Kontrol Technologies Announces First Quarter 2024 Financial Results

Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) ("Kontrol Technologies" or "Kontrol" or "Company") announces its results for the three months ended March 31, 2024. A complete set of the Financial Statements and Management's Discussion & Analysis have been filed on SEDAR (www.sedar.com).

“With a focus on growing recurring revenues and high margin building services the Company has improved EBITDA and net income on a comparative basis while reducing secured debt obligations,” says Paul Ghezzi, CEO of Kontrol Technologies. “We delivered positive operating cash flows, and earnings, as the Company continued to strengthen its financial position.”

First Quarter 2024 Highlights

• Revenues for the three months ended March 31, 2024 were $3.8 million.

• Income from continuing operations for the three months ended March 31, 2024 was $533,487 compared to a loss from continuing operations of $(469,463) for the same quarter in the prior year.

• Adjusted EBITDA* from continuing operations for the three months ended March 31, 2024 was $966,489 compared to $621,117 for the same quarter in the prior year.

• Gross margin for the three months ended March 31, 2024 was 62%, compared to 59% for the same quarter in the prior year.

• Cash flows from operating activities were $443,808 for the three months ended March 31, 2024, compared to cash flows used in operating activities of $507,538 for the same quarter in the prior year.

• Cash proceeds of $5.8 million were received in Q1 2024 from the December 2023 sale of ORTECH Consulting Inc. (“ORTECH”).

In Q1 2024 the Company entered into an amended Credit Agreement with its secured lender, and exited from the Forbearance Agreement, thereby returning to regular commercial borrowing. On December 29, 2023, Kontrol completed the sale of its operating subsidiary ORTECH and in Q1 2024 received cash proceeds of $5.8 million. In Q4 2023, the Company recognized a gain on sale of assets of $2.5 million.

Q1 2024 Financial Summary

Financial Results	Three months ended
(Unaudited)	March 31, 2024	March 31, 2023
Revenue	$3,786,234	$4,461,317
Gross profit