Q1 2024 BioLargo Inc Earnings Call

[music].

Good afternoon, everyone and welcome to the bio logos first quarter 2024 earnings results.

Speaker Change: At this time, all participants have been placed on listen only mode.

It is now my pleasure to turn the floor over to your host Bryan look for Sir the floor is yours.

Operator: Great. Thank you, Operator. Good afternoon, everybody, and welcome to BioLargo's Q1 2024 Earnings Results Conference Call for the month ended March 31st, 2024. By now, everyone should have had access to the earnings press release, which was issued earlier today. This call is being webcast and is available for replay.

Bryan: Great. Thank you operator, good afternoon, everybody and welcome to Biolife as Q1 2020 for earning results conference call for the months ended March 31st 2024 by.

Bryan: By now everyone should have had access to the earnings press release, which was issued earlier today.

Bryan: This call is being webcast and available for replay.

Operator: In our remarks today, we will 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, the market, and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your question. Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statement.

Bryan: Our remarks today. We will include statements that are considered forward looking within the meaning of the securities laws, including forward looking statements about future results of operations.

Bryan: And our 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.

Bryan: Forward looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties that may cause the actual results to differ materially from the forward looking statements.

Operator: A detailed discussion of such risks and uncertainties is contained in our most recent Form 10-Q, Form 10-K, and in other reports filed with the SEC. The company undertakes no obligation to update any forward-looking statements. On this call, we will refer to non-GAAP measures that, when used in combination with GAP results, provide us with additional tools to understand operations. And with that, I'll now hand the call over to BioLargo's Chief Executive Officer, Dennis Calvert. Hey, thank you.

Bryan: A detailed discussion of such risks and uncertainties are contained in our most recent Form 10-Q Form 10-K.

Bryan: The reports filed with the SEC.

Bryan: The company undertakes no obligation to update any forward looking statements on this call. We will refer to non-GAAP measures that when used in combination with GAAP results provide us additional tools to understand our operations.

Speaker Change: And with that I'll now hand, the call over to Biologics Chief Executive Officer, Dennis Kelleher.

Dennis P. Calvert: Hey, thank you Brian and thanks everyone for joining us. We've had a great quarter and a great year, and it's a wonderful time to regroup and take an inventory and talk a little bit about the future, for sure. I hope you saw the press release where BioLargo generates positive operating cash flow and record quarterly revenues for the first quarter of 2024. And not just a little bit; it's pretty meaningful.

Dennis P. Calvert: Hey, Thank you, Brian and thanks to everyone for joining US we've got we've had a great quarter and a great year and it's a wonderful time to regroup and taken inventory.

Dennis P. Calvert: Talk a little bit about the future for sure.

I Hope you saw the press release dialog to generate positive operating cash flow a record quarterly revenues for the first quarter of 'twenty 'twenty four.

And not just a little bit it's pretty meaningful of course, we still feel like we're just getting started in so many ways, but it is a significant milestone and.

Dennis P. Calvert: Of course, we still feel like we're just getting started in so many ways, but it is a significant milestone and... Also, everyone probably saw the press release just a day ago about our upgrading to the OTCQX. A really nice move, very much a natural next step as the company is really moving into the upper tiers of the OTC that represents about 12,000 companies. It probably puts us in the top 400 or 500.

Also everyone probably saw the press release, just just a day ago about our upgrading to the OTC <unk>, a really nice move.

Dennis P. Calvert: Mentioned natural next step as the company is really moving into the upper tiers.

Dennis P. Calvert: And the OTC that represents about 12000 companies they.

Dennis P. Calvert: Probably puts us in the top four or 500 and of course. It also is a good signal to the market for the company's opportunity to continue upward.

Dennis P. Calvert: And, of course, it also is a good signal to the market for the company's opportunity to continue upward and potentially national exchange listing, which we've talked about for years. And it's coming closer and closer, which is awesome. And BioLargo, we make life better.

Speaker Change: And potentially national exchange listing, which we're talking about for years, and it's coming closer and closer which is awesome.

Dennis P. Calvert: It's a big calling, right? Sustainable solutions for some of the biggest problems that face the planet, really focused on what is good for people, good for the planet, and good for commerce.

Laurie: Laurie we make like better it's a it's a big calling right sustainable solutions for some of the biggest problems that face the planet really focused on good for people and good for the planet good for Commerce.

Dennis P. Calvert: You know, that's a sustainable solution. And that's where we live. And we've lived there for almost over 15 years. And as a result, we're now witnessing some of these technical innovations, finding a way to market, generate significant revenues, really proving out our investment thesis, and that is to invent it, prove it, and partner. Easy to say, really hard to do, okay, but meaningful.

Laurie: As a sustainable solution and that's where we live and we've lived there for almost over 15 years.

Laurie: And as a result, we're now witnessing some of these technical innovations find their way to the market generate significant revenues really proven out our investment thesis and that is two and then it prove it and partner easy to say really hard to do okay.

Dennis P. Calvert: And when you get it right, it really works well as it is now. We'll talk about that a little bit more for sure. We covered the forward-looking statements, of course, and safe harbors. Always refer to the 10-K and the Q for complete disclosures, including substantive risk factors.

Laurie: But meaningful and we need to get it right and it really it really works well as it is now when I'm talking to talking about that a little bit more for sure.

Speaker Change: Cover the forward looking statements of course, and safe harbors always referred to the 10-K and the Q4 complete disclosures, including substantive risk factors.

Dennis P. Calvert: You know, I always talk about risk, and really, we pride ourselves on risk mitigation, risk management. But everything we do has risk. I mean, when you're trying to provide transformative technologies in competitive markets, it's a jungle. It's a war out there. And so, you know, we pride ourselves on overcoming the hurdles. Sometimes it's taken us a while, but we do overcome them.

Speaker Change: I always talk about risk in and really we pride ourselves on risk mitigation risk management, but everything we do is risk I mean, you know when you're when you're trying to provide transformative technologies and competitive markets you know its a jungle its a war out there.

And so you know we pride ourselves on overcoming the hurdles and sometimes it's taken us awhile, but we do overcome and again, we're witnessing that now but always refer those those significant filings for a complete picture of the risk factors are intact her business.

Dennis P. Calvert: And again, we're witnessing that now, but I always refer to those significant filings for a complete picture of the risk factors that impact our business. Yeah, science and engineers, passion for health and human sustainability and human health, driven by a passion to do something worthy, worthy of a career, worthy of a company, worthy of significant investment, focus on best-in-class solutions, lots of engineering, tons of engineering and science, and focus on problems without a good solution.

Speaker Change: Yes, science and engineers passion about health and human sustainability human health driven by a passion to do something worthy worthy of a career worthy of a company worthy of significant investment.

Speaker Change: Focus on best in class solutions lots of engineering tons of engineering and science.

Focus on problems without a good solution.

Speaker Change: Yeah.

Dennis P. Calvert: That's a big call. This slide always has way too much for us to cover, but we like to print it out so that you can look at it later and just highlight, you know, we've got the BioLargo engine, right? That's the corporate office, that's finance, that's a lot of engineering support for all the operating units and R&D at our operation up in Edmonton, Canada, on campus at the University of Alberta. It's quite a collection of people.

Speaker Change: It's a big calling.

Speaker Change: This slide always has way too much for us to cover but we'd like to print. It. So that you can look at it later and just highlight you know we've got the buyer Lago engine right. That's.

Speaker Change: That's corporate office that's finance.

Speaker Change: Lot of engineering support for all the operating units and R&D at our operation up in Edmonton, Canada on campus University of Alberta is it's quite a collection of people you know we said in our press release highly qualified people doing something important and having the freedom the freedom to go out and stretch and really tackle some of the biggest problems as we say it takes the planet.

Dennis P. Calvert: You know, we said in our press release, highly qualified people doing something important and having the freedom, the freedom to go out and stretch and really tackle some of the biggest problems, as we say, that face the planet, face the industry. Anyway, CLEAR is doing great. We're anxious for it to push through on the launch of products to the next stage. It's in the works. It's close.

Speaker Change: Place industry anyway.

Speaker Change: Like clear as clear is doing great. We're anxious for it to push through on the launch of products to the next stage. It's in the works. It's close we're making significant investments in the infrastructure will cover that in a minute the energy companies and youngest of course, we're producing battery cells will talk about the detail on that in a minute we'd hope to have those battery cells in our hands in Q1.

Dennis P. Calvert: We're making significant investments in the infrastructure, and we'll cover that in a minute. The energy company is the youngest, of course.

Dennis P. Calvert: We're producing battery cells. We'll talk about the details on that in a minute. We'd hope to have those battery cells in our hands in Q1, so we're pushing a little late.

Speaker Change: So were pushing a little late and there is there's a number of technical thing has gone on there I'll describe that in Libra presentation, but we're on the cusp of being able to deliver a battery for our own testing also for third party testing, which is a pivotal moment to really open up the opportunity to the next step.

Dennis P. Calvert: And there are a number of technical things going on there, but I'll describe that in a deeper presentation. But we're on the cusp of being able to deliver a battery for our own testing, also for third-party testing, which is a pivotal moment to really open up the opportunity for the next step. O&M Environmental Corps is breaking records carrying, with the POOF and O&M, they're probably carrying, you know, at 90% of our revenue or 85%.

Speaker Change: Oh, and environmental course, breaking records carry.

Speaker Change: With the proven O&M, they're probably carrying eight and 90% of our revenue, 85%, it's a big number.

Dennis P. Calvert: It's a big number. Just continuing to push forward and break records, an incredible year and an incredible first quarter, really significant and again, a full circle story, a full circle story for the company. He goes back to the origin story of the company. And we're also watching some of these additional product designs come to market in our partnership with Pouf. Pouf has just done more above and beyond what we had ever really hoped for.

Speaker Change: Continuing to push forward and break records.

Speaker Change: An incredible year and an incredible first quarter.

Speaker Change: Really significant and again full story circle full circle story Southern company full circle story.

Speaker Change: And it goes back to the origin story of the company and we're also watching some of these additional product designs come to market and our partnership with Poof Poof is just has done more above and beyond what we had ever really hoped for it's just it's just an incredible opportunity that's continued to expand and.

Dennis P. Calvert: It's just an incredible opportunity that's continued to expand, and we're proud of that. PFAS, of course, is a super hot topic. These most recent regulatory shifts that came out in the last couple of weeks really pushed the market towards us. We're going to decipher some of those for you here in just a second as well.

Speaker Change: We're proud of that.

Speaker Change: The P fast of course Super Hot topic. These most recent regulatory shifts that came out in the last couple of weeks really pushed the market towards us. We're gonna designed for some of those for you in here in just a second as well, it's really meaningful to them the value proposition that we put forward in that marketplace and it's again, it's just pushing customers to us every.

Dennis P. Calvert: It's really meaningful to the value proposition that we put forward in that marketplace. And again, it's just pushing customers to us. Every time the new rule comes out, people look at you and go, oh, now I understand. It's like, yeah, now you understand.

Speaker Change: The time, the new rule comes out people look at you go Oh now I guess, it's not yeah now you get it you know we're here with a solution. That's that's three years ahead years ahead of those regs and the market and as a result, we still are very optimistic difficult very hard we are optimistic about the future.

Dennis P. Calvert: You know, we're here with a solution that's years ahead of the regulations and the market. And as a result, we still are very optimistic. Difficult, very hard, but optimistic about the future, for sure.

Speaker Change: For sure.

Dennis P. Calvert: Okay, that's this is a slide from the last quarter. So that's six years, right? Six years. Look at that revenue growth. We said we didn't forecast it.

Speaker Change: Okay. This is a slide from the last quarter. So that's six years six years, we get that revenue growth and I always say, we didnt forecast, we just did it.

Dennis P. Calvert: We just did it, really good. And then here's the quarter and what it looks like. And notice the significant drop, you know, increase in revenue but not a significant increase in SG&A to correspond, and hence positive cash flow. Q1, 481,000, an increase of 483,000 from minus 2,000 in Q4. Revenues in Q4 were up about 390,000, 9% quarter to quarter, 28% compared to Q1 2023. Net loss has reduced quite a bit, a 32% decrease at 57%.

Speaker Change: It's really good and then here is the quarter and what it looks like.

Speaker Change: Alright, and notice the significant increase in revenue, but not a significant increase in SG&A to correspond.

Speaker Change: Hence positive cash flow Q1 481000.

