Q3 2023 BioLargo Inc Earnings Call
Speaker 1: No.
Okay.
Greetings and welcome to the bio Lago third quarter 2023 earnings results Conference call. At this time, all participants have been placed on a listen only mode.
Speaker 2: Greetings, welcome to the BIO logo third quarter 2023 earnings results conference call. At this time all participants...
Speaker 2: If anyone should require operator assistance during the conference, please press star zero on your total.
Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Bryan Loper you may begin.
Speaker 2: please note this conference is being recorded i will now turn the conference over to your host Brian Loper you may begin
Speaker 3: Thank you, operator. Good afternoon, everyone, and welcome to BioLargo's Q3 2023 quarterly results conference call. By now everyone should have had access to the earnings press release.
Thank you operator, good afternoon, everyone and welcome to bio <unk> Q3, 2023 quarterly results conference call by now everyone should have had access to the earnings press release, which was issued last Wednesday prior to market open and the 10-Q report filed with the SEC.
Speaker 3: last Wednesday prior to market open and the 10-Q report filed at the SEC. This call is being webcast and is available for replay. In our remarks today, we may include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, our relationships with our customers, market and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions.
Call is being webcast and is available for replay.
Our remarks today may include statements that are considered forward looking within the meaning of securities laws, including forward looking statements about future results of operations business strategies and plans our relationships with our customers market and potential growth opportunities. In addition management may make additional forward looking statements in response to your questions.
Forward looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward looking statements a detailed discussion of such risks and uncertainties are contained in our most recent Form 10-K 10-Q, and other reports filed with the SEC.
Speaker 3: Forward-looking statements are based on management's current knowledge and expectations as of today, and are subject to certain risks and uncertainties, and may cause the actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties are contained in our most recent Form 10-K , 10-Q, and other reports filed at the SEC. The company undertakes no obligation to update any forward-looking statements. And with that, I will now hand the call over to BioLargo's Chief Executive Officer, Dennis Calvin.
The company undertakes no obligation to update any forward looking statements and with that I will now hand, the call over to buy a largest chief Executive officer Dennis Calvert.
Speaker 3: Hey, Brian , thank you very much, everyone. We appreciate your time and attention, and we got a great story to share, a great quarter, and a great story going forward. So we're going to cover a lot pretty quick. BioLargo would make life better. It's a purposeful mission with special greater better solutions for air, water, and energy.
Hey, Brian. Thank you very much everyone. We appreciate your time and attention and we got a great story to share a great quarter and a great story going here going forward. So we're going to cover a lot pretty quick.
It would make life better it's a it's a purposeful mission.
With special greater better solutions for air water and energy and.
Speaker 3: And we deploy a strategy of invention, invent it, prove it, and partner it. And each of those we're going to describe in great detail as we talk about our business development and how the business is proceeding. Brian so eloquently covered the Safe Harbor Statement.
And we deploy a strategy of invention and vintage prove it and partner it and each of those we're going to describe in great detail as we talk about our business development, how the business is proceeding Brian.
Brian So elegantly covered the safe Harbor statements and so you're well aware of that we will be talking about forward looking statements urge everyone to rely on the decay in the queue for the detailed risk factors and also once in a while ever since I need more information you know we also have a newsletter make sure we get through email go to our blog our reach out to Alex that dialogue.
Speaker 4: so you're well aware of that. We will be talking about forward-looking statements. Urge everyone to rely on the K and the Q for the detailed risk factors. And also, once in a while everybody says, I need more information. You know, we also have a newsletter. Make sure we get your email. Go to our blog or reach out to Alex at BioLargo.com. Alex at BioLargo. Let's make sure you're on that list because we do put a lot of information out.
Dot com Alex to dialogue on let's make sure you're on that list because we do put a lot of information out we want everybody in too.
With the progress so who are we where science and engineers entrepreneurs passionate about making a difference driven to make life better focus on sustainable innovation sustainable innovation, that's the key.
Speaker 4: with the progress. So, who are we? We're science and engineers, entrepreneurs, passionate about making a difference, driven to make life better, focused on sustainable innovation. Sustainable innovation, that's the key.
Okay.
Speaker 4: We focus on best in class solutions. That's really critical, best in class. All of the innovation that we focus on, the ones where we really pour our heart and soul and money into.
We focus on best in class solutions, that's really critical best in class all of the innovation that we focus on ones were really poor heart and soul of money into.
Speaker 4: focused on high impact as a potential to disrupt the market.
This focus on high impact has the potential to disrupt the market.
Speaker 4: highly intensive engineering, lots of engineering going on, and science. And of course we focus on problems that don't have good solutions. Good solutions is the key, right? We do it better.
Hi, Lee intensive engineering lots of engineering going on and sides and of course, we focus on problems that don't have good solutions. Good solutions is the key right we do it better.
Speaker 4: And the portfolio of the company acts like an innovation engine. You know, we've been innovating now for over 16 years. We have eight technologies, four commercial units. We've got an engineering group called BioLarger Engineering Science and Technology. We also have an R&D group called BioLarger Water, headquartered in Edmonton, Canada, on campus of the University of Alberta, a group that's received over 100 grants and counting. Then we have four operating units. And these operating units are really focused on commercializing our technology.
And the portfolio of the company acts like an innovation engine.
Innovating now for over 16 years.
We have eight technologies for commercial units are we've got an engineering group called dialogue of Engineering Science technology.
We also have an R&D group called biological water headquartered in Edmonton, Canada, All campus of the University of Alberta.
Group, that's received over 100 grants and counting they only have four operating units and these operating units are really focused on commercializing our technology.
Speaker 4: commercial energy, CLIRA, Bialog Energy, O&M Environmental.
Is it clearer Valerie energy O&M environmental and.
Speaker 4: and biological equipment. I will point out biological equipment, the segment accounting has not been segmented yet, but it will be so Q1 2024 as we're commercially launching technologies with customers in PFAS and water treatment through our partnerships.
And biological equipment, I will point out a borrower of equipment.
The segment accounting has not been segmented yet, but it will it will be so Q1, 'twenty 'twenty four as we're commercially launching technologies with customers N P fast and water treatment through our partnerships and.
Speaker 4: In each of these operating units, there's a cornerstone of technology that sort of forms the base, the base of value, the base of attention, you know, as we say, we're looking for replication and margin.
In each of these operating units, there's a cornerstone technology that sort of forms the base the base of value of the base of attention you know as <unk>.
We say, we're looking for replication and margin.
Speaker 4: innovation that can give us competitive edge supported with talent, people and services.
Innovation that can give us a competitive edge supported with talent people and services. So for clearer long journey over 13 million invested cleared through F. D. A disruptor in the way that it's actually control can be managed in the in the surgical suite as well as advanced wound care it's chronic.
Speaker 4: So for CLEAR, a long journey, over 13 million invested, CLEAR through FDA, a disruptor in the way that infection control can be managed in the surgical suite as well as advanced wound care, which is chronic infected wounds.
Chronic infected wounds.
Speaker 4: We have major partnerships in negotiation. We're very confident, optimistic, they're moving forward. We're anxious to get them into across the finish line into the go mode. And we believe we're going to experience dramatic revenue and cash flow and ultimately profit from those endeavors that we've invested heavily for over 10 years. It's ideas that Clear are now commercially exploiting go back over 15 years since the inception of the company.
With major partnerships in negotiation, we're very confident optimistic theyre moving forward, we're anxious to get them into across the finish line into the go mode and.
And we believe we're going to experience dramatic revenue and cash.
Cash flow and ultimately profit from those endeavors that are we've invested heavily for over 10 years, it's ideas that clearer now commercially exploiting go back over 15 years since the inception of the company.
Speaker 4: And it was a difficult and arduous battle to get through the obstacles. And now we're knocking on the door, very excited about the next step of that evolution of the company.
And it was a difficult and arduous battle to get through the obstacles and now we're knocking on the door very excited about the next step of that evolution of the company.
Speaker 4: O&M Environmental, of course, has POOF.com. If you haven't seen the infomercial about POOF.com, PET and odor control, make sure you see it. I can't even describe it. It's so compelling. They're just blowing out numbers through a partnership. I'll describe that in a minute. And that the basis of technical innovation for O&M is odor and VOC, volatile organic compound control. And I just want to point out the beauty in this structure.
But whenever environmental of course has poof poof Dot Com makes you if you haven't seen the infomercial about poof dotcom pending odor control make sure you see it I can't even describe is so compelling they're just blown out numbers through a partnership and describe that in a minute and that the basis of technical innovation for O&M, there's odor and boc volatile organic compound control and I just want to point.
Now the beauty and the structure is there.
Speaker 4: is that there's a number of additional Cupertine-based products in the portfolio with similar opportunities to what's going on with POOF, as well as industry.
There's a number of additional Cooper time based products in the portfolio with similar opportunities, what's going on with proof as well isn't that industry.
Speaker 4: The equipment room, we mentioned that, water, water and water, all the water innovations within the portfolio focus on a commercial focus.
The equipment, when we mentioned that its water water and water all the water innovations that are in the portfolio focus on our commercial focus.
Speaker 4: That's a little engineering services, equipment, maintenance and service. We're going to talk about the business model in a second. Battery. Battery is the youngest in the asset portfolio. We acquired this technology, and the inventors had spent about eight years developing a commercial-ready design.
That's a little engineering services equipment maintenance and service, we're going to talk about the business model of a second battery batteries the youngest in the asset portfolio. We acquired this technology.
And the inventors had spent about eight years developing a commercial ready design.
Speaker 4: So we like to say we're not in the battery R&D business. We're not in the hope we can figure it out business. We're in the making battery business.
We like to say, we're not in the.
In the battery R&D business, we're not in the hope we can figure it out business, we're in the making battery business.
Speaker 4: quite different. And so, we have a small-scale facility almost finished in Oak Ridge, Tennessee. I'm going to show you some pictures. And we believe we'll have these first batteries off the production line towards the end of the year and ready for additional rounds of testing, but also to start positioning for commercialization. I think it's very exciting. And so, each of these represents a commercial platform.
Different and so we have a small scale facility almost finished in oakridge, Tennessee and I'll show you. Some pictures and we believe we'll have these first batteries off the production line.
Towards the end of the year.
And ready for additional rounds of testing, but also to start positioning for commercialization I think it's very exciting.
And so each of these represents commercial platform.
Speaker 4: potentially best in class. We believe they're best in class and capable of disrupting market.
Potentially best in class, we believe their best in class.
And capable of disrupting markets.
Relative to performance, it's just been a great year best year ever and is getting better.
Speaker 4: Relative to performance, it's just been a great year, best year ever, and it's getting better.
I mean this is because.
Speaker 4: I mean, this is, as we say, it took a long time to get here, but now that we're here and enjoying the fruits of planting seeds for well over a decade, heavy emphasis on R&D. We're now watching technologies find adoption and scale to partnerships, which is really our business model. Remember, invent, prove, and partner.
As we say it took a long time to get here, but now that we're here and enjoying the fruits of planting seeds for well over a decade.
Heavy emphasis on R&D, we're now watching technologies find adoption and scale through partnerships, which is really our business model and never have been proven partner.
Speaker 4: So, through Q3, about 7.9 million, well on track to do over 10 million, which, of course, is another approximately 100% year over year growth. Maybe more. We don't really know until we get deep into the, towards the end of the quarter, because a lot of the revenue is being produced through partnerships.
So through Q3 about seven 9 million well on track to do over $10 million, which of course, because it's another approximate 100% year over year growth.
Maybe more we don't really know until we get deep into the to the towards the end of the quarter because a lot of the revenue is being produced in partnerships. So we've got a lot of that information, but what are the 34% over last year pretty remarkable.
Speaker 4: So we get a lot of that information, 134% over last year. Pretty remarkable. And as we see us, Teddy.
And as we see a steady growth curve.
The revenue and net loss. So we have to of course, we want to point out that we have noncash charges, which are common in the public company like ours, plus we had some increased R&D.
Speaker 4: So, of course, we want to point out that we have non-cash charges, which are common in a public company like ours, plus we have some increased R&D.
Speaker 4: And then R&D was associated with the build out of our battery manufacturing operation as well as some additional R&D for CLERA. And what's happening is both of those are sort of racing to take advantage of the opportunities right before us. And so it's intense focus.
And that R&D was associated with the build out of our battery manufacturing operations as well as some additional R&D for clearer.
It's happening is both of those are sort of racing to take advantage of the opportunities right before us and so it's intense focus spending some money.
