Mississauga, ON – TheNewswire -- January 29, 2024 – Pioneering Technology Corp. (TSXV:PTE) (“Pioneering” or the “Company”), a technology company and North America’s leader in cooking fire prevention technology and products reports its audited 2023 financial results for the year ended September 30, 2023. Pioneering’s audited annual financial statements and MD&A are available on SEDAR (www.sedarplus.ca)

Financial Highlights:

• Revenuein fiscal 2023 was $2,872,013 versus$2,437,866 in fiscal 2022, an increase of 18%, and revenue for the three months ended September 30th was $682,964 versus $542,574 in 2022, an increase of 26%. The Company’s revenue is once again growing with the pandemic behind us and investments being made in sales and marketing.  

• Gross margin in fiscal 2023 declined to 47% versus 50% in fiscal 2022. This is as a result of the Company selling some now obsolete product at a discount.  The Company continues to take steps to improve gross margins with its main product offerings.  

• Expenses in fiscal 2023 were $1,982,744 (an increase of 12.6% or $221,674) versus $1,761,070 in fiscal 2022.  Despite this increase, the Company continues to control its costs and expenses remain 26% lower than fiscal 2021 ($2,693,125), and 43% lower than in fiscal 2020 ($3,465,566). The increase in fiscal 2023 was mainly due to foreign exchange costs as a result of the U.S. dollar weakening during the year and increased investments in sales and marketing resources, which were partially offset by lower general and administration costs.   

• Loss for the year increased to $671,813 versusalossof$625,233 in fiscal 2022. 

• Loss of $0.01 per share in fiscal 2023, compared to a loss of $0.01 per share in fiscal 2022.   

• The balance sheet remains strong with $0.75M in cash and $2.5M in net working capital. 

Selected Financial Results – Past Four Fiscal Years Ended September 30:

	FY2023 (audited)	FY2022 (audited)	FY2021 (audited)	FY2020 (audited)
Revenue	2,872,013	2,437,866	3,351,014	6,540,550
Gross Profit	1,339,320	1,218,387	1,458,495	2,674,008
Expenses	1,982,744	1,761,070	2,693,125	3,465,566
Net Loss	(671,813)	(625,233)	(1,315,955)	(883,267)
EPS Basic (Loss)	(0.01)	(0.01)	(0.03)	(0.02)
Adjusted EBITDA¹	(537,407)	(273,913)	(1,053,904)	(352,862)
Tariff Adjusted EBITDA¹	(452,577)	(122,950)	(838,416)	163,777

¹ Adjusted EBITDA & Tariff Adjusted EBITDA are non-IFRS measures and may not be comparable to similar financial measures   disclosed by other issuers. Please refer to “Non-IFRS Measures” at end of this press release.

Pioneering CEO Kevin Callahan said of the results, “We are heading in the right direction. We have addressed many of the challenges we have faced over the past three years and made good use of the time to hone our go forward strategic plan. With the pandemic behind us the Company is focused on a return to profitability and future growth. We believe we will achieve these objectives by leveraging our competitive advantages and optimizing our newly acquired resources to achieve broader customer reach and partnerships and drive higher close rates amongst our growing qualified lead base. We continue to be committed to making our business successful for all stakeholders.”

 

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 protect people 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 household fire and fire injuries in North America. Pioneering’s temperature limiting control (TLC) technology is installed in over 400,000 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 SmartElement, SmartBurner, RangeMinder, SmartMicro, 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.

 

For more information please contact:

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

Adjusted EBITDA 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 posted on SEDAR (www.sedar.com). For a reconciliation of Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering’s management’s discussion and analysis.

 

Tariff Adjusted EBITDA, 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 Adjusted EBITDA as presented by Pioneering 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) accepts responsibility for the adequacy or accuracy of this release.