Speaker Change: An increase of 483000 for minus minus 2000 in Q4.

Speaker Change: Revenues are.

Speaker Change: Over Q4 is up about 390009% quarter over quarter, 28% compared to Q1 2023.

Speaker Change: Our net loss was reduced quite a bit and 32% decrease in 57%.

Dennis P. Calvert: 50% increase and net loss. The amount of the net loss 623 is non-cash equity compensation expense, and you know the accounting treatment on that is just really incredible so that that vesting schedule impacts the P&L in that way. Of course, we do believe we'll overcome that as well as we continue to increase the top line, and of course, that's highly subject to our partner's delivery, but we do believe that it's a bright future We took the run rate that we're currently operating, and we just multiplied by four. It's really pretty simple.

The increase in net loss of the amount of the net loss of 620, <unk> noncash equity compensation expense and you know the.

Speaker Change: The accounting treatment on that is just just really incredible.

Speaker Change: So that that that vesting schedule impacts the P&L in that way of course, we do believe we'll overcome that as well as we continue to increase the topline revenue.

Speaker Change: And of course, that's highly subject to our partners' delivery.

Speaker Change: But we do believe that it's a bright future.

Speaker Change: We took the run rate.

Speaker Change: We're currently operating and we just multiply by four it's really pretty simple.

Dennis P. Calvert: If we just do what we're doing and maintain this average threshold, then year-end 2024 will come in at around $19 million. That's pretty awesome. That'll be another 100% year-over-year growth, and while we're not projecting the positive cash flow from that, what we can say is we're always very capital conservative. We want to conserve that capital by leveraging partnerships, making incremental investment, breaking through the proof of claim, and then really relying on the tools and resources of partners to expand at a national and potentially global level, as we've done with POOF. So that's the best example, and what it really shows is the power of that model. I'm just going to just go back real quick.

Speaker Change: If we just do what we're doing and maintain this average thresholds.

Speaker Change: And acute than our year end 2024 will come in at around $19 million.

Speaker Change: That's pretty awesome that'll be another hundred percent year over year growth.

Speaker Change: And while we're not projecting the positive cash flow from that what we can say is we're always very capital conservative what we want to conserve that capital by leveraging partnerships, making incremental investment you're now breaking through the proof of claim and then really relying on the tools and resources of partners to.

Speaker Change: [noise] spanned the national and potentially global level.

Speaker Change: As we've done with pool. So that's the best example.

Speaker Change: What it really shows is the power of that model.

Speaker Change: Just go back real quick.

Dennis P. Calvert: Let's take a look at that SGNA again one more time. As the incremental revenues climb dramatically, and the overhead SG&A stays relatively flat, the incremental cash flow can be substantial. We expect that trend also to continue to hold. True, we are investing. So when we look at the net loss, that includes all the R&D and the non-cash charges to the equity compensation arrangement.

Speaker Change: Let's just take a look at that SG&A again, one more time.

Speaker Change: Is the incremental revenues climbed dramatically and the overhead rates as the overhead SG&A stays relatively flat.

Speaker Change: Incremental cash flow is can be substantial when you expect that trend also continued to hold.

Speaker Change: True we are investing.

Speaker Change: So when we look at net loss that includes all the R&D and.

Speaker Change: And the non cash charges to the equity compensation arrangement.

Dennis P. Calvert: And as much as possible, we're focused on investing in capital assets for making money. As we are, like with CLERA, we made a substantial commitment of almost 800,000 to beef up the infrastructure to support the distribution of substance, big numbers. And we're excited about that. It's been a long time coming.

Speaker Change:

Speaker Change: And as much as possible, we're focused on investing in capital assets for making money as we are like with clearer. We made a substantial commitment of almost 800000 to beef up the infrastructure to support distribution of substance big numbers and we're excited about that it's been a long time coming and again, we would have expected it to.

Dennis P. Calvert: And again, we would have expected it to really launch sooner, but in the throes of the battle, what we've learned, of course, is that the detail required to support the kind of, expectations, significant expectations of our future really required that we invest and prepare and invest and prepare. And we've been doing that all along, and it's really quite exciting. The other is net shareholder equity.

Speaker Change: Really launch sooner, but in the throes of the battle, what we've learned of course is that the detailed required to support the kind of.

Speaker Change: Expectations significant expectations of our future really required that we invest and prepare and invest and prepare and we've been doing that all along and it's really quite exciting the others net shareholder equity.

Dennis P. Calvert: Again, a big number because why? Well, because if you wanna talk about national changes, that net shareholder equity number is a big number. We do expect that to continue to rise with rising revenue, rising cashflow, and incremental investment. And remember that part of our strategy that's so unique is we do have the ability to capitalize some of the ventures, the subsidiaries, and their venture status with partners, investors who come in and purchase equity in those subsidiaries to give us some leverage, leverage without relying on dilution at the parent level when a lot of people believe our valuation is still quite low.

Speaker Change: Again, big number because why well because if you want to talk about national changes that nice shoulder equity number is a big number we do expect that to continue to rise with rising revenues rising cash flow and incremental investment and remember that part of our strategy that is so unique is we do have the ability to capitalize some of the ventures the subsidiaries and their venture stat.

Speaker Change: As with partners investors, who come in and purchase equity in those subsidiaries to give us some leverage leverage without relying on dilution at the parent level when are when a lot of people believe our valuation is still quite low.

Dennis P. Calvert: So we're really sensitive to that, and we've executed that strategy successfully now for years. We expect it to continue. So when we talk about the portfolio, again, sometimes, you know, if you've been watching the company, you know a lot of this, but I'll cover it quickly because sometimes we get new people that come in, and they just want to understand, right? So Pouf.

Speaker Change: So we're really sensitive to that and we've been we've executed that strategy successfully now for years, we expect it to continue.

Speaker Change: So when you're talking about the portfolio again, sometimes you know if you've been watching the company you know a lot of this but I'll cover it quickly because sometimes we get new people to come in and they just want to understand right. So poof poof as a as an incredibly wonderful product and company and we partner with.

Dennis P. Calvert: Pouf is an incredibly wonderful product and company, and we partnered with them now two and a half, three years ago, and they've done exactly what they said. They're experts in brand building. They've built national brands for the last 30 years as individuals in their careers, and they came to us and said, hey, we think you've got a product that could be a billion-dollar brand. And we said, we needed two. And they said, well, we can do that with you. And so we made a deal.

Speaker Change: I am now two and a half three years ago and they've done exactly what they said they are experts in brand building brand building they built national brands.

Speaker Change: For the last 30 years as individuals in their career and they came to US and said Hey, we think you've got a product that could be a $1 billion brand.

Speaker Change: So we need to and they said well we can we can do that with you and so we made a deal with soon we'll we'll do that if we can control supply chain.

Dennis P. Calvert: We said, we'll do that if we can control supply, make a little bit of money on the supply chain, make a little bit of money on the royalty, and we gave an exclusive to our partner for the PET odor control category in exchange for participation in the exit if it exits at 20%. They're doing so well by breaking such significant records that we hope they really want to grow it to a significant level. We hope so.

Speaker Change: Like a little bit of money on the supply chain like a little bit of money on our royalty and we gave an exclusive to our partner.

Speaker Change: For the pet odor control category in exchange for an exit of the sport participation.

Speaker Change: Asian, and the exit if it exits of 20%.

Speaker Change: Doing so well and breaking such significant records that we hope they really want to grow it to a significant level. We hope so that would be awesome for everybody and they're doing so well within the products. We've got some stats here.

Dennis P. Calvert: That would be awesome for everyone, and they're doing so well with it and the products. We've got some stats here that are helpful. Their thesis for us is their target is 20% quarter-over-quarter growth. Now that's proof, tells us 20% took quarter over quarter.

Speaker Change: That are helpful.

Speaker Change:

Speaker Change: There their thesis for us as their target is 20% quarter over quarter growth.

Speaker Change: No that's proof tells us 20% quarter over quarter, our number as a wholesaler basically.

Dennis P. Calvert: Our numbers, as a wholesaler, basically increase when their numbers increase and decrease when their numbers decrease. So far, they consistently hit that mark, which is roughly 100% growth year over year. They've also expanded retail outlets. So one time, they said, you know, we're targeting 25,000 retail outlets. We know we've blown through those numbers. Now, what's happened is they've got such a great presence, and the numbers are so significant. Less and less information is available.

Speaker Change: Increase within hours increase and decrease when their numbers decrease.

Speaker Change: So far they have consistently hit that mark which is roughly 100% growth over the year over year.

Speaker Change: They've also expanded retail outlets at one time. They said you know were targeting 25000 retail we know we've blown through those numbers now what's happened is they've got such a great presence in the numbers are so significant.

Dennis P. Calvert: We think that's just fine. It's a highly, highly competitive market. So we win with numbers, and that's exactly what they're doing. Now, they are advertising Walmart, Amazon, Ace Hardware, Home Depot, some others once in a while you see in advertisements, but they've got a whole menu and an expanding menu of national accounts. We also have new products, and they're coming soon. We don't know the official launch dates, but we've been active in the supply chain and the design. They're really cool.

Speaker Change: Less and less information is available we think that's just fine it's a highly highly competitive market.

Speaker Change: So we win with numbers and that's exactly what they're doing now they are advertising Walmart Amazon Ace hardware home depot, some others once while you see an advertisement.

Speaker Change: But they've got a whole menu and an expanding menu of national accounts also have new products and coming soon we don't have an official launch dates, but we've been active on the supply chain and the design, they're really cool, we know there'll be some new content that will come out to support their merchandising strategy on the TV direct to consumer so again very excited.

Dennis P. Calvert: We know there will be some new content that will come out to support their merchandising strategy on television, direct-to-consumer. So again, very excited. Nothing's changed except that they've proven that they're able to achieve their goals, which is 20% quarter over quarter. So, as we say, say a prayer and support them.

Nothing nothing has changed except that they've proven.

Speaker Change: That they're able to achieve their goals, which is 20% quarter over quarter. So as we say say a prayer and support them.

Dennis P. Calvert: Let's keep going. It's really exciting. Poof.

Speaker Change: Keep going its really exciting.

Speaker Change: Uh huh.

Dennis P. Calvert: Okay, clear. We talked about it briefly. We just made these significant commitments. We haven't spent all that money, but we spent a lot of it, and more is coming. More will be spent to support the kind of rollout of the product at a very large level, very large level. You know, the thesis of the clear products; we did make a decision. Sometimes I'll hear, you know, you know, why don't we have 100 reps out there selling this product?

Speaker Change: Okay clearer and we talked about it briefly we've just made these significant commitments we have.

Speaker Change: Spent all that money that we spent a lot of it and more coming at more with two new spend to support the kind of rollout of products.

Speaker Change: A very large level very large level.

Speaker Change: The thesis of the clearer products, we did make a decision sometimes all here.

Speaker Change: Why don't we have 100 reps out there selling this product we made a decision for a number of what we thought it was wise decisions to focus on the partnership at a at a high level.

Dennis P. Calvert: We made a decision for a number of what we thought were wise decisions to focus on the partnership at a high level, partner with distribution, that often includes co-branding. It includes very much like proof of buy rate as a manufacturer, where we contract manufacturers, we're not building manufacturing. We contract with professional manufacturing companies, and we have a markup; we establish a sell rate or a take rate.

Speaker Change: Partner with distributions that often includes co branding. It includes very much like proof of buy rate as a manufacturer where we contract manufacturer without building manufacturing.

Speaker Change: We contract with.

Speaker Change: Professional manufacturing companies.

Speaker Change: And we.

Speaker Change: Have a markup, we went and we establish a sell rate or take rate.

Dennis P. Calvert: And then our partners can take those products throughout their distribution channel with proven call patterns, complementary to existing products, to really introduce a very technical product to a very technical audience, the healthcare field. The first target, as we mentioned, is orthopedic surgery, but with this Bio Cleanze, there's a number of other opportunities that are coming. We're now negotiating with a number of national parties, which is awesome, two in particular that are quite significant, and some other entrants are now entering the field.

Speaker Change: And then our partners can take those products throughout their distribution channel with proven call pattern complementary to existing products.

Speaker Change: Products are to really introduce a very technical product to a very technical audience the health care field.

Speaker Change: The first targets as we mentioned orthopedic surgery.

Speaker Change: With this bio quinn's.

