Norwegian agtech company Desert Control AS (DSRT) reported progress in its first-half 2026 update, maintaining its full-year 2026 revenue guidance at NOK 2 million while extending its financial runway to the third quarter of 2027 following a completed rights issue.
The company’s current ratio stands at 8.46, indicating liquid assets significantly exceed short-term obligations. Desert Control’s revenue grew 20% over the last twelve months, though analysts forecast a 384% increase for fiscal 2026. Management cited a realizable pipeline opportunity valued at NOK 56 million, while acknowledging that much of the work required to meet the 2026 revenue target must occur in the third and fourth quarters.
Desert Control sought up to $15 million from institutional investors via London-based MW&L Capital Partners (Masa Capital), but the effort fell short as most investors were either restricted from investing in listed companies or considered the firm too small or complex. The company’s shares were trading at $0.31, down 5.43% from the prior close, and near its 52-week low of $0.30 after an 83% decline over the past year.
Operational updates highlighted water-use efficiency gains across multiple trials. A golf course project at Woodland Hills generated a $350,000 gross benefit in the first 12 months with 27% water savings, while the Berkeley Country Club showed an early $17,000 benefit. Crop trials demonstrated significant improvements: romaine lettuce yields rose 30% with 33% better water-use efficiency, and date palm trials achieved up to 60% water reduction while maintaining yield. Three Arizona grants are in the final sales agreement phase, with installations planned for Q3 and Q4 2026 to support carrot and leafy greens work.
Management outlined a strategic shift focusing research, operations, and sales in the U.S. Southwest, particularly California and Arizona, after previously expanding efforts in the Middle East. The company has restructured its operations, relocating research from Norway to the U.S. and expanding staffing in sales, operations, and science, including hiring a CFO, Chief Science Officer, operations lead, and data engineer. Management noted that the heavy expense-growth phase for hiring is largely complete, with minimal future expense growth expected beyond selective additions.
Key milestones remain on track, with commercial conversations expected to intensify in September, harvest data from spring applications due between October and December, and table grape trial results anticipated by May 2027.
