SANDNES, Norway, Feb. 12, 2025 /PRNewswire/ -- Desert Control AS (DSRT) announces its fourth quarter report and interim full-year financial results for the fiscal period ending 31 December 2024.
Desert Control delivered a breakthrough year in 2024, securing its first full-scale commercial golf course clients, progressing agriculture pilots to larger deployments, increasing licensing revenue in the Middle East, and advancing technology scalability to accelerate commercialization and unlock high-volume deployments. Revenues and project volumes more than doubled from the previous year, and a growing pipeline positions the company for a more than tenfold increase in LNC volume and revenues for 2025.
Q4-2024 Highlights:
- First Full-Scale Golf Course Deployments Secured: Desert Control signed agreements for 2025 deployments with two California golf courses under its new pay-as-you-save model, with a total contract value potential to exceed NOK 14 million. This recurring revenue model provides immediate financial benefits to customers, shortens sales cycles, and accelerates adoption.
- Record Licensing Growth in the Middle East: Licensing revenue and deployment activity tripled from Q3 to Q4, driven by expanding projects in the UAE and Saudi Arabia. Key agreements include commercial real estate projects in the UAE, and collaboration with Estidama to advance LNC for sustainable agriculture in Saudi Arabia.
- Selected for United Nations World Food Programme (WFP) Innovation Accelerator program: Desert Control's LNC technology was selected for a funded demonstration project in Iraq through the WFP Innovation Accelerator's SPRINT program. The project aims to restore degraded land into fertile soil, creating a blueprint for drought response, food security, and climate resilience.
- Next-Gen Production System Achieves 120,000 L/Hour Capacity: Successfully field-tested in the second half of 2024, the system with 8X capacity increase remains on track for commercial readiness in mid-2025, reducing costs and enabling large-scale deployments.
- Post-Quarter Agreement with North America's Largest Date Grower: On 15 January 2025, Desert Control secured a NOK 1.5 million contract with Oasis Date. LNC will be applied to 160 acres of the first Medjool date farm, with potential expansion across 5,000 acres.
Financial Highlights:
Desert Control more than doubled LNC revenues in 2024, supported by technology advancements, increased project volumes, and operational efficiencies.
- Revenue Growth: Full-year LNC revenue reached NOK 1.88 million, up from NOK 0.89 million recorded in 2023. Total Q4 2024 revenue was NOK 0.22 million, up from NOK 0.00 million in Q4 2023.
- EBITDA Improvement: Full-year EBITDA improved from NOK -60.05 million in 2023 to NOK -56.78 million in 2024, reflecting continued operational efficiencies and transitioning to the licensed operator model in the Middle East. This improvement, however, is even more significant than the headline figures suggest, demonstrating a substantial improvement in the Company's core operations.
- In Q4 2023, EBITDA was positively impacted by a one-time NOK 15.5 million gain from discontinued operations, inflating reported EBITDA to NOK 0.76 million. In comparison, Q4 2024 EBITDA was NOK -11.99 million. Excluding this one-off, Desert Control's EBITDA improvement is close to NOK 19 million for 2024 full year.
In conclusion, the Company's burn rate remains lower than last year and aligns with previous projections, confirming that the current cash runway, excluding revenues, extends into Q4 2025 as planned.
- Cash Position: Desert Control ended 2024 with NOK 64 million in cash, compared to NOK 75 million at the end of Q3 2024 and NOK 119 million at the end of 2023. The company continues to operate with no interest-bearing debt.
The combination of doubling revenue, improved EBITDA, and maintaining a cash position without debt underscores Desert Control's ability to scale efficiently. Advancements in production technology, including the next-generation LNC production system, are expected to strengthen profitability further and support growth as the company scales its operations and deployments in 2025.
Outlook:
Desert Control enters 2025 with strong momentum, scaling from pilot projects to larger-scale commercial deployments across golf, agriculture, and urban landscaping. The next-generation production system remains on track for mid-2025, unlocking greater capacity, cost efficiencies, and hardware sales revenue. With expanding licensing revenues, recurring revenue contracts, and a growing commercial pipeline, Desert Control is well-positioned for solid growth in its soil health and water conservation markets.
Q4 Report 2024:
- 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 Q4 2024 Report and Company Update is hosted on 12 February 2025 at 10.00 AM, Central European Time (CET). Register: https://go.desertcontrol.com/Q4-2024
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 guarantees of 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 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.
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
Leonard Chaparian
Chief Financial Officer
Email: leonard.chaparian@desertcontrol.com
Mobile (NOR): +47 90 66 55 40
About Desert Control:
Desert Control develops innovative solutions to enhance soil health, conserve water, and promote ecosystem resilience. The company's mission is to combat desertification, soil degradation, and water scarcity. Our patented Liquid Natural Clay (LNC) transforms sandy, fast-draining soils to retain water and nutrients, improving soil health, crop yields, and ecosystem vitality while conserving water. Desert Control provides customized solutions to strengthen sustainability, profitability, and prosperity for agriculture, forests, and green landscapes. In collaboration with partners and clients, we aim to preserve natural resources, restore biodiversity, enhance food security, and ensure a climate-resilient future.
For more information, visit https://www.desertcontrol.com
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The following files are available for download:
DC_Q4_2024Report |
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