Speaker Change: There's a number of other opportunities that are coming we're now negotiating with a number of national parties, which is awesome.

Speaker Change: Two two in particular that are quite significant and some are other entrants are now entering into the field and the good news is that all of this work that we've done to prepare for such a significant rollout is also providing the comfort and the credibility and the information necessary for some of these large companies to know that they can.

Dennis P. Calvert: And the good news is that all this work that we've done to prepare for such a significant rollout is also providing the comfort and the credibility and the information necessary for some of these large companies to know that they can depend on us. And that's very important, you know; the kind of numbers we believe can happen will demand a lot from us, a lot of support, some capital, and the infrastructure to be well in place and proven and ready for the kind of scale we're talking about. That's what we've been doing. So our optimism has not waned; it's grinding. I can tell you that it's a lot of work and it's really demanding, but it's good.

Speaker Change: <unk> depend on us and that's very important you know that.

Speaker Change: The kind of the kind of numbers, we believe can happen.

Speaker Change: We will demand a lot from us a lot of support some capital and the infrastructure to be well in place and proven and ready for the kind of scale. We're talking about that's what we've been doing.

Speaker Change: So our optimism has not waned, it's grinding I can tell you that it's a lot of work and it's really demanding.

Speaker Change: But it is.

Dennis P. Calvert: And we do believe we're gonna successfully land these partnerships and start to see revenue. It's probably, if you think about the logistics of that, you're probably talking about really launching a product in early 2025. But again, it's such a high level. It's such a high level that the numbers can become traumatic for the company. So we're very excited about PLIRA.

Speaker Change: Is good and we do believe we're going to successfully landing partnerships and start to see revenue. It's probably if you think about the logistics of that you're probably talking about really launching product in early 2025.

Speaker Change: But again, it's such a high level, it's such a high level that the numbers can become.

Speaker Change: Dramatic for the company.

So we're very excited about it clearer.

Speaker Change: P Foss Paphos as and when you say everywhere rhetorically, it's not everywhere. It seems like it's everywhere. It's in your products and you see in your body and <unk>.

Dennis P. Calvert: PFAS is, as we say, everywhere. Rhetorically, it's not everywhere, but it seems like it's everywhere.

Dennis P. Calvert: It's in your products and in your body. Cosmetics and food and food packaging and on and on it goes, and it's getting so much attention. I just noticed a couple days ago they were talking about re-releasing Dark Waters, the movie. Just again, I want to say if you haven't watched it, find it. I think it's on Netflix.

Speaker Change: Cosmetics, and food and food packaging and on and on it goes.

Speaker Change: And it's getting so much attention I just noticed a couple of days ago. They were talking about re releasing dark waters the movie.

Speaker Change: Again, I will say if you haven't watched it find it I think it's on Netflix.

Dennis P. Calvert: And it's the story of the attorney who took on the big industry, mostly DuPont, for producing these forever compounds that nature cannot degrade, and if nature can't degrade them, they stick around forever, and of course, they're linked to birth defects and cancer, and it's a huge global problem. Now the total addressable market, you know I've heard people say 17 trillion. Let me just understand the magnitude here. And we know that the government has just allocated just about 10 billion. One of the 3M litigation cases settled for, I wanna say, 10.5 billion.

Speaker Change: And it's the story of the attorney who took on big industry, mostly Dupont.

Speaker Change: For producing these forever compounds that nature cannot do great.

Speaker Change: And then page can't degrade them, they stick around forever and of course, they're linked to purchase <unk> in cancer.

Speaker Change: And it's a it's a huge global problem now.

Speaker Change: Total addressable market you know whenever people say 17 trillion.

Speaker Change: Let me just understand the magnitude here and we know that the government is just allocated just over about 10 billion.

Speaker Change: One of the three in litigation cases settled for Oh, let's say $10 5 billion.

Dennis P. Calvert: DuPont has had a couple of billion-dollar cases settled, Tyco for the firefighting foam has had some really large settlements as well, and what's just recently happened is the regulations continue to tighten, and as they do, we're looking smarter and smarter. Now, this has been almost four years of work, and we've got over 13 trials. We've got our first customer and a commercial installation process. We're building that unit as we speak. Okay, on April 10th, the EPA came out with the finalized standard of four parts per trillion. That's testing money.

Speaker Change: Dupont has a couple of billion dollars cases settle.

Speaker Change: Tycho for the firefighting foam is having some really large settlements as well.

Speaker Change: And what's just recently happened as the regulations continue to tighten and as they do we're looking smarter and smarter.

Speaker Change: Smarter and smarter now this has been almost four years of work and we've got over 13 trials we got.

Speaker Change: Our first customer in our commercial installation process, we're building that unit as we speak Okay. On April 10th the EPA came out with a finalized standard of four parts per trillion, that's a testing limit.

Dennis P. Calvert: It means that if you test for PFAS and detect greater than four parts per trillion, you have a problem, and you have to fix it. Now, that's a drinking water standard, right?

Speaker Change: Means that if you test for P Foss and detached greater than four parts per trillion you have a problem and you have to fix it now that's a drinking water standard drinking water standards a lot of the industries youre going to have other standards.

Dennis P. Calvert: A lot of the industries are going to have other standards, but it really points the way towards, you know, how the government is thinking about this contaminant. And basically, I've heard people say, no amount of PFAS is good. Say that again. None.

Speaker Change: But it really points to the way towards you know how the government is thinking about this contaminant and basically I've heard people say no amount of Paphos is good.

Say that again none.

Dennis P. Calvert: We've even seen some people really pushing for regulatory enforcement to a non-detect level. I asked a hydrologist the other day, working at one of these big conferences, "How many years is it going to take the water table to clean up the PFAS?" CFP, What's the answer?

Speaker Change: We've even seen some people really pushing for regulatory enforcement to another tech level Aster hydrologists. The other day working it was at one of these big conferences and say how many years is going to get the take the water table to cleanup the P farce.

Speaker Change: 50.

That's the answer.

Dennis P. Calvert: 50 years. It's just not going to, you know. It took 50 years to get in and 50 years to get out, if you can get it out. Anyway, the point is that the government is taking aggressive action, and it's forcing the industry. A lot of people have been on the sidelines waiting for regulatory changes. They say, oh, they'll never go to four parts per trillion. And we've been saying since... for the last two years. Yes, they will.

Speaker Change: 50 years so.

Speaker Change: There is not going to you know it took 50 years ago. They took years to get out if you can get it out there.

Speaker Change: It was really sure anyway. The point is that the government is taking aggressive action and its forcing the industry a lot of people who've been on the sideline waiting for regulatory it's all they'll never go to a full price for Chilean and we've been saying since.

Speaker Change: For the last two years, yes, they will and sure enough they did.

Dennis P. Calvert: And sure enough, they did. Just recently, some additional rules came through announcing the $10 billion in funding, $9 billion for municipal to support municipal, fixes for drinking water, and a billion for underserved communities. So that's a $10 billion package. And they also started this CERCLA.

Speaker Change: Just recently some additional rules came through announcing this 10 billion in funding <unk> 9 billion for municipal to support municipal.

Speaker Change: Fixes for drinking water and 1 billion for underserved communities. So it's a $10 billion package and they also started this cercla circular designates the Superfund law and the Superfund law now says that the polluters will will be forced to pay okay well before.

Dennis P. Calvert: CERCLA designates the Superfund law, and the Superfund law now says that polluters will be forced to pay. So this is really a designation, creating legal liability for the polluter and legal recourse for the people that have been injured. And because PFAS is everywhere, there's a lot of complications, like, are you a passive receiver or an active polluter? Did you make compounds and release them in a production facility that's an active site? Are you in a waste facility, waste handling, where PFAS is collected? What are you going to do? Are you liable because you've collected PFAS that somebody else made?

Speaker Change: So this is really a designation, creating legal liability for the polluter and legal recourse for the people that have been injured.

Speaker Change: And because <unk> is everywhere there is a lot of complication like are you a passive receiver and in active polluter did you may compounds and release them in a production facility. That's enacted argument of waste facility waste handling for the people who collect what are you using to do are you liable because you've collected P. Foster somebody else made.

Dennis P. Calvert: Lots of complicated rules. So there's still uncertainty about what to do, but I'll tell you what is known, okay? And what's known is that it's fallen under Superfund, which is pointing to the direction of making the waste stream a hazard. That's what he's doing, and we predicted that's what would happen, and we did it four years ago. And sure enough, that's what's coming true. And as a result, it really is like an aha moment, you know, an uh-oh moment is a better way to say it. An uh-oh moment

Speaker Change: Lots of complicated rules, so there's still uncertainty about what to do but I'll tell you what what is known okay and whats known is that its fallen into super fun, which is pointing to the direction.

Speaker Change: Making the waste stream that has meant.

Speaker Change: That's what it's doing.

And we predicted that that's what would happen and we did it four years ago.

Speaker Change: And sure enough, that's what's coming true and as a result, it really is like.

Speaker Change: Oh moment is a better way to say it and Oh moment, if you're not in the if you don't have a solution.

Dennis P. Calvert: If you're not in, if you don't have a solution, that can shrink the footprint of the waste stream. High Waste, High Money. The other thing, these are recent, and I'm not. I don't want to pretend to be an expert here. Tanya Chan is our expert here. She's speaking all over the country still, but basically, these notices, there's always something moving.

Speaker Change: They can shrink the footprint of the waste stream high.

Speaker Change: High waist high money.

Speaker Change: Pricing going up.

The other thing these are recent and I'm not I don't want to pretend to be expert is tiny tiny channels. Our expert here. She's speaking all of the countries still but basically these notices there's always something moving.

Dennis P. Calvert: And every time they do it, they're kind of boxing in the market. Just the other day, there was this example where they said... We're not going to tell you that you can't recharge carbon, so carbon is an incumbent. It's an incumbent technology, it's been around forever, 50 years, more, and it does okay at collecting a lot of PFAS. The problem is it's got other issues, channels.

And every time, they do it theyre kind of boxing in the market.

Speaker Change: Just the other day there was this example, where they said.

Speaker Change: We're not going to tell you that you can't you can't recharge carbon listeners so carbons as incumbent that's an incumbent technologies just used it it's been around for ever 50 years.

Speaker Change: Sure.

Speaker Change: And it does it does okay collecting a lot of P. Fast so there's a problem. It is it's got other issues channels.

Dennis P. Calvert: They can get bolus breakthrough, but it's gonna have a hard time with some of the short chain molecules. But the big thing is it's just a huge waste stream. You know, remember our thesis? Where that produces 80,000 pounds, we produce like two or three. It's a big deal. Well, OK. If that waste stream is a hazmat, then what are you going to do with 80,000 pounds of hazmat? You've got to pay to have it handled.

Speaker Change: Get bolus breakthrough, it's going to have a hard time with some of the short chain molecules, but the big thing is it's just huge waste stream.

Speaker Change: Remember our thesis is where that produces 80000 pounds, we produce like two or three pounds.

Speaker Change: The big deal well [laughter], Okay, if that waste stream is the hazmat. Okay. Right. Then what do you can do with 80000 pounds. It hasn't it well you got to you have to pay to have it handled well.

Dennis P. Calvert: Well, a lot of the incumbents have said, well, we'll be able to recharge the car and reuse the resin. But, no, that's going to be a real problem. And so, for example, a lot of that recharge of carbon is done through incineration. Well, the government has come out and said, we don't like incineration. So we can't say don't incinerate it, but if you do, We're going to establish testing guidelines that can distinguish between long-chain and short-chain molecules, including the breaking of long chains, which turns them into short chains.

Speaker Change: A lot of the incumbents, who say well don't worry we'll be able to recharge recharge a car reuse the resin.

Speaker Change: Well no that's going to be a real problem and so for example, a lot of that recharge of carbons done through his two incineration.

Speaker Change: The government came out so we don't like incineration. So we can't say don't incinerated, but if you do.

Speaker Change: We're gonna established testing guidelines that can distinguish between long chain and short chain molecules, including the breaking of long chain, which drives them into short chain.

Dennis P. Calvert: So a very, very sophisticated test that's going to exclude most people from doing that. And the second is, you're going to be liable for the release of PFAS into the air. That's a problem, okay? And that's one of the biggest problems when you look at the carbon systems, because it's really in a spot where they're going to have a hard time answering to these regulations. I mean, it's going to get tighter and tighter.

