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Desert Control AS reported its first-quarter 2025 earnings, revealing a revenue shortfall against forecasts. The company posted actual revenue of 1.59 million USD, significantly below the anticipated 3 million USD. This discrepancy contributed to a sharp 10.79% decline in the company’s stock price, closing at 6.12 USD. Despite these setbacks, Desert Control maintained a positive cash balance and no interest-bearing debt, positioning itself for strategic growth in key markets. According to InvestingPro data, the company maintains impressive gross profit margins of 87.57% and a strong current ratio of 10.54, indicating robust operational efficiency and solid short-term liquidity.
Key Takeaways
- Desert Control’s Q1 2025 revenue was 1.59 million USD, missing the forecast by 1.41 million USD.
- The company’s stock dropped 10.79% following the earnings release.
- Desert Control has extended its financial runway to late Q3 2025 with a positive cash balance.
- The company is focusing on expanding its Liquid Natural Clay (LNC) technology in the US and Middle East.
Company Performance
Desert Control’s performance in Q1 2025 showed growth compared to the same period last year, despite missing revenue expectations. The company emphasized its strategic focus on expanding its operations in the US and Middle East, leveraging its unique LNC technology to address desertification challenges. The transition to a new CEO, James Thomas, marks a pivotal moment as the company aims to accelerate scaling efforts.
Financial Highlights
- Revenue: 1.59 million USD, down from the forecasted 3 million USD.
- Positive cash balance of 43 million USD.
- Equity of NOK 58.6 million, representing 89.4% of total assets.
- No interest-bearing debt reported.
Earnings vs. Forecast
Desert Control’s actual revenue of 1.59 million USD fell short of the 3 million USD forecast, marking a significant deviation. The company did not provide specific EPS figures in the earnings summary, but the revenue miss highlights challenges in meeting market expectations.
Market Reaction
Following the earnings announcement, Desert Control’s stock price declined by 10.79%, closing at 6.12 USD. This movement reflects investor concerns over the revenue shortfall and its implications for the company’s growth trajectory. The stock’s current price positions it closer to its 52-week low of 4.53 USD, signaling cautious market sentiment. However, InvestingPro analysis suggests the stock is currently undervalued, with analysts projecting significant revenue growth of 367.78% for FY2025. InvestingPro subscribers have access to 12 additional key insights about Desert Control’s valuation and growth prospects.
Outlook & Guidance
Looking ahead, Desert Control remains optimistic about its strategic priorities for 2025, including expanding its presence in the golf and turf management sectors and supporting Middle Eastern partners. The company projects a 10x growth compared to 2024, driven by its innovative LNC technology and new production prototypes. With a market capitalization of $35.23 million and strong year-to-date returns of 29.43%, the company shows promising momentum. Discover comprehensive analysis and detailed growth metrics with InvestingPro’s exclusive research report, part of their coverage of over 1,400 US equities.
Executive Commentary
CEO James Thomas highlighted the company’s strategic focus, stating, "We have too much to do to be perfectly straightforward." He emphasized the potential of LNC technology, noting, "LNC will turn out to be a technology that works very well on its own, but is additive."
Risks and Challenges
- Revenue shortfall in Q1 2025 raises concerns about future financial performance.
- Potential production constraints as the company scales operations.
- Market saturation and competition in the desertification solutions sector.
- Economic pressures in key markets like the Middle East and the US.
Q&A
During the earnings call, analysts inquired about the potential US stock listing and expansion plans in the Middle East, particularly in Saudi Arabia and the UAE. The company confirmed ongoing negotiations with multiple golf courses and water districts, signaling strategic growth opportunities.
Full transcript - Desert Control AS (DSRT) Q1 2025:
Webcast Host/Moderator, Desert Control: Welcome to the Dassault Control Q1 twenty twenty five company update webcast. This presentation will cover the Q1 report and interim financial results for the fiscal period ending in 03/31/2025. We will also share selected updates from Q2 twenty twenty five year to date. A Q and A session will follow the presentation, and we invite you to use the Q and A function to submit your questions through the webcast.
