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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:?INVESTORS | Desert Control
·
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
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