Desert Control Releases Q1 2025 Report and Year-to-Date Company Update

12 May 2025 06:30 CEST

Sandnes, Norway, 12 May 2025?- Desert Control AS (DSRT) announces its first
quarter report and interim full-year financial results for the fiscal period
ending 31 March 2025.

Q1-2025 Highlights:

·
Desert Control executed the largest application in company history in February.
More than nine thousand organic medjool date trees were treated in a commercial
phase three project with Oasis Dates US subsidiary, Woodspur Farming.

·
The pilot at Woodland Hills Country Club concluded in March 2025 - culminating
in a multi-year Pay-As-You-Save (PAYS) service agreement, under which WHCC will
be able to receive financial incentive coverage from water utilities programs.

·
The Next-Gen Production System delivered record LNC volumes for Oasis Dates and
WHCC (completed in april). The technology team has been completing the building
requirements and manufacturing specifications in line with the increased
capasity of 120.000 liters per hour.

·
Two leading Southern California water utilities have authorized financial
incentives for customers to adopt LNC as a water conservation tool - potentially
unlocking hundreds of thousands of dollars for a typical golf course in the
area, serving over 19 million residents.

·
Our partners in the Middle East, Soyl and Saudi Desert Control, continue to see
expansion from pilot stage to stage two deployments across landscaping and golf
and continue to discuss significant projects in permanent crops, including trees
with the governmental agencies of both countries.

Financial Highlights:

In Q1 Desert Control?continued to progress in operational scaling where the
company executed its largest commercial LNC application to date. Momentum in
licensing activities with our partners in the Middle East also remained
positive, although operational output was temporarily impacted by seasonal
factors.

·
Revenue Growth:?LNC revenue reached NOK 1.52 million, up from NOK 1.26 million
recorded in Q1 2024.

·
EBITDA stability:?EBITDA in Q1 was NOK -15.05 million compared to NOK -14.73
million in Q1 2024, reflecting?continued cost discipline despite increased
operational activity in the US.

·
Cash Position:?Desert Control ended Q1 2025 with NOK 43 million in cash,
compared to NOK 105?million at the end of Q1 2024.The company continues to
operate?with no interest-bearing debt.

·
Previously guided runway into Q4 2025; now revised to sufficient liquidity to
sustain operations at high activity levels towards the end of Q3 2025 ex.
revenues.

Outlook:

Driven by an expected tenfold increase in contracted revenues and LNC Volumes,
the upcoming Q3 rollout of Next-Gen production units, focused expansion in high
-ROI U.S and Middle East markets via PAYS financing and partner deployments,
plus ongoing R&D advancements, positions Desert Control to scale commercially -
supported by a capital effecient model and active funding initiatives.

Q1 Report 2025:

·
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 Q1 2025 Report and Company Update is
hosted on 12 March 2025 at 16.00 PM, Central European Time (CET).
Register:?https://go.desertcontrol.com/Q (https://go.desertcontrol.com/Q4-2024)1
-2025 (https://go.desertcontrol.com/Q1-2025)

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:

James Thomas
Chief Executive Officer
Email:?james.thomas@desertcontrol.com
Mobile (USA): +1 203 984 7658

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

More information:
Access the news on Oslo Bors NewsWeb site

645961_DC_Q1_2025Report.pdf