Before we can begin the Q and A update agenda, Tensor Control Chair of the Board, Lars Eismarck, will provide opening remarks and introduce our new CEO.
Lars Eismarck, Chairman of the Board, Desert Control: Thank you, Laurie. Good afternoon, and good morning to all of you from around the globe who are listening in to this webcast presenting the q one two thousand and twenty five report. My name is Lars Eismarck, and I’m the chairman of Desert Control. As mentioned in my intro in the first quarter report, we’ve left a quarter that was a satisfactory period for Desert Control. Satisfactory because we continue winning important customers across landscaping and permanent crops and because our pipeline grew with interesting opportunities.
In particular, the wins based on our PACE model is proof of the beliefs in our solution, and these wins are important tools. On top of this, the confirmation that our water conservation solution qualifies for incentive programs administered by the MWD and the LADWP marks an important milestone for Desert Control USA, and I’m confident that this will spark further interest in our solutions. So all in all, a satisfactory quarter for Desert Control. The first quarter also gave me an insight to the opportunities ahead of us. We’ve embarked on a journey that holds massive potential regardless of where we and our partners look, But we need to sharpen the pen and ensure discipline in our go to market approach.
We must base our go to market strategy on the successes and the momentum that we have right now. This means a stringent focus on The US market, specifically in The States where we already have successful deployments and trials, and specifically in the market segments where we have proven success. There are plenty of geographies. There are plenty of segments where our overall solution is highly relevant and attractive. We will go there in due time, but not before we have realized the attractive potential where we already are.
Wherever we look, there are opportunities. The addressable market is substantial. Our pipeline is full of leads and opportunities, and we must pursue closings while at the same time balancing our go to market efforts. The efforts will be focused and prioritized with discipline, and most importantly, they will be accelerated. Accelerated through new hires, centralized efficiency measures, launch of improved deployment capacity, etcetera, etcetera.
So a lot of positive things to look into. On April 23, we announced the CEO transition from Olegrechtian to James Thomas. Olegrechtian has been instrumental in driving Desert Control where we to where we are today. It’s been a massive pull from Olekristian’s side, and the energy that has gone into the firm is truly admirable. Olekristian, you have walked all the extra miles one could possibly ask for.
And on behalf of the board, I want to thank Ole Christian for his efforts and wish him all the best for the new adventures that awaits Ole Christian and his family both in Norway and in Thailand. Thank you, Ole Christian, and good luck. The board and I are immensely excited to see James Thomas taking over the baton from Olekristian. James holds the skill set and the experience that is needed to migrate Desert Control into the next phase. With a solid track record, James has proven that he has what it takes to navigate Desert Control into a global company based on proven tech solutions, profitable market traction, global reach, and organizational scale.
The board and I wish James the best of luck as you are taking charge for Desert Control. Q two has kicked off as the first quarter. Lots of activity. I had the pleasure to visit our partner in Saudi. I have visited several customers in The US where I also met new joiners in our organization, and much more is planned until the June.
I look forward to reporting back from my experiences and key takeaways. With these words, I hand it over to our new CEO, James Thomas.
James Thomas, CEO, Desert Control: Thank you, Lars. I appreciate that kind intro, and I appreciate all you do to carry the mission of Desert Control forward because Desert Control is both a company and a mission, and, your passion helps bring the excitement to the company, that I feel from the employees and I feel myself. I shared a lot of my early thoughts in the letter that was released this morning, So, forgive me if I hit some of those same highlights, during the course of this conversation. But I think the company is really quite extraordinary, and we have made some substantial progress and have, as Lars pointed out, a lot of opportunity ahead of us. I thought I might also kick off with a brief thought on how I ended up, becoming attracted to Desert Control and why I feel I am the right person to lead the company at this time.
