Desert Control Releases Q1 2025 Report and Year-to-Date Company Update

Desert Control Releases Q1 2025 Report and Year-to-Date Company Update

SANDNES, Norway, May 12, 2025 /PRNewswire/ --Desert Control AS (DSRT) announces its first quarter report and interim full-year financial results for the fiscal period ending 31 March 2025. 

Q1-2025 Highlights: 

• Desert Control executed the largest application in company history in February. More than nine thousand organic medjool date trees were treated in a commercial phase three project with Oasis Dates US subsidiary, Woodspur Farming.
• The pilot at Woodland Hills Country Club concluded in March 2025 - culminating in a multi-year Pay-As-You-Save (PAYS) service agreement, under which WHCC will be able to receive financial incentive coverage from water utilities programs.
• The Next-Gen Production System delivered record LNC volumes for Oasis Dates and WHCC (completed in april). The technology team has been completing the building requirements and manufacturing specifications in line with the increased capacity of 120.000 liters per hour.
• Two leading Southern California water utilities have authorized financial incentives for customers to adopt LNC as a water conservation tool - potentially unlocking hundreds of thousands of dollars for a typical golf course in the area, serving over 19 million residents.
• Our partners in the Middle East, Soyl and Saudi Desert Control, continue to see expansion from pilot stage to stage two deployments across landscaping and golf and continue to discuss significant projects in permanent crops, including trees with the governmental agencies of both countries.

Financial Highlights: 

In Q1 Desert Control continued to progress in operational scaling where the company executed its largest commercial LNC application to date. Momentum in licensing activities with our partners in the Middle East also remained positive, although operational output was temporarily impacted by seasonal factors.

• Revenue Growth: LNC revenue reached NOK 1.52 million, up from NOK 1.26 million recorded in Q1 2024. 
• EBITDA stability: EBITDA in Q1 was NOK -15.05 million compared to NOK -14.73 million in Q1 2024, reflecting continued cost discipline despite increased operational activity in the US.
• Cash Position: Desert Control ended Q1 2025 with NOK 43 million in cash, compared to NOK 105 million at the end of Q1 2024.The company continues to operate with no interest-bearing debt.
• Previously guided runway into Q4 2025; now revised to sufficient liquidity to sustain operations at high activity levels towards the end of Q3 2025 ex. revenues.

Outlook: 

Driven by an expected tenfold increase in contracted revenues and LNC Volumes, the upcoming Q3 rollout of Next-Gen production units, focused expansion in high-ROI U.S and Middle East markets via PAYS financing and partner deployments, plus ongoing R&D advancements, positions Desert Control to scale commercially - supported by a capital effecient model and active funding initiatives. 

Q1 Report 2025: 

• The information enclosed is subject to the disclosure requirements pursuant to sections 5-12 of the Norwegian Securities Trading Act.
• The report can be downloaded from the company webpage: https://desertcontrol.com/investors/
• A webcast presentation for Desert Control Q1 2025 Report and Company Update is hosted on 12 March 2025 at 16.00 PM, Central European Time (CET). Register: https://go.desertcontrol.com/Q1-2025

Cautionary Note: 

Disclaimer related to forward-looking statements. This release contains forward-looking information and statements relating to the business, performance, and items that may be interpreted to impact the results of Desert Control and/or the industry and markets in which Desert Control operates. 

Forward-looking statements are statements that are not historical facts and may be identified by words such as "aims," "anticipates," "believes," "estimates," "expects," "foresees," "intends," "plans," "predicts," "projects," "targets," and similar expressions. Such forward-looking statements are based on current expectations, estimates, and projections, reflect current views concerning future events, and are subject to risks, uncertainties, and assumptions, and may be subject to change without notice. Forward-looking statements are not guarantees of any future performance, and risks, uncertainties, and other important factors could cause the actual business, performance, results, or the industry and markets in which Desert Control operates to differ materially from the statements expressed or implied in this release by such forward-looking statements. 

No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecasted performance, capacities, or results will be achieved, and you are cautioned not to place any undue reliance on any forward-looking statements. 

For more information, please contact: 

James Thomas 
Chief Executive Officer 
Email: james.thomas@desertcontrol.com
Mobile (USA): +1 203 984 7658 

Leonard Chaparian 
Chief Financial Officer 
Email: leonard.chaparian@desertcontrol.com 
Mobile (NOR): +47 90 66 55 40 

About Desert Control: 

Desert Control develops innovative solutions to enhance soil health, conserve water, and promote ecosystem resilience. The company's mission is to combat desertification, soil degradation, and water scarcity. Our patented Liquid Natural Clay (LNC) transforms sandy, fast-draining soils to retain water and nutrients, improving soil health, crop yields, and ecosystem vitality while conserving water. Desert Control provides customized solutions to strengthen sustainability, profitability, and prosperity for agriculture, forests, and green landscapes. In collaboration with partners and clients, we aim to preserve natural resources, restore biodiversity, enhance food security, and ensure a climate-resilient future. 

For more information, visit https://www.desertcontrol.com

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SOURCE Desert Control AS