Mr. Paul Ghezzi reports

KONTROL TECHNOLOGIES ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS

Kontrol Technologies Corp. has released its results for the three months ended and year to date ended Sept. 30, 2026. A complete set of the financial statements and management's discussion and analysis have been filed on SEDAR+.

Q3 (third quarter) 2026 and year-to-date highlights:

• Revenues for the three months ended Sept. 30, 2026, were $1.8-million, compared with $1.3-million for the same quarter in the prior year. Revenues for the nine months ended Sept. 30, 2026 were $4.9-million, compared with $4.1-million for the same period in the prior year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the nine months ended Sept. 30, 2026, was negative $87,886, compared with negative $666,334 for the same period in the prior year, reflecting operational efficiencies and organic growth in the current fiscal year.
• As at Sept. 30, 2026 the company's aggregate cash and marketable securities balance was $7.3-million.
• Gross margin for the nine months ended Sept. 30, 2026, was 54 per cent, compared with 57 per cent for the same period in the prior year.
• Net loss for the three months ended Sept. 30, 2026, was $582,326, compared with a net income of $706,378 for the same quarter in the prior year. Net loss for the nine months ended Sept. 30, 2026, was $889,595, compared with a net loss of $208,862 for the same period in the prior year. These figures include unrealized income on revaluation of marketable securities.
• As at Sept. 30, 2026, the company had no outstanding interest-bearing bank debt.

"Our plans to improve operational efficiency continue to progress and new service offerings in 2026 have increased customers in the multiresidential building sector," says Paul Ghezzi, chief executive officer of Kontrol. "Revenue has increased while operating expenses year to date have decreased and we will continue to focus on organic growth while evaluating accretive acquisition opportunities."

Adjusted EBITDA is a non-international financial reporting standards (IFRS) measure used by management that is not defined by IFRS. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable with similar measures presented by other issuers. Management believes that adjusted EBITDA provides meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.

Adjusted EBITDA is calculated as net income or loss before interest, income taxes, amortization and depreciation, share-based compensation, acquisition-related expenses, listing expense, gain or loss on sale of assets, revaluation, and impairment of assets.

Readers are cautioned that adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS, nor as an indicator of financial performance as determined by IFRS, nor a calculation of cash flow from operating activities as determined under IFRS, nor as a measure of liquidity and cash flow under IFRS. The company's method of calculating adjusted EBITDA may differ from methods used by other companies and, accordingly, the company's adjusted EBITDA may not be comparable with similar measures used by any other company.

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.