But the money and what I'm pointing out was brought in through direct investment into the subsidiaries very important piece of the puzzle. We've got a lot of leverage because the assets are so good and the commercial opportunity is so big that direct investments, sometimes can really make a lot of sense and we certainly want to preserve the dilution impact of the parent company.
Speaker 4: But the money, I want to point out, was brought in through direct investment into the subsidiary.
Speaker 4: very important piece of the puzzle. We get a lot of leverage because the assets are so good, and the commercial opportunity is so big, that direct investment sometimes can really make a lot of sense. And we certainly want to preserve the dilution impact at the parent company.
So.
Speaker 4: So it's a good situation. And notice that it's been relatively.
It's a good situation and noticed that it's been relatively.
Speaker 4: static in terms of the amount of cash that we've used on a going forward basis.
Static in terms of the amount of cash that we've used all going forward basis.
Speaker 4: I will point out some of these charges like this R&D component are non-recurring, but one-time events to build out some infrastructure to make sure that we're ready to start making batteries.
I'll point out some of these charges like this R&D component.
Our nonrecurring.
One time events to build out some infrastructure to make sure that we're ready to start making batteries.
Speaker 4: Again, here, we see that the SG&A tipped up slightly. We have a lot of consultants who are involved now in the execution of commercial strategy, as well as increased marketing.
Again here, we see that the SG&A ticked up slightly we have a lot of consultants who are involved now in the execution of our commercial strategy as well as.
Increased marketing.
Speaker 4: You know, just just in the in the blessed situation, which is biological equipment, science, technology, PFAS and water were actively engaged now in the field in the commercial market.
Just just in the in the Blessed situation, which is about a logo equipment science technology and E&P fast and water. We're actively engaged now in the field in the commercial market with people.
Speaker 4: with people, marketing material, marketing promotion, and trade show work. So a tip up in SG&A, again,
Marketing material and marketing promotion.
And Tradeshow work, so tip up in SG&A.
Again.
Speaker 4: you know, we think really important as we're heading into the to the landing customers and making money mode.
We think really important as we're heading into the two the landing customers in making money mode.
Speaker 4: And we've got an opportunity that's so significant, we're going to capture it. Same thing with negative cash flow, right? How much cash used? So notice this is the inverse, right? So as the blue line goes up towards the zero mark, that's less cash used.
And we've got an opportunity there so significant we're going to capture it same thing with negative cash flow right. How much cash use I noticed this is the inverse right. So is the blue line goes up towards the zero Mark that's less cash used.
Speaker 4: Right. And as this flips and the revenue continues to climb, it'll be net cash generated in operating activities. It's very close. It's very close. If we take out non-cash charges on the operating income, and we take out the R&D expense, that number approximates about $100,000 a month, about $100,000 a month.
Right and as the slips and the revenue continues to climb it'll be net cash generated in operating activities very close very close if we take out non cash charges on the operating income.
We take out the R&D expense that number approximates about 100000 a month.
100000, a month and.
And certainly manageable and we're anxious for it to be a positive number and we believe that's on its way as revenues will continue to climb.
Speaker 4: And it's certainly manageable and we're anxious for it to be a positive number. We believe that's on its way as revenues will continue to climb.
Speaker 4: Net stockholder equity is important. Remember, people don't remember, I do. We accumulated about 7.2 million in debt at one point. We paid all that off. We currently have a SBA loan. It's a 30-year, 3% interest.
That soccer snack stockholder equity is important member leave alone don't remember I do.
It came in at about $7 2 million of debt at one point, we paid all of that off we currently have a <unk>.
S P a loan.
The 30 year, 3% interest.
Speaker 4: Not really consequential. No other debt. A PPP loan that's in process to be forgiven. That's it. No converts, certainly no toxic debt, and certainly no onerous debt whatsoever. We're in a good position as of the end of the quarter, about $3.2 million in cash. $3.2 million in cash and no debt. It's a very nice situation. It's unusual too, especially for a company that's doing so much.
Not really consequential no other debt a PPP.
Alone.
Process to be forgiven that's it.
Oh, no converts certainly no toxic debt and certainly no onerous debt whatsoever. We're in a good a good position as of the end of the quarter about $3 2 million in cash three continuing into cash and no debt. It's a very nice situation is unusual to especially for a company that's doing so much.
Speaker 4: Part of that is we've been able to capitalize some of these ventures with direct investment, taking that burden away from the parent company. Note that we also, because of our control position, we do consolidate those operating entities. That means that when we're spending money through a subsidiary for R&D, while the parent didn't spend the money.
Part of that is we've been able to capitalize some of these ventures with direct investment banking that burden away from the parent company note that we also because of our control position. We do consolidate those operating entities that means that we're spending money through a subsidiary for R&D, while the parent didn't spend the money.
Speaker 4: consolidates and still impacts on that operating income at this stage. So that's important to decipher.
It consolidates and still impacts our net operating income at this stage.
So that's important to decipher.
Okay.
Speaker 4: There's a few highlights. These are right out of the queue. We just want to highlight them because I think they tell a really important piece of the story. And 85% quarter over quarter is pretty dramatic and a poof sales, of course, are increasing. We talked about these non-cash and non-recurring expenses.
There's a few highlights these are right out of the queue. We just want to highlight that because I think they tell a really important piece of the story.
85% quarter over quarter, it's pretty dramatic in our Pud pool sales of course are increasing.
We talked about these noncash and nonrecurring expenses.
Speaker 4: R&D, of course, is one of those, and mostly tied to the equipment.
R&D of course is one of those.
And mostly tied to the equipment.
Speaker 4: that was acquired to build the manufacturing facility, approximately $800,000, $694,000 of that. We expense RD primarily because it's a pre-revenue asset.
That was acquired to build manufacturing facilities approximately 800000.
<unk> hundred 94000 of that we expense R&D, primarily because it's a pre revenue asset free revenue asset, but the equipment has inherent value. We've gone ahead and taken the R&D expense and expense all that out, but we will have years of useful life for that and then noncash charges of course, you reported two so so when you look at that net loss.
Speaker 4: free revenue asset, but the equipment has inherent value. We've gone ahead and taken the R&D expense and expensed all that out, but we'll have years of useful life for that. And then non-cash charges, of course, are important, too. So when you look at that net loss number and you start reversing some of those, we're getting really close to the making money mode, OK? And then we do highlight the two direct investments. This is important, very, you know, critical. We brought in about $905,000.
Or do you start reversing some of those we could we're getting really close to to making money mode. And then we do highlight the two direct investments is important.
Critical we brought in about 905000.
Speaker 4: into the energy company at about a $25 million valuation. We own about 95% of that. I can't remember the exact number, 96%.
Into the energy company at about a $25 million valuation, we own about 95% of that I can't remember exactly but 96%.
Speaker 4: And then the proceeds from SCLERA over the last nine months, a quarter ending, is about $1.5 million at about a $31 million valuation.
And then the proceeds from its clearer over the last nine months.
N D.
That $1 5 million at about a $31 million valuation and remember we own about 53% of that company plus 6% royalty.
Speaker 4: And remember, we own about 53% of that company plus 6% royalty.
And.
Speaker 4: and we believe its valuation is going to climb dramatically.
And we believe its valuation is going to climb dramatically.
And we're anxious to prove that by the way, having proven that yet, but we're about to.
Speaker 4: And we're anxious to prove that, by the way. Haven't proven that yet, but we're about to.
Speaker 4: Okay, so poof. Remember the business deal, this is a great full story, full circle story for the company. Years of work in the field with verticals.
Okay. So poof remember the business deal. This is a great full story full circle story for the company years of work in the field with the with vertical.
Speaker 4: Build data, develop safety profile, multiple manufacturing techniques, rounded out our patent portfolio, found the market, figured it out. Long, hard, difficult.
Bill data developed safety profile of multiple manufacturing techniques rounded out our patent portfolio are found the market figured it out.
Long hard difficult work.
Speaker 4: That's what we did. As a result of all that work,
That's what we did.
As a result of all of that work.
Speaker 4: We were able to recruit a partner who also recruited each other for good reason and form an alliance where we supply product to our partner.
We were able to recruit a partner.
Also recruited at each other for good reason and form an alliance, where we supply a product to our partner proof.
Speaker 4: They buy it wholesale, cost plus, we get a little royalty on their sales, and then we bargain for exclusivity equal to 20% of their exit. Remember, their mission as stated when we started was to get it to about $100 million in annual revenue, and they believe it can exit between 3.5 and 7 times revenue.
They they buy it wholesale cost plus we get a little royalty on their sales and then we bargain for exclusivity equal to 20% of their exit.
Remember their mission as stated when we started was to get it to about $100 million in annual revenue and they believe it can exit between three and a half at seven times revenue.
Speaker 4: three and a half and seven times revenue. The key in their business model is customer acquisition at extraordinarily fast rates, highly efficient marketing. They've done a great job and they're so excellent in making that compelling story, that compelling argument for someone who watches that infomercial and sees the marketing, compelling reason to buy. They're really good at it and they've done a great job. And of course they have a pedigree to having done that for 20 plus years in their careers.
Three and a half and sabotage the key in their business model is customer acquisition and extraordinarily fast rates highly efficient marketing they've done a great job and they're so excellent and making that compelling.
Story that compelling argument for someone who watches at infomercial and sees the marketing compelling reason to buy they're really good at it and they've done a great job and of course, they have a pedigree, having done that for 20 plus years in our careers.
Speaker 4: It's been a great partnership. We're so thankful to be there. It also validates our business model and it validates our technology. And while it took a long time, it is significant.
It's been a great partnership we're so thankful to be there. It also validates our business model and it validates our technology and while it took a long time.
It is significant it is in fact, it's so significant that this one product has the ability to take the company to profitability and well beyond.
Speaker 4: that this one product has the ability to take the company to profitability and well beyond.
Speaker 4: So, if you just run that number, they're currently pushing 4 million, approximately 4 million dollars a month on a run rate. We believe over the next year or so, they can get to 100M run rate.
So if you just run that number they're currently pushing 4 million approximately $4 million a month on a run rate. We believe over the next year or so they can get to a $100 million run rate.
Speaker 4: And we believe that those potential acquirers will be at the table. In the event they're able to do that, we would receive 20% of the exit. So on the low end, that would be somewhere around 70 million upwards of 100 plus million.
And we believe that those potential acquirers will be at the table.
The events, they're able to do that we would receive 20% of the exit so on the low end that would be somewhere around 70 million upwards of plus 100 plus million.
Speaker 4: And we believe that that is something that can happen in the future, and we're optimistic and confident. Why are we so confident? The product is that good, and the marketing is that good.
And we believe that that is something that can happen in the future.
We are optimistic and confident why so confident.
The products that good and the market is that good.
Speaker 4: And the way they're acquiring customers, last count, it was over 6,000 customers a day buying this product through multiple selling channels.
And the way they are acquiring customers, we'd last count it was over 6000 customers a day buying this product through multiple selling channels.
Speaker 4: The CEO at POOF, Jane presented our annual stockholding to me just a few months ago. And we have a lot of intel there that we shared and we just want to update. And that is the revenues are growing. We're seeing the trend definitely, you know, move in a positive direction.
C E O. It poof, James Jane presented our annual cycles, I mean, just a few months ago and we have a lot of Intel there that we shared and we just want to update and that is that revenues are growing we're seeing the trend definitely move in a positive direction for all of us and more and more large retailers are coming on board. They said they'd be at approximately 25.
Speaker 4: and more large retailers are coming on board. They had stated they'd be at approximately 25,000 or plus 20,000 stores under contract by the end of 2023. And at that time, it was just a few months ago, it's about a tenfold increase in what was signed up.
Or plus 20000 stores under contract by the end of 2023.
That time it was just a few months ago its about a tenfold increase in what we signed up.
Speaker 4: Sometime around the June timeframe, so they appear on track for that, which is good. Now, we do have a caveat.
Sometime around the June timeframe. So they appear on track for that which is good now we do have a caveat.
Speaker 4: And the only reason we caveat is because there's a lot of things that happen.
And the only reason we caveat is because there's a lot of a lot of things that happen once you secure a contract with the retailer.
Speaker 4: Once you secure a contract with a retailer, there's still fulfillment and marketing, there's process to go through. So we want to just.
Fulfillment marketing this process to go through so we wanted to just.
