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Operational Highlights:
· Woodland Hills Country Club, Desert Control’s first Pay-As-You-Save (PAYS)
client, achieved significant irrigation savings and improved turf quality in
Q3.Estimated savings and potential incentives may exceed USD 100 000,
underscoring LNC’s value.
· Desert Control launched its first almond pilots in California to evaluate
LNC’s impact on water-use efficiency and yield performance in this important
permanent crop. The trial marks a key step toward scaling LNC across high-value
crops such as pistachios, walnuts, vineyards, and citrus.
· Partners in Saudi Arabia and the UAE advanced research and commercialization
efforts. Saudi Desert Control confirmed over 2× water retention and 3× nutrient
gains in field data, while Soyl secured a 4 million-liter commercial award for
Al Reem Hills in Abu Dhabi, showcasing large-scale deployment of LNC in
sustainable landscaping.
Financial Highlights:
· Desert Control strengthened its balance sheet during the quarter through the
completion of a fully subscribed NOK 75 million rights issue, legally finalized
before quarter-end and registered in October 2025.
· The transaction reinforced the Group’s equity position and extended
liquidity runway into second half of 2026.
Revenue Outlook:
· Revenue for the third quarter and the first nine months of 2025 remained
modest compared to the same periods last year, reflecting the structure of the
U.S. PAYS contract under which income is recognized only once measurable water
savings have been verified by the customer.
· While substantial application work was completed during the period, related
revenues had not yet been recognized as of Q3 2025.
· The Company expects revenue realization to begin in the fourth quarter, as
customer validation milestones are achieved and invoicing commences under the
PAYS framework
EBITDA Performance:
· Total operating expenses increased during the quarter and the first nine
months of 2025, resulting in a decline in EBITDA compared with the same periods
last year.
· The increase primarily reflects higher field activity in the U.S.,
production scaling to support upcoming commercial deliveries, and continued
investment in organizational capacity to enable future growth.
· The period also included approximately NOK 2.5 million in one-off
restructuring costs, with limited remaining effects expected in the fourth
quarter of 2025.
· Excluding these temporary items, the underlying cost base remained broadly
stable compared with prior periods, reflecting continued cost discipline.
Net Result Impact:
· The net loss for the third quarter and first nine months of 2025 increased
compared to the same periods last year. In addition to effects from the U.S.
ramp-up and restructuring activities, the year-to-date result was influenced by
foreign exchange movements totalling approximately NOK 9.5 million, mainly
recognized earlier in the year. The impact was primarily driven by the
strengthening of NOK against USD, resulting in both realised and unrealised
losses on USD-denominated balances. These non-cash translation effects do not
affect the Company’s underlying operations or liquidity position.
Equity and Cash Position
· Total equity improved slightly compared to the same quarter last year,
supported by the completion of the fully subscribed NOK 75 million rights issue
in September 2025.
· The transaction was legally completed before quarter-end and recognized
within equity as of 30 September, with proceeds presented under “Other paid-in
capital pending registration.”
· The shares were registered and cash proceeds received in early October,
providing net funds of NOK 70.6 million after transaction-related costs.
· These proceeds have significantly strengthened liquidity and are expected to
fund operations well into 2026, supporting the Company’s continued scale-up and
commercialization agenda.
· Cash and cash equivalents decreased during the third quarter, reflecting
planned investments in product development, commercial deployment, and
organizational growth.
· During Q3 2025, the Company also received a NOK 2.3 million SkatteFUNN
grant, compared to NOK 1.5 million in the same period last year, related to
approved R&D activities.
Q3 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: INVESTORS | Desert Control
A webcast presentation for Desert Control’s Q3 2025 Report and Company Update
will be held on Thursday, 6 November 2025 at 09:00 CET. Register: DSRT Q3
Webcast Registration
(Webinar Registration - Zoom)
For more information, please contact:
James Thomas Chief Executive Officer
Email: james.thomas@desertcontrol.com
Mobile (USA): +1 203 984 7658
About Desert Control:
Desert Control develops innovative solutions to enhance soil health, conserve
water, and promote ecosystem resilience. Our proprietary Liquid Natural Clay
(LNC) allows 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,
enhance food security, and ensure a climate-resilient future.
Important Notice:
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock
exchange announcement was published by Leonard Chaparian, CFO in Desert Control
AS, at the time and date stated above in this announcement.
Cautionary Note:
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, visit https://www.desertcontrol.com/
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