Desert Control: A Steady Stream of Savings for Golf Courses

In the world of investments, some people are drawn to the thrill of options and risky stocks, while others, like me, prefer the stability and predictability of "boring but lucrative" investments. One such company that caught my attention is Desert Control, a leader in soil and water conservation technology. Their recent agreement with Woodland Hills Country Club for the deployment of their water conservation technology is a testament to their enduring business model and the value they bring to their clients.

Desert Control's agreement with Woodland Hills Country Club is a significant milestone for the company, marking its first commitment to a full-course deployment in the United States. The agreement, subject to successful initial validation phases, aims to implement Desert Control's water conservation technology across the entire 63-acre golf course. This is a prime example of a company that focuses on consistent performance and minimizing surprises, much like Morgan Stanley, which I value highly.

The agreement's structure includes initial validation stages to ensure the technology's efficacy on the golf course. Based on successful outcomes, full deployment is anticipated in the second half of 2025. The agreement is based on an outcome-based business model that generates monthly recurring revenue (MRR) for Desert Control calculated on achieved water savings. This model ensures a steady, predictable income stream, aligning with my preference for stable investments.

The potential contract value over the initial five-year agreement term has the potential to exceed NOK 6 million for the Company, with significant economic value creation for Woodland Hills Country Club driven by future water savings. Desert Control's technology enhances soil's long-term water-holding capacity, allowing golf courses to reduce irrigation needs while maintaining turf quality. This aligns with the industry's growing focus on sustainable practices and operational cost efficiency.



The agreement's structure, including initial validation phases, mitigates risks for both Desert Control and Woodland Hills Country Club. This approach allows both parties to share the benefits and risks, fostering a more stable and predictable investment environment. Water savings will be quantified and tracked as the primary KPI for Desert Control's technology at Woodland Hills Country Club through an outcome-based business model. This model generates monthly recurring revenue (MRR) for Desert Control, calculated on achieved water savings.



Desert Control's agreement with Woodland Hills Country Club presents an opportunity to assess the impact of its water conservation technology on turf quality and maintenance costs. Key metrics to evaluate this include water savings, turf quality, maintenance costs, irrigation frequency, and environmental impact. These metrics will provide a comprehensive assessment of Desert Control's technology, enabling investors to understand its impact on both the golf course's operations and the environment.

In conclusion, Desert Control's agreement with Woodland Hills Country Club is a prime example of a stable and predictable investment. The company's focus on consistent performance and minimizing surprises, coupled with its outcome-based business model, generates a steady stream of savings for both Desert Control and its clients. As an investor who values stability and predictability, I believe that Desert Control deserves a higher valuation for its reliable and enduring business model.