Desert Control Releases Q2 2025 Report and Year-to-Date Company Update

USA - English

• USA - English

SANDNES, Norway, Aug. 15, 2025 /PRNewswire/ -- Desert Control AS (DSRT) announces its second-quarter report and interim financial results for the fiscal period ending 30 June 2025. 

Desert Control made operational and commercial progress in the second quarter of 2025, expanding deployments and trial programs in the U.S. across permanent crop agriculture, golf, and ornamental landscaping, while advancing key partnerships and projects in the Middle East. Notable developments included new applications with commercial growers, universities, and golf courses in California and Arizona, as well as continued integration of Liquid Natural Clay ('LNC") in landscaping and urban greening initiatives with our licensing partners.

Operational Highlights: 

• Application of over 4.5 million litres of LNC at Woodland Hills Country Club, marking our first full golf course deployment
• Our partner, Saudi Desert Control, deploys first commercial sale at Atlas Turf Arabia, the Middle East's first internationally licensed golf and sports turf farm, applying LNC to 3.7 hectares of turf farm.
• Pilot application at Tempe Marketplace, marking our first application with a large owner of commercial real estate.
• Encouraging improvement in cantaloupe and broccoli yields in certain sections of trials at the University of Arizona Maricopa Agricultural Center.             

Financial Highlights: 

In the first half of 2025, Desert Control advanced key operational initiatives in the U.S. and Middle East, laying the foundation for stronger revenue contributions in the second half of the year. The Company maintained stable operational performance despite the timing of revenue recognition under major contracts, while continuing to invest in strategic projects, product development, and commercial capacity.

• Revenue Outlook: Revenue for the quarter reflects the timing of recognition under the U.S. PAYS contract, where measurable customer water savings trigger revenue. Significant application work completed in Q2 is expected to contribute to revenue in Q3 and beyond.
• EBITDA Performance: EBITDA remained stable quarter-over-quarter and year-to-date, with disciplined cost control and operational efficiencies offsetting higher activity levels in the U.S.
• Equity: Equity totalled NOK 43.71 million at quarter-end, providing headroom for operations but reflecting a reduced buffer following continued losses.
• Cash Position: NOK 24.84 million in cash and cash equivalents as of 30 June 2025, reflecting strategic investments in product development, commercial initiatives, and team capacity to support growth.
• Funding Horizon: Current cash resources are expected to support operations into Q4 2025, excluding any future revenues. 

As a result, the Board is actively evaluating funding alternatives to secure additional resources. This may include potential equity financing, grants, license agreements and cost optimization measures to extend the financial runway and enable execution of the long-term growth plan. In conjunction with these evaluations the Board may also assess other strategic alternatives to enhance shareholder value.

Q2 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 Q2 2025 Report and Company Update is hosted on 15 August 2025 at 16.00 PM, Central European Time (CET).

Register: https://desertcontrol.zoom.us/webinar/register/WN_IpBEUdDjRJWiAvi1Dug2kw

For more information, please contact:

James Thomas Chief Executive Officer
Email: [email protected]
Mobile (USA): +1 203 984 7658

About Desert Control:

Desert Control develops innovative solutions to enhance soil health, conserve water, and promote ecosystem resilience. Our proprietary Liquid Natural Clay (LNC) allows 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, enhance food security, and ensure a climate-resilient future.

Important Notice:

This information is considered to be inside information pursuant to the EU Market Abuse Regulation (MAR) and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock exchange announcement was published by Leonard Chaparian, CFO in Desert Control AS, at the time and date stated above in this announcement.

Cautionary Note:

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, visit https://www.desertcontrol.com/

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