Follows earlier press release regarding binding MoU agreement and confirms
recurring revenue service agreement in the California golf sector.
Los Angeles, California, 11 March 2025 - Desert Control (DSRT) announces that
its U.S. subsidiary, Desert Control Americas Inc. (DCAM), has executed the final
service agreement for its water conservation solution with Woodland Hills
Country Club (WHCC), formalizing the terms outlined in the binding Memorandum of
Understanding (MoU) announced on 9 December 2024.
The agreement involves the full deployment of Desert Control's proprietary water
-conservation solution across 43 acres of WHCC's golf course. Implementation is
scheduled to commence in the week of April 15, 2025, with May anticipated to be
the first full month of operation under the agreement, marking the start of
monthly recurring revenue (MRR) generation for Desert Control.
The service agreement is structured under the company's Pay-As-You-Save (PAYS)
model, in which Desert Control funds implementation and earns revenue from a
share of actual water cost savings. Savings are calculated by comparing real
water usage to a predefined historical baseline, multiplied by the applicable
water rate each month. Revenue is tied directly to verified savings, calculated
with objective data from the client's metered water use, ensuring transparency
and high confidence in revenue recognition. This creates a direct, transparent,
and performance-based revenue stream aligned with client value creation.
The total agreement value for DSRT has the potential to exceed NOK 8.5 million
over five years, based on achieving water savings above 25%. For WHCC, the
agreement reduces its largest, fastest-growing operational expense for golf
course maintenance-irrigation-while maintaining top-tier golf course conditions.
For Desert Control, the agreement secures predictable, performance-tied MRR with
long-term upside, converting upfront investment into recurring revenue based on
measurable outcomes.
"This agreement reflects the kind of results-based partnership that makes good
business sense," said Marty Weems, Managing Director of Desert Control Americas
Inc. "We're helping WHCC cut costs where it matters most-water-while we increase
shareholder value by generating recurring revenue from verified results.
Frequent double-digit increases in water costs make irrigation one of the
largest, fastest-growing operating expenses for golf courses. Our golf clients
in active trials consistently report significantly less water use while
maintaining peak course conditions. WHCC expects cash-flow positive benefits to
their bottom line from day one; with no upfront investment. We are excited to
help the golf course industry do well while doing good."
Desert Control's solution is approved for major water conservation incentive
programs offered by the Metropolitan Water District of Southern California (MWD)
and the Los Angeles Department of Water and Power (LADWP). The WHCC
implementation is qualified for both programs. The savings-based incentives
align with Desert Control's PAYS model, enhancing the financial return for
clients.
This agreement highlights Desert Control's ability to convert pipeline into
contracted, performance-based revenue through aligned incentive models that
support profitable growth and efficient resource use. This strengthens the
company's positioning for expansion across California and other high-cost water
markets. Additionally, Desert Control is well-positioned to weather
international tariff volatility with a localized in-country value chain and raw
materials sourced domestically for all U.S. projects.
For more information, please contact:
Ole Kristian Sivertsen
CEO, Desert Control
Email: oks@desertcontrol.com
Mobile (NOR): +47 957 77 777
Mobile (USA): +1 650 643 6136
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
guarantees of 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 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 will come
to pass or that any forecasted performance, capacities, or results will be
achieved. Readers are cautioned not to place any undue reliance on any forward
-looking statements.
About Desert Control:
Desert Control develops solutions that enhance soil health, conserve water, and
improve operational efficiency for water-intensive landscapes. Its patented
treatment increases the soil's ability to retain moisture and nutrients,
enabling healthier turf and vegetation with significantly reduced irrigation.
Desert Control delivers customized programs for sports turf, golf courses, urban
green spaces, and agriculture - starting with the sectors where water matters
most.
The company's mission is to provide profitable and scalable solutions for
efficient soil and water conservation. By enhancing resource efficiency and
minimizing maintenance demands, Desert Control helps clients achieve long-term
resilience, cost savings, and optimal operational performance.
For more information, visit https://www.desertcontrol.com