Speaker 4: remind everyone to expect that the sales trail at some level with it, whether it's months or weeks and three months and six months, it's going to take months to absorb the volume that's coming, but we're witnessing it already in increasing order flow and of course excitement. It's just really awesome. So they'll continue selling, of course, to the big channels, Walmart, Amazon, Chewy. Chewy.com is a big channel.
To remind everyone to expect that the sales trail at some level with it whether it's months or weeks and three months six months, it's going to take months to absorb the volume that's coming but we're witnessing already increasing order flow and and of course excitement. It's just really awesome. So they'll.
Selling of course, the big channels, Walmart Amazon Chewy Chewy Dot com is a big channel.
Speaker 4: And the other thing is more products are coming, more products that we're helping in the design work. We're doing product development with POOF to find other products to add to the brand to make an impact for increased sales and cachet in the market. Okay.
And the other thing as more products are coming more products that were helping in the design work.
We're doing product development with poof find other products to add to the brand.
To make an impact for increased sales and <unk>.
Cache in the market.
Okay that's proof.
Haven't seen it go to <unk> dot Com and watch the video.
Okay. The AC that's our that's our device that removes P. Foss remember P. Foster forever chemicals that are.
Speaker 4: Okay, the AEC, that's our, that's our device that removes PFAS.
Speaker 4: Remember PFAS is forever chemicals that are essentially polluting our world. There's a recent lawsuit, 3M settled a multi-jurisdictional lawsuit for $10.2 billion. That's over the beat, billion, the largest tort reform settlement in the U.S. history. That's just a few months ago.
Essentially polluting our world and Theres a recent lawsuit three M settled a multi jurisdictional lawsuit for $10 2 billion <unk> billion, the largest tort reform settlement in the U S history, that's just a few months ago.
Speaker 4: PFAS is top agenda item for the Biden administration, top target for contaminants of the decade, if not century. We've seen reports estimating the global problem could likely exceed 13 trillion.
<unk> top agenda item for the by the administration the top E type target for contaminants.
The decade, if not century.
We've seen reports estimating the global problem.
Could likely see 13 trillion.
Okay.
Is not there yet but people are moving regs are taking effect and if you hadn't paphos in drinking water you definitely have to make a move quickly. If you don't have paphos in drinking water, but another type of water. The regulatory bodies are making to take action and it's already we're already witnessing it okay. So our value proposition is really simple.
Speaker 4: It's not there yet, but people are moving. Regs are taking effect. And if you have PFAS in drinking water, you definitely have to make a move quickly. If you don't have PFAS in drinking water, but another type of water, the regulatory bodies are making them take action. And we're already witnessing it, okay? So our value proposition is really simple. We concentrate it. The thesis is really simple. If you can super concentrate, you can manage destruction.
We concentrated the thesis is really simple if you could super concentrate you can manage destruction.
Speaker 4: So the business model's critical. We sell equipment, we customize it, custom integrate it, we service it, we then do membrane exchange throughout the project life, and we destroy the people.
So the business models critical we sell equipment.
We customize it custom integrated we service it we didn't do a membrane exchange throughout the project life and we destroy the PE funds.
Speaker 4: So there's a sale, a service, and a replacement. It's a great business model. And by doing though, we can save our customers a ton of money, a ton of money, plus relieve them of some of the regulatory burdens that are so cumbersome. So our marketing claim, which has been proven through about 13 trials where the test data was performed at the University of Tennessee, has shown that our membranes can last about a year
So there's there's a sale of service and a replacement it's a great business model.
And by doing that we can save our customers a ton of money a ton of money plus relieved them of some of the regulatory burdens that are so cumbersome, so our marketing claim which has been.
Proven through about 13 trials, where the test data was performed at the University of Tennessee has shown that.
Our membranes can last about a year.
They are so effective that concentration that when you compare the waste stream of post collection versus carbon.
Speaker 4: that when you compare the waste stream of post-collection versus carbon, it's 140,000.
It's 140000.
40000 that number is correct 40000.
So the example is if you've got 80000 pounds of spent carbon wet get carbon.
Speaker 4: So the example is if you get 80,000 pounds of spent carbon, wet spent carbon.
Speaker 4: laden with PFAS, which is a hazmat, okay? We can...
Laden with ethos, which is a hazmat.
Hey.
We can do it with two somewhere around two pounds.
Speaker 4: And we say a range two to five pounds, but it's a it's a it's an astonishing claim.
And we say a range two to five times.
It's a it's an astonishing claim.
Speaker 4: Okay, and we've proven it. And so now we're in the process of commercializing that technology and in just a massive market. Remember the thesis, event proven partner, event proven partner. How do you change the world? You get really good partners.
And and we've proven it and so now we're in the process of commercializing that technology and just a massive market remember the thesis event proven partner proven partner, how do you how do you change the world you get really good partners.
Speaker 4: We're the innovator that brings these technical solutions to market and over time becomes the technical support team that make these happen with partners all around the world. And so we've got over 100 reps now. I want to say 11 or 12 agreements, three channel partners, an army of reps.
We're the innovator that brings these technical solutions to market and over time becomes the technical support team that make these happened with partners all around the world and so we've got.
Over 100 reps now I want to say 11, or 12 agreements three channel partners an army of reps.
Speaker 4: We have a backlog of opportunity that's presented in our first couple of wins where we're actually installing commercial systems for customers, and we have a project moving ahead in New Jersey. And we're hoping to have some significant detailed news about that soon as it's moving forward, which we're excited about.
Have a backlog of opportunity that's presented in our first couple of wins.
We're actually installing commercial systems for customers and we have a project moving ahead in New Jersey, and we're hoping to have some significant detailed news about that soon.
Yes.
It's moving forward, which we're excited about.
Speaker 4: The other is for our customers, we make managing this regulated contaminant easy. It's easy and ultimately it's no cost and no chemicals. There's no moving parts in the system.
The other is for our customers who are managing this regular regulated contaminants easy it's easy.
Ultimately its a no cost and no chemicals, there's no moving parts in the system.
Speaker 4: You know, once these things are installed, they run. We can also remotely monitor them. There's a lot of detail there. It's a great value proposition, and our response has been astonishing from the market. This is the actual unit on the right. It's a portable unit in a trailer. We can take it anywhere. This would primarily be for either a small project or for a demonstration pilot. Happy to do it. What's interesting about the technology is it's so obviously scalable that we're able to show small-scale viability.
Once these things are installed they run so as.
We can also remotely monitor and there's a lot of detail there, it's a great value proposition and our response has been astonishing from the market. This is the actual unit on the right. It's a portable unit in a trailer we can take it anywhere this would primarily be for either a project small project or for a demonstration demonstration pilot happy to do it what's interesting about the technology.
<unk> is it so obviously scalable.
That we're able to show small scale <unk>.
Liability.
Speaker 4: And then by simply adding the panels, we can expand its functional use, its scale.
And then by simply adding the panels. We can then expand its functional use its scale.
Speaker 4: And so that works really well because this equipment has been optimized for the electrolytic cell, okay, and the technology.
And so that works really well because these this equipment has been optimized for the electrolytic cell.
Okay, and the technology is awesome about how that works.
Speaker 4: We're also being invited for a national presentation. Now, this is WEFTEC on the right, and that's the Gabelli Fund Symposium for PFAS.
We're also being invited for National presentation. Now this is west tech on the right and Thats the Gabelli funds.
Bozian for P fast.
Speaker 4: Also, one of our lead engineers was just invited to an invitation only meeting.
Also our one of our leading engineers was just invited to an invitation only meeting with the EPA about a week ago in Washington D C.
Speaker 4: with the EPA about a week ago in Washington DC. Randy Moore headed out to represent us with, I don't know, probably 25 of the top engineering firms in the world and six or seven innovators in the P5 space. It was an honor for us to be there. We're on the radar. It's very good.
Randy more headed out to represent us with I don't know probably 25 of the top engineering firms in the world and six or seven innovators in the <unk> space. It was an honor for us to be there on the radar its very good.
Speaker 4: And, you know, one of the details moving forward with this New Jersey pilot, not a pilot, excuse me, the commercial project, was getting the state approval, which we readily were able to secure.
And you know one of the details and moving forward with this new Jersey pilot <unk> excuse me. The commercial project was getting the state approval, which we readily we were able to secure to allow us to go into the marketplace on a commercial basis, which is pretty awesome.
Speaker 4: to allow us to go into the marketplace on a commercial basis, which is pretty awesome.
Speaker 4: So a lot of work. This has been three and a half, four years of work. One of the questions everybody asks is, you know, are you sure it's scalable? Yeah, we're sure. Stack up the units and move more water.
So a lot of work, there's been three and a half four years of work.
One of the questions everybody asked US are you sure. It's scalable yeah, we're sure stack up the units move more water.
Speaker 4: And so this is, that's 1,000 gallon a minute system on the right. Now it says 360, I want to point out that's 360 inches. Somebody said 360 feet, no, it's 360 inches, so call it 20 by 30, it's a small building. And 1,000 gallons is a pretty big system, you know, some of the largest projects we've looked at, you might have 3,000 or 4,000 gallons a minute.
So this as we go that's a thousand.
Gallons a minute system on the right now is there's $3 60, I want point out that's 360 inches and we said 360 feet no. It's sort of 60 inches. So call. It 2030, it's a small building.
And 1000 gallons its pretty big system, you know some of the largest projects. We've looked at you might have 3000 or 4000 gallons a minute.
Speaker 4: So you would have three buildings, right, that size, all very doable. We're thankful that the first projects are smaller.
So you would have three buildings right.
All very doable.
We're thankful that the first projects are smaller.
Speaker 4: because it allows us to get in the field, be more nimble, and really execute in a timely way. And so this is a great start. Of course, we always want it faster, but we're thankful and we know we've got a winner. So we're heading into commercially validating the science and the solution with a full service program, including equipment,
Because it allows us to get in the field move be more nimble and really execute in a timely way and so this is this is this is a great start.
Of course, we always want it faster, but we're thankful and we know we've got a winner. So so we're heading into commercially validating the science and the solution with a full service program, including equipment.
Equipment service maintenance.
Speaker 4: membrane exchange, and disposal of PFOS. And that is a full solution.
Membrane exchange and disposal piece loss.
And that is a full solution.
Yeah.
The Pos is a big one.
Speaker 4: On the technology front, energy, right? So we acquired this technology. Remember, this is the group that was eight years of R&D before we got there. We're in the battery building business. And it's sodium sulfur. And there's a couple of key value propositions. Extraordinary efficiency, 0% to 100%, 100% back. No dendrite formation, no dendrite. No dendrites are these deposits that form across the surface of electrodes that impede conductivity over time and make batteries lose their useful life. None of that.
On the technology front energy right. So we acquired this technology remember this is the group.
Eight years of R&D before we got there.
We're in the battery building business and its sodium sulfur and Theres a couple of key value propositions extraordinary efficiency zero to 100% hundred percent back no didn't drive formation. The indirect no dendrites are these deposits.
Warm across the surface of electrodes that impede kind of activity over time and make batteries use lose their useful life none of that.
Speaker 4: No rare earth elements. No lithium, no cobalt, no nickel.
No rare earth elements lithium cobalt and nickel.
Speaker 4: uh long lasting these are these are meant to be stationary they go in an array so that's a cell
Long lasting these are these are meant to be stationary. They go in and array. So that's a sale that you see and you stack up the sales you connect them and you have a battery. So you optimize the technology on the building of sales.
Speaker 4: and you stack up the cells, you connect them, and you have a battery. So you optimize the technology on the building of cells.
Speaker 4: Very much like a Tesla would. The difference between ours and Tesla is we don't have lithium. Lithium is definitely a rare earth with geopolitical concern, extraordinary rising costs, and also lithium is prone to runaway fire risk.
Much like a Tesla would the difference between ours and teslas, we don't have lithium.
Lithium is definitely a rare earth with geopolitical concern extraordinary rising costs.
And also lithium is prone to runaway fire risk.
Very combustible FTE.
Speaker 4: If damaged, if overheated, a big problem. I would urge you to do a search on the internet, look up runaway fire risk lithium batteries. It's going to shock you.
If damaged if overheated a.
Big problems I would urge you to do a search on the Internet lookup runaway fire risk lithium batteries, it's going to shock you.
Speaker 4: how prevalent, how common. And we believe there's a gap in the market for a fixed-site battery that can have performance, a better battery.
How prevalent how common.
And we believe there is a gap in the market for fixed site battery that can have performance a better battery.
