Desert Control Releases Half-Year Report and Company Update
42 Tier-One Customer Pilots Completed Year to Date. Capacity Increased with Introduction of New Production Unit
Sandnes, Norway, 19 August 2026 - Desert Control (Euronext Growth Oslo: DSRT), a leader in soil and water conservation technology, today announced its half-year report and unaudited financial results, highlighting continued commercial momentum, strong customer engagement, and progress toward its revenue targets
Operational and Research Highlights
Desert Control continues to experience strong customer interest and pilot activity across its key markets. Year to date, the Company has completed 42 tier -one customer pilots across the Imperial, Coachella, Central and Salinas Valleys of California and in the agriculture and golf sectors, reflecting growing demand for its proprietary Liquid Natural Clay (LNC) technology. To keep pace with demand, the Company took delivery of its new production unit in June and successfully completed field trials in July. This unit features a number of technology upgrades and capacity enhancements from pre-existing versions and is capable of continuous upgrades through its design and its advanced control systems.
As we approach the intensive harvest period, our targeted permanent crop growers report promising improvements across a variety of parameters, including water use efficiency, plant health and yield. Also, we have observed very encouraging results in a previously secondary focus: high value row crops. Two recent field studies in romaine lettuce have shown harvest yield improvements exceeding 30% following LNC application. These results further support the potential of LNC to improve agricultural productivity while enhancing water and nutrient retention in sandy soils. We have added additional studies in onions, red peppers, and tomatoes to explore these opportunities.
Financial Highlights
As of June 30, 2026, Desert Control reported a cash balance of NOK 18 million and remained debt-free.
Expected proceeds from the Company's rights offering are anticipated to extend the cash runway into the third quarter of 2027, providing financial flexibility to support ongoing commercial expansion and technology development initiatives.
Revenue Outlook
Desert Control continues to maintain its previously announced guidance of $2 million in revenue for 2026.
As previously discussed, 2026 revenues are expected to come predominantly in the third and fourth quarters as customers who conducted pilot applications in the late spring and summer evaluate the results and decide whether to convert pilots to commercial contracts. The revenue outlook assumes commercial orders from these growers and golf course operators, recognition of the value of our PAYS contracts, and from anticipated revenue associated with the State of Arizona grant programs.
CEO Commentary
James Thomas, Chief Executive Officer of Desert Control, commented:
"The activity level on all fronts has been intense during the first half of 2026 and the progress is very tangible. While the increase in pilots and the delivery of our new production unit are well publicized, the work we have done in field research and technology development is also important. With harvests underway in many regions, our teams are deeply engaged with customers regarding LNC results vis a vis potential commercial and research expansions. We are especially encouraged by the number of growers managing thousands of acres who have been part of the 42 tier-one customer pilots completed year to date. Further, we are eagerly pursuing studies across crop types with LNC given recent field demonstrations in row crops which have indicated the potential of LNC to profoundly increase harvest yields."
EBITDA Performance
Operating expenses increased by 8% to NOK 37 million, primarily driven by investments in U.S. commercial operations and continued technology development.
The Company expects spending levels to remain relatively stable going forward, as its planned hiring initiatives are substantially complete for the foreseeable future.
Net Result
Desert Control reported an EBITDA loss of NOK 35.1 million for the first half of 2026.
Results were additionally impacted by a non-cash foreign currency translation loss of NOK 0.4 million.
Half-Year 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 H1 2026 Half-Year Report and Company Update will be held on 19th of August 2026 16.00 CET
? Registration: https://desertcontrol.zoom.us/webinar/register/WN_icf1vKxhScuFggHWIxTEnQ
For more information, please contact:
David Borah
Chief Financial Officer
david.borah@desertcontrol.com
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.
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.
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