Mr. Paul Ghezzi reports

KONTROL TECHNOLOGIES ANNOUNCES THIRD QUARTER, 2023 FINANCIAL RESULTS; NET INCOME POSITIVE FOR THE QUARTER AND YEAR TO DATE

Kontrol Technologies Corp. has released its third quarter 2023 financial results. A complete set of the financial statements and management's discussion and analysis will also be filed on SEDAR+ on the filing date.

"The third quarter performance demonstrates the company's focus on executing its strategic objectives and driving to profitability," says Paul Ghezzi, chief executive officer of Kontrol Technologies. "On a continuing operations basis, revenue, gross profit, earnings and positive cash flow from operations increased for the nine months ended Sept. 30, 2023, compared to the same period in the prior year (comparative period excludes discontinued operations). Further, we have reduced debt levels in 2023 as the company continues to deleverage the business and improve the balance sheet."

Third quarter and year-to-date 2023 highlights

Cash flows from operating activities were positive $2.2-million year to date and net income was positive in the third quarter and year to date:

• Revenues from continuing operations for the three months ended Sept. 30, 2023, were $4.5-million, up 32 per cent over the same quarter in the prior year.
• Revenues from continuing operations for the nine months ended Sept. 30, 2023, were $13.7-million, up 28 per cent over the same period in the prior year.
• Gross margin from continuing operations for the nine months ended Sept. 30, 2023, was 64 per cent, compared with 55 per cent for the same period in the prior year.
• Adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization) from continuing operations for the nine months ended Sept. 30, 2023, was $2.8-million, compared with $1.5-million for the same period in the prior year.
• Net income from continuing operations for the three months and nine months ended Sept. 30, 2023, was $665,558 and $294,501, respectively.

* Adjusted EBITDA is a non-IFRS (international financial reporting standards) financial measure. The company defines adjusted EBITDA as net income or loss before interest, income taxes, amortization and depreciation, share-based compensation, acquisition related expenses, and listing expense.

About Kontrol Technologies Corp.

Kontrol, a Canadian public company, is a leader in smart buildings and cities through IoT (Internet of things), cloud and SaaS (software-as-a-service) technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings. Additional information about Kontrol can be found on the company's website and by reviewing its profile on SEDAR+.

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