Desert Control AS: Desert Control Releases 2025 Year-End Report and Company Update
Sandnes, Norway, 11 February 2026 - Desert Control (OSE: DSRT), a leader in soil and water conservation technology, today announces its 2025 year-end report and unaudited financial results.
Operational Highlights:
· Woodland Hills Country Club, Desert Control's first Pay-As-You-Save (PAYS) client achieved significant irrigation savings and improved turf quality. Savings and incentives exceeded USD 185,000 in the 2nd half of 2025, underscoring the value of liquid natural clay (LNC).
· Large-scale date and almond pilots in Arizona and California to evaluate LNC's impact on water-use efficiency and yield performance continued as planned. These trials have the potential to lead to significant new business with these well-recognized clients as well as several of their peers.
· The Company added experienced salespeople who are eager and motivated to reach out to prospective customers in the US golf and agricultural markets to present the benefits of LNC. The Company also added a permanent CFO. All of these additions should lead to greater shareholder value creation over the long-term.
Financial Highlights:
· During the year, Desert Control strengthened its balance sheet through the completion of a fully subscribed NOK 75 million rights issue, registered in October. This capital raise strengthened the Company's equity position and extended liquidity runway into the second half of 2026.
Revenue Outlook:
· Revenue for the year grew year-over-year but was modest, reflecting the structure of the PAYS contract.
· Desert Control expects USD 2-3 million in revenues in 2026 based on current business as well as unprecedented trialing activity and sales pipelines. James Thomas, CEO of Desert Control, commented, "The global imperative of water scarcity and rising costs as highlighted in recent reporting from the United Nations as well as the LA Times is a glaring problem that LNC can help solve. Our recent sales additions are making real progress in reaching prospective customers."
EBITDA Performance:
· Total operating expenses increased during the year but are expected to remain level year-over-year in the current year.
· The increase in 2025 primarily reflected higher field activity in the US, scaling of production to support commercial deliveries.
· Excluding one-time restructuring costs and higher spending to support field activity and increased production units, the Company's underlying cost base has remained broadly stable compared with prior years.
Net Result Impact:
· Desert Control's net loss for the year was greater year-over-year. In addition to US investments and restructuring activities, the strengthening of NOK versus USD resulted in both realised and unrealised losses on USD-denominated balances. These non-cash translation effects do not affect the Company's underlying operations or liquidity position.
Equity and Cash Position:
· These proceeds from the Company's rights offering significantly strengthened liquidity and are expected to fund operations well into 2026, supporting the Company's continued scale-up and commercialization agenda.
· Cash and cash equivalents are sufficient to fund operations and investments in future growth into the second half of 2026.
Year-End Report:
· The information enclosed is subject to the disclosure requirements pursuant to sections 5-12 of the Norwegian Securities Trading Act.
· The report can be downloaded from the company webpage: https://desertcontrol.com/investors/
· A webcast presentation for Desert Control's Year-End 2025 Report and Company Update will be held on Wednesday, 11 February 2026 at 13:00 CET.
· Registration https://desertcontrol.zoom.us/webinar/register/WN_Dn-U5p49RWK1IgM1TtCnZg
For more information, please contact:
David Borah
Chief Financial Officer