Desert Control AS releases its Annual Report 2023 for the fiscal year ending on 31 December 2023
Sandnes, Norway 23 April 2023
Desert Control today published its Annual Report and Consolidated Financial Statements. The complete Annual Report 2023 is available in the attachment and
via the Company's website: https://www.desertcontrol.com/investors.
Strategic Shift and Pilot Expansion:
Transitioned to a licensed operator model in the Middle East, significantly reducing annual operating costs and streamlining operations. Maintained consistent pilot acquisition in the United States with commitments for five new technical pilot projects secured per quarter.
Operational and Technological Advancements:
Demonstrated a substantial increase in the efficiency and scalability of LNC production and application. Achieved
more than a 2X increase in production capacity for all existing LNC production units and significantly improved the
scalability of LNC application.
Research and Development:
The ongoing 5-year validation program with the University of Arizona is nearing its mid-term report. The growing pipeline of technical pilot projects deepens understanding of LNC's efficacy and application potential across various soil conditions, crops, and use-case scenarios.
Financial Milestones:
Added over NOK 100M of liquidity throughout the year. Closed 2023 with a cash and financial asset balance of NOK 120M, extending the company's financial runway into H2-2025.
United States Achievements:
Secured the first commercial LNC rollout with Limoneira for 60 acres at the Yuma ranch, demonstrating LNC's
commercial viability and scalability. Received OMRI (Organic Material Review Institute) certification for LNC
in compliance with the USDA National Organic Program.
Middle East Momentum:
Finalized strategic partnership agreements, expanding the operational footprint with partners in the UAE and Saudi Arabia. Received regulatory approvals for sales and use of LNC across all sectors in the UAE and secured the first partner-driven commercial project, signaling positive momentum in the region.
Global Recognition:
LNC received awards and global recognition for innovation in sustainability. Official product approvals and certifications in the UAE and the U.S. strengthen the foundation for early-stage commercialization efforts.
KEY FINANCIAL FIGURES 2023
[2022 in brackets]
Total cash balance 31.12.23 (incl. other current financial assets): NOK 119.6M [NOK 78.2M]
Equity 31.12.2023: NOK 129M (equity ratio: 96,7 %) [NOK 107M (equity ratio: 89.7 %)]
Revenue: NOK 18.1M [NOK 4.2M]
EBITDA: NOK -60.0M [NOK -90.2]
Loss for the year: NOK -65.3M [NOK -90.5]
Grants NOK 0.5M [NOK 2.3M]
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
Leonard Chaparian
Chief Financial Officer
Email: leonard.chaparian@desertcontrol.com
Mobile (NOR): +47 90 66 55 40
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.
Annual Report 2023
The information enclosed is subject to the disclosure requirements pursuant to
sections 5-12 in the Norwegian Securities Trading Act