Speaker Change: So we're in a very very sophisticated test that's going to exclude most most people from doing that and the second is you're gonna be liable for the release of P fast to the air.

Speaker Change: That's a problem.

Speaker Change: And that's one of the biggest problems when you look at the carbon systems, because it's really it's really in a spot where theyre going to have a hard time.

Speaker Change: Answering to these rigs I mean, and it just it's going to get tighter and tighter. So this is constantly evolving and every time a new rule comes out. We go there you go because it is really pointing people to us.

Dennis P. Calvert: So this is constantly evolving, and every time a new rule comes out, we go, well, there you go, because it's really pointing people to us. Okay, so again, the thesis, we covered this already, but we can save money; we work with all sorts of different types of water. That's very unusual because of the nature of our using an electrostatic field to migrate and collect PFAS and a flow of water.

Speaker Change: So again the thesis we've covered this already but we can save money and we work on all sorts of different types of water thats very unusual because of the nature of our.

Speaker Change: Using an electrostatic field to migrate and collect paphos in a flow of water and then of course, we have a fraction of the footprint we like to keep these these a lot of words here, but we like to keep it up because people will come back and look at it and it's really the principal of our value proposition in our selling approach.

Dennis P. Calvert: And then, of course, we have a fraction of the footprint. We like to keep these, a lot of words here, but we like to keep it up because people will come back and look at it. And it's really the principle of our value proposition and our selling approach. And it is a turnkey solution. Don't forget that. So, a truck load versus a pail. It's really pretty simple.

Speaker Change: And it is a turnkey solution don't forget that so truckload versus appeal, it's really pretty simple.

Dennis P. Calvert: And if it's, if the cost of handling hazardous materials in its ultimate, you know, just removal, destruction, and, and then what do you do with all the equipment, as that continues to rise, our value proposition shines and shines bright. We like to show this because this is about a thousand gallon a minute system. And so this would be a decent-sized commercial account. It would be about 30 feet by 25 feet.

Speaker Change: And if it's if it's if the cost of handling hazmat material and its ultimate removal.

Speaker Change: Removal destruction and and then what do you do with all the equipment.

Speaker Change: As that continues to regulate our value proposition shines sunshine's Brian.

Speaker Change: We'd like to show this because this is about 1000 gallons a minute system.

And this is so this would be a decent sized commercial account be about 30 feet by 'twenty five feet small building. We can also go vertical.

Dennis P. Calvert: Small building. We can also go vertical. The first assignment is a much smaller system, which we think is good for the first in-the-field deployment, and that's scheduled to happen in the October-November timeframe. Okay. As you recall, we acquired this technology. We've just built a small production facility, primarily for building out batteries for demonstration and testing. But we do believe that there's commercial opportunity in any size of those factories. But based on the response we're getting from our partnering strategy, we believe that achieving some economy of scale is very important. So we're going to talk about how that's going to happen. Every day there's something in the news.

Speaker Change: First the first time in some of our smaller system, which we think is good for the first in the field deployment and that is scheduled to happen in the October November timeframe.

Speaker Change: Okay.

Speaker Change: Solidity as.

Speaker Change #100: As you recall, we acquired this technology, we've just built a small production facility primarily for building out batteries for demonstration and testing.

We do believe that there is a commercial opportunity in any size of those factories.

Speaker Change #101: Based on the response, we're getting from our <unk>.

Speaker Change #102: Partnering strategy.

Speaker Change #102: We believe that achieving some economy of scale is very important when you talk about how that's going to happen.

Dennis P. Calvert: Just rhetorically, it's almost every day, and you hear about big data, you hear about Bitcoin mining and artificial intelligence, supercomputing, how people are worried that the grid can't handle a 3 to 10x increase in demand. Renewable energy is still a priority, and even if it's not renewable, you still need storage to deal with peak demand. So batteries are not going anywhere, and I don't know if you saw this morning on LinkedIn, but we saw an article that they just passed a tariff, putting a 25% tariff on China for importing batteries into the United States. That's a big deal. That's a big deal. And so, you know, "Made in America." No runaway fire risk, lithium. It's got a few.

Speaker Change #103: Every day, there's something in the news.

<unk>, it's almost every day.

Speaker Change #104: And you hear about big data and you hear about to bitcoin mining and artificial intelligence supercomputing Hal.

Speaker Change #104: People are worried that the grid can't handle three to 10 X increase in demand.

Speaker Change #104: Renewable energy is still a priority and even if it's not renewable you still need storage.

Speaker Change #104: Right.

Speaker Change #104: To deal with peak demand.

Speaker Change #104: Right. So so batteries aren't going anywhere and I don't know if you saw this morning on Linkedin, we saw.

Speaker Change #105: Article they just pass the tariff, putting a 25% tariff on China for importing batteries in United States.

Speaker Change #106: That's a big deal.

Speaker Change #106: A big deal and so you know made in America.

Speaker Change #107: No runaway virus.

Scott: Lithium lithium Scott.

Dennis P. Calvert: You know, and people are still deploying lithium batteries in fixed site locations like their garage and buildings and mission-critical operations. They need the batteries, but they have a fire risk, and it's real; the safety risk is real. And again, just do an internet search. You'll see it for yourself. So the value proposition then gets defined pretty easily, right? Better, safer, less expensive, no rare earth, no geopolitical, no importing from a foreign country, certainly no child labor, and all the other stuff that you hear about, none of that, non-venting seal design, 0 to 100, 100 to 0, right?

Speaker Change #109: You know when people are still deploying lithium batteries in fixed site locations like their garage.

Speaker Change #109: And buildings.

Speaker Change #110: Mission critical operations, they need to batteries.

Speaker Change #111: But they have a high risk and it's real safety risks Israel.

Speaker Change #112: And again just to do an internet search you'll see it for yourself.

Speaker Change #113: So the value proposition, then gets defined pretty easily write better safer less expensive no rare earth no geopolitical no importing from a foreign country, certainly no child labor and all the other stuff that you hear about.

Speaker Change #113: None of that.

Speaker Change #113: Non venting field design.

Dennis P. Calvert: You don't have to... notice when you get a lithium battery like in a car... just charged to 20%, charged to 80%, right? Because as it gets to the outer limits of its range, it causes damage to the ion exchange that happens across the electron, degrading its performance, so they don't last as long.

Speaker Change #113: Yes.

Speaker Change #113: We're at 100 hundreds of zero right you don't have to notice when you get a lithium battery like in a car does.

Speaker Change #113: Just charged 20% charged to 80.

Speaker Change #113: Right.

Speaker Change #114: Because as it gets to the outer limits of its range that causes damage to the to the ion exchange that happens across the electrodes.

Speaker Change #114: Grading their their performance probably don't last as long we have none of that.

Dennis P. Calvert: We have none of that. We have none of that. So we believe this is going to be a winner. Now, it's early. We've got work to do. We also have talked about this thesis. I don't want to get too long-winded because I can really go on.

Speaker Change #114: Yeah.

Speaker Change #114: We believe this is going to be a winner now it's early we've got work to do we also have talked about this thesis I don't want to get too long winded, because it's where I can really go here.

Dennis P. Calvert: You know, when we first built that little, that small production facility, we said to ourselves, we could make and sell batteries, which is still true, by the way. But to get to scale, what we need to do is show demand, for our better, whatever that is. Show demand, right? And then, as we looked at the economics and the capital required to get to that scale, we believe the way to do that is to partner through a licensing venture orientation where we would take a minority position and a royalty and literally build the factory to suit. So let's, my big customer. I need some batteries. You know what the question to ask is? How many would you like?

Speaker Change #115: When we first put that little small production facility.

Speaker Change #116: We said to ourselves, we can make and sell batteries, which is still true by the way.

Speaker Change #117: But to get to scale, what we need to do is we need to show demand for our battery.

Speaker Change #118: Well whenever that is show show demand.

Speaker Change #118: And then as.

Speaker Change #118: As we looked at the economics and the capital required to get to that scale.

We believe the way to do that is to partner through our licensing venture orientation, where we would take a minority position in a royalty and literally build the factory to suit.

Speaker Change #119: Big customer I need some batteries you know with the question to ask is how many would you like.

Dennis P. Calvert: How many factories do we need to build? Because we're asking for a royalty and a minority share. We're essentially working on tech transfer. And we've got such an incredible response at this stage. It's very encouraging.

Speaker Change #119: How many factories do we need to build for you.

Speaker Change #119: Because we're asking for a royalty and a minority share.

Speaker Change #119: Essentially working on tech transfer.

Speaker Change #120: And we've got such and such a incredible response at this stage.

Dennis P. Calvert: Again, a lot of work to do chicken and egg everywhere. And what we learned also, of course, is that the scale up of the manufacturing technique for components is really the components that go into the battery. You know, and we've been dealing with supply chains at BioLargo for 16 years, by the way, and it's always this way you come in with innovation. You say, gosh, I hope I can get the supply chain squared away. Well, how do you get the supply chain squared away? Well, you have demand. If you're a big customer, supply chains will participate. So, right, there's a certain amount of economy that comes with scale.

Speaker Change #121: Very encouraging again work to do a lot of work to do chicken and egg everywhere.

Speaker Change #121: <unk>.

Speaker Change #122: And what we learned also of course is the scale up of the manufacturing techniques for components is really critical.

Speaker Change #122: The components that go into the batteries.

Speaker Change #123: And we've been dealing with supply chain and by a large <unk> for 16 years by the way and it's always this way you come in with innovation, you say gosh I hope I can get the supply chain squared away.

Speaker Change #123: How do you get supply chain squared away, where you have demand.

Speaker Change #124: If you were a big customer supply change will participate.

Speaker Change #124: So there's a certain amount of economy that comes with scale. So what we're doing really is we're proving up the technical pieces of the battery.

Dennis P. Calvert: So what we're doing, really, is we're proving up the technical pieces of the battery. We'll then take it through our testing, we'll take it through third-party testing, and we'll then begin working on the scale-up version of that cell that will make PAX, and we're also negotiating partnerships.

Speaker Change #124: We'll then take it through our testing will take it through third party testing.

Speaker Change #125: We'll then begin working on the scale up version of that cell will make packs and we are also negotiating partnerships and we've got so many groups that are interested at this stage, it's really encouraging to us encouraging to pursue encouraging to invest incrementally to get through this validation stages have been put these partnerships together.

Dennis P. Calvert: And we've got so many groups that are interested at this stage; it's really encouraging for us to pursue this, encouraging to invest incrementally to get through this validation stage and see if we can put these partnerships together, ultimately, if we have scaled production. A lot of batteries, and you can be in the energy business. And that's what we're learning, of course. And so that's a later dam. That's a later event to be considered.

Ultimately if you have scaled production.

Speaker Change #125: A lot of batteries you can be in the energy business.

Speaker Change #125: And Thats what were learning of course, and so thats a later down there. So that's a later event to be considered but once you're there you can be in the grid scale storage business you can be the renewable business you could partner with renewable energy. The batteries are a critical component of making all that pencil in work.

Dennis P. Calvert: But once you're there, you can be in the grid-scale storage business. You can be in the renewable business. You can partner with renewable energy. The batteries are a critical component of making all that tensile and work.

Dennis P. Calvert: So here's the marching orders. We're at complete pilot manufacturing, making tests for cells. Again, we hope to have that done in Q4. It's late Q1.

Speaker Change #126: So here's the marching orders.

Speaker Change #127: We're at a complete pilot manufacturing, making tests for ourselves again, we'd hope to have that done in Q4. It's like Q1, we are at the final strokes and so we're optimistic that we'll be showing up with a battery in our hands. It's working very very soon and at which point, we can start with testing in the next piece of the work to scale up being in <unk>.

Dennis P. Calvert: We are at the final stroke, and so we're optimistic that we'll be showing up with a battery in our hand that's working very, very soon, at which point we can start the testing and the next piece of the work to scale up, be in partnerships, and build the first component. Again, we've had such a positive reception for the plan that we believe we're onto something that presents an extraordinarily scalable model that will allow us to expand, and the opportunity to expand on a global basis.

Speaker Change #128: Partnerships and build the first components.

Speaker Change #128: Is there.

Speaker Change #128: Again, we've had such a positive reception to the plan that we believe we're on to something that presents.

Speaker Change #128: Jordan nearly scalable model that will allow us to expand.

Speaker Change #128: The opportunity to expand on a global basis.

