Desert Control releases its Q1 2023 Report and Year-to-Date Company Update
ISSUER
DESERT CONTROL AS
Sandnes, Norway, 25 May 2023 – Desert Control AS (DSRT) announces its
first-quarter report and interim financial results for the fiscal period ending
31 March 2023.
Desert Control completed the second phase of the Limoneira project, secured five
strategic pilots, and received official approval for organic farming. The
company closed the first quarter with a positive cash balance of NOK 56.7
Million and has no interest-bearing debt.
Q1 and Year-to-Date Highlights
In Q1 2023, Desert Control focused on sales and enhancing the efficiency and
scalability of operations. This focus has shaped the Company’s customer
conversion model, designed to build trust and demonstrate the impact and
practical application of Liquid Natural Clay (LNC).
In Q1, the Company reached an efficiency rate of treating an impressive 500
trees per day in the second stage of the Limoneira deployment, marking a 30X
improvement since the initial pilot in July 2022. This progress in efficiency
coincided with the expansion of the Company’s project portfolio by securing
additional commercial pilot contracts. These pilots underscore Desert Control’s
commitment to broadening its reach and present an opportunity to apply LNC to a
broader range of crops and application areas.
Desert Control’s sales strategy focuses on a staged customer conversion model
designed to engage potential customers and build trust by demonstrating LNC's
effectiveness. The customer conversion model has guided the Company’s Q1 focus,
achieving significant milestones, including the successful stage 2 deployment
with Limoneira, securing five additional commercial pilots, and expanding LNC
application capabilities. Furthermore, LNC's official approval and certification
for organic farming in the UAE during Q1 opens for further customer base
expansion.
Looking ahead, Desert Control remains committed to its sales strategy and
customer conversion model. The Company is confident in its ability to secure a
minimum of five new pilot projects per quarter, targeting a 50% conversion to
larger deployments – in line with the target shared in the Company’s Q4-2022
update on 28 February 2023. Desert Control’s goal is to secure the first
contract for large-scale deployment by the end of the year, contingent on the
continued success of pilots. Desert Control’s systematic and progressive
approach to sales and operational delivery reflects the Company’s commitment to
building the pipeline for a robust future order book while continuing to enhance
efficiency and scalability.
Financial Highlights
The company closes Q1-23 with a positive cash balance of NOK 56.7 Million and
has no interest-bearing debt.
First Quarter 2023
[first quarter 2022 in brackets]
• Revenue NOK 1.9M [NOK 0.6M]
• EBITDA NOK -23.4M [NOK -22.8M]
• Net Income NOK -19.3 [NOK -23.7M]
• Gross R&D expenses NOK 0.3M [NOK 1.6M]
• Total cash balance 31.03.23 (incl. other current financial assets) NOK 56.7M
[NOK 153.3M]
• Equity 31.03.2023 NOK 86M (equity ratio 89%) [NOK 170.6M(92.5%)]
Outlook
Desert Control's sales strategy for 2023 focuses on generating revenue and
developing a pipeline of opportunities through commercial pilots and
pre-projects, with the objective to start converting pre-projects into contracts
for large-scale deployment by the end of the year.
The Q1 report and presentation will be made available at
https://www.desertcontrol.com/investors
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
Mobile (UAE): +971 52 521 7049
Marianne Vika Bøe
Chief Financial Officer
Email: marianne.boe@desertcontrol.com
Mobile: +47 406 36 356
About Desert Control:
Desert Control specializes in climate-smart AgTech solutions to combat
desertification, soil degradation, and water scarcity. Its patented Liquid
Natural Clay (LNC) restores and enhances soil ecosystems to reduce water usage
and improve the efficiency of fertilizers and natural resources for agriculture,
forests, and green landscapes. LNC enables sandy and arid soil to retain water
and nutrients, thus increasing crop yields, plant health, and ecosystem
resilience while preserving water and natural resources by up to 50%.
For more about Desert Control, visit https://www.desertcontrol.com
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.
Q1 Report 2023
The information enclosed is subject to the disclosure requirements pursuant to
sections 5-12 in the Norwegian Securities Trading Act.