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Desert Control AS Q1 2025 Financial Update

Desert Control AS, known for its innovative agricultural solutions, presented its first quarter financial report for 2025, signaling impressive growth and advancements. With a focus on sustainability, the company is making significant strides in battling desertification and enhancing water conservation through its patented Liquid Natural Clay (LNC).

Key Highlights from Q1 2025

During the first quarter, Desert Control achieved several milestones:

• - The largest application in company history was executed in February, treating over 9,000 organic medjool date trees in collaboration with Oasis Dates US's subsidiary, Woodspur Farming. This monumental project marks a pivotal step in the company’s scaling efforts.
• - In March, the pilot program at Woodland Hills Country Club concluded, leading to a multi-year Pay-As-You-Save (PAYS) service agreement. This initiative enables WHCC to benefit from financial incentives provided by water utility programs, highlighting the company's focus on sustainability and client support.
• - The Next-Gen Production System reported record volumes of LNC for Oasis Dates and WHCC, with the technology team meeting increased capacity requirements, achieving a processing capability of 120,000 liters per hour.
• - Two prominent water utilities in Southern California have now authorized financial incentives for the adoption of LNC, which is projected to unlock substantial funding for local golf courses serving millions of residents.
• - Desert Control’s partnerships in the Middle East, specifically with Soyl and Saudi Desert Control, continue to flourish. They are moving from pilot projects to larger-scale deployments, particularly in landscaping, golf, and permanent crops in collaboration with government agencies.

Financial Overview

Desert Control's financial performance during Q1 mirrored its operational growth:

• - LNC revenue reached NOK 1.52 million, marking an increase from NOK 1.26 million reported in Q1 2024.
• - EBITDA remained stable at NOK -15.05 million, a slight dip compared to NOK -14.73 million in the same period last year, reflecting ongoing cost management efforts even amid increased activity.
• - By the end of Q1 2025, the company maintained a solid cash position of NOK 43 million, despite a decrease from NOK 105 million at the conclusion of Q1 2024. Importantly, Desert Control continues to operate without any interest-bearing debt.
• - Guidance for operational liquidity has been revised to support high activity levels into the latter part of Q3 2025, excluding revenue dynamics.

Future Outlook

Desert Control projects a tenfold increase in contracted revenues and LNC volumes, driven by the upcoming rollout of Next-Gen production units in Q3. The company is strategically prioritizing expansion in high-ROI markets in the U.S. and the Middle East through PAYS financing and partner projects. Continued advancements in research and development will also facilitate commercial scaling, underpinning a capital-efficient model supported by proactive funding initiatives.

As the company prepares to enter the second half of 2025, Desert Control remains optimistic about its trajectory in sustainable agriculture, focused on transforming soil health and improving water conservation efforts across its operational landscapes.

Conclusion

Desert Control AS is making notable headway in its mission to tackle desertification and promote sustainable agricultural practices. With the successful first quarter signaling growth and a clear roadmap ahead, stakeholders can look forward to significant advancements in the company's operations and financial stability.

For further details, the complete Q1 2025 report can be accessed on their investor relations page