Dennis P. Calvert: Okay, so to wrap it all up... We have a family of companies, Innovation Engine. We're excited about the business. Here's my contact information, DC and BioLargo. You're welcome to reach out to us. We'd love to chat. Now, I'm gonna open it up to questions. Mr. Bryan, can you come back?

Speaker Change #129: The thesis, okay, so to wrap it all up.

Speaker Change #130: We have a family of companies innovation engine, we're excited about the business Theres My contact information D. C. A dialogue, though youre welcome to reach out to US we love to chat and now I'm going to open it up to questions. Mr. Brian can you come back.

Brian Loper: Great. Thank you, Dennis. Appreciate that overview. Pretty exciting stuff for BioLargo, Q1 here, positive cash flows, really solid revenue, wanted to clarify his proof, are still the leading revenue driver.

Speaker Change #131: Great. Thank you bonus I appreciate that overview.

Speaker Change #132: Pretty exciting stuff for biomarker, though Q1 here.

Speaker Change #133: Positive cash flows really solid revenue.

Speaker Change #133:

Speaker Change #134: Wanted to clarify is curve still.

Speaker Change #135: Leading revenue driver.

Dennis P. Calvert: Yeah, sure. I don't know the exact number, but it's got to be 85-90%.

Speaker Change #136: Yeah sure I don't know the exact number but it's got to be 80, 590%.

Speaker Change #136: Excellent.

Brian Loper: All right, so we have a few questions. Let's start with Poof, it's the most exciting one. So, Michael Matheson, analyst at Singular Research, asked, are there any new retailers that have signed up to sell Poof? And where do they stand in the rollout?

Speaker Change #137: Alright, so we have a few questions.

Speaker Change #138: Let's start with <unk>.

Speaker Change #139: Most exciting one.

Speaker Change #139:

Speaker Change #140: So Michael Matheson analysts that singular research.

Speaker Change #140: Are there any new retailers that have signed up to sell to and where do they stand rollout.

Dennis P. Calvert: Yeah, we do. We have the benefit of that knowledge, but it's not public information. And it's really obvious why, right? Why not?

Speaker Change #141: Yeah, we do we have the benefit of that knowledge, but it's it's not public information and.

Speaker Change #142: It's really obvious why right why well because poops managing a lot of national accounts and each one has a different margin analysis and in fact, they pursue what they call an omnichannel omnichannel strategy.

Dennis P. Calvert: Well, because POOF's managing a lot of national accounts, and each one has a different margin analysis, and in fact, they pursue what they call an omni-channel, omni-channel strategy. That means all channels, and each channel has a cost metric and a reward, and they pursue all of them at the same time. So omni-channel.

Speaker Change #143: All channels in each channel has a cost metric and a reward and they pursue all of them at the same time. So omnichannel. So yes, and there is their stated mission is to use direct to consumer brands to build brands and leverage that brands, so that they drive customers to the retailers to support.

Dennis P. Calvert: So, yes, and their stated mission is to use direct-to-consumer to build brands and leverage that brand so that they drive customers to the retailers to support, essentially, a global rollout. So that's what they're doing. So yes, it is expanding. There's a lot there already. We believe it's well over 30,000, and I know along the way they said that over this next year they'd love to be at about 80,000. I don't know where they are in there, and I'm not sure we'll be publishing. I just think what we're going to see is significant growth in revenue, and that's what we have seen, and that's where we're going to find our rest.

Speaker Change #142: Essentially global rollout.

Speaker Change #144: So thats what theyre doing so yes. It is expanding there is a lot there already we believe is well over 30000.

Speaker Change #145: And I know along the way they said over.

Speaker Change #146: Over this next year they'd love to be at about 80000, I don't know where theyre at in that and I'm not sure we'll be publishing and just think what we're gonna see as significant growth in revenue.

Speaker Change #147: And Thats, what we have seen and that's that's where we're going to find a rest.

Dennis P. Calvert: Yes, you've mentioned before Proof having new products like wipes or puppy pads. Are there any ETA projections on sales for those?

Speaker Change #147: Yes.

Speaker Change #148: As mentioned before proof, having new products like wipes puppy pads, there is b E T a projections on sales for those.

Dennis P. Calvert: I don't know. You know, we were not aware in the past.

Speaker Change #148: I don't know.

Speaker Change #148: We.

Speaker Change #148: We're not aware in the past.

Dennis P. Calvert: What we know, what we do know, is that the way POOF operates is that test, test, test, test, test, test, and refine. It's a methodical process designed to optimize results. They don't spend a lot of money and hope to spin their way to success. It's precision. So I suspect they'll do similar with these. They'll test and test and test, and when they get it just right, then they'll push the accelerator down. And so we've seen some of these products in early marketing, and so I suspect that we'll see some of these results start to show up here in the near future. But again, I'm not in a position to predict time.

Speaker Change #149: What we what we know what we do know is that the way <unk> operates as they test test test test test and refine.

Speaker Change #150: It's a methodical process designed to optimize result they.

Speaker Change #151: They don't spend a lot of money and hope to spin their way to success it's precision.

Speaker Change #151: So I suspect will be similar where these well test and test the testing when they get it just right then they'll push the accelerator down and so we've seen some of these products and early market.

<unk>.

Speaker Change #151: So I suspect that we'll see some of these results start to show up here in the near future, but again I'm not in a position to predict time.

Dennis P. Calvert: All right. Switching gears, a few questions here on clearance. So from an investor's point of view, John Siebing, what has prevented CLIRA from finalizing its agreement with their intended partner? Yeah.

Speaker Change #152: Oh no.

Speaker Change #153: Switching gears a question two are unclear.

Speaker Change #154: So from an investor.

Speaker Change #154: John feeding.

Speaker Change #154: What has prevented clearer finalize something.

John: With their incumbent partner.

Dennis P. Calvert: Yeah, it's the right question. Yeah, mostly it's preparation for launch. You know, it's and again, we use language, and people miss words all the time with all of these talks. It's hard to do.

Speaker Change #156: Yeah. So great question, yes, mostly it's preparation for launch.

Dennis P. Calvert: And one of the some of the words we talked about was negotiating partnership. And that's it. That's everybody got their head around that. That's fine.

Speaker Change #156: Yeah.

Speaker Change #157: And again, we use language and people people mince words, all the time with all of these talks it's hard to do.

Speaker Change #158: And one of the some of the words, we've talked about we're negotiating a partnership.

Speaker Change #158: And that's that's everybody got their head around that that's fine.

Dennis P. Calvert: It's a little more than that. What we're really doing is preparing to launch a product in the national market with a big, and so material terms are agreed upon; the partners, the parties who want to play together have reached agreement about what the products are and the claims. And so then the question is, are we ready to go big? And that's hence the investment. And so we needed to make sure that we had strong supply chain partners, ready with all the technical support, ready with all the FDA compliance, ready with all the technical challenges to go to scale, and Dennis Loper. In fact, there were hundreds of items on the checklist.

Speaker Change #159: It's a little more than that what we're really doing is preparing to launch product in the national market with a big partner.

Speaker Change #159: And so material terms are agreed upon.

Speaker Change #160: The partners the partners the parties, who want to who want to play together.

Speaker Change #160: Have met agreement about what the products are the claims and so then the question is are we ready to go big and that's hence the investment.

Speaker Change #160: And so we needed to make sure that we had strong supply chain partners.

Speaker Change #161: Ready with all the technical support ready with all the FDA compliance ready with all the technical challenges to go to scale.

Speaker Change #161: And.

Speaker Change #161: I mean in fact as you know hundreds of items on the checklist. So we've been marching through all that and I think the answer is when that product is it is ready for that scale everybody wants to launch.

Dennis P. Calvert: So we've been marching through all that, and I think the answer is that when that product is ready for that scale, everybody wants it. And so we've been pushing that along. And it's been very intense and demanding, hence the major investments that we're making in the supply chain. Now, when we make those investments in capital equipment, we're buying equipment for our supply chain partners that we own in their location to help support them at the kind of scale for product design that we have made a mutual agreement with our partners.

Speaker Change #161: And so we've been pushing that along and it's been very intense and demanding.

Speaker Change #161: Hence the major investments that were making on the supply chain and when we make those investments in capital equipment, we're buying equipment for our supply chain partners.

Speaker Change #162: That we own in their locations to help support them in the kind of scale from a product design that we've made.

Speaker Change #162: Agreement with our partners.

Dennis P. Calvert: So, thank you. The answer is, there's a lot going on, and we're very excited and we're making a real commitment, and we're anxious to see that result in the launch of a global product, again, co-branded with great partners. So standby is coming.

Speaker Change #162: So.

Speaker Change #163: The answer is there's a lot going on and we're very excited and we're making real commitments and we're anxious to see that.

Speaker Change #164: <unk> and the launch of our global.

Speaker Change #164: Alex.

Speaker Change #164: Again co branded with with Great partners.

Speaker Change #165: Standby is kind of.

Dennis P. Calvert: Yeah, and in the release, it also said that you're investing in the scaled-up manufacturing of bioclasts. If you have a forecast when you'll be ready for...

Speaker Change #166: Yeah, and then released it also said that you are investing scaled up manufacturing of biologics.

Speaker Change #167: And do you have a forecast.

Speaker Change #168: We'll be ready for.

Dennis P. Calvert: Well, that's a good question. You know, we feel like, in many ways, so that's a good question.

Speaker Change #169: Well that's a good question you know we feel like in many ways.

Speaker Change #169: So that's a good question some of these products have special design and packaging, whether using the marketplace confidential and so some of that requires special equipment.

Dennis P. Calvert: Some of these products have special designs and packaging, and the way they're used in the marketplace is confidential. And so some of that requires some special equipment. And so all of that's been speculative. And if everybody's in go mode, you're probably talking about four to six months before the first product's coming off the line, at which point you're ready to launch, and so really, we're at that moment where is everybody ready or not ready, and let's check off the list, and, as we said, let's get going.

Speaker Change #169: And so all of that has been spec.

Speaker Change #170: And if everybody didn't go mode, you're probably talking about four to six months before the first products coming off the line at which point you're ready to launch.

And so really we are at that moment, where is everybody ready or are not ready and let's check off the list and you know as we said, let's get going.

Speaker Change #170: Oh right.

Dennis P. Calvert: All right, I'll talk a little bit about water. [inaudible] Patrick Gingerelli, how quickly does the company expect to begin signing additional AEC projects now that EPA regulations have been finalized?

Speaker Change #171: Alright, well talk a little bit about water.

Speaker Change #172: Let's see here Patrick that Ginger rally how quickly does the company expect to begin signing additional AUC projects now that EPA regulations have been finalized.

Dennis P. Calvert: Yeah, well, we've got a bunch in the process, so again, when we have a proposal with a client... Those are 20-page documents that go through a complete specification and the capital budget and execution, including the service contracts and the warranty and all the things that go with it. So, um... We've got many, many, over 20, of those kind of projects that have gone through that exhaustive process. Now, the regs have kicked in.

Speaker Change #173: Yeah, well, we've got a bunch in process. So that so again, we have a proposal with the client.

Speaker Change #174: Was there a 20 page documents through a complete specification.

Speaker Change #174: And the capital budget and execution, including the service contracts in the warranty and all the things that go with it.

Speaker Change #174: So.

Speaker Change #174: We've got.

Speaker Change #175: We've got many many oh.

Speaker Change #176: Over 20.

Speaker Change #177: Of those kind of projects that have gone through that exhaustive process now the regs have kicked in there's still a lot of it is cycling going on but generally speaking people are realizing the waste stream is going to be a big deal and that's our value proposition highlighted.

Dennis P. Calvert: There's still a lot of deciphering going on. But generally speaking, people are realizing the waste stream is going to be a big deal and it's our value proposition highlighted. And so, you know, when it's such an easy question to ask, I don't think I can win on the answer.

Speaker Change #178: And so when it's such an easy question to ask I don't think I can win on the answer.

Dennis P. Calvert: You know, we think soon. We've been very optimistic. We've got a lot of prospects on the table, and we're hoping to get them closed.

Speaker Change #179: We think soon.

Speaker Change #179: Been very optimistic we've got a lot in the past a lot of prospects at the table and we're hoping get them close just as soon as we can.

Speaker Change #179: So that's what we got right yes.

