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Desert Control's Q2 2025 Report: A Look at Progress and Financial Health

Desert Control AS (DSRT), a company committed to revolutionizing soil health and water retention with its innovative Liquid Natural Clay (LNC), has unveiled its second-quarter report for 2025, covering the period ending June 30. This report highlights significant advancements in operational efforts, strategic partnerships, and ongoing financial stability amid expanding operations in multiple regions.

Operational Progress

During the second quarter of 2025, Desert Control experienced impressive operational milestones. This included broadening the application of LNC across various domains in the United States, notably within permanent crop agriculture, golf course management, and ornamental landscaping. The company has also fostered essential partnerships and initiatives in the Middle East, facilitating its growth beyond U.S. borders.

Key Highlights

1. Implementation Achievements: The company successfully applied over 4.5 million litres of LNC at Woodland Hills Country Club, marking a significant stride in the deployment of its products on a golf course.
2. Collaborative Ventures: In a noteworthy partnership, Saudi Desert Control made its inaugural commercial sale at Atlas Turf Arabia, the premier golf and sports turf farm in the Middle East, utilizing LNC over an expansive 3.7 hectares.
3. Pilot Applications: The company also entered a pilot project at Tempe Marketplace, marking its first engagement with a major commercial real estate stakeholder.
4. Research Collaborations: Initial trials at the University of Arizona's Maricopa Agricultural Center show promising results with enhancements in yields of cantaloupe and broccoli, raising optimism about the effectiveness of LNC in agricultural applications.

Financial Overview

Desert Control's financial performance during the first half of 2025 reflects a balanced approach toward operational efficiency and investment in growth areas. The company demonstrated resilience with stable operational performance, despite experiencing variability in revenue recognition due to contractual agreements.

Revenue Outlook

The quarterly revenue aligns with the timing of the U.S. PAYS contract, where savings in customer water consumption trigger revenue streams. Effective application work conducted in Q2 is anticipated to positively impact revenue flows in subsequent quarters. The stable EBITDA performance illustrates the company's capacity to manage costs competently in response to increased activity levels in the U.S. market.

Cash and Equity Position

By the end of Q2, Desert Control reported total equity of NOK 43.71 million, ensuring operational viability but highlighting a diminished buffer due to ongoing losses. The cash resources amounted to NOK 24.84 million, which is slated to support the company into the fourth quarter of 2025, excluding any forthcoming revenues. The board is actively considering various funding initiatives, potentially including equity financing and grant proposals, to enhance its financial resources and enable the pursuit of long-term strategic goals.

Future Directions

In conjunction with financing exploration, Desert Control's leadership plans to assess additional strategic options aimed at bolstering shareholder value. The diligent evaluation of funding alternatives assures ongoing operations and positions the company for future growth, particularly in sustainably enhancing soil health, conserving water, and fostering ecosystem resilience across agricultural practices.

Conclusion

The Q2 2025 report from Desert Control AS underscores a period of strategic accomplishments and fiscal responsibility. As it continues to innovate in soil management with LNC, the company not only strengthens its position in various markets but also proves its commitment to ecological sustainability and agricultural prosperity. Investors, stakeholders, and partners alike can look forward to the company's planned developments and its pursuit of water-efficient agricultural solutions.

For a comprehensive dive into the data, the full report can be found on the company’s official website at desertcontrol.com/investors. A webcast discussing these findings also took place on August 15, 2025, reinforcing Desert Control's transparency in communication with its stakeholders.

For further inquiries, James Thomas, Chief Executive Officer, can be reached via email or through his mobile number, ensuring open lines of communication as the company navigates through these pivotal times in its growth trajectory.