#Norway #Desert Control #Liquid Natural Clay #Sandnes #LNC

Desert Control's Q2 2025 Report: A Summary of Developments

Desert Control AS, a leader in innovative agricultural solutions, has recently unveiled its second-quarter report and year-to-date update for 2025, showcasing notable operational advancements and encouraging financial performance. The report, which covers the period ending June 30, 2025, outlines Desert Control's ongoing efforts to enhance soil health and water conservation in agriculture and landscaping.

Operational Progress

In Q2 2025, Desert Control made significant strides in expanding its operations in the United States, focusing on permanent crop agriculture, golf, and ornamental landscaping. Key highlights of the second quarter include:

• - Application of Liquid Natural Clay (LNC): The company successfully applied over 4.5 million liters of LNC at Woodland Hills Country Club, marking a significant full-scale deployment on a golf course. This application reflects Desert Control's commitment to improving soil conditions and water retention.
• - Partnerships in the Middle East: Desert Control's partner, Saudi Desert Control, executed its first commercial sale at Atlas Turf Arabia. This venture represents the Middle East's initial internationally licensed golf and sports turf farm applying LNC.
• - Innovative Applications: Pilot applications begun at Tempe Marketplace, emphasizing Desert Control's expansion into commercial real estate, which could lead to imbued urban greening initiatives.
• - Encouraging Agricultural Results: Preliminary results from trials at the University of Arizona's Maricopa Agricultural Center show improvements in cantaloupe and broccoli yields, validating the efficacy of LNC in boosting crop performance.

Financial Overview

Desert Control's financial outlook for the first half of 2025 appears stable. Despite timing challenges associated with revenue recognition under major contracts, the company sustained operational performance and maintained investments in product development and commercial initiatives. Key financial indicators include:

• - Revenue Timing: Revenue for the quarter is influenced by the U.S. PAYS contract, where savings from customers using the product drive revenue recognition. Projects completed in Q2 are expected to feed positively into Q3 revenues.
• - EBITDA Performance: The EBITDA for the quarter remained consistent due to strict cost control measures and achievements in operational efficiency, offsetting increased activity levels.
• - Equity Position: As of the quarter-end, equity stood at NOK 43.71 million, although this reflects a decrease due to ongoing losses, necessitating the evaluation of new funding avenues.
• - Cash Reserves: Cash and cash equivalents totaled NOK 24.84 million by June 30, 2025, primarily focused on strategic investments to bolster growth and sustainability efforts.

Strategic Outlook

Given the current funding landscape, the Board of Desert Control is assessing various options to secure additional resources to support ongoing operations and growth initiatives. Potential measures may involve equity financing, grants, and licensing agreements, alongside strategic optimization practices to enhance the company's financial standing and extend its operational runway further into 2025.

Conclusion

Desert Control continues to demonstrate resilience and adaptability in navigating financial and operational landscapes, laying a robust foundation for the second half of 2025. With ongoing strategic partnerships and innovative product deployment, the company stands poised to contribute significantly to sustainable agriculture and urban landscaping efforts in the future. For further insights, stakeholders are invited to access the full report via the Desert Control investor website.