Investor Communication

Mississauga, ON – March 27, 2020– Pioneering Technology Corp. (“Pioneering” or the “Company”) (TSXV: PTE), a technology company and North America’s leader in cooking fire prevention technologies and products, is pleased to announce that at its annual general and special meeting held on March 26, 2020 all resolutions were approved by the requisite shareholder vote.

All seven of the Company’s incumbent directors, being Kevin Callahan, John Bergsma, David Dueck, Paul Harricks, Michael Kraft, Richard Adair and Meredith Appy, were re-elected. Shareholders also approved the re-appointment of RSM Canada LLP as the Company’s auditors and an amendment to the Company’s stock option plan to increase the number of common shares authorized for issuance thereunder to 11,208,349, being 20% of the total number of common shares currently outstanding.

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 300,000 multi-residential housing units across North America without a single cooking fire being reported, 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 information, go to www.pioneeringtech.com.

For more information please contact:

Michael Quast

VP Marketing & Communications

Phone: 647-945-7521 

Email:michaelquast@pioneeringtech.com

Forward Looking Statements

This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Mississauga, ON – March 23, 2020– Pioneering Technology Corp. (“Pioneering” or the “Company”) (TSXV: PTE), a technology company and North America’s leader in cooking fire prevention technologies and products, announced today that, due to the emerging public health impact of the COVID-19 pandemic, its annual and special meeting of shareholders will now be held at Pioneering’s offices located at 2400 Skymark Avenue, Unit 7, Mississauga, Ontario L4W 5K5. The time and date of the meeting – 1:00 pm (Toronto time) on March 26, 2020 – have not changed.

Pioneering is encouraging shareholders and others not to attend in person the annual meeting and Pioneering’s management will not be making a presentation at the meeting. Only registered shareholders and duly appointed proxyholders will be admitted to the meeting. Shareholders are encouraged to vote on the matters before the meeting by proxy or, in the case of beneficial shareholders, by following the voting instructions provided to them by their broker or other intermediary.

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 300,000 multi-residential housing units across North America without a single cooking fire being reported, 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 information, go to www.pioneeringtech.com.

For more information please contact:

Michael Quast

VP Marketing & Communications

Phone: 647-945-7521 

Email:michaelquast@pioneeringtech.com

Forward Looking Statements

This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Significantly improved revenue of $2.2 million & net income of $324,733 for the quarter.

Mississauga, ON (March 2, 2020) – 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 first quarter ended December 31, 2019. Pioneering’s unaudited condensed interim financial statements and MD&A are available on SEDAR (www.sedar.com).

Financial Highlights:

•          Revenue was $2,201,185 up 73% versus the same period year ago of $1,273,874.

•          Expenses in Q1 2020 were down 44% to $813,382 versus $1,463,453 in Q1 2019.

•          Net Income for the quarter was $324,733 versus a loss of $(756,241) in Q1 2019.

•          Adjusted EBITDA was $413,801 an improvement of 164% from Adjusted EBITDA of ($646,179) a year ago.

•          Gross margins remained strong at 53%.

•          The Company’s balance sheet improved during the period and remains strong.

After experiencing profitability and 50% year-over-year revenue growth in three consecutive fiscal years (2015, 2016 and 2017), the Company’s financial performance declined in fiscal 2018 and 2019 due to a number of factors, including: longer than normal sales cycles related to its transition from a direct sales model to a distributor model; investments in people, research and marketing; and the impact of activities by former executives/contractors of the Company whose employment was terminated in January 2019.

The Company believes that it has addressed many of these challenges and is now in a position to generate improved financial performance. The Company reduced expenses in the first quarter of 2020 that did not directly drive sales revenue or impact new product development. During the quarter, cash flow improved as revenue recovered on the strength of increased awareness and sales via the Company’s distribution network, investments in sales and marketing and reductions in operating expenses.

