Desert Control AS

Earnings Release • Feb 12, 2025

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

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

Sandnes, Norway, 12 February 2025?- 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 a?breakthrough year in 2024, securing?its first full

-scale commercial golf course clients,?progressing agriculture pilots to larger

deployments, increasing licensing revenue in the Middle East, and

advancing?technology scalability?to 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

than?tenfold 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

new?pay-as-you-save?model, with a total contract value potential to exceed?NOK

14 million. This?recurring 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

activity?tripled from Q3 to Q4, driven by expanding projects in the?UAE and

Saudi Arabia. Key agreements include?commercial real estate projects in the

UAE,?and collaboration with  Estidama to advance LNC for sustainable

agriculture?in Saudi Arabia.

·

Selected for United Nations World Food Programme (WFP) Innovation Accelerator

program:?Desert Control's LNC technology was selected for a funded?demonstration

project in Iraq?through the WFP Innovation Accelerator's SPRINT program. The

project aims to?restore degraded land into fertile soil, creating a?blueprint

for drought response, food security, and climate resilience.

·

Next-Gen Production System Achieves 120,000 L/Hour Capacity:?Successfully?field

-tested in the second half of 2024, the system with 8X capacity increase remains

on track for?commercial readiness in mid-2025, reducing costs and enabling?large

-scale deployments.

·

Post-Quarter Agreement with North America's Largest Date Grower:?On 15 January

2025, Desert Control secured a?NOK 1.5 million contract with?Oasis Date. LNC

will be applied to?160 acres of the first Medjool date farm, with?potential

expansion across 5,000 acres.

Financial Highlights:

Desert Control?more than doubled LNC revenues in 2024, supported by?technology

advancements, increased project volumes, and operational efficiencies.

·

Revenue Growth:?Full-year?LNC revenue reached NOK 1.88 million, up from NOK 0.89

million recorded in 2023.?Total Q4 2024 revenue?was?NOK 0.22 million, up

from?NOK 0.00 million?in Q4 2023.

·

EBITDA Improvement:?Full-year?EBITDA improved from NOK -60.05 million in 2023 to

NOK -56.78 million in 2024, reflecting?continued operational efficiencies and

transitioning to the licensed operator model in the Middle East.

This?improvement, however, is even more significant than the headline figures

suggest, demonstrating?a substantial improvement in the Company's core

operations.

·

In?Q4 2023, EBITDA was?positively impacted by a one-time NOK 15.5 million gain

from discontinued operations, inflating reported EBITDA to?NOK 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 year?and?aligns

with previous projections, confirming that the?current cash runway, excluding

revenues, extends into Q4 2025 as planned.

·

Cash Position:?Desert Control ended?2024 with NOK 64 million in cash, compared

to NOK 75?million at the end of Q3 2024 and NOK 119 million at the end of 2023.

The company continues to operate?with 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 with?strong momentum, scaling from?pilot projects to

larger-scale commercial deployments?across?golf, agriculture, and urban

landscaping. The?next-generation production system remains on track for mid

-2025, unlocking?greater capacity, cost efficiencies, and hardware sales

revenue. With?expanding 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 company

webpage:?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:?oks@desertcontrol.com

Mobile (NOR): +47 957 77 777

Mobile (USA): +1 650 643 6136

Leonard Chaparian

Chief Financial Officer

Email:?leonard.chaparian@desertcontrol.com

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, visit?https://www.desertcontrol.com