Mr. Paul Ghezzi reports

KONTROL TECHNOLOGIES PROVIDES CORPORATE UPDATE

Kontrol Technologies Corp. has provided a corporate update for February, 2024.

New ethylene oxide (EtO) analyzer orders

The company has received multiple new EtO analyzer orders for United States customers as it continues to expand its solutions for the ethylene oxide market. Beginning in 2023, and year to date, the company has received 14 EtO analyzer orders. This was a new market for the company in 2023 and is an example of organic growth through innovation. Each analyzer includes hardware, software and real-time monitoring.

Following the press release dated March 23, 2023, the company is pleased to announce that it has finalized its government funding report with positive results for its Dry Kilne probe technology. The company has received a total of $130,000 in funding to support the development of its new technology.

Over a five-month period of continuous operation, the company's Kilne probe was able to operate with 70 per cent less power consumption, 90 per cent less facility footprint and a 90 per cent improvement in unscheduled downtime as compared with traditional technology in the market.

"We are extremely pleased with the results of the Kilne probe technology and will be sharing those with our addressable market, as our technology can deliver lower operating costs and improved facility performance. We will now focus on scaling with our customers," says Paul Ghezzi, chief executive officer of Kontrol.

The environmental and process monitoring of emissions is critical in industries, both for production (quality of finished products), reducing green house gases (GHG) and harmful emissions, but also fuel savings, which reduces consumption of natural gas, coal and alternative fuels. Cement plants are one of the major contributors to GHG emissions globally. Enhanced monitoring and management may improve operating efficiency and lead to GHG emission reductions.

Forbearance agreement

The company is in compliance with its forbearance agreement and is working closely with its secured lender. The company is in discussions with multiple Schedule A banks as it continues to deleverage and reduce its secured debt obligations.

"In 2023 and into 2024, we had a primary focus on deleveraging and right-sizing the balance sheet. As we look at our growth plans for 2024, we believe we are in a good position to negotiate long-term lending terms, which will support future growth, including potential tuck-in acquisitions. We will take the appropriate time in Q1 2024 to evaluate the best debt solution for the company," continues Mr. Ghezzi.

The company anticipates a transition to a traditional lending agreement in Q1 2024.

Kontrol Technologies Corp.

Kontrol Technologies, 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.

We seek Safe Harbor.