Selected Financial Highlights for the First Quarter ended December 31, 2019 and 2018

 Quarter Ended Dec. 31, 2019Quarter Ended Dec. 31, 2018
Revenue$2,201,185$1,273,874
Gross Profit1,166,923706,389
Expenses813,3821,463,453
Net Income (Loss)324,733(756,241)
EPS Basic (Loss)0.01(0.01)
Adjusted EBITDA(1)413,801(646,179)

(1) Adjusted EBITDA is a non-IFRS measure. Please refer to “Non-IFRS Measures” at the end of this press release.

Pioneering CEO Kevin Callahan said of the results, “We are very pleased with the progress we are making including the almost 200% improvement in revenue versus Q4 2019. The Company will continue working hard to get the business back to where it was prior to 2018 and growing. We are confident that the steps we have taken over the past year have positioned Pioneering to begin restoring shareholder value.”

Q1 2020 Business Highlights

Strong Balance Sheet: As at December 31, 2019, the Company has no debt, approximately $2.2 million in cash and total current assets of approximately $7.1 million. The Company currently has significant fully paid inventory on hand. The Company expects that this inventory will allow it to meet current demand.

New Vice President of Sales: During the quarter the Company hired a new Vice President of Sales, Tim Mulroney. Tim brings with him an impressive track record in sales and sales leadership. He has more than 18 years of team leadership experience, including 12 years leading direct sales for North America. Most recently, Tim spent seven years at Siamons International, makers of the Concrobium brand of non-toxic specialty mold cleaners, as their Senior Vice President, Global Sales. Like Pioneering, Siamons generates a significant amount of sales in the U.S., operates in a niche space, and focuses on the B2B market leveraging relationships with key distributors and broker partners. In seven years at Siamons, Tim was responsible for significant increases in sales. Prior to that, Tim spent more than 20 years with S.C. Johnson, a cleaning and household products company, where he held progressively more senior account management, sales management and customer marketing roles, culminating with the role of Vice President of Sales, leading a team of 65 sale professionals that generated hundreds of millions of dollars of sales. Tim has a Bachelor of Science from Queen’s University in Kingston and is a graduate of the Marketing Management Program at the University of Western Ontario in London.

HD Supply Partnership Activities: As part of its strategy to aggressively invest for growth with HD Supply USA, the Company is gaining direct access to key senior sales personnel at HD Supply across the U.S. who can facilitate product introductions to their key customers and enable trials and demonstrations of the Company’s products. The Company has also begun participating in annual catalogues and sales conferences at HD Supply. The Company will also begin to participate in the HDS sales outreach program which will allow the Company to disseminate key cooking fire information and key product information to the HDS sales organization to drive awareness and sales with end customers.

Current Marketing and Advertising Activities: The Company continues to invest in B2B advertising and awareness building to drive end-customer awareness for the SmartBurner, SmartRange and Safe-T-sensor products. The Company expects this investment to increase B2B sales leads. This advertising investment targets customers in the Company’s key B2B channels and is coordinated with the Company’s other awareness building and lead generation activities.

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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 300,000 multi-residential housing units across North America without a single cooking fire being reported, 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 investor relations please contact:

Michael Quast

VP Marketing & Communications Phone: 647-945-7521

Email: michaelquast@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 and governmental regulation. 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.

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 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.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release. (Not for dissemination in the United States of America)

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Mississauga, ON – February 25, 2020– Pioneering Technology Corp. (“Pioneering” or the “Company”) (TSXV: PTE), a technology company and North America’s leader in cooking fire prevention technologies and products, is pleased to announce that Tim Mulroney has joined the Company as its Vice President of Sales.