And I do hope to get to know most of you over the course of the coming months and years. But I spent thirty years, in the biotechnology venture capital business, developing companies everywhere from a scientist in a conference room to acquiring existing assets that needed to be market. And one of the things that attracted me to that process, frankly, was the ability of technology to transform lives and the ability of, technology to transforms lives to build good businesses. And I see both of those things in, Desert Control, and I’m excited to take the company on the phase from where we stand today to being a truly commercial company that truly does change lives. So, I used to say that I like to make margin and certain mission and Desert Control, I think, is a company that has those in spades.
The other thing that always attracted me in biotech and other investing business is people. At the end of the day, we’re investing in people, and I find the people at Desert Control, by few, dedicated, intelligent, intentionally, quite committed, and very credible both internally and externally. Our customers and their coworkers all respect and, I think, very highly of them. So I wanted to touch on that because I think it’s important as we all, you, me, the company, our customers, start this next leg in the pest control, journey. One other thing that I wanna do is, make sure that I address something that attracts me about this company and that I spoke to in the letter.
I see, LNC as a foundational technology. I think that we have seen already the benefits that LNC can bring to sandy soils, to slightly sandy soils, to mostly, you know, all the various grades of soil. But what we’re beginning to see is the synergy benefits, that LNC can bring to other parts of the soil ecosystem. So I’m still looking for a good analogy, and I welcome your thoughts. But I believe that LNC will turn out to be a technology that works very well on its own, but is additive or is the base under which many of these other biotechnology or microbial technologies can be added.
So, I just am really excited about the role that LNC can play both in the commercial world and in the broader, world of environment and health and safety. So with that, let me jump into, the presentation at hand. I have today with me, in addition to Lars, we have Leo, our CFO. We also have Marty Weems, who’s our managing director for The US. And we have Jan Vader, who is both the chief innovation officer and our leader in The Middle East, and they will be available during the q and a session.
Ari, if I can get the next slide. Thanks. I think that many of you, are very familiar with the Desert Control story, and I don’t wanna spend tremendous amount of time on this slide. But to the extent that we do have new people with us, Desert Control specializes in nature based solutions to combat desertification, soil degradation, and water scarcity. Liquid natural clay enables thirsty soils to retain water, nutrients, and improve soil health.
Our clients already span agriculture, landscaping, and forestry, and I think we’ll expand to other uses. And our solutions have proven to save water, frequently as much as 50%, but certainly 25%, and improve health of the soil and crop yields. I think this is an area that you’re going to hear more and more about from us. I think, the science that we’ve developed and are developing, in the field, in our labs in Norway, will continue to round out the many benefits that we’ve seen through LNC. Ari, can I get to the next slide?
Oh, I’m sorry. I I couldn’t see it on my screen. So I think Lars articulated this at the beginning. Our situation is that we have too much to do, to be perfectly straightforward. The market opportunity and the opportunity for the product both in established markets and emerging markets is too big for us to tackle today.
It’s exciting because it provides almost infinite runway. But in the near term, you will see us focus very heavily on our markets that in The Middle East and US where we have established operations. With a 10 countries exposed to desertification and hundreds of millions of hectares of potential, we really need this company to focus down right now and execute in our immediate priorities. Alright. Can I get the next slide?
I think, you know, many people have seen this slide. I touched on this on my letter. You know, one of the challenges that this technology has had over time is, frankly, making it. And we we have had breakthroughs in this last several months and, frankly, last several quarters that now put us in a position to make sufficient quantities of high quality l and c to begin to attack our large commercial opportunity. And so, I think we’ll touch on that in a later slide.
But and I emphasized it very much in my letter. I believe that we are going to be production constrained, not customer constrained in the very near future. And that’s a function of all the traction that we’re seeing in landscaping, in golf, in agriculture, in other, places that customers are really welcoming us in, including the World Food Program. Alright. Can I get the next slide?
We’ll be going through the highlights. Leo will pick up for the financial review. I’ll come back to finish with our priorities and an outlook for the rest of the year, and then we’ll go to the q and a session. So what have we been up to?