Dennis P. Calvert: Yeah, just one note on that. I know you guys didn't have to make any changes to your technology. When the new regulations came out, you were already meeting your standards, whereas some competitors are going to

Speaker Change #179: Just one note on that I know you guys didn't have to make any changes to your technology. When the new regs came out we're already meeting those standards, whereas some competitors are going down where we use them.

Dennis P. Calvert: Yeah, let's be more specific. Yeah, so the four parts per trillion, we've already proven non-detect capability, right, and consistently below four parts per trillion is the wheelhouse. Also, the new PFAS compounds that have been designated, we've proven success in eliminating those in a variety of different types of water, as well. So yeah, and then, of course, the simple intuition on handling is less is more, right? The smallest footprint on the waste stream wins. That's up.

Speaker Change #180: Let's be more specific yeah. So the four parts per trillion, we've already proven non detect capability right and consistently below four parts per trillion.

Speaker Change #180: Also the new faucet compounds that have been designated we've proven success and eliminating those and more.

Speaker Change #181: Variety of different types of waters well.

Speaker Change #182: So yeah, and then of course, the simple intuition on the handling is less is less is more right. The smallest the smallest footprint on the waste stream wins that's us.

Speaker Change #182: The smallest footprint and remember the whole argument was most efficient collector and then you can manage the waste.

Dennis P. Calvert: And remember, the whole argument was, be the most efficient collector, and then you can manage the weight, you can manage destruction. It's pretty easy to handle two pounds of PFAS for destruction. It's not easy to handle 80,000 pounds of carbon-laden PFOS that's a hazmat. It just isn't.

Speaker Change #182: You can manage disruption.

Speaker Change #183: Pretty easy to handle two pounds was <unk>.

Speaker Change #183: <unk> for destruction.

Speaker Change #183: Not easy to handle 80000 pounds of carbon laden P Foster to hazmat.

Dennis P. Calvert: And the same thing, even the ion exchange systems that we've seen deployed, you know, they have a rejectate, which is a concentrated waste stream. And the thesis has been, well, we can regenerate the resins to reuse them again, making them, quote, efficient, right, more economically efficient. I don't think so. I mean, now you've got to get down to four parts per trillion, and you've got to hazmat. And in order to break the long-chain molecules attached to the resin, you're going to destroy the resin.

Speaker Change #184: And the same thing even the ion exchange systems that we've seen deployed.

Speaker Change #184: Have a reject eight which is a concentrated waste stream.

P Foster: And the thesis has been well, we can regenerate the resins to reuse them again, making them quote efficient right more economically efficient.

Speaker Change #186: I don't think so.

Speaker Change #187: Now you got to get down to four parts per trillion and you've got a hazmat.

In order to break the long chain molecules.

Speaker Change #188: <unk>, two a resin youre going to destroy the resin.

Dennis P. Calvert: Now somebody may prove me wrong, but so far we haven't seen anything like that in the market. Again, these technical challenges are subtle, but very technical, and we're out in the marketplace educating and, you know, and helping train the customers and the engineers to understand, you know, what's being, what's going on. I mean, and we're always amazed, you know, we go out and we lay it out just the way we see it and, you know, what we hear is, oh, my goodness, well you're you're a game-changer and this over here you're a game-changer so yeah we are we should get going and they go I got to rethink my strategy, So yeah, that's right.

Speaker Change #188: Right now somebody may prove me wrong, but so far we haven't seen anything like that in the market. So again. These these technical challenges are subtle, but very technical and were out in the marketplace to educating.

Speaker Change #189: And helping train the customers and the engineers to understand.

Speaker Change #189: No what's being what's going on.

And.

Speaker Change #190: We're always amazed we go out and we've laid out and just the way we see it.

Speaker Change #190: And what we hear is Oh my goodness.

Speaker Change #191: Well you are in your a game change I mean, that's what we hear your a game changer. So yes, we are we should get going.

Speaker Change #192: Got to rethink my strategy.

Speaker Change #192: Yeah, that's right.

Dennis P. Calvert: And so we offer a performance guarantee, right? performance guarantee, and we offer a full service solution for the destruction. And so, again, our packaging of the proposal, As far as we can tell, it's literally unmet. We haven't seen anything that can match the proposal.

Speaker Change #192: And so we offer performance guarantee rate performance guarantee and we offer a full service solution for the destruction.

Speaker Change #193: And so again our path.

Speaker Change #254: And gene of the proposal.

Speaker Change #193: As far as we can tell is literally unmatched we haven't seen anything that can match the proposal now what's missing well.

Dennis P. Calvert: Now, what's missing? Well, we don't have 100 installed, right? If they didn't know BioLargo, who would be BioLargo?

Speaker Change #193: <unk>.

Speaker Change #194: We don't have 100 installed.

Speaker Change #195: Right, if they didn't know biologging who's my alarm.

Dennis P. Calvert: All those questions come up, so that's part of the early adoption cycle. You gotta kind of get over that. And how do you get over it?

Speaker Change #196: Right all those questions come up so that's part of the early adoption cycle, you got to kind of get over that and how do you get over it you earn your way through.

Dennis P. Calvert: You earn your way through. That's what we're doing. We're making our way through.

What we're doing we're earning our way through.

Dennis P. Calvert: We do have a technical question here, since we're on the topic. A gentleman named John DeMond is wondering how a carbon system creates 80,000 pounds of waste, but the BioLargo system creates two pounds of waste. How is that possible?

Speaker Change #197: We do have a question here.

Speaker Change #197: On the topic.

John: Gentlemen, John demand I was wondering.

John Demand: How a carbon system creates 80000 pounds of weight, but the biological system creates two pounds of waste how is that possible.

Dennis P. Calvert: Yeah, yeah, so these are proven through experimentation and through piloting, by the way, so we're not making it up. So a carbon system is a little technical. I'm gonna go fast.

John Demand: Yes.

Speaker Change #199: So these are.

Speaker Change #200: But proven through experimentation and through pilot and by the way, so and I'm, making it up.

Speaker Change #201: So our carbon system [laughter] little technical I'm Gonna go fast and.

Dennis P. Calvert: And you know, the engineers on the phone probably correct me. So this is the businessman's version. So there are all my qualifications.

Speaker Change #202: Engineers on the phone probably correct me. So this is the business means version so theres all my qualification sorry.

Dennis P. Calvert: Carbon is an adsorber, and it relies on its charge to collect particulates of its opposite charge, and all the nooks and crannies in this highly porous surface attract and bind to the surface, including PFAS. That's how it works. Okay, so that's good, right? Yeah, that's pretty good.

Carbon is an AD server.

Ed Sorber: Ed Sorber.

Speaker Change #204: It relies on its charge to collect particulates of this opposite charge.

Speaker Change #205: And all the nooks and crannies in this highly porous surface attract and buying into the surface, including T plus.

Dennis P. Calvert: It can take some people out, but it also binds everything else. It takes out all the minerals, other contaminants, and they fill up all the spots. And then, over time, they can channel. So they require longer contact time. That's an issue.

Speaker Change #205: And if that works okay. So that's good right that's pretty good and it can take some people ourselves, but it also binds everything else.

Speaker Change #206: It takes out all the minerals other contaminants and they fill up all the spots.

Speaker Change #206: And then over time, they can channel so they require long other contact time and so that's an issue and then they can channel channels not always tell stories like are pouring water down an anthill. It finds this channel and it runs down the channel same thing happens in carbon Okay. And then it has an issue with bolus release. So it can accumulate P fast and then all of a sudden.

Dennis P. Calvert: And then they can channel. That channel is like pouring water down an anthill. It finds its channel, and it runs down the channel. The same thing happens in carbon. And then it has an issue with bolus release.

Dennis P. Calvert: So it can accumulate PFAS and then all of a sudden release it. And the way we say that is it works until it doesn't work. It's working, it's working, it's working, and then all of a sudden it's not working, because it essentially is filling up, right? All the sites are filling up.

Speaker Change #207: We released it and the way, we say that as it works until it doesn't work.

Speaker Change #208: It's working it's working and working and then all of a sense not working.

Speaker Change #209: Because it essentially is filling up alright, all the sites are filling up okay.

Dennis P. Calvert: Okay. That's the incumbent. So the AEC is in the concentration technique. It's a machine that has a plus and a minus. You flow water through a cell. It's a big plate, about 26 by 30 inches.

Speaker Change #210: That's that's the incumbent so this sort of a E C.

Speaker Change #211: And the concentration technique its machine that has a plus or minus a flow water through a sell some big plate about 26 by 30 something inches.

Dennis P. Calvert: And as the water flows through that plate, it is cast through, or flows through an electrostatic field. And what that does is it pulls the PFAS to one side or the other. It's to its opposite charge. But behind or in front of the electrode is a membrane, not a membrane forcing the water through. They're forcing the water across the membrane, and as it comes across the membrane, the PFAS is attracted and bound to the surface. The business word is like flypaper.

Speaker Change #211: And as the water flows through that plate. It is.

Passed through flown through an electrostatic field.

Speaker Change #211: And what that does it pulls the P. Foster one side or the other it's too it's opposite charge, but behind or in front of the electrode as a membrane not a membrane, forcing.

The water through the.

Unfortunately, the water across as it comes across the membrane the peak classes attracted inbound to the surface.

Speaker Change #211: Where it is like like flypaper.

Dennis P. Calvert: So as a result, the other contaminants pass through. So one is an indiscriminate collector, and the other is highly selective extraction, selecting the PFAS; the others go through. Now, we get a year of progress on those membranes. That's pretty good.

Speaker Change #212: So as a result, the other contaminants to pass through.

Speaker Change #213: So one is an indiscriminate collector and the other is highly selective extraction.

Speaker Change #214: It selects the Paphos the others go through.

Speaker Change #214: Now, we get a year of attraction on those those membranes, that's pretty good.

Dennis P. Calvert: What actually happens is the electricity that's flowing through them actually degrades them well before their loading capacity is met. And it also has great remote monitoring features and all sorts of really technical things that make it feasible in the marketplace. But the punchline is we can load that membrane and let all the other contaminants flow through because we are selectively extracting the contaminant of interest. So the thesis, right? Be the most efficient collector. So that's how it works. And again, easy to say the art of its execution is pretty dramatic: Flow, temperature, electricity, substrate, degradation.

Speaker Change #215: What actually happens is the electricity that's flowing through actually degrades them well before they're they're loading capacity is met.

Speaker Change #216: And that also has great remote monitoring features and all sorts of really technical things that make it feasible in the marketplace.

Speaker Change #216: The punch line is.

Speaker Change #216: We can load that membrane.

Speaker Change #217: And then all the other contaminants flow through because we are selectively extracting the containment of interest.

Speaker Change #218: So the thesis right would be the most efficient collector. So that's how it works and again easy to say the art of its excellent execution is pretty dramatic.

Speaker Change #218: Flow temperature no.

Speaker Change #218: Electricity substrate degradation I mean, there's a lot going on and that's the stuff of patents and stuff are art.

Dennis P. Calvert: I mean, there's a lot going on. And that's the stuff of patents and the stuff of our art. And so we've had enough work with that to be able to go into the field and make these things work. That's what we're doing.

Speaker Change #218: And so we've had enough now work with that to be able to go into the field and make these things work for a long time.

Dennis P. Calvert: doing. Thank you. Thank you for that. All right, so the last line of questioning here is on BioLargo energy technology. Transcribed by https://otter.ai. I'm not sure about this one, but have we abandoned battery manufacturing?

Speaker Change #218: So what we're doing right now.

Speaker Change #218: So for that.

Speaker Change #219: Alright. So last line of question here is on biological energy technologies.

Speaker Change #219: Hum.

Speaker Change #220: Not sure about this one but did we abandon battery manufacturing.

Dennis P. Calvert: Yeah, no, no, no, no, not at all. The Yeah, no, what we said in the early description of our activity is that we believe that that plant that we created, if turned into a commercial enterprise, could generate about $3.5 to $4 million worth of batteries a month. That's what we said, and we still believe that's true. The caveat is always the same. Have we proven demand?

Speaker Change #221: Yes, no no no no not at all the yes, no what we said in the early <unk>.

Speaker Change #222: Friction of our activity is that we believe that that plant that we created if turned into a commercial enterprise.

Speaker Change #223: Could generate about three and a half to $4 million worth of batteries a month, that's what we said.

Speaker Change #223: And we still believe that's true.

Speaker Change #223: Caveat is always the same have we've proven demands.

