#Norway #Desert Control #Sandnes #LNC #Oasis Dates

Desert Control Reveals Q1 2025 Report and Business Updates

Desert Control AS, a leader in innovative solutions for water conservation and soil enhancement, has unveiled its financial results for the first quarter of 2025, as well as updates on its ongoing projects and future outlook.

Key Achievements in Q1 2025

In February, Desert Control executed its largest application to date, involving the treatment of over 9,000 organic medjool date trees through its partnership with Oasis Dates' US subsidiary, Woodspur Farming. This monumental effort marked a significant step in scaling their Liquid Natural Clay (LNC) technology within commercial agriculture.

Additionally, the pilot project at Woodland Hills Country Club concluded in March, resulting in a multi-year Pay-As-You-Save (PAYS) service agreement. This agreement enables the club to access financial incentives from various water utility programs, promoting a sustainable approach to resource management.

Desert Control's Next-Gen Production System also made strides, achieving record production volumes of LNC for Oasis Dates and Woodland Hills Country Club, completing its requirements for increased capacity of 120,000 liters per hour by April.

Significantly, two prominent water utilities in Southern California have now authorized financial incentives for adopting LNC as an effective water conservation tool, a move that could potentially generate hundreds of thousands of dollars for local golf courses catering to over 19 million residents. Meanwhile, in the Middle East, partnerships with Soyl and Saudi Desert Control are transitioning from pilot phases to substantial stage two deployments in landscaping and golf, with discussions underway for major projects related to permanent crops with governmental bodies.

Financial Highlights

Desert Control's operational scaling continued to make headway, marked by its record LNC application in Q1 2025. The company reported a revenue growth of NOK 1.52 million, up from NOK 1.26 million in Q1 2024. However, EBITDA showed slight instability at NOK -15.05 million, reflecting ongoing cost control despite an uptick in US operational activities.

The cash position at the end of Q1 stood at NOK 43 million, down from NOK 105 million at the same time last year. Notably, the company maintains operations without any interest-bearing debt, indicating a stable financial footing despite the revenue decline.

Moving forward, Desert Control anticipates a significant increase in contracted revenues and LNC volumes, projecting a tenfold commercial scale-up by Q3. This will be supported by the roll-out of next-generation production units, accelerated expansion into high-ROI markets in the US and Middle East through PAYS financing, and ongoing research and development achievements.

Importantly, the company has shifted its runway guidance for liquidity, now confident of sustaining operations at heightened activity levels through the end of Q3 2025 without dependency on revenue streams.

Looking Ahead

Desert Control is uniquely positioned to capitalize on the changing landscape of water conservation and sustainability in agriculture. With its innovative LNC technology, the company is committed to combating desertification and enhancing soil productivity while promoting ecological resilience. The upcoming quarters are expected to reflect an aggressive push into commercial viability, guided by efficiency and strategic partner collaborations.

For full details of the Q1 2025 report, stakeholders can visit the company’s investor relations page at Desert Control Investors. A webcast detailing the financial update is also scheduled for 12 March 2025 at 16:00 PM CET.

In conclusion, Desert Control AS is paving a progressive path toward a more sustainable agricultural future with its innovative solutions designed to enhance the earth's health and resource efficiency.