Desert Control kicks off 2024 with a strong start_thumb

Desert Control kicks off 2024 with a strong start

We’ve delivered our first larger-scale deployment over 60 acres for Limoneira, deployed LNC for date farms and golf courses in the United States, and executed a significant first-phase contract through a licensed partner in the Middle East. We’ve also made solid technology development progress to expand markets, increase environmental benefits, and reduce the cost of production and implementation of our solutions for soil and water conservation.

Our LNC revenue in the first quarter was up 49% from the same quarter last year, marking the highest LNC sales ever. This, along with significant improvement in our cash position, cost efficiency, and net income figures, marks a solid start to 2024.


• Tripled land treatment capacity with reduced costs.

• Expanded agricultural deployments and pilot programs.

• Achieved solid progress in the landscaping and golf course market.

• Increased LNC production and application capabilities.

• Unlocked promising early-stage results from research on organic and biological formulations synergizing with LNC to improve soil health and increase value.


• Expect continued positive developments and deployments in the U.S. and Middle East.

• Anticipate transitioning from pilots to more strategic, larger-scale contracts.

• Targeting notable contracts in the golf and landscaping markets.

• Technology development will continue improving cost efficiency and scalability.

• Advanced R&D programs are set to enhance LNC benefits way beyond water savings, increasing value and expanding market reach.

The continued focus on scalability, cost efficiency, and holistic soil health solutions aims to unlock broader adoption and deliver long-term value for the company’s customers, partners, and shareholders.

We’re excited about the journey ahead, proud of our team’s achievements, and grateful for the support of our stakeholders. Together, we’re making a difference for soil and water conservation worldwide!

Five years ago, I joined believing in a dream. Today, I believe in our team’s ability to turn it into reality, building a business that does well by doing good.

Q1-2024 and Year-to-Date Summary

Operational Achievements:

  • Tripled Land Treatment Capacity with Reduced Cost: Applied LNC to three times the size of land compared to the same period last year, using half the number of production units and one-third the labor.
  • Boosted Scalability of LNC Deployment: The successful application of LNC through the client’s existing irrigation system achieved major improvements over previous manual methods.

Market Development:

  • Expanded Agricultural Deployments: Completed commercial delivery of LNC for 60 acres of Limoneira’s ranch in Yuma, Arizona. Delivered LNC for ≈700 date palms across two farms and continued positive progress with the pilot program in the United States.
  • Progress in the Landscaping Sector: Project for 3 million liters of LNC for residential development launched by UAE partner. Early adopter Masdar City in Abu Dhabi achieved up to 60% water savings. New strategic demonstration project with a governmental entity secured in Saudi Arabia, and the Middle East partners’ pipeline of pilots and projects is growing.
  • Promising Development in the Golf Course Market: Intensified efforts to explore opportunities with golf courses by hiring a dedicated business developer. Converted two technical pilots to stage-2 deployments. Completed the first-ever LNC application for a complete full fairway and secured several technical pilots with high-end golf courses targeted for deployment in the second quarter.

Research and Development Priorities:

  • Enhanced Efficiency and Scalability: Significant increases in LNC production and application capabilities were achieved in the first quarter, with continued advances anticipated throughout the year.
  • Broadened Impact: Research on organic and biological formulations synergizing with LNC to improve soil health is ongoing, with promising early-stage results. Efforts to further expand LNC’s benefits beyond water savings include reducing fertilizer leaching, lowering soil salinization, and increasing crop yields.


  • United States: Continued positive developments from ongoing and new agricultural pilots are expected. While revenue anticipated from these pilots and other smaller-scale deployments is expected to be modest, the value of these projects lies in the development opportunities they provide, as well as the validation and reputation they build. The results of the longer-term pipeline emerging from these projects will further be seen in 2025 as they move to second-phase expansions and onwards to large-scale agricultural deployments in 2026 and beyond.
  • Middle East: A growing number of strategic pilots and demonstration projects are in development, with several new targeted for installation in the coming quarters. After years of building scientific and government support for LNC, Desert Control and its partners see the beginning of a transition from validation and research-type applications to broader adoption and rollout towards the end of the year.
  • Golf Course Market: The company expects substantial headway in the golf and landscaping market during the year. Initial pilot results from prominent U.S. courses in the second half of 2024 will set the stage for more notable contracts from the end of the year, with a growing number of larger deployments in 2025.

Financial Highlights for Q1-2024:

  • LNC Revenue: NOK 1.3 million, up 49% from NOK 874,000 in the first quarter of 2023*, marking the highest LNC sales ever.
  • EBITDA: Improved to NOK -14.7 million from NOK -23.4 million in the first quarter of 2023.
  • Net Income: Significantly improved to NOK -7.9 million from NOK -19.3 million in the first quarter of 2023.
  • Cash and Cash Equivalents: Increased to NOK 105.1 million from NOK 56.7 million in the first quarter of 2023.
  • Equity Ratio: Strengthened to 96.4% from 89% in the first quarter of 2023.

* LNC revenue in the first quarter of 2023 was NOK 874 000, of total revenues at NOK 1.9 million. Other income was NOK 510 000 (Sustainability and Environment Award granted Desert Control AS), and NOK 516 000 from other revenues related to discontinued operations in the Middle East (transitioned to licensed operators for 2024).

Desert Control’s Q1-2024 Report and Year-to-Date Company Update materials