Sandnes, Norway, 26 August 2022
Desert Control today published Q2 2022 Report and Interim Financial Results.
The Q2 report and the presentation are attached and can also be found via the Company’s website: https://www.desertcontrol.com/investors
Commercial activities commenced in the UAE. The company progressed ahead of expectations in the United States and continued to deliver on commitments in the second quarter.
Q2 and H1 2022 Highlights
Commercial activities commenced in the UAE:
- The first commercial deliveries commenced in the UAE end of June according to plan and included clients in the agriculture and landscaping sectors.
- Desert Control's first Dubai-based customer pilot converted into a paid delivery, extending LNC treatment to the entire property under commercial terms.
- Mawarid Desert Control LLC is gradually becoming operational after a slow start in H1.
- Hiring activities to build the UAE salesforce with Mawarid Desert Control kicked off in June, with new salespeople anticipated to onboard during the third quarter.
Progressing ahead of expectations in the United States:
- The LNC validation study with the University of Arizona shows positive interim results.
- Awareness of Desert Control and LNC is growing in Arizona, driven by the collaboration with the University of Arizona and the continuing severity of droughts and water shortage.
- The U.S. team is preparing for engagement with commercial farmers in Yuma in parallel with stage 2 of the validation study with the University of Arizona in H2. Progress with the first potential client is anticipated in the third quarter, significantly ahead of the initial plan.
- The operational U.S. headquarter was established in central Arizona, strategically positioned to serve the initial target market in the U.S.
- LNC production capacity increased with two new LNC production units (half cluster)arriving in Arizona from the UAE ahead of plan ultimo Q2.
- Hiring activities to staff the added production capacity commenced in June, with personnel anticipated to onboard during Q3.
Continued to deliver on commitments:
- Strengthened the Executive Leadership Team and onboarding the new team members from 1 July. (Accelerated learning kicked off with UAE field trip from 2 July).
- Hired a business development team to accelerate go-to-market initiatives.
- Successfully deployed prototype to accelerate large-scale open-field LNC application.
- Finalization of the third LNC production cluster confirms on demand capacity readiness, and the units deployed to the U.S. demonstrate the global mobility potential of assets.
Financial Key Figures
Second quarter 2022 [second quarter 2021 in brackets]
Revenue NOK 0.5M [NOK 0.0M]
EBITDA NOK -20.3M [NOK -3.4M]
Profit or loss for the year NOK -16.8M [NOK -3.4M]
Gross R&D expenses NOK 0.9M [NOK 0.2M]
Innovation Norway grants NOK 0.9M [NOK 1M]
First half 2022 [first half 2021 in brackets]
Revenue NOK 1M [NOK 0.0M]
EBITDA NOK -43.1M [NOK -12.6M]
Profit or loss for the year NOK -40.5M [NOK -12.7M]
Gross R&D expenses NOK 2.5M [NOK 4.1M]
Innovation Norway grants NOK 2.9M [NOK 1M]
Total cash balance 30.06.22 (bank deposits and funds) NOK 122.9M [NOK 204.5M]
Equity 30.06.22 NOK 150.4M (equity ratio 92.4%) [NOK 213.3 (94.5%)]
Webcast presentation for Desert Control Q2 2022 Report and Interim Financial Results is hosted on 26 August 2022 at 10.00 AM, Central European Time (CET). Register: https://bit.ly/3T1s99u
About Desert Control
Desert Control specializes in climate-smart Ag-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay (LNC) enables sustainable ecosystem management by restoring and protecting soil's ability to preserve water and increase yields for agriculture, forests, and green landscapes.
Inquiries
For more information, please contact:
Ole Kristian Sivertsen
Chief Executive Officer
Email: oks@desertcontrol.com
Mobile: +47 957 77 777
Marianne Vika Bøe
Chief Financial Officer
Email: marianne.boe@desertcontrol.com
Mobile: +47 406 36 356
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.
Q2 Report 2022
The information enclosed is subject to the disclosure requirements pursuant to section 5-12 in the Norwegian Securities Trading Act.