Speaker 4: for a fixed site, not for a car, for a fixed site, long duration without that exposure to the runaway fire risk.
Or a fixed site for a car for a fixed site long duration without that exposure to the.
Runaway fire risk.
Okay. So we raised about $907000, here's where it went.
Speaker 4: OK, so we raised about $900,000. Here's where it went.
This is pretty quick.
Speaker 4: I'm going to point out that this is, I don't know, three or four months worth of work, maybe five. And we have assembled the components to be able to start making batteries.
I would point out that this is I don't know three or four months worth of work, maybe five and we have assembled the components to be able to start making batteries.
Speaker 4: And this is located in our operation at Oak Ridge, Tennessee. It's the first time we've shown these pictures. We're going to have some additional posting on our blog that tells the story of these because we're already doing sample runs, right? So as all this equipment comes in, we have to test it and work with it and make sure we understand and have it running exactly as required. And then it becomes an assembly line taking a battery through this process. We're very excited because we'll be making batteries very, very soon. And it's really cool. It's really cool.
And this is located in our operation at Oak Ridge, Tennessee first time, we've shown these pictures, we're going to have some additional posting on our blog that tells the story of these because we're going to we're already doing.
Ample runs right. So there's all this equipment comes in we have to test it and work with it and make sure we understand and have it running exactly as required and then it becomes an assembly line taken a battery through this process. We're very excited because we will be making batteries very very soon and it's really cool it's really cool.
Okay.
But why wind dialogue, though.
Speaker 4: Why BioLargo? We would argue. These are arguments, right? And we can debate them. We'll debate a little bit together. The business model is a powerful business model. It's kind of a hybrid. We're not just licensing. We're licensing and supplying.
Uh huh.
We would argue these are arguments right and we can debate that we will debate a little bit together.
The business model is a powerful business model, so it's kind of a hybrid.
We're not just licensing we're licensing and supply.
Across multiple markets with a lot of talent in house part of that talent, we had to build it was expensive costly took a long time.
Speaker 4: across multiple markets with a lot of talent in-house. Part of that talent we had to build, it was expensive, costly, took a long time, but we did so that we had the ability to go into a service provider role and sell our technology into the market so that it could find adoption.
But we did so so that we had the ability to.
They go into a service provider role and sell our technology into the market. So that he can find adoption.
Speaker 4: And as we do that, it becomes incredibly powerful as a as a tool in the hands of partners, we can help them make more money.
And then as we do that it becomes an incredibly powerful as a as a tool in the hands of partners.
We can help them make more money.
And do something great right.
Speaker 4: Right. And revenues are, of course, are growing, like, you know, consistently and increasing numbers, which is good. We think that's going to continue. We're in a good cash position. No debt, of course. SG&A is not rising dramatically with rising revenues. There's some, and on the engineering services side, we'll see more of that, but we're not increasing overhead until we have the revenue.
Alright, and revenues are of course, you're growing like you know consistently and increasing numbers, which is good we think that's going to continue.
We're in a good cash position no Dan of course, SG&A is not rising dramatically the price revenues their son and on the engineering services side, you'll see more of that but we're not increasing overhead until we have the revenue.
Speaker 4: It puts a lot of pressure on management, but that's what we signed up for. And so we're doing it that way. And as a result, we survive when others don't. We don't take exorbitant risk. It's a well-managed capital resource and puts a good work. Net operating, as we said, for O&M can carry the whole company. And we believe we're actually gonna witness that. It's not just a theory anymore, it's happening. And so we believe as the numbers continue to rise, we're gonna see that happen.
There's a lot of pressure on management, but you know that's.
That's what we signed up for and so we're doing it that way and as a result.
We survived when others don't we don't take the absorbing at risk, it's a well managed capital resource and puts a good work.
Net operating as we said for O&M take care of the whole company and we believe we're actually going to witness that it's not just the theory anymore is happening and so we believe as the numbers continue to rise we're going to see that happen.
The <unk> technology.
Speaker 4: The P5 technology is some consider it the most strategic in the portfolio. Why? Well, because $10.2 billion just went out the hands of 3M.
Then considered the most strategic in the portfolio.
Why well because because $10 2 billion just went out in the hands of freedom.
It's a big deal and every drinking water supplier in the country. There was an article in Bloomberg just the other day entitled ready the poison inside us all.
Speaker 4: It's a big deal. And every drinking water supplier in the country, there's an article in Bloomberg just the other day entitled, you ready? The poison inside us all.
Speaker 4: inside us, okay? So this is a problem. It's not going to go away. There's a lot of work to do. We have a great solution for a really critical problem that can save our customers a lot of money and help our partners make a lot of money and do something great. And then we have diverse...
The poison inside us okay.
This is a problem, it's not going to go away. There's a lot of work to do we have a great solution for a really critical problems that can save our customers a lot of money and help our partners make a lot of money and do something great and then we have diversity.
Speaker 4: Sometimes we get criticism. From my viewpoint, it's been the saving grace of this company. The ability to diversify, continue innovating for an extraordinary long period of time means that we have a base of assets that we can deploy, especially with the strategy, through an event-proven partner.
Sometimes we get criticism.
From my viewpoint, it's been the saving Grace of this company the ability to diversify continue innovating for an extraordinary long period of time. It means that we have a base of assets that we can deploy especially with the strategy.
True independent proven partner.
Speaker 4: then we have a diversity that can carry growth and revenue.
We haven't we have a diversity that can carry a growth in revenue for.
Decades to come.
Speaker 4: And then our commercial strategy leans heavily on these partners, right, with higher margin distribution, lower capital risk. I mean, it's really pretty simple. It's so easy to say, it's hard to do, by the way. It's hard to find great partners.
And then our commercial strategy leans heavily on these on these partners right with.
Higher margin distribution lower capital risk I mean, it's really pretty simple.
So it's so easy to say, it's hard to do by the way, it's hard to find great partners.
Speaker 4: part of planning. Sometimes you have to grow with them into it, right? So we're doing that as well. But without the partners, you know, it would take us decades to achieve what some of our partners have achieved. You know, we talk about Garrett County, we'll talk about it in a second. You know, it's a hundred-year history.
Sometimes you have to grow with them into it right. So that we're doing that as well.
But without the partners.
It would take us decades to achieve with some of our partners have achieved.
We talked about Gary Count, we talked about in a second.
100 year history.
Speaker 4: You know, you just don't do it in a few years, but if you can support them and their mission to serve by increasing revenue and margin and
You just don't do it in a few years, but if you can support them in their mission to serve by.
By increasing revenue and margin and <unk>.
Speaker 4: supply something great for those customers, that's a win-win. And so it helps us and it helps them. There's a lot of reasons to be confident, by the way. A lot of analysts, there's a consensus that we're undervalued, of course. I think that's part of the OTC listing as well as our need to uplist. And it has taken us a long time.
Supply is something great for those customers, that's a win win and so it helps us it helps them, there's a lot of reasons to be confident by water.
A lot of analysts.
Consensus that we're undervalued of course.
That's part of the OTC listing as well as our need to uplift and it has taken us a long time and you know.
Speaker 4: You know, I always say the only thing I'm really sorry for is how long it has taken. It took a long time to get here. The thesis, though, is really pretty basic.
I always say the only thing I'm really sorry for us how long it has taken it took a long time to get here. The thesis, though is really pretty basic and that is the.
Speaker 4: That is, the pain of our journey is pretty much behind us.
Pain of our journey is pretty much behind us.
Speaker 4: You know, we have we have very little that threatens our company. It's now all about exploiting its commercial opportunity and, of course, harvesting the fruit from planting seeds for so long.
We have we have very little bit threatens our company is now all about exploiting its commercial opportunity and of course harvesting the fruit from planting seeds for so long.
Speaker 4: Now, before we do Q&A, I want to – we wrote a couple down because they're obvious questions that we get on just about every conference call. I'm going to try and address them real quick. I don't mind additional questions either, by the way. You can ask whatever you want. What's up with Garrett Callan?
But before we do Q&A I Wonder I read a couple of down because they're the obvious questions that we get just about every conference call trying I'm trying to address some real quick I don't mind additional questions either by the way you can ask whatever you want.
What's up with Gary Kelly Okay.
Speaker 4: The reason people are asking so much, which is a good thing, is we had projected success long ago, gosh, probably a year ago.
Some people are asking so much which is which is a good thing is we had projected success long ago, gosh, probably a year ago.
Speaker 4: And we're still here, right, working with our first customer acquisition for landing our first accounts. And there's a there's a number of them.
And we're still here right working with our first customer acquisition for landing a first accounts.
And there's a there's a number of them Greg.
Speaker 4: Great company, we're so thankful to be working with them. The prospect list is not just a couple, it's expanding. Recall that Garrett Calhoun also rapidly came to appreciate the diversity of our portfolio.
Great Company, we're so thankful to be working with them. The prospect list is not just a couple of its expanding recall that Gary Gary Callahan also rapidly came to appreciate the diversity of our portfolio.
Speaker 4: And therefore, they're actually advancing commercial activity in that regard as well. We're predicting a big win with Garrett Callahan. It's, again, taking a lot of work. And we're anxious to settle it once and for all with success. But we're confident, have no reservation about anticipation of success with Garrett Callahan, okay? That's number one. What happened to the first industrial client? Remember, we did phase one, phase, waiting for phase two? We're still waiting for phase two.
And therefore, they're actually advancing commercial activity in that regard as well.
Predicting a big win with Gary Kelly Ann.
It's again taken a lot of work.
And we're anxious to sell it once and for all with success.
But we are confident have no reservations about anticipation of success with your account Okay. That's number one.
What happens is the first industrial client remember, we did phase one phase waiting for phase two we're still waiting for phase III.
That's the answer.
And so you can say well why right why why aren't they just.
Speaker 4: And so you'd say, well, why, right? Why? Why aren't they just?
Plowing ahead.
We don't actually know the answer.
Speaker 4: We don't actually know the answer. In this situation, we have a guess. And the guess is they're waiting until the government makes them do it.
In this situation.
The gas and the guess is they're waiting until the government makes him do it.
I think it's that simple.
Speaker 4: until the government says do it. They're not going to do it. They're going to wait because why spend money today when I could just as soon spend it next quarter or the quarter after?
Until the government says do it they're going to do it they're going to wait because why spend money today, where they can just assume spend it next quarter or the quarter after.
Speaker 4: I think it's that simple, but it's very much alive. We have ongoing communication, and when they say go, we'll be ready to go. Okay.
I think it's that simple, but it's very much alive, we have ongoing communication and when they say go we will be ready to go okay.
Speaker 4: What's the project timing on the mineral extraction? You know, once in a while, you hear some really, really harsh criticism. And I get it. I do get it. This is a this is a project we took on years ago, and we worked with a client to develop a mineral extraction technique for some waste, a very, very large waste.
What's the what's the project timing on the mineral extraction once a while I hear some really really harsh criticism and I get it I do get it.
This is a this is a project we took out years ago, and we worked with the client to develop a mineral extraction technique for some waste a very very large waste stream and we figured out how to turn it into well over $1 billion worth of product multiple multiple billion dollars actually almost too.
Speaker 4: And we figured out how to turn it into, you know, well over a billion dollars worth of product, multiple, multiple billion, actually, almost two with a capital investment.
With a capital investment somewhere in the $30 million range.
Speaker 4: And so, when that so we also file patents, by the way, I don't know if he's noticed, but we've actually received awarded patents in that area and it's focused on. It's great. It's great. As soon as we got all that done, the partners, the business team that owns.
And so when that so we also filed patents by the way I don't know if <unk> noticed but we've actually received awarded patents in that area and it's focused.
It's great it's great.
As soon as we got all that done.
The partners the business team that owns it.
Speaker 4: decided they had some business they need to get an order. So they're working that out. And as soon as that's in order, we believe we'll move ahead.
Decided they had some business they need to get an order so they're working it out and as soon as that is in order.
We believe we'll move ahead and we're waiting for a customer and you got to remember this is that stuff's been there 70 years and if it is worth over 1 billion waiting a year or two to make sure you get it right.
Speaker 4: And you got to remember this is that stuff's been there 70 years and if it's worth over a billion waiting a year or two to make sure you get it right, that's just fine. So hard to predict the timing, very much alive, not going anywhere, still in communication with our customers, anxious to move forward, patented in the area, believe it's going to be a winner. Absolutely no way to predict this timing. Just so we're clear.
Fine so hard to predict the timing very much alive gone anywhere.
