Mr. Paul Ghezzi reports

KONTROL TECHNOLOGIES ANNOUNCES THIRD QUARTER 2025 FINANCIAL RESULTS

Kontrol Technologies Corp. has released its results for the three months and year to date ended Sept. 30, 2025. A complete set of the financial statements and management discussion and analysis has been filed on SEDAR+.

Q3 2025 and year-to-date highlights

In Q2 2024, the company completed the sale of the operational net assets of CEM Specialties Inc. (CEMSI), and, as such, year-to-date 2025 revenue and earnings are lower compared with the same period in the prior year:

• Revenues for the three months ended Sept. 30, 2025, were $1.3-million, compared with $1.7-million for the same quarter in the prior year; revenues for the nine months ended Sept. 30, 2025, were $4.1-million, compared with $9.2-million for the same period in the prior year.
• Gross margin for the nine months ended Sept. 30, 2025, was 57 per cent and unchanged compared with the same period in the prior year.
• Net income for the three months ended Sept. 30, 2025, was $706,378, compared with net loss of $931,032 for the same quarter in the prior year; net loss for the nine months ended Sept. 30, 2025, was $208,862, compared with net income of $11.9-million for the same period in the prior year. Net income in 2025 includes income from revaluation of marketable securities. Net income in 2024 includes gain on the sale of the CEMSI net assets, which occurred in Q2 2024.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the nine months ended Sept. 30, 2025, was negative $666,334, compared with negative $235,315 for the same period in the prior year.
• The company had no outstanding interest-bearing bank debt at Sept. 30, 2025.
• As at Sept. 30, 2025, the company's aggregate cash and marketable securities balance was $12.4-million.

Normal course issuer bid

During the nine months ended Sept. 30, 2025, the company repurchased 1,930,500 common shares for a total of $320,530. Pursuant to the normal course issuer bid approved by Cboe Canada, Kontrol may purchase, from time to time, over a period of 12 months starting April 14, 2025, and ending April 13, 2026, up to 2,757,858 common shares. The company has 53,960,669 shares outstanding as at Sept. 30, 2025.

About 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 and accelerate the sustainability of all buildings.

We seek Safe Harbor.