Dennis P. Calvert: So do we have an offtake? Do we have sufficient proof on the demand side to give us leverage on the supply chain? Again, that goes back to the same story for every technology we've ever had, you know, and just think about poo.

Speaker Change #224: Alright, so do we have an offtake do we have sufficient proof on the demand side to give us leverage on the supply chain.

Speaker Change #224: Again that goes back from the same story for every technology, we've ever had.

Speaker Change #225: I'm just going to even just think about pool.

Dennis P. Calvert: With the success of POOF, when we opened another product category in the same channel, every supply chain partner in the world was aware of this. We get great rates. I mean, incredible rates on the supply chain. We bargain from a position of power because we have a big order. Well, that dynamic is going to be required in the battery industry for sure. And so you have to piece the pieces together. And if somebody says, hey, make some batteries and sell them, yeah, that's not a bad option.

Speaker Change #226: With the success of Poof when we when we opened another product category into the same channel every.

Speaker Change #226: Every supply chain partner in the world most of that business.

Speaker Change #226: We get great rates, I mean incredible rates on our supply chain, we bargain from a position of power because we have a big order.

Speaker Change #226: Well that dynamic.

Speaker Change #227: That would be required in the battery industry for sure and so you've got a piece of the pieces together and if somebody says hey makes it matters and sell them. Yeah. That's not a bad option I think I think we're gonna be really busy with the bigger option with partners payments to build factories.

Dennis P. Calvert: I think we're going to be really busy with the bigger option, with partners paying us to build factories. I mean, if somebody comes in and says, yeah, we can do some small batteries, but hey, I want to optimize component manufacturing. I want to optimize the performance of the cell.

Dennis P. Calvert: And here's an order for a hundred million dollar project. That sounds like a good business. And that's kind of what's happening. It's moving very quickly.

Speaker Change #228: I mean, if somebody comes in and says yes, we can do some small batteries, but hey, I want to optimize the component manufacturing or optimize the performance of the cell and here's the order for $100 million project.

Speaker Change #228: It sounds like a good business and that's kind of what's happening it's moving very quickly.

Dennis P. Calvert: So, you know, very quickly, there's a lot of work to do, and I want to be, you know, this is a big business, highly competitive. And so there's a lot to do to get to the point where we have partners saying, let's do it and start funding things. But it's not done. Very critical.

Speaker Change #228: So very quickly there's a lot of work to do I don't want to be.

Speaker Change #229: This is big business the highly competitive.

Speaker Change #229: And so there's a lot to do to get to the point, where we have partners, saying, let's do it and start funding things, but so it's not done.

Speaker Change #230: Critical but if I didn't believe that was achievable with our tech are better battery technology and highly skilled people.

Speaker Change #230: That had been doing that for their career.

Speaker Change #231: We wouldn't be doing it this way.

Dennis P. Calvert: But if I didn't believe that that was achievable with our tech, our better battery technology, and highly skilled people who have been doing that for their careers, we wouldn't be doing it this way. We're going to leverage our core competence. That's technology, finding its way through the barrier, bringing enough capital to get through, developing a business model that's got leverage so it can scale to significance globally.

Speaker Change #232: We're going to leverage our core competencies that's technology, it's finding its way through the barrier, bringing enough capital to get through developing a business model, that's got leverage to get scale to significant globally.

Dennis P. Calvert: If you've got a business model that says, how many batteries would you like? I'll build you a factory so that you have all the batteries you'll ever need. How big a factory would you like?

Speaker Change #233: If you're if you've got a business model that says.

Speaker Change #234: How many batteries would you like.

Speaker Change #235: I'll build you a factory so that you have all the batteries you'll ever need how big a factory would you like.

Dennis P. Calvert: That's a business, and let me be clear, that's what we're talking about. So I believe it's really optimistic now. What do we need? We've got to have a battery, and we've got to have data. We've got to show the world that this battery is going to perform as represented. That's what we're doing. So, can we sell you some batteries? Sure. Sure. I think we're going to move a lot quicker than that, though, in the other categories, but we'll see. We've got some work to do.

Speaker Change #236: That's a business.

Speaker Change #236: And just to be clear, that's what we're talking about.

Speaker Change #237: I believe it's really optimist now what do we need.

Speaker Change #237: Are gonna data.

Speaker Change #238: The world.

Speaker Change #239: Batteries are going to perform as represent.

Speaker Change #239: That's what we're doing.

Speaker Change #240: So can we sell some bad I'm sure.

Sure.

Speaker Change #241: We're going to move a lot quicker than that though.

Speaker Change #242: The other category, but we will see that some work to do.

Dennis P. Calvert: Certainly. So what are the top two priorities for BioLargo Energy through the end of the year?

Speaker Change #243: Yeah certainly.

Speaker Change #243: So what are the top two priorities score biological energy through the end of the year.

Dennis P. Calvert: The first thing is that we need this battery in our hand so that we can show it to people and show that it works, and so everybody's on point and really focused. And it's intense. It's good. It's a good intensity.

Speaker Change #244: The first is we need this battery and our hand, so that we can show it to people and show that it works and so everybody is on point and really focus and its intent. So it's good it's a good intensity and we did have some technical things that happened in the production when we got to actually assembling the components.

Dennis P. Calvert: And we did have some technical things that happened in production when we got to actually assembling the components. And some of it has just required supplier participation, refinement of frequencies, all kinds of really technical stuff. We're working our way through it. None of them are deal killers; they're just another hurdle to overcome.

Speaker Change #244: And some of it is just required supplier participation refinement of frequencies I mean, all kinds of really technical stuff and.

Speaker Change #244: Oh.

Speaker Change #244: We're working our way through them.

Speaker Change #244: None of them are deal killers that just another hurdle to overcome.

Dennis P. Calvert: So we're doing that. Once that battery's in our hands, which could be soon, I don't know exactly the date.

Speaker Change #244: So we're doing that once that batteries in their hand, which could be soon.

Speaker Change #244: Don't know exactly the date.

Dennis P. Calvert: Then we'll start testing, and we'll also send some batteries out to third parties. We've interviewed a number of third-party testing groups who want to take our business, which is great. And so that'll help. And then the first task, so that's number one, get the battery. Number two.

Speaker Change #245: Then we will start testing and we will also send some batteries out to third parties.

We interviewed a number of third party testing groups, who want to take our business, which is great.

Speaker Change #245: And so that will help and then the first task. So that's number one get the battery number two we.

Dennis P. Calvert: We need to then begin the engineering design of a scaled-up cell, and we're going to go to about a three and a half by 13 inch cell, and those will be assembled into packs to make a battery energy storage system, packs of batteries, packs of cells. That's the way to think about it. And then the third step is to start forming these partnerships. There are a lot of partnerships already at the table. But they inevitably, as you might imagine, will find themselves at the point to say, "Are you sure this battery is going to work?"

Speaker Change #246: We need to then begin the engineering design of the scaled up sell.

Speaker Change #246: And we're going to go to a.

Three and a half by 13 itself and those will be assembled in the past.

Speaker Change #246: Battery energy storage system Pac Pacs with batteries Paclitaxel sales, that's the way to think about it.

Speaker Change #246: And then the third is start forming these partnerships, there's a lot of partnerships already at the table.

Speaker Change #247: But they inevitably as you might imagine we will find themselves to the point to say are you sure. This batteries is going to work.

Dennis P. Calvert: Say, yes, we are true, but here's exactly where we're at in the revalidation process, and that revalidation is required before somebody is going to put up $100 million or more. And so that's what we're doing. So that's the top three, right?

Speaker Change #247: And we say, yes, we are sure, but here's exactly where we're at and re validation process.

Speaker Change #248: And that revaluation is required or somebody's going to put up a $100 million.

Speaker Change #249: Or more.

Speaker Change #249: So that's what we're doing.

Speaker Change #249: So thats the top three right finished this battery and get it proven tested start that process scale up and then start negotiating partnerships.

Dennis P. Calvert: Finish this battery and get it proven and tested. Start that process, scale up, and then start negotiating partners.

Speaker Change #249: Yeah.

Dennis P. Calvert: All right, all right. And Mr. Curtis Norvell is wondering, what is the fastest way for BioLargo Energy to monetize the patent?

Speaker Change #250: All right all right Mr. Curtis North Al was wondering what is the fastest way for biologic or energy to monetize the patents.

Dennis P. Calvert: Yeah, well, I think what we're talking about is faster than trying to piece all the pieces together to be a small battery producer. It may actually happen that we'll have those tools in place to make batteries, and we can start selling some. That's fine.

Speaker Change #251: Yeah well.

Speaker Change #252: I think what we're talking about is faster than.

Speaker Change #252: Trying to piece all the pieces together to be a small battery producer.

Speaker Change #253: It may actually happens it will have those tools in place to make batteries and we can start selling something that's fine there's nothing wrong with that.

Dennis P. Calvert: There's nothing wrong with that. That's not a bad plan. It's hard to get big doing this. It's hard to get on the scale.

Speaker Change #253: That's not the that's not a bad plan, it's hard to get big doing in it.

Speaker Change #253: It's hard to it's hard to get to scale.

Dennis P. Calvert: So we took our investment thesis, which we showed you in this short graphic, and we took it out to the marketplace and said, you know. Here's our plan, you know, to partner to build a factory for somebody who really wants a big factory to make a lot of batteries. Who wants to do that? And there are all types of different people.

Speaker Change #255: So we took our investment thesis, which we should just short graphics and.

Speaker Change #255: And we took it out to the marketplace and said you know.

Speaker Change #256: Here's our plan.

Speaker Change #257: <unk> to build a factory for somebody who really wants the big factor you can make a lot of patterns.

Speaker Change #258: [laughter], alright, who wants to do that and there's all types of different people it can be.

Dennis P. Calvert: It could be the public utility. It can be data centers, it can be AI, it can be anybody in the AI business, anybody that's in renewable energy, right? Running solar, solar, solar. Whoever's got the bandwidth to really need this tool to leverage their business, and that's a lot of people.

Speaker Change #259: It could be it could be the public utility.

Speaker Change #260: It can be data centers it can be.

Speaker Change #260: AI is anybody in the AI business anybody that's in renewable energy right running solar solar solar is a big customer.

Speaker Change #260: Whoever's got the bandwidth to really need this tool to leverage their business and that's a lot of people. So and then they say theyre going to ask that question well.

Dennis P. Calvert: So, and then they say they're gonna ask the obvious question. Well, listen, here's what we hear. You'll build me a factory so I can make as many batteries as I want. That's right. How many would you like?

Speaker Change #261: Listen here's where we are here. So let me get this right you'll build me a factory so I can make as many batteries as I want.

Speaker Change #262: Yeah, that's right I mean, it was July.

Dennis P. Calvert: and they say, well, I need to see that the battery is going to perform to the specification that you've shown me. And I said, yeah, that's what we're doing. So as soon as I get that done, how many batteries would you like?

Speaker Change #263: And they say well I need to see that the battery is going to perform to the specification that you've shown me.

Speaker Change #263: Yeah, that's what we're doing so as soon as I get that done.

Speaker Change #264: Many areas would you like.

Dennis P. Calvert: And it really is that kind of simple, okay? Now, it's still big numbers, but look, you've got to remember there's a 30% IRA Tax Reduction Act credit for the deployment of batteries, 10% made in America, plus if you're going to bundle some of these other opportunities for tax credits and incentive-based financing. And we mentioned that we've got some really nice relationships. We'll have more disclosures soon, some work in the tribal nations, which is really fascinating, and great partners. And that's really fascinating. You get to do great work for a community that needs it.

Speaker Change #265: And it really is that kind of simple okay. Now, it's still big numbers, but look you've got to remember, there's a 30% high array, especially reduction at credit for the deployment of batteries, 10% made in America, plus if youre going to bundle. Some of these other opportunities for tax credits and incentive based financing and we've mentioned.

Speaker Change #265: That we've got some really nice relationships will have more disclosure soon some work in the tribal nations, which is really fascinating with great partners and that's really the ethane you get to do a great work for community that needs. It.

Dennis P. Calvert: And when we talk about that kind of opportunity, we bundle workforce development, micro-plant focus, community engagement, this whole sort of holistic approach that allows us to provide an economic and social transformative opportunity for a community. And, of course, the funding for that target community is unbelievably significant. And so, right, that's just another wrinkle in how we get this position in the marketplace, and it's significant. So, so again, you know, and again, I hate to make it sound so simple, but do you know where it all starts? You've got to have a better battery.