Well, you’ve seen a number of this in our press releases, but we have had, as Lars articulated, a very active, period in the first quarter. We, most notably, delivered our largest, application ever at Oasis States, where we treated 9,000 trees with LNC. And, I think you’ll hear, over time that those results are quite promising. We achieved record levels of production, record levels of sustained production, and record levels of delivery of the product, through to the trees. I think, both we and the customer are quite happy with that outcome.
We also had, the pilot at Woodland Hills go well. And, ultimately, in the second quarter, we did the full deployment in our first tall golf course. And I think that is an extraordinary achievement for a company of this size and and maturity. And I think it’s really important that we talk directly about the water savings with rebates with the Metropolitan Water District and the LA County Water District. I both wanna make a big deal of these and not too big a deal of these.
The direct effect for customers in the LA Water District is substantial, and we saw that at Woodland Hills. The quantity of money available for them rebates is up to 50% of the cost of our product. And so it’s a really important door opener in those areas, and there are multiple golf courses in those areas and in the broader metropolitan water district. But it is what I hope will be the first of many, because there are programs reimbursing water savings technology across the American Southwest, across America, many in The Middle East, other parts of the world. So I look at the win at the Metropolitan Water District, the Wyoming Water District, as indicative of our ability to get governments to buy into the value of l and c almost as much as the simple fact that we’ll open doors for us with golf courses that fall in those places.
I think you’re gonna hear more about The Middle East perhaps a little bit later in the q and a, but we had our partners. I wanna be very clear. There are partners, both Soil and Saudi Desert Control, had very active first parts of the year and are setting up, I think, for a lot of success later in the year. And on the technology, you know, I’m probably making more of this in some ways than the team would be comfortable because they’re pretty humble, But the advances we’ve made in production technology are really, really important to us and will enable the growth that I hope to drive through this company. And the research team, while small and quiet, is really pushing forward the boundaries of where this technology can be applied.
And I think we will continue to see markets expand, addressable markets expand for LNC both in The US, Middle East, and around the world. Alright. If I can get to the next slide. So just a quick update here. I think this is well in the marketplace, but this was a a major undertaking for our operations crew, and they executed it extremely well.
And all of the initial reports from the customer are quite happy. Alright. Can I get the next slide? So this is also something that I think we’ve touched on a lot, but it’s really important. Because as this slide points out, this deal came together from a pilot to a application of a multiyear revenue sharing agreement in six weeks.
And we are not gonna get that sales cycle time with all of our customers, but I know that all of us at Desert Control and many of you on the phone call today have been frustrated by the length of sales cycle that some of our customers will take. So I would just wanna point out that when the stars align as they did at Woodland Hills, this is a club that has a high cost of water that knows they need to address it, that was interested in technology, and then the LA Water District, Metropolitan Water District, you know, was icing on the cake. I also wanna emphasize, and I did emphasize this in the letter, that I love the PACE model. And this is our first real PACE model, and I’m hoping to do many, many more. I think the PACE model is good for the customer because it reduces their entry risk with shortened sales cycle.
I think it’s good for us because it forces us to put our money where our mouth is. And I think it’s good for us because by taking on that extra risk, I think we’re gonna make significantly more money on our PACE contracts. No offense to guys who wanna pay up front. Happy to have them. Plenty of those too, but I really do like this PACE model.
Alright. Can I get the next slide? I think, here, we’ve touched on most of this, already, so I won’t dwell on it. But it’s an important win. And, as I say, it provides a lot of upside in that regional area where there are 19,000,000 people and a whole lot of golf courses.
But I view this as much more of a front end or sharp end of the spear, and we and the team continue to focus on areas where we can bring this value to clients. Ari, can we get the next slide? Are you mind sync with you?
Leo, CFO, Desert Control: Have time to forward the chance.
James Thomas, CEO, Desert Control: I apologize to the, to those in the audience for my lack of, technological prowess. I’m switching screens.
Leo, CFO, Desert Control: Slide 13.
James Thomas, CEO, Desert Control: Right. So, this slide brings up our momentum in The Middle East, which, I think I covered some of earlier in my piece. But, it’s easy to kinda lump The Middle East as The Middle East or The UAE as The UAE or Saudi as Saudi. But I think what you see on the slide is the diversity, of customer types we’re addressing, across the region. And, frankly, the scale of the diversity of the customer types.
