Desert Control releases its Q4 2023 Report and Year-to-date Company Update
2023 was marked by operational milestones and strategic restructuring, increasing the balance sheet by more than NOK 100M of added liquidity. The start of 2024 marks the launch of the first commercial LNC roll-out in the United States with Limoneira, and the licensed operator model has secured the first partner-driven commercial project in the Middle East.
Finalized private placement subsequent issue of NOK 8M on 17 November 2023, culminating in over NOK 100M of added liquidity during the year.
Ended the fiscal year with a cash and financial asset balance of NOK 120M, which, combined with cost efficiency gains, extends the company's financial runway into H2-2025 (excluding revenue).
Completed the transition to the licensed operator model in the Middle East, leading to streamlined operations, significant reduction in annual operating costs, and strengthened regional partnerships.
Doubled LNC production capacity per unit throughout 2023. Continued development targets further improvement in capacity, scalability, and unit economics for 2024 and beyond.
The ongoing 5-year LNC research program with the University of Arizona is nearing its mid-term report and inaugural publication.
United States
Achieved the target of securing five new technical pilot projects per quarter in 2023, maintaining consistent pilot acquisition throughout the year.
Continuing to see pilot results with a growing variety of crops and application scenarios.
Realized operational improvements significantly increasing scalability, enhancing LNC application rate from 500 trees per day in Q1 2023, with projections to exceed 1000 trees per day in Q1 2024 with less labor and asset requirements for project execution.
Limoneira's pilot testing of LNC since 2022 concluded in Q4- 2023 with the positive decision to move forward with LNC deployment. The first commercial order for 60 acres of the Yuma ranch for the upcoming season was received on 31 January 2024.
Middle East
Executed the final phase of the transition of Desert Control's operation in the Middle East, fully implementing the licensed operator model.
Key technical personnel moved from Desert Control Middle East to partner entities in the United Arab Emirates and Saudi Arabia, ensuring regional retention of expertise.
The inaugural LNC production units arrived in Saudi Arabia, and as of January 2024, Saudi Desert Control is ready for operations.
The first LNC application in Saudi soil was performed in December 2023, and the first partner-driven commercial agreement in the UAE has been secured, signaling growing momentum in the region following the transition to the new business model.
Financial Highlights Fourth Quarter 2023
[fourth quarter 2022 in brackets]
Revenue NOK 15,5 M [NOK 3,0 M]
EBITDA NOK 0,8 M [NOK -25,5 M]
Net Income NOK -5,2 M [NOK -35,2 M]
Financial Highlights Full Year 2023
[full year 2022 in brackets]
Revenue NOK 18,1 M [NOK 4,2 M]
EBITDA NOK - 60,0 M [NOK - 90,2 M]
Net Income NOK -65,3 M [NOK -905 M]
Total cash balance 31.12.23 (bank deposits and funds) NOK 119,6 M [NOK 78,2 M]
Equity 31.12.2023 NOK129 M (equity ratio 96,7%) [NOK 107 M (89,7%)]
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.
Q4 Report 2023
The information enclosed is subject to the disclosure requirements pursuant to sections 5-12 in the Norwegian Securities Trading Act.
For more information, please contact:
Ole Kristian Sivertsen President and Group CEO Email: [email protected] Mobile (NOR): +47 957 77 777 Mobile (USA): +1 650 643 6136 Mobile (UAE): +971 52 521 7049
Leonard Chaparian Chief Financial Officer Email: [email protected] Mobile (NOR): +47 90 66 55 40
Methodist Le Bonheur Healthcare announced Methodist University Hospital earned top recognition by Money magazine as one of the Best U.S. Hospitals for Cardiac Care. The Memphis-based healthcare system's academic flagship landed 15th out of 75 and is...
Avicenna.AI, a leading medical imaging AI company, has received Medical Device Regulation (MDR) certificate for five of its algorithms from certification body BSI Medical Devices. This development means the company's product portfolio is fully...
Insmed Incorporated , a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases, today announced that additional positive results from the ASPEN...
In March 2024, dairy cows in Texas were found to be infected with highly pathogenic avian flu, or H5N1 bird flu, in the first known case of the virus spreading to cattle. Since then, H5N1 has been found in about 200 animals?and 3 people?across 12...
Emmaus Life Sciences, Inc. , a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the year ended December 31, 2023....
Global health company The Cigna Group will release its second quarter 2024 financial results on Thursday, August 1, 2024, and will host a conference call the same day....