Mr. Kevin Callahan reports

PIONEERING TECHNOLOGY REPORTS 2023 Q3 FINANCIAL RESULTS

Pioneering Technology Corp. has released its unaudited financial results for the three and nine months ended June 30, 2023. Pioneering's unaudited condensed interim financial statements and MD&A (management discussion and analysis) are available on SEDAR+.

Financial highlights:

• Revenue in Q3 was $1,012,406 versus $619,161 for the same period a year ago.
• Revenue for the first nine months of fiscal 2023 was $2,189,050 versus $1,895,292 in fiscal 2022.
• Gross margins during Q3 were better at 50.3 per cent compared with 47.6 per cent last year. Gross margins during the nine-month period were better at 48.2 per cent compared with 47.5 per cent last year.
• Expenses during the nine-month period increased to $1,421,582 versus $1,309,237 a year ago, an increase of 8.6 per cent. Year to date, administration expenses in the amount of $202,126 incurred in previous periods were reversed resulting in reduced expenses during the period. However, this was offset by increased foreign exchange losses of $30,449 in the current year versus a gain of $86,326 in the same period a year earlier. This was also offset by $162,169 of rent and wage subsidies received in the nine months ended June 30, 2022, that were not received this year. Additionally, the company has invested in sales and marketing expenses to increase sales. For the nine months ended June 30, 2023, these expenses were $540,684 versus $504,812 a year earlier, resulting in an increase of $35,872. Lastly, stock options issued to key people (a non-cash item) increased expenses by $113,863.
• Net loss for Q3 was $(197,190) versus a loss of $(117,249) a year ago. If the company adds back the non-cash stock-based compensation expense of $113,863, the quarterly loss is ($83,327), and EBITDA (earnings before interest, taxes, depreciation and amortization) improved to $801 versus $(53,074) during the same period last year.
• Net loss for the nine-month period was $(426,225) versus a loss of $(472,690) a year ago. And EBITDA improved to $(66,779) versus $(261,122) during the same period last year.
• The balance sheet remains strong with current assets of approximately $3.5-million versus current liabilities of $900,000.

Pioneering chief executive officer Kevin Callahan said of the results: "We are very pleased with the company's performance in Q3. Revenue during the quarter was up 42 per cent versus the previous quarter and up 64 per cent versus the same period a year ago. Gross margin improved to 50 per cent as did adjusted EBITDA, which was positive. We believe we are taking the right steps to support future growth and well positioned to continue this trend in coming quarters."

About Pioneering Technology Corp.

Pioneering, based in Mississauga, Ont., is an energy smart technology company and North America's leader in innovative cooking fire prevention technologies and products. Its mission is simple: to help save lives and property from the No. 1 cause of household fires -- cooking fires. It does this by engineering and bringing to market energy-smart solutions that make consumer appliances safer, smarter and more efficient. Its patented cooking fire prevention products address the multibillion-dollar problem of cooking fires. According to the National Fire Protection Association, stovetop cooking is the No. 1 cause of household fire and fire injuries in North America. Pioneering's temperature limiting control (TLC) technology is now installed in over 400,000 multiresidential 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 SmartElement, SmartBurner, RangeMinder, SmartMicro and 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.

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