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Mississauga, ON – TheNewswire – August 29, 2022 – 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 unaudited financial results for the three and nine months ended June 30, 2022. Pioneering’s unaudited condensed interim financial statements and MD&A are available on SEDAR (www.sedar.com).
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RevenueinQ3 was $619,161 versus$837,929 for the same period year ago.
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Revenue for the first nine months of fiscal 2022 was $1,895,292 versus $2,981,799 in fiscal 2021. TheCompany’srevenuehasbeenprimarily affectedbytheimpactof COVID-19 and variantssince Q3of fiscal2020.
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Gross margins during the period improved to 47.5% versus 43.7% year ago. The Company has worked over thepast year to improve gross margins related to cost increases and U.S. tariffs.
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Expenses during the nine-month period decreased to $1,309,235 versus $2,270,172,year ago. The Company intends to continue to manage its costs carefully and in anappropriatemannerrelativetoindustryconditions.
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Net loss for the nine-month period was $472,687 versusalossof$1,032,218 a year ago.
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Balancesheetremainsstrong(approximately $900Kincash,$2.8Minaccountsreceivablesandinventory).
Revenue in Q3 was down 24% versus Q2 and remains well below pre-COVID results due primarily to the impact the pandemic has had on timing of customer orders and shipments. The Company continues to work hard to overcome these recent challenges and believes that its current strategic plan, together with a return to pre-pandemic business conditions, will help position it for future growth (see the Company’s MD&A for more information). With sales being well below pre-COVID levels the Company is pleased with the results it has achieved in increasing gross profits and decreasing costs.
Selected Financial Results for the Third Quarter & Nine-Months Ended June 30, 2022 & 2021:
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Three Months Ended June 30 2022 |
Three Months Ended June 30 2021 |
Nine Months Ended June 30 2022 |
Nine Months Ended June 30 2021 |
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Revenue |
619,161 |
837,929 |
1,895,292 |
2,981,799 |
|
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Gross Profit |
294,668 |
350,155 |
899,337 |
1,302,281 |
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Expenses |
391,661 |
537,386 |
1,309,235 |
2,270,172 |
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Net Income (Loss) |
(117,249) |
(208,500) |
(472,687) |
(1,032,218) |
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EPS Basic (Loss) |
$0.00 |
$0.00 |
($0.01) |
($0.02) |
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Adjusted EBITDA¹ |
(51,205) |
(170,052) |
(266,858) |
(864,458) |
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Tariff Adjusted EBITDA¹ |
(14,731) |
(110,777) |
(144,690) |
(661,665) |
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, “The Company continues to work hard managing product margins and expenses which is resulting in significant improvements in adjusted EBITDA. The Company will continue to execute against its plan. Despite the many obstacles we have had to deal with, we remain confident that the future remains very promising, and we are committed to making our business successful for all stakeholders.”
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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 save lives 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 now 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 Safe-T-element, SmartBurner, RangeMinder & 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: [email protected]
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 an, 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.
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 the 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.
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