diff --git a/controllers/appWrapper_controller_test.go b/controllers/appWrapper_controller_test.go
index b3445d9..d589ec2 100644
--- a/controllers/appWrapper_controller_test.go
+++ b/controllers/appWrapper_controller_test.go
@@ -1,6 +1,7 @@
 package controllers
 
 import (
+	"context"
 	"testing"
 
 	"github.com/onsi/gomega"
@@ -10,7 +11,7 @@ import (
 
 func (r *AppWrapperReconciler) TestDiscoverInstanceTypes(t *testing.T) {
 	g := gomega.NewGomegaWithT(t)
-
+	ctx := context.Background()
 	tests := []struct {
 		name        string
 		input       *arbv1.AppWrapper
@@ -99,7 +100,7 @@ func (r *AppWrapperReconciler) TestDiscoverInstanceTypes(t *testing.T) {
 
 	for _, test := range tests {
 		t.Run(test.name, func(t *testing.T) {
-			result := r.discoverInstanceTypes(test.input)
+			result := r.discoverInstanceTypes(ctx, test.input)
 			g.Expect(result).To(gomega.Equal(test.expected))
 		})
 	}
diff --git a/controllers/appwrapper_controller.go b/controllers/appwrapper_controller.go
index 369b140..cf89f58 100644
--- a/controllers/appwrapper_controller.go
+++ b/controllers/appwrapper_controller.go
@@ -132,7 +132,7 @@ func (r *AppWrapperReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 		return ctrl.Result{}, nil
 	}
 
-	demandPerInstanceType := r.discoverInstanceTypes(&appwrapper)
+	demandPerInstanceType := r.discoverInstanceTypes(ctx, &appwrapper)
 	if ocmSecretRef := r.Config.OCMSecretRef; ocmSecretRef != nil {
 		switch r.MachineType {
 		case MachineTypeNodePool:
@@ -252,13 +252,16 @@ func (r *AppWrapperReconciler) getOCMSecret(ctx context.Context, secretRef *core
 	return r.kubeClient.CoreV1().Secrets(secretRef.Namespace).Get(ctx, secretRef.Name, metav1.GetOptions{})
 }
 
-func (r *AppWrapperReconciler) discoverInstanceTypes(aw *arbv1.AppWrapper) map[string]int {
+func (r *AppWrapperReconciler) discoverInstanceTypes(ctx context.Context, aw *arbv1.AppWrapper) map[string]int {
 	demandMapPerInstanceType := make(map[string]int)
 	instanceRequired := getInstanceRequired(aw.Labels)
 	if len(instanceRequired) < 1 {
 		if _, exists := aw.Annotations["loggedNoInstances"]; !exists {
 			klog.Infof("Found AW %s that cannot be scaled due to missing orderedinstance label", aw.ObjectMeta.Name)
 			r.setAnnotation(aw, "loggedNoInstances", "true")
+			if err := r.Update(ctx, aw); err != nil {
+				return nil
+			}
 		}
 		return demandMapPerInstanceType
 	}