Bill and communication with our customers anxious to move forward patented in the area believe it's going to be a winner.
Absolutely no way to predict the timing.
There were clear [laughter] no way I wish there was.
Speaker 4: What about the large waste energy projects? One went on hold in South America. We've been notified just recently, like two weeks ago, that it's back on. I'm not sure what back on means, actually, and I say that with all grace to our customers. There's a lot of money at stake here. We've also presented four other projects in Southeast Asia, which are very large waste energy projects endorsed with concessions assigned by government.
What about the large waste to energy projects. One went on hold in South America. We've been notified just recently like two weeks ago that it's back on.
I'm not sure we're back on means actually and I say that with all grades to our customer there's a lot of money at stake here.
<unk> been presented for other projects in Southeast Asia.
Which are very large waste energy projects endorsed with concessions assigned by governments.
Speaker 4: And we've been asked to do the preliminary feasibility study, environmental impact, excuse me, the environmental impact study, preliminary feasibility, which is all about technology choice and budget, and then ultimately do the design work. These are very, very large projects to write in our wheelhouse of talent. And we've been informed that, from our client, that as their capital is released, secured and released and executed upon, we're the choice.
And we've been asked to do the preliminary feasibility study.
I'm real impacts season.
The environmental impact study.
Feasibility, which is all about technology choice a budget and then ultimately do the design work. These are very very large projects to right in our wheelhouse of talent.
And we've been informed that from our clients that as their capital is released secured and released.
And executed upon where the choice.
Speaker 4: So, standby. Again, hard to predict timing, but very much still engaged and active.
So standby again hard to predict timing, but very much still engaged and active.
Any other questions is sometimes we have some things that we start and we stop.
Speaker 4: The other question is, sometimes we have some things that we start and we stop.
Speaker 4: and we get a little criticism for it. And I think it's interesting because give me an example. One of those examples is of course the ballast water.
And we get a lot of criticism for it and I think it's interesting.
Because giving an example, one of those examples is of course the ballast water.
Speaker 4: You know, we spent about three years analyzing that market and
We spent about three years analyzing that market and.
Speaker 4: investing heavily in knowledge and we were troubled through that journey because we had ideas about how
Investing heavily and knowledge and we were troubled through that journey because.
We have ideas about how it should be done.
Speaker 4: And while we investigated the market and negotiated with potential partners and contract manufacturers, and remember this is back early before we had the engineering group too, they were early in our journey,
And while we investigated the market and negotiated with potential partners and penetrate manufacturers and remember this is back early before we.
We had the engineering group to they were early in our journey.
Speaker 4: And basically, as we got into the execution mode with deadlines looming on regulatory enforcement, the International Maritime Organization and the United States Coast Guard came in and pushed out the compliance for ballast water exchange.
And basically as we got into the execution mode with deadlines looming on regulatory enforcement.
The International Maritime organization in the United States Coast Guard came in and pushed out the compliance for ballast water exchange.
About 25 years.
Speaker 4: 25 years, you know, and so the way we think about that is what what everyone in the entire industry water industry was expecting to be the highest growth highest margin proposition that the water industry had seen in the last 20.
25 years.
And so the way we think about that is what everyone in the entire industry water industry was expected to be the highest growth highest margin proposition that the water industry as seen in the last one.
Okay.
Oh do we lose Dennis.
Dennis It sounds like I could let me see if I can get them reconnected one moment.
Speaker 3: We do have some great questions. If you do have a question, please type it into the chat. Dennis, you there? Yeah, there you go. Yeah, no problem. Can you hear me okay? Yes, now we can hear you.
Would you have some great questions. If you do have a question. Please type it into the chat.
Dennis Yes, there you go.
Yes, no problem.
Can you hear me okay.
Yes, now we can hear you.
[laughter] unless philosophy, there, probably because I'm talking too much let's do this let's let's winding down.
There's a bunch of questions you may have I'm happy to field them.
Speaker 4: There's a bunch of questions you may have. I'm happy to field them. And again, I wanted to let everybody know this is this is the best time in the history of the company and and we believe that the as hard as it was to get here. We believe.
And again I wanted to let everybody know this as this is the best time in the history of the company and we believe that the.
As hard as it was to get here.
We believe success will be that much sweeter.
Speaker 4: For everyone not just not just the company but stockholders and the performance going forward You know, the the question of the moment is is our market going to reflect our underlying true value?
For everyone not just not just the company stockholders and the performance going forward.
The question of the moment as this is our market going to reflect our underlying true value.
Speaker 4: Well, we certainly believe it can and it should.
Well, we certainly believe it can and it should.
Speaker 4: I think we're witnessing some of the difficulty being on the inefficient market, OTC market's inefficient. That means at any given moment, the buyers and sellers may not match up with a high volume, high flow.
Think getting this we're witnessing some of the difficulty in being an inefficient market OTC markets inefficient.
Is it any given moment the buyers and sellers may not match up with them high volume high flow.
Speaker 4: We don't have institutional support. 90, 95, 98% of the world's money is not gonna invest in our country.
We don't have institutional support.
1990, 598% of the world's money is not going to invest in our company.
Speaker 4: You've got to get that to a national listing, and we want to do that when we're strong and powerful and not needy. And that time is coming. That time is coming. As we turn to profitability and start accumulating cash from operations, those opportunities expand exponentially.
Right, but you got to get that to a national listing and we want to do that when were strong and powerful and not needy and that time is coming at a time, just kind of as we turn to profitability and start accumulating cash from operations.
As opportunities to expand exponentially.
Speaker 4: And again, when we go back to that thesis of where are we at in all the commercial development, the most difficult, painful work is behind.
And again, just when we go back to that thesis of where we add in all the commercial development.
Most difficult painful work is behind us.
Speaker 4: now we get to reap the fruit of those investments. So let's open it up to questions.
Now we get to we get to reap the fruit of those investments so let's open it up questions.
Alright, Thank you very much Dennis.
Speaker 3: It's certainly an exciting time, BioLargo. It's great to see those financial charts moving up and to the right. The pictures of Oak Ridge, too, look really cool. I'd like to go check out your facility sometime. Thank you.
Certainly an exciting time at <unk>, that's great to see those financial charts moving up into the right.
Chairs of Oakridge to what's really cool I'd like to go check out your facility. Some time. Thank you for sure on that.
Speaker 3: Yeah, all right. Yeah, let's bang out the hard question first.
Yeah.
Right.
Yeah, let bang out the hard question first.
Speaker 3: So an investor writes here, so many of our projects, AEC, MLB, W2E, and now maybe Clara.
So when investor rights here, so many of our projects AUC MLP W. T E and now maybe Clara <unk>.
Speaker 3: to name a few, have not met revenue timelines that we originally thought for various reasons. Is there anything we might do differently to make this the exception rather than the norm?
Name a few have not met revenue timelines that we originally thought for various reasons is there anything we might do differently to make this the exception rather than the norm.
Speaker 4: Yeah, that's a good question. Well, we've done some of that. I mean, you know, that is like a million dollar question.
Yeah. That's a good question well we've done some of that I mean, you know that is like a million dollar question. So.
Speaker 4: Yeah, so here's the answer. What we did with O and N.
Yes, so here's here's the answer.
What we did with O&M.
Whereas we went vertical.
Speaker 4: And we became a solution provider in an industrial market, and we found success, right? It was hard one, I will point out, I mean, incredibly difficult, but we did it. And we, when we started, we said, we'll never be in the missing system business. And now we can make a missing system 20 different ways to do just about anything. And we had to do it. And then we said, you know, we had built out manufacturing infrastructure and service infrastructure and techs and all this, all this vertical work.
And we became a solution provider and then industrial market.
And we've found success alright.
It was hard one I will point out I mean.
That will be difficult, but we did it.
And we when we started we said we will never be in the mid C system business and now we can make a missing systems 20 different ways to do just about anything.
And we had to do it and then.
Said, you know, we had built out manufacturing infrastructure and service infrastructure and tax and all of this all of this vertical work.
Solution.
Speaker 5: OK. That's what companies do.
Okay.
That's what companies do.
When they don't want to depend on the partner.
Speaker 4: Okay, so the choice is expensive. If you said, look, we're just gonna go do it all ourselves for clear.
Okay. So the choice is expensive. If you said look were just going to go do it all ourselves for clearer.
Speaker 4: then the amount of capital that's required is gonna go up so dramatically.
Then the amount of capital that's required is going to go up so dramatically.
Speaker 4: and the risk of execution is dramatic and the time is dramatic.
And the risk of execution is dramatic.
And the time is dramatic.
Speaker 4: And so, in fact, we're facing that right now with Clear. What happens is, do we want to go out and build a 200 million sales force? We can. It's not rocket science. Or do we want to launch with a
And so right. So what we in fact, we are facing that right now with clearer what happens is.
Do we want to go out and build a 200 million Salesforce we can.
It's not rocket science.
Do we want to launch it with a global multinational.
Speaker 4: And the answer is you want to launch with a global multinational, if you can get that done.
And the answer is the answer is you want to launch with a global multinational if you can get that done.
Speaker 4: Now, getting that done is not easy, but let me tell you, when it happened...
Now getting that done is not easy, but let me tell you when it happens.
Speaker 4: The yield is multiples of what it would be if we did it ourselves. And the capital requirement...
The yields.
Is multiples of what it would be if we did it ourselves and the capital requirement is a fraction.
So I think it's the right strategy.
Speaker 4: I think it's the right strategy. Unfortunately, it also means that you become dependent on partners. Some of these partners move faster, some are quicker, but when you get it right, like it, poof.
Unfortunately, it also means that you'd become dependent on partners. Some of these partners move faster some are quicker, but but when you get it right like it too.
It's dramatic and I think that's what's going to happen with with clearer I also think that's going to happen with P. Fast.
Speaker 4: dramatic. And I think that's what's going to happen with with clearer. I also think it's going to happen with PFAS. You know, we're the food chain, the food chain of potential partners for us in these companies, including the battery, is is at the highest level.
Sure.
The food chain the food chain.
Potential partners for us and these companies, including the battery.
Is is at the highest level.
Because the innovations that we now have the full support of internally knowledge talent Engineering science is so high.
Speaker 4: because the innovations that we now have the full support of internally, knowledge, talent, engineering, science, is so high that we can compete.
That we can compete at the highest level.
Speaker 4: And so, I think it's getting easier, and I wish it was faster. So, there you go. I hope that answers the question.
And so I think it's getting easier.
And I wish it was faster so so there you go okay.
Speaker 3: Yeah, well, as a follow up to that, what product do you see as the next revenue stream? And what is the approximate realistic time?
Yeah, well as a follow up to that of what product do you see as the next revenue stream and what is the approximate realistic timing.
Well yeah.
Speaker 4: Well, yeah, I mean, yeah, that's a good question. So, of course, we have the odor and VOC products. That's a whole family of products that's already in the market, already generating, you know, cash flow and really taking the company to profitability. Clear is commercial, doesn't have dramatic sales yet, but we have a major partnership. So, let's assume that could happen Q1. If it happens in Q1, you're probably looking another six months before you're really going to see the financial implication. But it's so big, it didn't matter.
Yeah. That's a good question. So of course, we have the odor and POC products, it's a whole family of products Sysco, that's already the market already generating cash flow and really hadn't taken the company to profitability clearer as commercial doesn't have dramatic sales yet, but we have a major partnership so let's assume that could happen Q1, if it happens in Q1 you probably.
Looking at another six months before you really going to see the financial implication.
It's so big.
It didn't matter.
I just wanted to be clear it doesn't matter, if so big it doesn't matter.
Speaker 4: I just want to be clear. It doesn't matter. It's so big, it doesn't matter.
It will it will eclipse everything that we've done.
Speaker 4: And so we think it's worthy to play the game at that level, and we believe we'll be successful. So, equipment. The PFAS projects, you know, we've been talking about that for over a year, and we finally got our first one. The first project's probably in around the half a million dollar range, just so we're clear.
So we think it's worthy to play the game at that level and we believe we'll be successful so equipment.
Equipment, the Paphos projects, we've been talking about that for over a year and we finally got our first one the first projects probably in around the half million dollar range just so we're clear.
And we've got a number of projects that are on our on our table.
Speaker 4: And we've got a number of projects that are on our on our table and final pricing and scoping.
Donald pricing and scoping.
Speaker 4: with customers saying they want to do it, not in formal execution mode yet, but close.
