TORONTO, May 15, 2025–(BUSINESS WIRE)–Kontrol Technologies Corp. (CBOE.CA:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol Technologies” or “Kontrol” or “Company”) announces its results for the three months ended March 31, 2025. A complete set of the Financial Statements and Management’s Discussion & Analysis have been filed on SEDAR (www.sedarplus.ca).
“As of Q1 2025 we have streamlined the Company and reduced operating expenses to align with the sale of our emission assets and a focus on our core operating business,” says Paul Ghezzi, CEO Kontrol. “Our 2025 strategic plan includes adding new customers to our existing platform of approximately 400 buildings both through organic growth and by acquisition. In Q1 2025 we experienced delays in certain project revenues due to the uncertainties in the market created by tariff policy which has impacted large equipment manufacturers. Customers have been hesitant to engage in new upgrade projects without tariff certainty. We anticipate ongoing uncertainty until the end of Q2 2025.”
First Quarter 2025 Highlights
-
Revenues for the three months ended March 31, 2025 were $1.5 million, compared to $3.8 million for the same quarter in the prior year. The comparative Q1 2024 figures includes CEM Specialties Inc. On June 24, 2024, the Company completed the sale of the operational net assets of this entity.
-
Gross margin for the three months ended March 31, 2025 was 54%, compared to 62% for the same quarter in the prior year.
-
Adjusted EBITDA for the three months ended March 31, 2025 was negative $(228,521) compared to $966,489 for the same quarter in the prior year.
-
Net income (loss) for the three months ended March 31, 2025 was $(1.1) million compared to $533,487 for the same quarter in the prior year. The net loss is primarily related to the quarter over quarter revaluation of marketable securities and share based compensation. Under IFRS accounting policies the Company is required to take any quarter over quarter changes in its marketable securities as other income or loss on the income statement.
-
The Company has eliminated all interest-bearing bank debt and has successfully achieved its financial objective to improve liquidity and leverage.
-
As at March 31, 2025 the Company’s aggregate cash and marketable securities balance was $11.2 million.
Normal Course Issuer Bid
During the three months ended March 31, 2025, the Company repurchased 734,000 common shares for a total of $130,000. Pursuant to the Normal Course Issuer Bid approved by Cboe Canada, Kontrol may purchase, from time to time, over a period of 12 months starting April 14th, 2025, and ending April 13th, 2026, up to 2,757,858 common shares.