Mr. Paul Ghezzi reports

KONTROL ANNOUNCES ADDITION OF NEW OPERATING DIVISION AND PROVIDES CORPORATE UPDATE

Kontrol Technologies Corp. has formed a new operating subsidiary and has provided a corporate update.

Formation of Kontrol Applied Sciences

The company announces the formation of Kontrol Applied Sciences Corp., an operating subsidiary of Kontrol Technologies Corp. Kontrol Applied Sciences has been created to sit at the intersection of safer spaces, microbiology and artificial intelligence. Building on Kontrol's prior experience in developing technology solutions designed to improve the safety and quality of indoor environments, Kontrol Applied Sciences will seek to further explore and apply emerging science as it relates to study of micro-organisms and their interaction with various built environments.

Kontrol Applied Sciences is currently in the early stage evaluation and research phase of development. The company's current plans include identifying potential research and commercialization opportunities, evaluating applicable technologies and applications. The company also intends to identify opportunities where government funding programs may be available to support early stage initiatives, consistent with its prior experience in accessing such programs.

During this initial phase, anticipated expenditures are expected to primarily consist of research and development activities, exploratory scientific analysis, business development initiatives, and costs associated with evaluating potential funding opportunities and strategic partnerships. The company currently anticipates that expenditures associated with Kontrol Applied Sciences will remain limited in the near term while the company assesses the viability and scope of potential projects and determines appropriate next-stage development plans.

The next stage of development is expected to involve the identification and selection of specific research initiatives or technology applications for further development, including the potential pursuit of research collaborations. The timing and costs associated with any such initiatives will depend on the outcome of the company's continuing evaluations.

In its initial stages, the company does not anticipate that any investments or activities undertaken through Kontrol Applied Sciences will be material to its overall business or financial results. The company will provide further updates as developments warrant.

Kontrol BuildX AI -- update

Following the previously announced launch of the Kontrol BuildX AI platform on May 8, 2025, the company is providing an update on the strategic direction of this initiative. With its service platform currently active across more than 400 buildings, the company intends to continue developing Kontrol BuildX AI as an internally focused autonomous agent to support internal business functions including requests for proposals (RFPs), technical knowledge retrieval, document analysis, workflow coordination and operational reporting. The platform has already contributed to the company's ability to participate in larger RFP opportunities and increased proposal response capacity without corresponding increases in labour or overhead.

An autonomous agent is an AI-powered system capable of independently performing complex tasks, making data-driven decisions and executing multistep workflows with minimal human intervention. Unlike traditional software tools, autonomous agents may perceive their environment, process large volumes of structured and unstructured data, and continuously improve performance through iterative learning and interaction with operational data sets.

The company will finance all development internally and the software investment, which is not anticipated to be material to the overall expenses of the company.

Extension of director loan

The company announces that the director loan provided by Paul Ghezzi, chief executive officer, previously announced on May 8, 2025, has been extended to Dec. 30, 2026, on the same terms and conditions as previously disclosed.

Potential HVAC (heating, ventilation and air conditioning) services acquisition update

The company continues to make progress on the potential acquisition of an HVAC services business, as previously disclosed by way of a non-binding letter of intent announced on March 27, 2026. There can be no assurance that a definitive agreement will be entered into or that the transaction will be completed on the terms currently contemplated, or at all. Further updates will be provided if and when a definitive agreement is executed. The company confirms that it has sufficient cash on hand to finance the potential acquisition.

About Kontrol Technologies Corp.

Kontrol Technologies is a leader in smart buildings and energy efficiency solutions. Through a combination of technology-driven services and strategic acquisitions, Kontrol delivers integrated solutions that reduce energy consumption, lower-carbon emissions, and enhance building performance for commercial and residential properties across Canada.

We seek Safe Harbor.