With customers, saying they wanted to do it not in formal execution mode, yet, but close all in that's probably seven to 10 million worth of business that seven to 10 million worth of business, probably spreads out over the course of about a year. When you get when you get an engagement you're probably six to nine months minimum before you actually get an installation and.
Speaker 4: All in, that's probably $7 to $10 million worth of business. That $7 to $10 million worth of business probably spreads out over the course of about a year. When you get an engagement, you're probably six to nine months minimum before you actually get an installation. And we generally price ourselves with payment terms that are a third, a third, a third.
And we generally price ourselves with payment terms that are a third a third a third.
Speaker 4: So if you get big projects, they're going to take you a year, you're probably a year and a quarter spread out over the revenue, but you've got multiple of them going at any given time.
So if you get big projects, they're going to take you a year you are probably a year and a quarter spread out over the revenue, but you've got multiple of them going at any given time.
Speaker 4: Battery is pretty basic. You make batteries, you sell them, or you take your batteries that you make and you go in the business of providing storage.
Batteries is pretty basic can make batteries you sell them or you take your batteries that you make and you go in the business of providing storage.
And providing storage is a very interesting opportunity for us because we have such a significant value and price advantage for fixed site storage is also highly subsidized there's a 30% tax credit for batteries and California.
Speaker 4: And providing storage is a very interesting opportunity for us, because we have such a significant value and price advantage for fixed-line storage. It's also highly subsidized. There's a 30 percent tax credit for batteries. In California, if you're going to install a solar panel, it's required to have a battery.
Solid solar panel.
As required to have a battery now.
Okay. So do you want an extensive battery that has runway fire risk.
Speaker 4: Okay, so do you want an expensive battery that has runaway fire risk?
Speaker 4: Or would you like one that's domestic supply, lasts longer, lower cost, and more energy? Well, that would be great.
Or would you like one that's domestic supplies last longer lower cost and more energy.
Well that would be us.
So it's a better battery.
Speaker 4: fixed light, better battery. So again, all of that so much, you know, I think the way to judge this company is, are we finding early market commercial adoption?
Fixed site better battery, so again all of that so much.
I think that the.
Way to judge this company as are we finding.
Early market commercial adoption.
Speaker 4: And then the question is how rapidly can we secure partnerships to really see these things expand? And I think what we're witnessing in PFAS is good testimony to that. Also, while CLEAR has taken a long time.
And then the question is how rapidly can we secured partnerships to really see these things expand.
I think what we're witnessing in P. Pos is good testimony to that also while clear has taken a long time.
Speaker 4: The stakes are so high, and I want to remind everybody that CLEAR on its board, if you go to the CLEAR website, CLEARmedical.com, you'll see that we have Linda Park, Head of Licensing at Edwards Life Sciences, and Nick Valeriani, former CEO of Johnson & Johnson Wound Care. You know, when we sit with folks like this and look at our exact position,
The stakes are so high and I want to remind everybody that clearer.
On its board if you go to the clearer website grew in medical Dot com.
You'll see that we have Linda park head of licensing or Edwards Lifesciences.
And Nick really Iryani former CE.
Jonathan Johnson wound care.
When we sit with folks like this and look at our exact position.
Speaker 4: You know, they point out to us that we are competing at the highest level in the industry with the top players in the world who will adopt, co-brand.
They pointed out to us that we are competing at the highest level in the industry.
With the top players in the world.
We will adopt co brands and launched product with us.
Speaker 4: And what we should do is we should do whatever they ask us to do.
And what we should do is we should do whatever they asked us to do.
Okay, and that's what we're doing we're going to we're going to we're going to give them a tool that will allow them to capture the market and the number one.
Speaker 4: Okay, and that's what we're doing. We're gonna give them a tool that will allow them to capture the market and be number one.
And if we're doing number one that's how you do it and then everyone. We've talked about here is a potential number one but let's get in a position with the right partner.
Speaker 4: And if we're doing number ones, that's how you do it. And everyone we've talked about here is a potential number one. So let's get in position with the right partner and then let it go. And I know time is our enemy, but.
And then let it go and I know time is our enemy but.
Speaker 4: you know, we're in a business now that requires extraordinary excellence in science and claims and data and regulatory. And so, we've de-risked them so far that now we're seeking partners that can move faster. And we're getting it. So, again, we hate the delay, but…
We're in a business now that requires extraordinary excellence in science and claims and data and regulatory and so we've de risked them. So far that now we're seeking partners that can move faster and we're getting and we're getting it.
Again, we hate the delay.
Ah.
I can testify that it's worth it.
Great. Thank you for that.
Speaker 3: Great, thank you for that. On to the batteries. So the batteries you guys are creating, is it already accepted in the market as an alternative to lithium? Or is it viewed as like a concept? Will there be some type of hurdle?
Sure.
Onto the batteries. So the batteries you guys are creating is.
And already accepted in the market as an alternative to lithium or is it viewed as like a concept will there be some type of Oh no no no its hurdle.
Oh, well again theres always hurdles. So yeah, I mean innovation is the nature of innovation is who are you where did you come from and why should I buy your stuff I mean, it's always there sure the technology of sodium sulfur is not news over 80 years old.
Speaker 4: Oh, well, again, there's always hurdles. So yeah, I mean, innovations, the nature of innovation is, who are you? Where'd you come from? And why should I buy your stuff? I mean, it's always there. Sure. The technology of sodium sulfur is not new. It's over 80 years old. And we point out that CATL, one of the leading suppliers of batteries out of China, has a sodium sulfur battery. And people that are in the industry, technologists that are in the industry, recognize sodium sulfur as having advantages over lithium.
And we pointed out that.
CACI, we are the leading suppliers of batteries out of China has all sodium sulfur battery and people that are in the industry technologists and industry recognized sodium sulfur is having advantages over lithium, namely exactly what we set higher energy density no runaway fire risk. So that's that's a safer safer battery okay.
Speaker 4: namely exactly what we said, higher energy density, no runaway fire risk. So that's a safer – it's a safer battery. Okay.
A lot of people do sodium sulfur, but they add other ingredients that are rare earth elements, we don't we don't need to do that.
Speaker 4: A lot of people do sodium sulfur, but they add other ingredients that are rare earth elements. We don't need to do that.
Speaker 5: That's unique. And I asked, when we started this whole thing with our engineers, I said to Randy, I asked him, you know, why is it this group could make this happen? What is it? What is it that made the special sauce? And this is really important. Because here's the answer. Randy, Randy Moore, you ready? They did the work.
That's unique and.
When we started this whole thing with our engineers are said to Randy asking.
Why is it this group could make this happen what is it what is it that made the special sauce and this is really important.
Because here's the answer.
Randy Randy more ready they did the work.
They did the work eight years of work.
They did eight years of work.
Okay. They experimented with all the different chemistries in the designs optimized the design to make it functional for a fixed site battery.
Speaker 4: They experimented with all the different chemistries and the designs, optimized the design to make it functional for a fixed-site battery.
Speaker 4: And so we got to piggyback that eight years of R&D and come into.
And so we've got to piggyback that eight years of R&D and come into.
Speaker 4: you know, building manufacturing. I mean, it's crazy. And it's really good.
You know building manufacturing I mean, it's crazy and it's really good.
And so.
Speaker 4: So yeah, will we face objections? Sure. Everybody's selling competing wares. So yeah, I can tell you from my personal experience in the field, looking at projects, talking with partners, the general
So yes, it will be faced with you no objections.
Sure.
Body selling compete competing wears so yeah.
I can tell you from my personal experience in the field talking looking at projects with partners.
The General response, we get is when will you be ready. So when is the first and how many can you make and how much are they.
Speaker 4: When will you be ready? So when, that's the first. And how many can you make and how much are they? That's it. They don't say, I don't believe you.
That's it they don't say I don't believe you.
But they say is I'll take them.
When are you going to be ready.
Speaker 4: And so, right? So, our challenge is to, you know, first make batteries. And what we found ourselves doing is talking about, you know, ideas and not batteries. Well, it's this battery. Well, show me one. Well, okay.
And so right. So our challenge is to first make batteries and what we found ourselves doing is talking about ideas and not batteries, whereas this battery will show me one well okay.
Speaker 4: and we're making batteries. Once we get, right, so then we test them and we go through a process of vetting and we bid on projects. And listen, I would just, you know, just to give you an order of magnitude, the batteries that are incorporated into battery farms, for example, so let's say you have a solar off tape.
We're making batteries once we get it right. So then we test them and we go through a process of vetting and we bid on projects and listen I was just you know just.
Just to give you an order of magnitude.
<unk> that are incorporated into battery farms. For example, so let's say you have a solar offtake.
Speaker 4: That solar needs a backup to optimize the solar, right? You don't want to be loading it all into the grid. You may be able to provide grid-scale storage for the public utility. That's for the power company. They can move their electrons into your batteries. That's a good business.
That solar needs backup to optimize the solar right you don't want to be loaded onto the grid you may be able to provide grid scale storage for the public utility that's where the power company. They can move their electrons into your batteries that's a good business.
Speaker 4: The order of magnitude, you know, when you talk about a 500 megawatt plant, 500 megawatt or a gigawatt, you look at these batteries, you know, that's about, you know, 200 plus million dollars worth of battery.
The order of magnitude when you talk about a 500 megawatt.
Plant.
Our gigawatts when you look at these batteries.
About 200 plus million dollars' worth of batteries.
Speaker 4: I mean, you got to you got to sort of get your head around that this is large scale, long duration.
I mean, you you got it you got to sort of get your head around that this is large scale long duration.
Speaker 4: energy storage in the most prolific
Energy storage in the most prolific <unk>.
Speaker 4: expansion of the electrification of the world in the history of the world. That's what we're talking about. So you see, the other day I was with a project and they said, you know, they've got a massive 1700 acre solar farm they're installing. And they said, you know, there's a three and a half year backup at Tesla. Three and a half years.
Expansion of the electrification of the world and the history of the World That's what we're talking about.
So you just see the other day I was with the project and they said they've got a massive 1700 acre solar farm ins.
Installing and they said you know theres, a three and a half your backup at Tesla.
Three and a half years to get a battery of megawatts.
Speaker 4: Okay, there is there. And again, we talk, you hear about it until you actually want to go out and buy one.
Okay. There is there.
And again, we talked to you hear about it until you actually want to go out and buy one.
And you can't get it.
Okay. So there is a gap and the gap is domestic supply no rare earth safety long duration.
Speaker 4: Okay, so there's a gap, and the gap is domestic supply, no rear earth, safety, long duration, and we believe we can play.
And we believe we can play a role there now.
Speaker 4: How do we change the world? We get great partners. Well, that'll include contract manufacturing to start for sure.
Do we change the world, we get Great partners well that'll include contract manufacturing to start for sure.
Speaker 4: lot of money in this space too. It's also a technology we could sell. So how can we make money with batteries? We can sell batteries. We can sell designs. We can partner. We can exit. We can build battery farms. We can do all that. We have the internal knowledge.
A lot of money in this space too. It's also a technology, we could sell so how how can we make money with batteries, we can sell batteries.
Can sell designs, we can partner we can exit.
We can build battery farms. So we can do all we have the internal knowledge of.
Speaker 4: with this company to do every component that's required in that.
What this company does.
Every component that's required in that chain.
Speaker 4: That's what's unusual. And it's also why we said, yes, we're going to do this deal. And so we brought a little direct money. We'll go through that build out stage and we'll start making commerce. I'd like to see us in the commerce making business in Q2, Q3. Don't hold me to it exactly, but we think that we'll be knocking on that door.
That's what's unusual and it's also why we said, yes, we're going to do this deal.
And so we brought a little direct money will go through that build out stage and then we'll start making commerce I'd like to see us in the commerce, making business in Q2 Q3.
Don't hold me to it exactly but we think that will be knocking on the doors. So we'll.
We'll see how it unfolds.
Speaker 3: All right. To follow up on that, can you give us a timeline of validating efficacy, meeting demand, fulfilling orders?
Alright and to follow up on that can you give us a timeline of validating efficacy.
Meeting demand fulfilling orders.
Speaker 3: and when we be able to produce enough batteries to.
And when we'd be able to produce enough batteries too.
Speaker 4: Well, I don't even know how to answer it. Yeah, enough is funny, right?
I don't even know how to answer it enough.
Enough is funny right [laughter].
Speaker 4: If so, that's an interesting question. If you said we're going to have to build our own factory.