Some of these places are good sized real residential real estate. Some of these are golf courses. Some of these are quantities of park acreage or forest that are just almost inconceivable, in my daily life of chasing customers in The US. We had a good start to the year in The Middle East. Jan’s on the call.
I think we can talk more about that later. The United Nations Food Program. This is something that I am so excited about from a mission standpoint. I’m so excited about it from a credibility because this is not an easy thing to break into. And I’m so frustrated about because we haven’t already put a lot of LNC in all kinds of parts of the world that we need to do it.
But what’s important here is we’re about to really deploy LNC for the first time under the World Food Program. And in the first quarter, our partners in this, project did the, underlying readiness preparation work. We have, I think, and you can hear that from me on, finally gotten the visas and all of the other logistics sorted out, and we should be able to deploy this in coming weeks. But super exciting. And, again, one of those things, that’s the beginning of a big effort, rather than than the end in itself.
Alright. Can I get the next slide? Back to production. How excited I am about production. I don’t know how many times I’m gonna say this today on this call, but I’m excited about production.
And, this is, I think, hopefully gonna give you that sense. We make the product. We’ve been making the product for years. We’re good at making the product. We, started making it in the large tractor trailer driven units.
They’re perfect for certain applications, but you don’t wanna pull up in a residential neighborhood in, LA with two tractor trailers and a whole big crew and start spraying it LNC and be there for a week or more. We’re so excited about the next generation prototype because this is a a product that will or system that can be deployed on a pickup truck or two because some places we’re gonna need two, and can get into areas, that a tractor trailer could never get into and produces almost six times as much material, sometimes eight times as much material as the existing Oasis unit. So I really can’t emphasize enough how important this is to us, and I cannot wait to get these things built and deployed, both in The US and with our customers in The Middle East. And I think this, this slide, I think you’ve seen this slide or version of this slide before. You know, this is a game changer.
And, this is something that I think we are going to see, and we’re now in this prototype phase, the semi automated phase. You know, as any good technology company, we should see continued evolution, in our technologies across both their applications and their production. So the team is not stopping or resting here. But I think you will see us get these units deployed, and then move to units that have even larger capacity and, frankly, some that may have smaller capacity and are yet lighter again for certain jobs where whether it’s a shopping center or other kind of places, mobility, is more important than throughput. Next slide, please.
So, we find ourselves, more than midway through the presentation. I hope that gave you a sense of my thoughts on how the company is doing and some of the highlights of the last, period. I’m gonna turn it over now to Leo for the financials. I will come back briefly for the outlook, and then we’ll get to your questions.
Leo, CFO, Desert Control: Thank you, James, and good afternoon to you all. The figures are shared in detail in the financial report published earlier this morning. These financial key figures will be covered in more detail in the following slides. In Q1 twenty twenty five, Desert Control continued to progress in operational scaling where the company executed its largest commercial LNC application to date. Revenue grew compared to Q1 twenty twenty four, supported by increased LNC deployments and the start of a new licensing royalty streams.
Underlying EBITDA remains broadly unchanged year on year, reflecting stable operational performance. The wider net loss primarily reflects higher depreciation and finance costs. The company closed the fourth quarter with a positive cash balance of $43,000,000 and has no interest bearing debt. Revenue from sales in Q1 also includes licensing royalties. For further details, please refer to note two.
Momentum in licensing activities across The Middle East also remained positive, although operational output was temporarily impacted by seasonal factors. We’re pleased that our negative operating result remained stable year over year, underscoring our strong discipline in managing operational costs. At the same time, we have strategically increased other operating expenses, particularly in The US, to accelerate scaling for larger projects, enhance production capacity and drive market development. The company’s financial position remains solid. As of the end of Q1, we hold 43,000,000 in cash and cash equivalents with an equity of NOK 58,600,000.0, equivalent to 89.4% of total assets.