Tim brings with him an impressive track record in sales and sales leadership.  He has more than 18 years of team leadership experience, including 12 years leading direct sales for North America. Most recently, Tim spent seven years at Siamons International as their Senior Vice President, Global Sales. Like Pioneering, Siamons generates a significant amount of sales in the U.S., operates in a niche space, and focuses on the B2B market leveraging relationships with key distributors and broker partners. In seven years at Siamons, Tim was responsible for significant increases in sales.  Prior to that, Tim spent more than 20 years with S.C. Johnson, a cleaning and household products company, where he held progressively more senior account management, sales management and customer marketing roles, culminating with the role of Vice President of Sales, leading a team of 65 sale professionals that generated hundreds of millions of dollars of sales. Tim has a Bachelor of Science from Queen’s University in Kingston and is a graduate of the Marketing Management Program at the University of Western Ontario in London.   

John Bergsma, Chair of the Board of Directors, said: “Having Tim join Pioneering’s management team is very energizing.  The selection process was very thorough, and we believe that Tim was an excellent choice.  The Board has confidence that he brings the necessary skills and experience that can help deliver the sales results we have long believed this company is capable of achieving.”

Kevin Callahan, Chief Executive Officer, said: “We are very excited to have Tim on board and believe that he has the right mix of skill, proven results, and attitude.  Now that Pioneering has a seasoned professional leading our sales team, we can focus on returning the company to profitability in the short term and hitting our 3-year strategic goals.”

The Company also announced that it has granted an aggregate of 2,900,000 stock options to directors and officers of the Company, including Mr. Mulroney. The stock options are exercisable into common shares of the Company for a period of five years and will have an exercise price equal to the greater of (i) the closing price of Pioneering’s shares on the TSXV on the second trading day following the filing of Pioneering’s financial statements and MD&A for the quarter ended December 31, 2019 and (ii) $0.05.  These options have been granted pursuant to the Company’s Stock Option Plan, some of which are subject to vesting requirements.

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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 300,000 multi-residential housing units across North America without a single cooking fire being reported, 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 investor relations please contact:

Michael Quast

VP Marketing & Communications

Phone: 647-945-7521 

Email:michaelquast@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 and governmental regulation. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

VIEW PDF.

Mississauga, ON (January 28, 2020) – Pioneering Technology Corp. (TSXV: PTE) (“Pioneering” or the “Company”), a technology company and North America’s leader in cooking fire prevention technologies and products, reports its audited 2019 financial results for the fiscal year ended September 30, 2019. Pioneering’s audited financial statements and MD&A are available on SEDAR (www.sedar.com).

Selected Financial Information for the Twelve Months Ended September 30,2019

  • Revenue was $3,941,621 down 17% versus the same period year ago($4,749,536).
  • Expenses in 2019 were $4,890,909 versus $6,072,092 in2018.
  • Loss for the year was $3,855,738 versus a loss of $3,305,329 in2018.
  • Adjusted EBITDA was ($1,778,035) an improvement from Adjusted EBITDA of ($2,240,678) a yearago.
  • The Company lost $0.07 per share in2019.
  • Gross profit in 2019 was 57% versus 52% in2018.
  • The Company’s balance sheet remainsstrong.

The Company has experienced two consecutive years of declining revenue after previously delivering three years of 50% year-over-year revenue growth and profitability. Pioneering CEO Kevin Callahan said, “While we are disappointed with our results in both 2018 and 2019, we feel confident that the initiatives and changes we have implemented over the past year and 2020 year to date have put many of our previous challenges behind us and will reverse this trend.”

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

 FY2019(audited)FY2018(audited)FY2017(audited)FY2016(audited)
Revenue$3,941,621$4,749,536$10,287,537$6,644,252
Gross Profit2,235,1952,488,2795,243,2544,135,119
Expenses4,890,9096,072,0924,251,7133,097,590
Net Income (Loss)(3,855,738)(3,305,329)245,0541,388,962
EPS Basic (Loss)(0.07)(0.06)0.010.04
Adjusted EBITDA(1)(1,778,035)(2,240,678)1,961,5741,683,346
  • Adjusted EBITDA is a non-IFRS measure. Please refer to “Non-IFRS Measures” at the end of this pressrelease.