So that's the answer to your question. If you said, we're gonna have to build our own factory.
Speaker 4: So let me just reiterate, you know, we're not a company that builds it, hopes they come.
So let me just reiterate we're not a company that builds that hopefully come.
Speaker 4: We're going to have them come, then we're going to build it. Really important. So, our key to the battery tech, at the inception, is to find good contract manufacturers.
We're gonna have them come then we're going to build it really.
Really important.
So our key to the battery tech at the reception is to find good contract manufacturing.
Speaker 4: We've already had two conversations with potential partners. There is excess capacity because they can't get their lithium.
And we've already had two conversations with potential partners there is excess capacity because they can't get their lithium.
I mean, it's crazy, Okay, So theres battery manufacturing capacity in the marketplace.
Speaker 4: I mean, it's crazy, okay? So there's battery manufacturing capacity in the marketplace.
Speaker 4: So, that's one. We need to secure that and tighten it up. You can't tighten that up until we finish our production line design, because you'll take that design to a partner and say, here it is, make it go.
So that's one we need to secure that and tightened it up you cant tightened that up until we finish our production line design, because youll take that design to a partner and say here. It is making go.
Speaker 4: until that starts, right? Okay, so once we have, now, the batteries that we're making out of Oak Ridge, we can sell, but it's a small production.
Until that starts right okay. So.
Once we have now the batteries that were making out of brokerage we can sell but it's a small production facility. So we can't go sell millions of batteries, we can sell thousands of batteries made right, but and thats. The battery pack. So a small pack in a prior presentation.
Speaker 4: So, we can't go sell millions of batteries. We can sell thousands of batteries maybe, right? But, and that's a battery pack. So, a small pack in our prior presentation, 25 kilowatt hours is about the size of a small air conditioner.
25 kilowatt hours is about the size of a small air conditioner.
Speaker 5: We can produce that. We can make that out of Oak Ridge, Tennessee, if we want. They're selling batteries.
We can produce that we can make that out of oakridge, Tennessee, if we want.
Our selling batteries, our vision is bigger than that.
Bigger than that.
Speaker 4: Right? I mean, we're talking about, you know, long duration grid scale.
Right.
We're talking about long duration grid scale.
Speaker 4: So if you're going to put in a thousand acres of solar panels, you're going to want our battery.
So if youre going to put in a 1000 acres of solar panels youre going to want our batteries there.
Speaker 4: That's what we're talking about, the order of magnitude, the $100 million account.
That's what we're talking about the order of magnitude the 100 million dollar account.
Okay, and just think about supply chain proof proof has taught us a number of things.
Speaker 4: Okay. And just think about supply chain, you know, poof, poof has taught us a number of things, you know, in the, in the early days, you go out to the supply chain and they say, how much sell through you got? Well, now we got a lot.
In the early days you go out to the supply chain and they say how much sell through you got well now we've got a lot to them.
Speaker 4: But now when we go, we say, here's what's happened and here's what's going to be. And guess what? Everybody wants your business. Same thing's going to happen with that.
Now when we go we say here's what's happened and here's what's going to be I guess, what everybody wants your business same thing is going to happen with batteries.
Speaker 4: Once we find some selling through channel and the projects that we can secure, we have the knowledge, we just need the infrastructure.
Once we found some selling through channel and the projects that we could secure we have the knowledge and you just need the infrastructure.
Speaker 4: So, so I think there's going to be a good, you know, six months, a year of development work.
So so I think theres going to be a good six months a year of development work.
But I suspect that will be in the business, making mode well before then.
Speaker 4: But I suspect that we'll be in the business making mode well before the
Speaker 4: You know, I presented just a couple of days ago with a major hospital system.
I presented just a couple of days ago with the major hospital systems.
Speaker 4: And hospitals really create key customers for batteries because they need a backup power generation capable of withstanding the brownouts at the grid, and there are going to be lots of brownouts.
And hospitals are really create a key customers for batteries because they have a need.
Need a backup power generation capable of withstanding the brownouts so to get the grip.
And they're going to be lots of brownouts.
I don't know if you didn't know what that means that means the grid can handle the volume coming in it so.
Speaker 4: So when the brownouts happened, hospitals are down. So hospitals with any kind of resource say, I need a battery in every building.
So when the brand that's happened the hospitals are down so hospitals with any kind of resource say I need a battery of every building.
Speaker 4: So, I sat with a client, they put in 1.6 megawatts, 1.2 megawatts in the commercial markets, about 1.2 million worth of batteries through Tesla, that's the market leader, and you would say, okay, so I can compete on price, I can compete on duration, my battery is going to be longer, and I can compete on safety.
So is that with the client they put in one six megawatts.
Two megawatts and the commercial market's about $1 2 million worth of batteries to Tesla.
Later.
And you would say okay. So I can compete on price I can compete on duration my battery is going to be longer and that could compete on safety.
Speaker 4: So the guy looks at me and says, when are you going to be ready? And can you get me 1.6?
So the guy like somebody says when are you going to be ready and can you get me one six <unk>.
Speaker 4: megawatts of energy battery storage backup in four modular systems and when are you going to be ready? I said well we got a little work to do on supply chain. He says if we signed a contract today you won't install for two years. So you tell me when you're ready to make the contract.
Megawatts of energy battery storage backup.
For modular systems, and when are you going to be ready.
We got a little work to do on supply chain. He says if we signed a contract today you won't install for two years, but you tell me when you're ready to make a contract.
That's the business.
Speaker 4: So I got to backfill that and make sure that we can make this.
So I've got to backfill that and make sure that we can make this.
So I hope that answers the question, but it's pretty exciting actually.
Speaker 3: So, I hope that answers the question, but it's pretty exciting. Do you have any estimates on capital needs for the battery?
Do you have any.
Estimates on <unk>.
Capital needs for the battery.
Yeah.
Well it depends on the El Gallo Yeah.
Speaker 4: Yeah, sure. I mean, I think that business, the way to say it is
Yes, sure I mean, I think that business.
The way to say it is.
Speaker 4: whatever capital is available, you can spend it all, and make the requisite income to justify the capital. It's a scale question, so there's some...
Whatever capital is available you can spend at all.
Okay and make the requisite income to justify the capital.
It's a scale question.
Somebody said.
Im willing to back it.
And I'm willing to be back in a big way.
Speaker 4: That business, you could spend $350 million so fast that you wouldn't even flinch. Our thesis is simple. We're not going to do that until we have the sales.
That business, you could spend $350 million, so fast it would not even you wouldn't even flinch.
Our thesis is simple, we're not going to do that until we have the sell through.
We're going to find the channel and make sure. The partners are in place so that when we have capital requirement or outsourcing through manufacturing that.
Speaker 4: We're going to find the channel and make sure the partners are in place so that when we have capital requirement or outsourcing through manufacturing, that we have the.
We have the volume diversify it.
Okay. So.
Speaker 4: Okay, so how much is needed if you, you know, if you do it that way, a fraction, fraction, a fraction of the capace.
How much is needed if you can if you do it that way.
A fraction fraction.
A fraction of the campuses Thats the way we run our company.
Speaker 4: If you think about think about over control, you know, we spent years and validated found the market went vertical got customers cash flow.
If you think about think about odor control.
We spent years and validating found the market with vertical that customers' cash flow.
Speaker 4: And then when the right partner shows up, we outsource manufacturing, cost plus.
And then when are the right partner shows that we outsource manufacturing cost plus cost.
Speaker 4: FOS Plus, critical, licensing, royalty-owned sales, gave them a territory, and bargained for an equity position. Why can't we do the same thing with BATU?
Cost plus critical licensing royalty on sales, David <unk> and bargain for an equity position why can't we do the same thing with batteries.
Of course, we can.
Speaker 4: Of course we can, that's the whole point. We have a technical asset that we own intellectual property on and know how it's special in the market, potentially a disruptor, and it empowers our partners to make a boatload of money and do something great. That's the thesis of the company.
The whole point, we have a technical asset that we own intellectual property and Knowhow with special in the market potentially a disruptor.
And it empowers our partners to make a boatload of money and do something great pieces of the company.
Speaker 4: So that needs to unfold. It needs to unfold. I'm not ready to say, yeah, we can do it with 5 million or 3 million. I'm not ready for that.
So that needs to unfold and he said hold I'm not ready to to say, yes, we can do it with $5 million of 3 million or I'm not ready for that.
Speaker 4: You know, the way we looked at it is, I know one thing, when I have a battery that's viable with the spec that we believe it is, we're going to find a market. And the minute we find a market, we can make choices about whether we're going to go vertical, whether we're going to out-license our partner or supply chain it. All of those options are available to us just like they are with every other asset in the portfolio. We're going to make the one that preserves our dilution, maximizes our replication and our margin to make money.
The way we looked at it as I know one thing when I have a battery that's viable with respect that we believe it is it is.
Is we're going to find a market and the minute we find the market. We can make choices about whether we're going to go vertical where theyre going to out license our partner our supply chain at all of those options are available to us just like they are with every other asset in the portfolio, we're going to make the one that preserves our dilution maximizes our replication and our March.
Jen.
To make money.
Do something great.
Speaker 5: And we need to get there. We're not there yet. I modeled both. I modeled both. And I've had some pretty significant money come to us and say, write the blank check. How much do you need?
And we need to get there we're not there yet right our model both the model, both and I've had some pretty significant money come to us and say how are you.
Right the blank check how much do you need.
I think Uh huh.
Speaker 4: I think, yeah, we're not quite there, but we're going to be there soon. So anyway.
Not quite there, but we're going to be there soon so.
Anyway.
We're still for stripping ratio went up.
Got it.
Speaker 3: Got it. Let's change gears here. So the New Jersey project is significant, a real-world installation on drinking water PFAS remediation, but from a revenue perspective? That's about
James gears here, so the New Jersey project is significant real world installation on the drinking water P fast mediation.
But from a revenue perspective.
That's about a half million dollars.
Yeah.
Yes, so can you give some insight into.
Speaker 3: Yeah, so can you give some insight into the size of the project, like flow rate, population size?
Our size.
Of the project like flow rate population size.
Speaker 4: and sector that BioLargo partners have actively submitted project bids using AEC technology. I don't really want to do the detail, but I'll tell you what, I will commit to. I'll give you just a snapshot. We're going to have some press out soon with the location and quotes from the partner and from the customer. And it's really awesome, but it's a small site. And from a technical innovator's perspective, it's a great.
And sector that biological partners have actively submitted project bids using agency technology.
Really want to do the detail, but I'll tell you what I will commit to I'll give you just a snapshot.
We have some press out soon with the location and quotes from the partner and from the customer and it's really it's really awesome, but it's a small side and from a from a technical innovators perspective, it's a great start.
Speaker 4: I mean, if you ask an engineer, you know what he'd say, yippee.
I mean, if you.
If you as an engineer you know what he's saying EAP.
Is it allows us to get in the field right. It didn't feel to do the work.
Speaker 4: it allows us to get in the field, right? Get in the field and do the work. And when it's smaller, you have less chances of error and things happening that you can't control. So this is good. It's a perfect start. I wish it had happened six months or a year ago, but it is a perfect.
And when it's smaller you have less chance of.
Error and things happening that you can't.
But you can't control.
So this is good it's a perfect start I wish it happened six months or a year ago, but it is appropriate start.
Speaker 4: And so anybody that thinks its value is limited to the size or its revenue, they have no idea what they're talking about.
And so anybody that thinks it's.
Value is limited to the size or its revenue.
I have no idea what theyre talking about.
The fact is its drinking water in the community it's a small one.
Speaker 4: The fact is, it's drinking water in a community, it's a small one, and it's a small community, which is good. And there's many more coming. You know, we talked about the average sizes. So this will be on the smaller half million bucks. Generally, the projects are going to go from about a half million. I think one of the largest that we're involved in is about five and a half million.
And it's a small community, which is good and theres many more coming.
And we've talked about the average size of it. So this will be on the smaller half million Bucks generally the projects, where we go from about a $5 million I think one of the largest that we're involved in is about $5 5 million.
Speaker 4: Now, I've seen them go up to 17 and 20 million, okay, but those clients are not going to take us on.
I've seen them go up to 17% and $20 million okay.
<unk>.
Those clients are not going to take us on.
Speaker 4: as an early adopter until we've positioned successful execution in the market. And once we have that, then we're a contender, probably with a partner, to go after those $10 plus million.
As an early adopter.
<unk>.
Physician successful execution in the market.
