TMR

SANDNES, Norway, Nov. 6, 2025 /PRNewswire/ — Desert Control AS (DSRT) announces its third-quarter report and interim financial results for the fiscal period ending 30 September 2025.

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: https://desertcontrol.com/investors/

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

For more information, please contact:

James Thomas Chief Executive Officer
Email: [email protected]  
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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