DSRT: Desert Control AS releases its Q1 Report 2022

ISSUER

DESERT CONTROL AS

Sandnes, Norway, 25 May 2022

Desert Control today published its Q1 Report 2022.

The Q1 report and the presentation are attached and can also be found via the
Company’s website: https://www.desertcontrol.com/investors

Norwegian AgTech company Desert Control has developed a liquid natural clay
(LNC) that restores soil and reduces water usage for agriculture and green
landscapes. The company is now entering the commercial stage in the Middle East
and is further launching validation initiatives and pilots in the United States.


2022 Q1 Highlights

Solid progress towards commercialization readiness:
- Completed incorporation (29 March) of the sales and distribution company
Mawarid Desert Control LLC to start the commercialization of Liquid Natural Clay
(LNC) in the United Arab Emirates
- Achieved further positive results from pilots with date palms reaching water
saving of 50% and a public park in Abu Dhabi exceeding 40% water savings
- Executed field initiatives to increase LNC application capacity and
capabilities (video: https://youtu.be/ q3velIaEK5Y)
- Developed a new prototype LNC production unit for pilot projects in the U.S.
- Completed the first deployment of LNC on American soil for a field study in
collaboration with the University of Arizona (video: https://youtu.be/
PZ3heTEMtlE)
- Continued building LNC production capacity to be deployed for the UAE and
U.S.

Strengthening of the team to prepare for scale-up:
- Strengthened the executive leadership team with Chief Strategy Officer, Chief
Operations Officer, and Chief Commercial Officer, all joining on 1 July 2022
- Hired CEO for Desert Control Americas Inc. to build the team, drive
validation initiatives and pilots, and spearhead the company’s activities in the
United States
- Attracted new talent joining in Q2 to establish a business development team
and fill key roles to accelerate commercialization and go-to-market activities
- Ramped up Desert Control Academy to accelerate the onboarding of personnel
and to drive training and field readiness initiatives


Financial Highlights first quarter 2022
[first quarter 2021 in brackets]

-> Revenue NOK 0.6M [NOK 0.0M]
-> EBITDA NOK -22.8M [NOK -9.2M]
-> Net Income NOK -23.7M [NOK -9.3M]
-> Gross R&D expenses NOK 1.6M [NOK 3.9M]
-> Innovation Norway grants NOK 1.9M [NOK 0.0M]
-> Net proceeds from capital injection NOK 0.0 [NOK 190M]
-> Total cash balance 31.03.22 (bank deposits and funds) NOK 153.3M [NOK 25.2M]
-> Equity 31.03.22 NOK 170.6M (equity ratio 92.5%) [NOK 28.0 (63.2%)]


Inquiries
For more information, please contact:

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

Erling Rasmussen
Chief Financial Officer
Email: erling.rasmussen@desertcontrol.com
Mobile: +47 482 11 151


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