Announcement • Jul 21
Desert Control Applies Liquid Natural Clay To Romaine Lettuce Yield Trial In Salinas Valley Desert Control’s Liquid Natural Clay (LNC) was applied to a 6-row trial block at a commercial lettuce operation in California’s Salinas Valley. Liquid Natural Clay (“LNC”) was applied to 6 rows (1 acre) of romaine lettuce located in California’s Salinas Valley and compared against an untreated control (“UTC”) group. Results after one growing season showed a nearly 30% increase in boxes per acre and a 33% increase in Water Use Efficiency. LNC is an OMRI-listed organic soil amendment that uses exfoliated clay platelets in a liquid suspension to improve soil structure. Because it is applied directly through the growers’ existing irrigation systems, LNC delivers sustained results without requiring mechanical soil disruption or changes to current farming operations. Once applied, LNC increases the reactive surface area within soil macropores, slowing the percolation of water and extending its residence times in the root zone. This allows the plant to uptake a significantly higher proportion of applied water and nutrients. The field trial was conducted in the Salinas Valley of California during the spring 2026 growing season. The trial focused on commercial romaine lettuce production. The experimental design consisted of a side-by-side field comparison: Treatment Plot: One acre of commercial romaine lettuce treated with Liquid Natural Clay (LNC). Control Plot: One acre of commercial romaine lettuce grown under standard historical grower practices, serving as the untreated control group. Prior to the trial, a 0-to-6-inch soil sample from the specific trial block was collected and analyzed by Midwest Laboratories (March 31, 2026). The analysis confirmed a light-textured sandy loam soil profile characterized by rapid drainage, low organic matter, and limited native buffering capacity. The treatment utilized was a proprietary formulation of Liquid Natural Clay (LNC) developed by Desert Control, designed to permanently or semi-permanently alter the water- and nutrient-holding behavior of light soils. The application occurred in April 2026 shortly after the beginning of the vegetative growing season. The treatment was executed as a vendor-applied service by Desert Control, requiring no additional operational labor from the grower. LNC was delivered through the field's existing drip tape irrigation infrastructure. Both the treated and untreated plots were harvested simultaneously on May 19, 2026. The primary agronomic metric evaluated was yield volume (measured in standard harvest boxes per acre) and average carton weight. The data indicates that the LNC application significantly improved the productive output of the historically weak ground. The primary driver of the yield increase was total volume (number of mature, harvestable heads) rather than an increase of individual carton weights, as box weights remained virtually identical between the two plots. Untreated Control (UTC) Acre: Total Yield 329 boxes, Average Box Weight 17.7 lbs. LNC-Treated Acre: Total Yield 427 boxes, Average Box Weight 17.8 lbs. Net Change: +98 boxes, +0.1 lbs. Percentage Change: +29.8%, +0.56%. The application of LNC in this trial is considered highly successful. By generating a 29.8% increase in total harvestable yield an additional 98 boxes per acre without compromising individual carton weight or requiring additional grower inputs, LNC met the primary objective of enhancing productive output on historically underperforming sandy loam soils. Water Use Efficiency (WUE) is a useful tool in comparing yields per unit of applied water, expressed in tons of yield per acre foot (AF) of water. The LNC-treated and control plots each received 0.57-acre feet per acre (AF/ac) of irrigation, and 1.2” of rainfall over the growing season. This converts to 8.04 inches per acre or 0.67 AF/ac of total water applied. Table 4 shows a WUE of 4.3 tons of yield per acre foot of applied water for the untreated control group, while the LNC group has a calculated WUE of 5.7 tons/AF. This represents a 33% increase in yield per AF of applied water. The Spring 2026 Romaine lettuce trial in California’s Salinas Valley demonstrates that LNC is a highly viable solution for mitigating the compounding challenges of sandy soils and severe water scarcity in commercial agriculture. LNC treatment generated a nearly 30% increase in harvestable romaine lettuce yield and significantly improved overall Water Use Efficiency without requiring additional grower labor or water inputs. Furthermore, this enhanced water-holding capacity acted as a critical agronomic buffer against late-season water stress, preserving crop quality during a delayed dry-down harvest. New Risk • Jul 02
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr91.4m (US$9.28m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Earnings have declined by 22% per year over the past 5 years. Shareholders have been substantially diluted in the past year (125% increase in shares outstanding). Revenue is less than US$1m (kr2.6m revenue, or US$265k). Market cap is less than US$10m (kr91.4m market cap, or US$9.28m). Announcement • Jul 02
Desert Control AS has filed a Follow-on Equity Offering. Desert Control AS has filed a Follow-on Equity Offering.
Security Name: Shares
Security Type: Common Stock
Transaction Features: Rights Offering 
