Raises Outlook for Fiscal Year 2022 and Provides Update on Strategy for Uplisting to Senior U.S. Exchange

Kontrol Technologies Corp. ( KNR:NEO ) ( KNRLF:OTCQB ) (“ Kontrol ” or the " Company "), a leader in smart buildings and cities through IoT, Cloud and SaaS technology, will ship a record level of replacement cartridges for BioCloud units deployed in Europe, North America, and Australia. As a result of the Company’s expanding order book and ongoing execution of its organic and strategic growth objectives, the Company raised its revenue and adjusted EBITDA* outlook for fiscal year 2022.

Kontrol management estimates the Company will ship up to 500 replacement cartridges prior to year-end, at an average value of U.S. $400 per cartridge, based on current customer demand and the number of BioCloud units installed. The Company estimates the number of expected replacement cartridges to increase as more BioCloud units are installed. Customers who order in higher quantities and in advance can receive discounts which will reduce the cost of each replacement cartridge by up to 25%. The BioCloud replacement cartridges represents recurring revenue and as the installed base grows so will the recurring revenues associated with BioCloud.

Following a successful uplisting to the NEO Exchange in Canada, the Company has begun to execute its procedures for an anticipated uplisting to a senior U.S. exchange, which it is targeting for the first half of 2022. The Company intends to take all actions to meet the listing requirements of the national exchange. However, there can be no assurance that the Company’s application will be approved and if it is approved that the Company will continue to meet the listing requirements of a national exchange.

Management Commentary

“We are moving through the fourth quarter with increasing momentum as we position Kontrol for substantial growth over the coming year,” said Paul Ghezzi, CEO of Kontrol. “The corporate partnerships we continue to secure highlight the global demand for advanced technologies for energy management, emission reduction, and air quality solutions that ultimately enable sustainable buildings. Due to the continued expansion of our blue-chip customer base and the strategic partnerships we continue to accelerate, we now anticipate delivering annual revenue of approximately $100 million at the midpoint of our guidance range for full year 2022. This continued execution on our operational strategy and visibility into our business provides a strong foundation for Kontrol as we work toward an uplisting to a senior U.S. exchange in 2022, which we believe will increase visibility of our Company to the institutional investment community and help create long-term value for our shareholders.”

Corporate Outlook

Kontrol updated its guidance for fiscal year 2022 as follows:

Revenue is estimated to be in the range of $95 million to $105 million, up from the Company’s previous $85 million to $90 million estimate range.

Adjusted EBITDA* is estimated to be in the range of $10 million to $12 million, up from the Company’s previous $7 million to $8 million estimate range.

Kontrol affirmed its recently updated guidance for fiscal year 2021 as follows:

Revenue is estimated to be in the range of $43 million to $46 million, up from the Company’s previous $38 million estimate, and compared to $13 million in 2020.

Adjusted EBITDA* is estimated to be in the range of $6 million to $7 million, up from the Company’s previous $3.7 million estimate, and compared to $2.0 million in 2020.

*Adjusted EBITDA is a non-IFRS financial measure. The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, acquisition related expenses, and listing expense.

About Kontrol BioCloud

Kontrol BioCloud (“ BioCloud ”) is an operating subsidiary of Canadian public company Kontrol Technologies. The BioCloud technology is a real-time analyzer designed to detect airborne viruses and pathogens. BioCloud is an air quality technology and not a medical device. BioCloud has been designed to operate as a safe space technology by sampling the air quality continuously. With a proprietary detection chamber that can be replaced as needed, viruses are detected, and a silent notification system is created. BioCloud can be applied to any space where individuals gather.

Additional information about Kontrol BioCloud can be found on its website at www.kontrolbiocloud.com .

About Kontrol Technologies Corp.

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

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

Kontrol Technologies Corp.
[email protected]
180 Jardin Drive, Unit 9, Vaughan, ON L4K 1X8
Tel: (905) 766.0400