We carry no interest bearing debt. Our liquidity is sufficient to fund current operation and plan initiatives, though we now anticipate our financial runway extending into late Q3 twenty twenty five rather than Q4. We will continue to exercise prudent cost management and closely monitor market conditions to preserve stability and mitigate risk. Operating cash flow now reflects only continued operation, adjusted for depreciation and amortization, underscoring our disciplined cash centric approach. In Q1, flow patterns were in line with expectations and prior quarters with no material variances and no new significant capital introduced during the period.
To get additional information about the Desert Control share and the top 20 shareholders, please visit our webpage, desert control slash investors. Now back to you, James.
James Thomas, CEO, Desert Control: Thank you, Leo. I appreciate that. And if I could get the next slide. So I would like to just close the formal part of the call with a review of the strategic priorities for 2025. And, hopefully, like, we’ve done a good job on this call and over communicating the past, and these will be not a surprise to any.
We are intensely focused on executing against our current technology and against our current markets, So we expect this to continue to make progress in golf and turf management. I think we will see more golf courses, come sign up this summer, for deployment this fall. We will continue to work very heavily in the permanent agricultural area. You’ve seen us succeed in dates. I think we will succeed in other permanent crops, and that will remain a focus across the American Southwest.
In The Middle East, we are very focused on supporting our licensed partners. We have two very high quality licensees in two of the most attractive territories, frankly, in The Middle East, and we will do nothing more than continue to assist them in getting LNC more widely adopted. From a technology standpoint, from a broken record, we’re focused on getting the prototype machines into production and getting the basic research expanded beyond the most same soils as we already have in the somewhat same soils and the further types of soils and developing other additives that allows us to work with soil types and water types that we find all over the globe. So intensely focused on those things we’ve already articulated. And I think that the including view that I have is we have a strong pipeline.
We have contracts. We have partnerships. We have a revenue model as I articulated in the pays and in the upfront that I like, and that we’re I think we’re on track to grow this company exponentially this year, tenfold, versus 20.4. I think that we’ll be able to grow this company in multiple levels for each. And with that, I think we’re ready for Q and A.
Thank
Webcast Host/Moderator, Desert Control: you, James. We will now start our q and a session, and we invite you to you use the q and a function for the questions. So we have some questions beforehand that we received yesterday, and I will proceed to read those. The first question that we have is for our CEO, James Stones. Will you, as CEO, be working for the company in the office in The US?
James Thomas, CEO, Desert Control: So I’ll I’ll I’ll say what I said to the staff. We’re a small global technology company, and I will be working everywhere. I intend to spend more time in The United States because it’s our biggest and most commercial market, but I will be spending plenty of time in Norway and in The Middle East as we drive this business forward.
Webcast Host/Moderator, Desert Control: The next question is related to our partners in The Middle East. So what are your takes from visiting Saudi Asset Control recently? And the next question is, why is the revenue stream from SDC solo considering the larger scale partnership projects?
James Thomas, CEO, Desert Control: If you mind, Jan, can you take this as a broader global lease question? And maybe, Lars, you can comment specifically on your visit to Desert Control or to Saudi Desert Control. Sure.
Jan Vader, Chief Innovation Officer, Middle East Leader, Desert Control: I’ll be happy to. Yeah. I am actually in Abu Dhabi right now to meet with our partner in The UAE and and heading up to Saudi on Thursday to meet with our partner there. So we’ll get the first time information. But, basically, just start with the Saudi.
I mean, it’s worth keeping in mind that we obviously started a few years later in Saudi than we did in The US and even more so than in The UAE. In spite of this, we have made good progress between, you know, Saudi Desert Control and our partner, Soy. We do have several strategic pilots running within tree nursery, within turf foot farms, within landscaping, public parks, and agriculture, date palm. So so we have managed to get the traction going with what, you know, we often refer to as the stage one pilots. We do have a stage two commercial pilot in a public park, and we’re about to start on on a turf farm run by Saudi Desert Control this quarter.
