Desert Control Releases Q4 2024 Report and Year-to-Date Company Update

SANDNES, Norway, Feb. 12, 2025 /PRNewswire/ -- Desert Control AS (DSRT) announces its fourth quarter report and interim full-year financial results for the fiscal period ending 31 December 2024.

Desert Control delivered abreakthrough year in 2024, securingits first full-scale commercial golf course clients,progressing agriculture pilots to larger deployments, increasing licensing revenue in the Middle East, and advancingtechnology scalabilityto accelerate commercialization and unlock high-volume deployments. Revenues and project volumes more than doubled from the previous year, and a growing pipeline positions the company for a more thantenfold increase in LNC volume and revenues for 2025.

Q4-2024 Highlights:

• First Full-Scale Golf Course Deployments Secured:Desert Control signed agreements for 2025 deployments with two California golf courses under its newpay-as-you-savemodel, with a total contract value potential to exceedNOK 14 million. Thisrecurring revenue model provides immediate financial benefits to customers, shortens sales cycles, and accelerates adoption.
• Record Licensing Growth in the Middle East:Licensing revenue and deployment activitytripled from Q3 to Q4, driven by expanding projects in theUAE and Saudi Arabia. Key agreements includecommercial real estate projects in the UAE,and collaboration with Estidama to advance LNC for sustainable agriculturein Saudi Arabia.
• Selected for United Nations World Food Programme (WFP) Innovation Accelerator program:Desert Control's LNC technology was selected for a fundeddemonstration project in Iraqthrough the WFP Innovation Accelerator's SPRINT program. The project aims torestore degraded land into fertile soil, creating ablueprint for drought response, food security, and climate resilience.
• Next-Gen Production System Achieves 120,000 L/Hour Capacity:Successfullyfield-tested in the second half of 2024, the system with 8X capacity increase remains on track forcommercial readiness in mid-2025, reducing costs and enablinglarge-scale deployments.
• Post-Quarter Agreement with North America's Largest Date Grower:On 15 January 2025, Desert Control secured aNOK 1.5 million contract withOasis Date. LNC will be applied to160 acres of the first Medjool date farm, withpotential expansion across 5,000 acres.

Financial Highlights:

Desert Controlmore than doubled LNC revenues in 2024, supported bytechnology advancements, increased project volumes, and operational efficiencies.

• Revenue Growth:Full-yearLNC revenue reached NOK 1.88 million, up from NOK 0.89 million recorded in 2023.Total Q4 2024 revenuewasNOK 0.22 million, up fromNOK 0.00 millionin Q4 2023.
• EBITDA Improvement:Full-yearEBITDA improved from NOK -60.05 million in 2023 to NOK -56.78 million in 2024, reflectingcontinued operational efficiencies and transitioning to the licensed operator model in the Middle East. Thisimprovement, however, is even more significant than the headline figures suggest, demonstratinga substantial improvement in the Company's core operations.
• InQ4 2023, EBITDA waspositively impacted by a one-time NOK 15.5 million gain from discontinued operations, inflating reported EBITDA toNOK 0.76 million. In comparison,Q4 2024 EBITDA was NOK -11.99 million. Excluding this one-off, Desert Control's EBITDA improvement is close to NOK 19 million for 2024 full year.

In conclusion,the Company's burn rate remains lower than last yearandaligns with previous projections, confirming that thecurrent cash runway, excluding revenues, extends into Q4 2025 as planned.

• Cash Position:Desert Control ended2024 withNOK 64 million in cash, compared to NOK 75million at the end of Q3 2024 and NOK 119 million at the end of 2023. The company continues to operatewith no interest-bearing debt.

The combination of doubling revenue, improved EBITDA, and maintaining a cash position without debt underscores Desert Control's ability to scale efficiently. Advancements in production technology, including the next-generation LNC production system, are expected to strengthen profitability further and support growth as the company scales its operations and deployments in 2025.

Outlook:

Desert Control enters 2025 withstrong momentum, scaling frompilot projects to larger-scale commercial deploymentsacrossgolf, agriculture, and urban landscaping. Thenext-generation production system remains on track for mid-2025, unlockinggreater capacity, cost efficiencies, and hardware sales revenue. Withexpanding licensing revenues, recurring revenue contracts, and a growing commercial pipeline, Desert Control is well-positioned for solid growth in its soil health and water conservation markets.

Q4 Report 2024:

• 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 companywebpage:https://desertcontrol.com/investors/
• A webcast presentation for Desert Control Q4 2024 Report and Company Update is hosted on 12 February 2025 at 10.00 AM, Central European Time (CET). Register:https://go.desertcontrol.com/Q4-2024

Cautionary Note:

Disclaimer related to forward-looking statements. 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, please contact:
Ole Kristian Sivertsen
President and Group CEO
Email:[emailprotected]
Mobile (NOR): +47 957 77 777
Mobile (USA): +1 650 643 6136

Leonard Chaparian
Chief Financial Officer
Email: [emailprotected]
Mobile (NOR): +47 90 66 55 40

About Desert Control:

Desert Control develops innovative solutions to enhance soil health, conserve water, and promote ecosystem resilience. The company's mission is to combat desertification, soil degradation, and water scarcity. Our patented Liquid Natural Clay (LNC) transforms 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, restore biodiversity, enhance food security, and ensure a climate-resilient future.

For more information, visithttps://www.desertcontrol.com

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SOURCE Desert Control AS