“The Company faced significant challenges in fiscal 2018 and 2019 that negatively affected our financial performance,” said Mr. Callahan. “We are confident that we have now resolved our internal personnel issues and made significant operational changes that have put us back on track and in a position to capitalize on continuing industry trends, particularly the UL 858 standard that was adopted in April 2019. This standard, which requires all new electric coil stoves sold in North America to meet specified cooking fire prevention criteria, provides a favourable environment for the sale of our current aftermarket products. We are also developing additional products aimed at further capitalizing on these new industry standards.”

2020 Strategic Objectives

The Company’s 2020 strategic plan is focused on the following four key objectives aimed at improving its financial results in the short term and positioning the Company for continued growth:

  1. Build the Right Sales Model. In order to maximize revenue growth, the Company intends to build a sales structure and model that is focused on end customer lead generation, closing deals, installations, and customerservice.
  • Leverage Relationship with Leading Distributor (HD Supply (HDS) USA) to Drive Growth. HDS is the Company’s most important distributor and provides access to multiple sales channels. To aggressively grow revenue and execute against its new sales structure and model Pioneering intends to devote significant resources to its relationship with HDS to train sales personnel, build product awareness with HDS sales personnel and end-customers, and leverage the HDS network to generate end-customer leads/introductions. The Company will then use its experience with HDS to create more efficient and effective relationships with other distributors.
  • Drive B2B Awareness of the Cooking Fire Problem & Pioneering Solutions. The Company will focus on building B2B customer awareness of the cooking fire problem and its solutions. The Company also intends to leverage B2B customer traffic to generate additional sales opportunities.
  • DevelopAdditionalCookingFirePreventionProducts.The Company will seek to generate additional revenue opportunities by expanding its portfolio of cooking fire prevention products and appliances.

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 300,000 multi-residential housing units across North America without a single cooking fire being reported, 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 investor relations please contact:

Michael Quast

VP Marketing & Communications Phone: 647-945-7521

Email: michaelquast@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 and governmental regulation. 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.

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 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.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release. (Not for dissemination in the United States of America)

Mississauga, ON (August 30, 2019) – 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 today its unaudited financial results for the third quarter ended June 30, 2019. Pioneering’s unaudited condensed interim financial statements and MD&A are available on SEDAR (www.sedar.com).

Financial Highlights:

•          Revenue in Q3 increased 20% vs. previous year and is down 19% year to date.

•          Net loss in Q3 was ($747,328) vs. ($1,105,202) during the same quarter year ago

•          Adjusted EBITDA in Q3 was ($348,112) versus ($765,666) in Q3 2018

•          Gross profit margins remain strong at 54%.

•          The Company experienced a loss of $0.01 per share during the quarter.

•          Balance sheet remains strong

After experiencing profitability and 50% year-over-year revenue growth in three consecutive fiscal years (2015, 2016 and 2017), the Company’s financial performance declined in fiscal 2018 and the start of fiscal 2019 due to a number of factors, including: longer than normal sales cycles related to its transition from a direct sales model to a distributor model; investments in people, research and marketing; and the impact of activities by former executives/contractors of the Company whose employment was terminated in January 2019 as a result of the Company’s discovery of a plan to create a competitive business that began as early as October 2017 (see Pioneering press release dated January 23, 2019).

The Company is addressing these recent challenges head on to help stabilize the business and improve its financial results. During the first three quarters of 2019, revenue increased 7%, expenses decreased by 21% and the net loss has improved 41% vs. the previous three quarters. Adjusted EBITDA is also trending in the right direction with a 45% improvement vs. the previous three quarters.

The Company currently has approximately $4.4 million in fully paid inventory available on hand; sales of this inventory will accordingly positively impact short term cash flow. As revenue continues to recover behind investments in sales and marketing and building our distribution network, the Company intends to continue to manage its expenses with a view to returning to profitability as soon as possible.

