Desert Control AS entered March with additional projects secured in the U.S. Five new agreements for commercial pilots are signed in the first quarter of 2023. After successfully completing the first revenue-generating pre-project with Limoneira Company, the company, in February, signed new commercial pilots with Five Rivers Cattle Feeding in Wellton Mohawk, Arizona, Lemonica Citrus in Calipatria, California, and Fortuna De Oro golf course in Yuma, Arizona. March is off to a strong start with similar agreements secured with Griffin Ranches in Somerton, Arizona, and Coyote Wash golf course in Wellton, Arizona.

The company is negotiating several additional agreements for similar projects, expected to be signed within the coming months. Based on the current pipeline Desert Control anticipates signing at least five new commercial pilots per quarter and is further confident in converting more than 50% from commercial pilots to larger-scale deployments based on achieving targeted water savings, reduced energy consumption, and improved fertilizer efficiency while maintaining or improving crop yield. The time from launch of a commercial pilot to larger-scale deployment varies by crop.

Citrus and dates have long seasons with one harvest yearly, while vegetables have shorter cycles. Crops like alfalfa can have up to 8 or 10 cuts annually, leading to a faster processes to acquire yield impact data for decisions. The most recent commercial pilot is secured with Griffin Ranches, which have 2000 acres of farmland in Yuma and Somerton, Arizona, where they grow various vegetables and mixed greens, cotton, alfalfa, and dates.

The commercial LNC pilot will start with date palms motivated by the significant results achieved for date cultivation in the UAE (47% water savings while achieving an 8% yield increase and 21% increase in graded quality of the fruits). Based on positive pilot results, the objectives are to expand LNC deployments for larger-scale rollouts.