Kontrol Technologies Reports First Quarter 2021 Financial Results

TORONTO, May 31, 2021 / CNW / – Kontrol Technologies Corp. (NEO: KNR) (OTCQB: KNRLF) (FSE: 1K8) (“Kontrol Technologies” or “Kontrol“or the”Company“), a leader in smart buildings and cities through IoT, Cloud and SaaS technology, announces the release of its financial results for the three months ended March 31, 2021. A complete set of financial statements and report management has been filed on SEDAR (www.sedar.com).

Kontrol Technologies logo (CNW Group / Kontrol Technologies Corp.)

“Kontrol continued to generate positive operating cash flow and positive Adjusted EBITDA while investing in its operating platform and managing market uncertainty caused by the impacts of the logistics and supply chain of the business. COVID-19 pandemic “, declares Paul Ghezzi, CEO of Kontrol Technologies. “With the improvement of our balance sheet and the recent capital increase, we are well positioned to advance our patented smart building technologies. During the first quarter of 2021, the company made significant progress in the commercialization and start of manufacturing of its BioCloud technology, ”continues Ghezzi.

Strong points

  • Adjusted EBITDA * of $ 1.1 million in the first quarter of 2021, up from $ 241,343 in the same quarter of the previous year

  • Income from $ 3.3 million, up 20% compared to the same quarter of the previous year

  • Cash flows from operating activities were $ 592,153 for the three months ended March 31, 2021; an improvement of $ 610,964 in the same quarter of the previous year

  • The company has invested around $ 4 million until the end of the first quarter in the development of BioCloud

  • Conversions of convertible debentures into common shares amount to $ 631,000 during the first quarter of 2021

  • The proceeds from the exercise of options and warrants $ 710,607 during the first quarter of 2021

  • After the first quarter of 2021, the company announced the May 27, 2021, a $ 8.5 million private placement with institutional investors; expected closing date on or around June 1, 2021

  • Capital management initiatives during fiscal year 2020 and through 2021 have strengthened the balance sheet

  • Manufactured hundreds of BioCloud units and tightly manage the supply chain with manufacturing partners

Seasonality of the project and impact of Covid-19 on operations

The first quarter is generally the quarter most affected by seasonality and the timing of projects. Around the first trimester $ 500,000 projects have been affected due to timing issues related to on-site restrictions during lockdown periods in Ontario. These projects will be delivered in the third and fourth quarter.

The company has been affected by ongoing global supply chain issues related to computer processors and other components needed to manufacture BioCloud. The impact is mainly due to the long lead times and the scarcity of components. The company is actively working with its supply chain partners to manage the supply chain.

There is no change in the Company’s revenue and Adjusted EBITDA targets presented above. April 7, 2021.

Q1 2021 Financial Summary

Financial results

Three months ended

Three months ended

(unaudited)

March 31, 2021

March 31, 2020

Returned

$ 3,319,194

$ 2,761,544

Gross profit

$ 1,771,560

$ 1,699,441

Net loss

($ 823,733)

(675,169) $

Basic and diluted EPS

(0.02) $

(0.02) $

Add for the adjusted EBITDA reconciliation:

Amortization and depreciation

$ 393,460

$ 475,404

Financial expenditure

$ 267,110

$ 262,900

Share-based compensation

$ 1,216,503

$ 178,208

Registration fees

$ 70,000

Adjusted EBITDA *

$ 1,123,340

$ 241,343

* Adjusted EBITDA is a non-IRFS financial measure. The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization and depreciation, stock-based compensation, acquisition-related costs and listing fees.

Replay of the conference call

A recording of the Q1 2021 financial results conference call held on May 31stst, 2021, is available here:

Encore Local Replay:

416-764-8677

Encore Replay Toll Free in North America:

1-888-390-0541

Encore Replay entry code:

447758 #

Encore Replay expiration date:

07/06/2021

About Kontrol Technologies Corp.

Kontrol Technologies Corp., a Canadian public company, is a leader in smart buildings and cities through IoT, Cloud and SaaS technologies. Kontrol Technologies offers a combination of software, hardware and service solutions to its customers to improve energy management, air quality and continuous emissions monitoring.

Additional information about Kontrol Technologies Corp. can be found on its website at www.kontrolcorp.com and reviewing its profile on SEDAR at www.sedar.com

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Non-IFRS financial measures

The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization and depreciation, stock-based compensation and acquisition-related costs. The company believes that Adjusted EBITDA is a useful measure as it provides information to management on the operational and financial performance of the company and its ability to generate operating cash flow to fund future working capital needs as well. as future growth. Adjusted EBITDA can also be used by investors and analysts to value the Company. Readers are cautioned that these non-IFRS definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be interpreted as alternatives to net income determined in accordance with IFRS or as performance, liquidity or cash flow indicators.

Forward-looking statements

This press release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained in this document which are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information may be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate” “,” intention “,” potential “,” proposed “,” estimate “,” believe “or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or through policy discussions.

When the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and considered to have a reasonable basis. Such assumptions include, but are not limited to, that sufficient capital will be available to the company and that the technology will be as efficient as expected.

However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such
statements. These risks include, but are not limited to, that sufficient capital and funding cannot be obtained on reasonable terms, or not at all, that technologies will not prove to be as effective as expected, that customers and potential customers will not accept the product from the company. and the delivery of services as expected, and government and regulatory factors impacting the energy conservation industry. Kontrol
BioCloud is air quality technology, not a medical device. The Company makes no express or implied representation that its product has the ability to eliminate, cure, or contain COVID-19 (or SARS-2 Coronavirus).

Therefore, one should not place undue reliance on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as of the date hereof and are based on the beliefs, estimates, expectations and opinions of management as of that date. Kontrol assumes no obligation to publicly update or revise these forward-looking statements or any forward-looking statements contained in any other document, whether as a result of new information, future events or otherwise, or to explain any material differences. between subsequent actual events. and such forward-looking information, except as required by applicable securities law. Readers are urged to carefully consider these and other factors, uncertainties and potential events, and not to place undue reliance on forward-looking information.

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