So the momentum is is absolutely there. You know, in UAE, we are slightly further ahead. And and although the q one was a little bit slower operationally, there’s been a lot of new projects initiated and and secured within the landscaping sector, which has been particularly strong here. Right? So we’re continuing pilots also within agriculture and and date ponds, but most of the business that we see the next few months will be in the new landscaping sector.
So I think, Lars, you were recently in Saudi just a few weeks ago. Maybe you wanna add a bit specific to that?
Lars Eismarck, Chairman of the Board, Desert Control: Yeah. So I I spent a few days with our with our team and our partners in in Saudi, and I have to say I was immensely impressed with the energy. I am immensely impressed with the network that our partner colleagues holds in Saudi. I I had the pleasure of meeting a few very large customer prospects and let alone the scale of the market and and the potential that these customers, they hold immensely attractive. And and needless to say, these people are also on a on a mission as we are.
And this is about water savings, and and I’m I’m I’m really, really positive around the priorities, the go to market approach that our Saudi colleagues, they are having right now. So it was a very positive experience and look forward to both seeing our friends again in Saudi, but also our our partner colleagues in in The Middle East oh, sorry, in The UAE. It was a good experience.
Webcast Host/Moderator, Desert Control: Okay. Thank you, Lars. The next question is, have you considered listing the company in The US? Now we’re hidden in the backyard of the Norwegian Stock Exchange while customers and most of the investors are international.
James Thomas, CEO, Desert Control: Yeah. I wanna thanks, Ari. So the question of where is the right place for Desert Control to be listed and to attract the most shareholder interest is one that we’re acutely aware of. Have a Norwegian heritage. We went public, on Euronext.
With the business evolving as it is, we certainly are always considering, whether an uplisting or a dual listing or a cross listing would make more sense and enable more shareholders to participate in the story. And I think all of that is a question of time. I mean, today, we are so intently focused on the business that, you know, trying to figure out whether to do a list with New York, which would be expensive and time consuming and, frankly, distracting at this point. I don’t think that makes sense. But over time, as the business grows and as the business becomes more global, frankly, not just US centric, but more global, we’ll have to address the Euronet’s listing for sure.
Webcast Host/Moderator, Desert Control: Yep. Thank you so much for your quest for the answer. Okay. The next question is related to golf courses. How many golf courses are awaiting regulatory approval from the Metropolitan Water Department or Los Angeles Water Department?
And when when we can expect a response to these applications.
James Thomas, CEO, Desert Control: Bart, do you wanna take questions about US Gulf?
Marty Weems, Managing Director, US, Desert Control: Sure. Thank you, James, and great question to to have. At this point, we’ve because we’ve been through the process with both MWD and LAWD one time already, we know both the length and the brevity and and how to navigate that much better. So we’re in active negotiations or or conversations with a good number of golf courses in the area of, you know, 19,000,000 people there in Southern California, which is really quite exciting. But the even more exciting to me is the fact that the PACE model works financially for us and the customer without the incentive programs.
So we continue to seek customers well beyond that and and we’ll continue to do so. A great example is Berkeley. You know, the the customer there is quite excited about what they see through our trial program there and that there’s there’s no incentive rebate there, but they still see tremendous upside in working with us.
Webcast Host/Moderator, Desert Control: Thank you, Marty. We don’t have more questions. We invite to you, to use the q and a function here at Zoom, in this session. At the moment, we don’t have other question to here, so we are waiting for your questions, and we invite you to use the q and a function if it’s needed. So if the quorum doesn’t open for more question, I think we can continue our presentation.
James Thomas, CEO, Desert Control: Alright. Well, thank you all for attending. Hopefully, we were able to convey our sense of excitement, and our plans for both the near and long term future. I think that LNC will turn out to be, as I’ve said, a foundational technology that has impact, both commercially and, you know, societally. And stay tuned.
I will, ask you to take note of our cautionary note as a public company. This is a, standard slide for all of us, which I’m sure you’re familiar with. But, the team is, is excited, and we are open to questions that you may have, not in this forum. So, we look forward to reporting, in the second quarter. Thanks very much.
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