Desert Control AS releases its Annual Report 2022 for the fiscal year ending on 31 December 2022

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ISSUER

DESERT CONTROL AS

Sandnes, Norway, 27 April 2023

Desert Control today published its Annual Report and Consolidated Financial
Statements. The complete Annual Report 2022 is available in the attachment and
via the Company’s website: https://www.desertcontrol.com/investors.

2022 Highlights
- Expanded operations to the United States, established operational headquarters
in Arizona and started building a sales team for accelerated commercialization.
- Launched collaboration with the University of Arizona for independent
validation of LNC for American soil and achieved positive first-year results.
- Signed contract with Limoneira Company for LNC application on 4,000 citrus
trees with a letter of intent for large-scale LNC deployment based on the
successful outcome. (50% of the project successfully completed as of the end of
2022).
- Initiated a new strategy for the sales and distribution of LNC in the Middle
East through a partnership with Mawarid Holding Investment.
- Established Mawarid Desert Control LLC for sales and distribution of LNC in
the UAE.
- Mawarid Desert Control turned operational in Q4 and secured its first contract
for a strategic commercial pilot with a significant UAE food security company.
- Streamlined Desert Control Middle East in alignment with the new sales
strategy for increased efficiency with lower operational costs for Desert
Control in the UAE.
- Signed MoU with Amarenco Group for soil and forest regeneration CSR
initiative, creating opportunities for future projects in Southern Europe.
- Achieved exceptional full-year results for LNC treatment of date palms,
reducing water usage by 46% while increasing yield and fruit quality.
- Improved scale-on-demand model with global mobility of assets for optimal
agility.
- Strengthened leadership team to drive the transition of commercialization.

Financial key figures
Financial highlights for the financial year 2022 [2021 in brackets]:
- Total cash balance 31.12.2022 (incl. other current financial assets): NOK
78.2M [NOK 179.3M]
- Equity 31.12.2022: NOK 107.0M (equity ratio: 89 %)
- Revenue: NOK 4.2M [NOK 3.1M]
- EBITDA: NOK -90.2M[NOK -31.7M]
- Profit or loss for the year: NOK -90.5M [NOK -31.7M]
- Gross R&D investments NOK 1.4M [NOK 11M]
- Grants NOK 2.3M [NOK 8.7M]

Inquiries
For more information, please contact:

Ole Kristian Sivertsen
Chief Executive Officer
Email: oks@desertcontrol.com
Mobile: +47 957 77 777

Marianne Vika Bøe
Chief Financial Officer
Email: marianne.boe@desertcontrol.com
Mobile: +47 406 36 356

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 guaranteeing 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 in 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.

Annual Report 2022
The information enclosed is subject to the disclosure requirements pursuant to
section 5-12 in the Norwegian Securities Trading Act.