Sandnes, Norway, 21 July 2025 - Desert Control (DSRT) today provides an
operational update
Operational Update
Recent applications of the company's Liquid Natural Clay ('LNC") at Woodland
Hills Country Club and PGA West have experienced operational challenges, related
to irrigation systems on the sites and residual LNC not being distributed as
intended. The company is conducting analysis on both incidents and preliminary
results show that reliability issues with certain secondary equipment and
operator miscommunications were the likely causes of each matter. Importantly,
both properties remain fully operational, and Desert Control and the clients are
fully committed to resolving any residual effects. Applications at California
State University- Fullerton and Mesa del sol Golf Course were conducted without
any challenges
Manufacturing schedule update for the new LNC production unit
The company remains committed to producing initial units of the new design, high
volume production system modules, in the second half of 2025. The process has
been delayed by personnel shortages at Desert Control and longer processing time
than anticipated with certain vendors. The company recently added a senior
resource in the US to help accelerate manufacturing and other supply chain
programs. Further, while some modifications may be made to the system's
peripheral equipment - clay loading and tanks, - as a result of the ongoing
analysis no change is expected in the fundamental core production modules.
Withdrawal of Revenue Guidance for 2025.
Until the company has completed its analysis and implemented solutions to issues
discovered, no additional, large-scale applications in the Golf segment are
expected to be initiated in 2025 and the company is, therefore, withdrawing its
previous 2025 revenue guidance.
Emerging Data on LNC's ability to increase crop yield
While much of the company's research to date has been focused on the water
saving benefits of LNC, the product's ability to also positively impact crop
yields has been both a scientific and commercial goal. Yield increases have
been seen in several small studies in both the Middle East and the United
States, but larger, well controlled studies have been limited in number. Recent
data coming from our work with the University of Arizona Maricopa Research
Center on both Broccoli and Cantaloupe show encouraging increases in yield in
fields treated with LNC.
Cantaloupe Yield and Water Productivity Under Different Irrigation Systems,
Regimes and Soil Conditions in
Arizona (https://extension.arizona.edu/publication/cantaloupe-yield-and-water
-productivity-under-different-irrigation-systems-regimes-and)
Optimizing Broccoli (Brassica oleracea var. italica) Yield and Water
Productivity in Arizona (https://extension.arizona.edu/publication/optimizing
-broccoli-brassica-oleracea-var-italica-yield-and-water-productivity-arizona)
Release Date for Second Quarter Report
The company will now release its second quarter report on August 15[th] 2025
versus the prior date of August 27, 2025.
"The operational challenges at Woodland Hills Country Club and PGA West are
frustrating for our customers, our shareholders, and our dedicated team," said
James Thomas, CEO of Desert Control. "While some unintended impact on irrigation
infrastructures has occurred, it's however important to note that over 4.5
million liters of LNC was applied at Woodland Hills, and the total residual
matter identified is measurable in pounds. Moreover, we have not observed
similar complications at other recent applications, including those at Oasis
Dates and Cal State Fullerton."
"Our customers remain confident in LNC's ability to enhance soil health and
water retention," Thomas added. "However, we recognize the need to further
refine our delivery capabilities particularly for high-pressure, high-flow
irrigation environments."
For more information, please contact:
James Thomas Chief Executive Officer
Email: james.thomas@desertcontrol.com
Mobile (USA): +1 203 984 7658
About Desert Control:
Desert Control develops innovative solutions to enhance soil health, conserve
water, and promote ecosystem resilience. . Our proprietary Liquid Natural Clay
(LNC) allows 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,
enhance food security, and ensure a climate-resilient future.
Important Notice:
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock
exchange announcement was published by Leonard Chaparian, CFO in Desert Control
AS, at the time and date stated above in this announcement.
Cautionary Note:
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.