjustedEBITDA as presented by Pioneering to net income, please refer to Pioneering’s management’s discussion and analysis.

TariffAdjustedEBITDA, 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 AdjustedEBITDAaspresentedbyPioneering to net income, please refer to Pioneering’s management’s discussion and analysis.

Neither the TSXV nor its Regulation Services Provider (as that term is defined under the policies of the TSXV) acceptsresponsibilityfortheadequacyor accuracyofthisrelease.

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