Selected Financial Highlights for the Three & Nine Months Ended June 30, 2019 & 2018: 

 Three Months Ended June 30 2019Three Months Ended June 30 2018 Nine Months Ended June 30 2019Nine Months Ended June 30 2018
Revenue1,013,362844,706 3,201,7803,968,863
Total comprehensive income (loss) (831,399)(929,614) (1,857,520)(1,302,680)
Total comprehensive income per share (0.01)(0.02) (0.03)(0.02)
Adjusted EBITDA #(348,112)(765,666) (1,184,219)(1,389,529)
Total assets9,491,33611,704,831 9,491,33611,704,831
Financial liabilities 1,354,627421,376 1,354,627421,376

Includes non-cash items (fair value movement/derivative liability of warrants). See the MD&A for further explanation.

#Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” below for further explanation. 

Q3 2019 Business Highlights

Strong Balance Sheet: As at June 30, 2019, the Company had no debt, approximately $2.5 million in cash and short-term investments and total current assets of approximately $7.4 million. The Company currently has significant fully paid inventory on hand, most of which was purchased prior to the implementation of U.S. government tariffs. The Company expects that this inventory will allow it to meet current demand for the next several months and maintain current gross profit margins.

Focused Strategic Sales Management Activities: In working with Focus Sales Mgmt., (a professional B2B sales consultancy) to support its distributor network, the Company has simplified its sales organization structure to align the sales team with specific distributors and territories. This change allows the sales team to engage with distributors more consistently in order to cultivate relationships and identify major sales opportunities with their customer base, which the Company expects will drive revenue growth. The Company is also currently completing an executive search for a new Vice-President, Sales and expects to have the new person in place for the beginning of its new fiscal year or shortly thereafter. The Company believes the addition of a seasoned sales professional in the VP Sales role will significantly increase the effectiveness of its sales organization and distributor network. 

Distributor Partnership Activities: As part of its strategy to engage with distributors more frequently, the Company participates in HD Supply’s “Maintenance Mania” event and will continue to do so in 2020. This event gives the Company’s sales organization direct access to key senior sales personnel at HD Supply across the U.S. who can facilitate product introductions to their key customers and enable trials and demonstrations of the Company’s products. The Company has also begun participating in annual catalogues and sales conferences at HD Supply, Home Depot Pro and Chadwell. It expects that these relationships will further drive product awareness and end-customer sales opportunities. The Company is negotiating two new significant distributor relationships and expects to make a further announcement on these two new relationships shortly.  

Current Marketing and Advertising Activities: The Company has invested in B2B advertising and awareness building to drive end-customer awareness for the SmartBurner, SmartRange and Safe-T-sensor products. The Company expects this investment to increase commercial traffic to its web site and increase B2B sales leads. This advertising investment targets customers in the Company’s key B2B channels and is coordinated with the Company’s other awareness building and lead generation activities.

Retail After Market Applications: The Company is tactically investing in the consumer retail channel to better understand how to effectively and cost efficiently build awareness and drive sales in this channel. Retail sales at Best Buy USA to date have shown promise and the Company will continue to invest with Best Buy to build awareness and drive consumers to point of purchase. Once required sales thresholds are met the Company will pursue increasing its points of distribution for the SmartBurner product. The Company is currently pursuing other larger retail opportunities for the aftermarket.

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About Pioneering Technology Corp.: Pioneering Technology 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 patented temperature limiting control (TLC) technology has now installed over 300,000 multi-residential housing units across North America without a single cooking fire being reported, 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 information, visit www.pioneeringtech.com.

For more information, please contact:

Pioneering Technology Corp.

Kevin Callahan, CEO

Phone: 647-945-7515

Email: kcallahan@pioneeringtech.com

For investor relations please contact:

Contact Financial Corp.

Rob Gamley

Phone: 604-689-7422 

Email: rob@contactfinancial.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 and governmental regulation. 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.

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 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.

This news release contains certain forward-looking statements reflecting the Company’s current views or expectations on its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.  

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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