We have that then we're contender probably with a partner to go after those 10 plus million dollar projects.
Speaker 4: But not yet. You have to work your way up. So that's what we're doing. So small is good and there's many more coming.
Yes, you have to work your way up so that's what we're doing.
So small is good.
And there's many more coming.
That's how we make our money.
The Big Boys, the Big Boys wouldn't even touch it perfect.
Speaker 4: The big boys, the big boys wouldn't even touch it. Perfect. Where are your huckleberry? We know how to do it. We know how to do it well. It's a great start.
Huckleberry, we know how to do it we need to do it well, it's a great start for us.
Speaker 4: And the bottom line is it still has the same regulatory compliance as the big boy deal.
And the bottom line is it still has the same regulatory compliance is the big boy deal.
Okay.
Speaker 4: I've got more details to follow up. Won't be long.
More details to follow up will be long.
Yes.
But yeah. So folks are wondering why more <unk> projects have not begun.
Speaker 3: Yeah, so folks are wondering why more AEC projects have not begun.
Yes.
Sure.
Speaker 4: I think it's, well sure, I suppose it's that and also regulatory, you know.
I think it's well sure it's mostly is that it also regulatory.
Speaker 4: What happens is, yeah, people don't want to be first. That's a big part of it. They want reference sites. That's part of it. And then there's a lot of people that are just now coming into budget, got money for it, or they've got regulatory pressures for it, and
What happens is most people don't want to be one that's a big part of it.
They want reference sites. So that's part of it and then.
There's a lot of people that are just now coming into budget money for it.
They've got regulatory pressures for it.
And.
Speaker 4: The people that jumped early have spent a lot of money on carbon. They're going to regret it if they don't already. It's not going to.
The people that jumped early have spent a lot of money on carbon they're going to regret it if.
If they don't already.
It's not going to meet spec.
Speaker 4: They jumped too early and they're going to now here's and many of those systems have been installed. We can actually help them make it work.
They jumped too early and they are now.
And many of those systems have been installed we can actually help them make it work.
Speaker 4: as some of our tools can come alongside those systems and really optimize them, including, you know, after RO, we can treat the concentrate. It comes out on RO system in a very effective way. So, you know, it's all meant to be what it is.
Some of our tools can come alongside those systems and really optimize them.
<unk>.
After Aro, we can we can treat treat the concentrate comes out on the arrow system.
Effective way.
It was all meant to be what it is.
Speaker 4: You know, we are here, ready, commercially viable with our first accounts, the regulatory enforcement is coming aggressively, the largest tort litigation in the history of the United States just happened.
We are here ready commercially viable with their first accounts the regulatory enforcement is coming aggressively the largest tort litigation in the history of the United States just happened.
Speaker 4: Money is flowing. The public awareness of this problem is at an all-time high. And still, everywhere we go, we ask people in the audience, who knows what PFAS is? It's about maybe half the room, maybe 40 percent. Oh, what is that? I've heard of that.
He is flowing.
Public awareness of this problem is at an all time high and still you everywhere. We go we ask people in the audience, who knows what <unk> is it's about maybe half the room, maybe a 40% Oh, what is that I've heard of that.
Speaker 4: Okay. And it's the most significant contaminant in the history of the, of the, of the industrial world. That's what we're talking.
Okay and is the most significant contaminant in the history of the.
Although the industrial World, that's what we're talking about.
Speaker 4: And so this is a big market and we go on for decades, actually. So look, from our perspective.
And so this is a big market and they go on for decades actually so look from our perspective.
Speaker 4: You know, we're here, we're in it to win it. And I think that we have a technology, you know, we watch very carefully.
We're here we're in it to win it.
And I think that we have a technology, we watch them very carefully.
Speaker 4: very, very carefully all the technical innovation. And any of the innovators with any sort of credibility, street credibility, were at the showcase at the EPA with us.
Very very carefully all the technical innovation and any of the innovators with any sort of cred credibility Street credibility showcases the EPA with us.
Speaker 4: We know their systems. We know what they do and how they work and how they don't work and how they fall short of scalability and have extraordinary high pressures and heat.
We know their systems, we know what they do and how they work and how they don't work and how they fall short of scalability.
And have extraordinary high pressures and heat.
Speaker 4: you know, heat issues. And I mean, it's crazy. We see it all.
Heat issues in <unk>.
It's crazy what we see at all.
Speaker 4: Now, we keep looking for someone that actually can compete head on with our claim, and we haven't seen it.
So we keep looking for someone that actually can compete head on with our claim and we haven't seen it.
We have not seen it so show me a technology again.
Speaker 4: We have not seen it. So show me a technology. Now, again, and by the way, we want to if there are, we want to know it. Show me technology that claims to be able to achieve non detect. Show me a technology that can do 140,000th the waste stream of the incumbent. Show me technology that's modular and scalable the way we are. Right.
We want and if there are we want to know it show me technology that claims to be able to achieve non detect show me a technology that can do 140, thousands the waste stream.
London.
Xiaomi technologists modular scalable the way we are.
Alright.
No what that is.
We think we stand alone.
Speaker 4: And so, you know, and now we've got highly skilled people in this company who are executing on the front line and doing the hard work to establish, of course, market penetration and marketing. And we have a pipeline of potential. You know, people that express interest is scoping and pricing is already in process. That's probably 7 to 10 million. There's probably another 15 million where the customer is saying they want to do it. And now that process is a lot of work.
And so you know and now we've got highly skilled people in this company we are executing on the frontline and doing the hard work to establish a course market penetration in marketing and we have a pipeline of potential people that have expressed interest as the scoping and pricing is already in process thats, probably $7 million to $10 million, there's probably another 15.
And where the customer is saying they want to do it.
Now that process is a lot of work.
And then there's you know as we said there is over 100.
Speaker 4: And then there's, as we said, there's over a hundred in the pipeline of people that have expressed interest. That's all it is. A lot of work.
And the pipeline of people that have expressed interest that's all it is a lot of work to do.
Okay, and then partners coming on as well you know when you form a partnership with some of these companies.
Speaker 4: and then partners coming on as well, you know, when you form a partnership with some of these companies.
Speaker 4: It's a long journey. It's not, oh, you're great and here's my customer.
It's a long journey, it's not Oh, you're great Here's my customers. It's your great and now let's get to know each other and let's go and in fact, giving example visit.
Speaker 4: It's, you're great, and now let's get to know each other. In fact, I'll give an example. This is a great story. We've been approached by one of the leading suppliers of equipment for emergency fire situations.
Rate story, we've been approached by one of the leading suppliers of equipment.
Equipment for a fire emergency fire situations.
Speaker 4: in airports. And they have PFAS. They supply the firefighting foam, firefighting foam.
And airports and they have a P foster they supply the firefighting foam.
Yeah.
Speaker 6: So a big company, very large, came to us and said, we'd like to talk about working together to go do the change outs on all these locations all over the world. We're one of the leading companies in the field. Okay, so think about what we just said. That's five.
So a big company very large came to us and said, we'd like to talk about working together to.
We go through the change outs on all these locations all over the world.
The leading companies in the field, okay. So sticking around what you just said that's.
Five plus thousand locations.
Speaker 4: That is number one. That is firefighting foam. There's a change out and there's a cleanup required. It's probably two or three weeks worth of work at each location.
That is number one that is firefighting foam theres a change out and there was a cleanup required.
Probably two or three.
Weeks' worth of work at each location.
Speaker 4: Small systems, portable, right? Portable, modular, you can control everything. Can you talk about a great business opportunity? So here's the thing in that situation, you know what we say? Let's do one.
Small systems portable right portable modular you can control everything you're talking about a great business opportunity. So here's the thing in that situation, what we say.
Let's do one.
Let's do one.
Let's see how it goes.
Speaker 6: And that's what we're doing. That's how it works. And one turns into two, and then two turns into five. Same thing with Gary Halliam. One, then there's three, then there's 10, then there's 40. That's what we're doing. We're earning our position.
And that's what we're doing.
How it works in one turns into two two turns into five same thing with Gary.
Then theres three then Theres 10, then Theres 40.
And so we're doing we're earning our position.
Okay, Yeah, again, I hope it is not easy but is good.
Yeah go ahead, yeah last question.
Speaker 3: Yeah, go ahead. Yeah, last question on that topic. So on the AEC customers not moving forward on phase two, if they were waiting and being told they needed to do it, why did they want to go away from the GAC system they had been using and bring us in in the first place?
On that topic, so on the ADC customer and not moving forward on phase two.
Waiting I'm being told.
Do it why did they want to go away from the GAC system, they had been using and bring us in the first place.
Right.
Speaker 4: Right. No, the question is intuitive, which is they know they're going to have to make a change. So when is that? That's basically the question. The answer is we don't know all the details, but eventually they're going to have to make a change. So we'll sit here and wait until they're ready.
Yeah.
The question is intuitive which is.
They know they are going to have to make a change. So when is that basically the question. The answer is we don't know all the details.
That eventually they're going to have to make a change. So we will sit here and wait until they are ready.
That's all I got.
There's no there's no there's no discussion of the inner workings of how they make decisions that their business. They are big country too by the way, they're going to they're going to make the decision that there are there is science engineering and legal tells them they can make and if they can wait.
Speaker 4: There's no discussion of, you know, the inner workings of how they make decisions. That's their business. They're a big country, too, by the way. They're going to make the decision that their science, engineering, and legal tells them they can make. And if they can wait,
Wouldn't surprise me if they wait.
So unfortunately, it's just the reality of these very large capital projects.
Speaker 4: Now, unfortunately, it's just the reality of these very large capital projects.
Speaker 4: you know, and we've had it, you know, we've had this happen over and over. We've got a big project near Sacramento and the client's promise is so, you know, three different occasions, we're going, we're going, we're going. And then stuff happens and capital budgets get pushed off and they say, you know, we're thinking we can wait about nine months. Okay, we'll be here when you're ready. It's the nature of the business. And so what you do is you just have a lot more pending, you know, I know it's hard on the, on the front end.
And we've had we've had this happen over and over we got a big project near Sacramento.
And the clients promises. So you know three different occasions, we're going we're going we're going and then stuff happens in capital budgets get pushed off and they say you know we're thinking we can wait about nine months. Okay. We will be here when you are ready.
The nature of the business and so what you do is you just have a lot more pending.
I know it's hard on this on the front end, but on the backend is not going to matter.
Speaker 4: That's just the nature of the process. So yeah, so this is a customer that we believe will come full circle and it'll be a big one. And when they're ready to say uncle and get started, we're ready to go. And so far, that's what they tell us they're going to do. They've not said anything to the contrary.
That's just the nature of the process so.
Yeah. So this is a customer that we believe will come full circle and it'll be a big one.
And when they're ready to say uncle and get started we're ready to go.
And so far that's what they tell us they're going to do.
So anything to the contrary.
So I don't know how else to answer it any more clearly.
Yeah, no that was great. Thank you very much Denis sales are all the questions for today.
Speaker 3: Yeah, no, that was great. Thank you very much, Dennis. Those are all the questions.
Okay, well lets just wrap here real quick again, let's see we're now how much I'll just say, yes, a little over an hour a little long and we try and keep it a little more pithy. Please reach out an email us we're happy to talk to you Alex biologic Dot com catch on our email list.
Speaker 4: Okay, let's just wrap here real quick. Again, let's see, how much longer does this take? Yep, a little over an hour. A little long. I'm going to try and keep it a little more pithy. Please reach out and email us. We're happy to talk to you. Alex at biologa.com, get you on our email list. Q4 is going to be a great quarter. I mean, we're really excited.
Q4 is going to be a great quarter I mean, we're really excited.
Some of these big partnerships are really coming to bear, which we're very excited about and so we stay steadfast insurer, okay and I know, it's been a long time for some of you.
Speaker 4: Some of these big partnerships are really coming to bear, which we're very excited about. And so we stay steadfast and sure. Okay. And I know it's been a long time for some of you. It's in my heart of hearts. I believe it's worthy.
In my heart of Hearts I believe it's worthy.
Speaker 6: that we're gonna go out and execute and make it worth a fortune and also do something very special for the world. So thank you for your support and let me know how I can help you, all right? Great, thanks Dan.
We're gonna go out execute and make it worth a worth a fortune and also do something very special for the world. So thank you for your support and let me know how can help you right.
Great. Thanks, Pat.
Thanks, everybody take care Bye bye.
So have a good night.
Speaker 2: Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.
Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
Okay.