Speaker Change #266: And when we when we talk about that kind of opportunity we bundle workforce development.

Speaker Change #267: Micro plant.

Speaker Change #268: Focus community engagement.

Speaker Change #269: This whole sort of holistic approach that allows for us to provide an economic and social transformative opportunity for community.

Speaker Change #269: And of course, the funding for that that target community is unbelievably significant.

Speaker Change #270: So right. That's just another wrinkle on how we get this position in the marketplace and it's significant.

Speaker Change #270: So so again you know.

Speaker Change #270: And again I didn't think so there's no simple where it all starts.

Speaker Change #271: You've got to have a better battery.

Dennis P. Calvert: So, really, we've got to prove that we have a better solution, and all this vision of what could be is not going to take place until we've done that. And then once it's done, I think we're going to see such a flurry of activity that we'll form these partnerships, and we'll have three or four or five projects underway, essentially replicating these designs three or four different times, each creating this massive demand, right, which gives us an economy of scale in the supply chain and leverages the balance sheet of our partners. That's a scalable model. How many would you like, sir?

Speaker Change #271: So really I've got we've got the proof that we haven't thought about it.

Speaker Change #271: And all of this vision of what could be is not going to take place until we've done that and then once that's done I think we're going to see such a flurry of activity that will will form. These partnerships and we will have three or four projects underway essentially replicating these designs three or four different times each creating.

Speaker Change #271: It's massive demand.

Speaker Change #272: Alright, which gives us economy of scale in the supply chain.

Speaker Change #272: And leverages the balance sheet of our partner.

Speaker Change #272: That's a scalable model.

I mean would you like Sir again, I hate to make it sounds so simple, but really if you have a better battery and you have the skills that we have.

Dennis P. Calvert: And again, I hate to make it sound so simple, but really, if you have a better battery and you have the skills that we have. We do have the talent in our company to do this. And we're going to leverage that talent. You know, they've been doing their craft for 30 years. We've got subject matter experts on board, and we're executing. I need a battery. I need third-party verification.

Speaker Change #272: We do have the talent in our company to do this and we're going to leverage that talent you know they've been doing their craft for 30 years, we've got subject matter experts onboard and we're executing on.

Speaker Change #272: Our new battery and third party validation verification I need to consolidate supply chain.

Dennis P. Calvert: I need to consolidate the supply chain. That's what we're doing. It wasn't easy, but it is, it is significant. I can tell you that it is significant. And at the same time, you know, we're serving clients and managing cash flow and now we're making some cash, deposit cash flow. It's a good time for BioLargo.

Speaker Change #272: So.

Speaker Change #272: So what we're doing.

Speaker Change #272: It wasn't as easy but it is it is significant I can I can tell you that is significant and at the same time, we're serving clients at managing cash flow and making sure that we're making some cash.

Speaker Change #272: Positive cash flow.

Speaker Change #273: What's a good time for <unk>.

Speaker Change #275: That's totally alright, I'm saving the best question for last year.

Dennis P. Calvert: Saving the best question for last year. This is from investor Patrick Gingerelli. Some platforms, including Vanguard, do not allow the purchase of BLGO stocks. Were you aware of that? And is there anything on your end that can be done to remove those?

Speaker Change #274: This is from.

Speaker Change #276: Mr. Patrick Gingerly.

Platforms, including Vanguard do not allow purchasing <unk> stock.

Are you aware of that and is there anything on your end that can be done to remove those restrictions.

Dennis P. Calvert: Yeah, you know, this is such a such a hassle for everyone. So, Pat, I'm empathetic with you and the implication on the company. It's a fascinating turn of events. We've seen big brokerage firms say yes, yes, yes, and all of a sudden say no, like an allocation, and it's as it's as varied as the firms I've never seen anything like it and it starts with a small stock right we're in a we're in a OTC market not in a NASDAQ qualified marketplace and a small stock price the small side price you know low 30 30 35 cents, A lot of people see that as a negative.

Speaker Change #276: Yeah. You know this is such a such a hassle for everyone. So Pat.

Speaker Change #277: And empathetic with you and the implications on the company.

Speaker Change #277: It's a fascinating turn of events we've seen big.

Speaker Change #277: Big brokerage firms say, yes, yes, yes, and all of a sudden say now like an allocation.

Speaker Change #278: And it's as varied as the firm's I've never seen anything like it and it starts with a small stock right. We're not we're in the OTC market not in the NASDAQ quantified marketplace and a small stock price the <unk> price low 30, 30 35 cents.

Speaker Change #279: A lot of people see that as a negative we made a decision.

Dennis P. Calvert: We made a decision, and the decision is to look out for our shareholders by avoiding catastrophic manipulation of the cap structure to accommodate some of these issues until the company was well along in a strong financial position and really could reap some of the benefits of being public and its valuation. We think that's happening now. So, in a perfect world, we would continue to execute, and we'll see a natural rise in our market cap valuation.

Okay and the decision is to look out for our shareholders.

Speaker Change #280: By avoiding catastrophic manipulation of the cap structure to accommodate some of these issues until the company is well along in a strong financial position and really reap some of the benefits of being.

Speaker Change #281: Being public in this valuation we think that's happening now so.

Speaker Change #281: So in the perfect World, we would continue to execute and we will see a natural rise of our market cap valuation as thats occurring.

Dennis P. Calvert: As that happens, the ultimate answer for Pat and for many people is to get it listed on a national exchange like a NASDAQ or NYSE, one of those national exchanges that would take it out of this category at a much higher price. We're weighing the balance between those choices. We've always taken a conservative approach and said, "You know what we need? We need a successful business; when we have a successful business, we can take care of that. So I think I think the answer is to continue to succeed.

Speaker Change #282: Ultimate answer.

Speaker Change #283: For patent for many people is to get it listed on a national exchange like a NASDAQ or NYSE. One of those is national changes that would take it out of this category at a much higher price.

We are weighing the balance between those choices always.

Speaker Change #284: And we've always taken a conservative approach and said you know what we need maybe a successful business.

Speaker Change #285: When we have a successful business, we can take care of that.

Speaker Change #286: I think I think the answer is continue succeeding that will take care of itself.

Dennis P. Calvert: That will take care of itself, growing the top line. You know, we got about a $100 million market cap. I was I was at Wall Street for about, I don't know, nine days, two or three weeks ago, but they still run together. Me, you know, making the circuit with exchanges and number of bankers and, And I heard a story, one of the bankers, you know, for microcap, they subbed $250 million market cap, told a story about 83 IPOs and 73 of the IPOs. Since the average raise was $8 million, the average market cap was under $50 million. Okay, under $50 million, so that's half our market cap. Average raise: eight million.

Speaker Change #287: Grow the grow the topline we got about $100 million market cap I was I wasn't wall Street for about.

Speaker Change #288: I don't know nine days, two or three weeks ago, where they saw run together.

Speaker Change #289: Making the circuit and even with the changes in number of bankers and conferences.

Speaker Change #290: And I heard a story one of the bankers for Microcap at sub $250 million market cap.

Speaker Change #291: Until the strip worry about 83, Ipos and 73 Ipos since since the average raised was 8 million average market cap was under $50 million.

Speaker Change #291: Okay.

Speaker Change #292: Fittingly, so that's half our market cap average rates $8 million.

Dennis P. Calvert: Of 73 of the 83, they lost 65% of their value to delisting, okay? So the small-cap market... had a lot of uncertainty. So that's happening while we're growing 100% first a year and a half ago and 108% this year, and generating positive cash flow with a portfolio that we've invested years building that is potentially transformative in all these markets, so unusually unique in the world right now that people gravitate to our company.

Speaker Change #293: 73 of the 83 lost 65% of their value.

Speaker Change #293: Elisa.

Speaker Change #293: Okay.

Speaker Change #293: So that the small cap market.

<unk> had a lot of uncertainty.

Elisa: So that's happening while were growing a 100% first.

Elisa: A year and a half ago, 8% this year.

Elisa: Generating positive cash flow with the portfolio that we've invested years building.

Speaker Change #295: Significant investment that is potentially transformative all of these markets.

Speaker Change #296: We are.

Speaker Change #297: So unusually unique in the world right now.

Speaker Change #297: That people gravitate to our company and so we think it's only a matter of time until you know.

Dennis P. Calvert: And so we think it's only a matter of time until. You know what? When you say you're not on the radar, who's BioLargo? It's just going to be different. People are going to say, I know who BioLargo is.

Speaker Change #298: What do you say you are not on the radar who's a dialog I was just going to be different.

Speaker Change #299: We're going to say I know, who buy Argo as you say yeah.

Dennis P. Calvert: And you say, yeah, and why? Well, because we're going to have a technical performance. Financial Technical Performance.

Speaker Change #299: Well, because we're going to have technical performance.

Speaker Change #299: Financial tenant performance.

Dennis P. Calvert: Okay, so these regulations that are in the way these brokerage firms are being forced to deal with are a function of regulatory pressures from Congress. Okay. I mean, it's real simple. They don't say you can't do it. They just make the paperwork so burdensome that they don't want to do it. So these brokers are making choices. They don't want to do a small spot because it takes too much paper.

Speaker Change #300: So these these regs that are in the way. These brokerage firms are being forced to deal with is a function.

Speaker Change #301: Regulatory pressures from Congress.

Speaker Change #302: Okay, I mean, it's real simple.

Speaker Change #302: They don't they don't say you can't do it they just make the paperwork. So burden so they don't want to do it.

Speaker Change #302: So these brokerage firms are making choices.

Speaker Change #302: Don't want to do a small stock because it takes too much paperwork.

Dennis P. Calvert: Okay, so do you put your stock in that account because they're really good for you? You know, that's your business. But I had an investor once who said to me, I've got $30 million in my IRA, so tell him you're moving your money and see if he'll take our shares.

Speaker Change #302: Okay. So do you put your stock in that account because they are really good for you.

Speaker Change #303: [laughter], that's your business, but you know I haven't I have investors once any system, you have got $30 million and Iras and tell them, you're moving your money and see if we would take our shares.

Dennis P. Calvert: You know, at some point, people say, "I want to take care of my customer." So that's the question to ask. Do you want to take care of your customer?, right?

Speaker Change #304: At some point people say.

Speaker Change #305: I wanted to take care of my customer.

Speaker Change #305: So that's the question asked so let's take care of your customers.

Dennis P. Calvert: And then raising the bar with equity. So it's both. It needs to be both. Again, a long answer, but a very complicated question. I hope that helps, Pat.

Speaker Change #306: Right and then raising the bar with the equity so it's both it needs to do both.

Speaker Change #307: Again long answer, but very complicated question.

Pat: That helps Pat.

Brian Loper: Yeah, thank you for that. So that's all the time we have today for questions, and I want to thank you, Dennis, for...

Speaker Change #309: Yeah. Thank you for that.

Speaker Change #310: So that's all the time, we have today for questions.

Speaker Change #311: Thank you Dennis for.

Dennis P. Calvert: Well, let me close out, you know. Yeah, let's close out real quick.

Speaker Change #312: Well, let me close out you know, yes, I'm supposed to that real quick. So if we look forward we want to bring some customers in an expanded P. Fossil course check the milestones on the battery Tech.

Dennis P. Calvert: So, looking forward, we want to bring some customers in, expand the PFAS, of course, check the milestones on the battery tech, and get this clear deal into go mode. We need to get that done, like, as soon as we possibly can. And then, you know, maintain the platform, keep doing what we're doing because we're heading in such a good direction. And, you know, we'll be watching carefully on the incremental cash flow generated from an increase in sales. So if POOF is able to continue its targeted 20% quarterly-over-quarter growth over time, I think that's going to bode really well for BioLargo. This is a great time to be a stockholder at BioLargo.

Speaker Change #313: Get this clear the deal and to go mode.

Speaker Change #314: Need to get that done.

Speaker Change #315: As soon as we possibly can and then maintain the platform keep doing what we're doing because we're heading in such a good direction and.

Speaker Change #315: I'll be watching carefully on the incremental cash flow generated from increasing sales.

Speaker Change #315: If approved today will continue its targeted 20% quarter over quarter over time, I think that's kind of bode really well for Biologging went to shareholders. So this is a great time to be a stockholder biological and thank you everyone. I'll look for your E. Mails. Please reach out to us will not responsive just putting again, because we're not ignoring it alright.

And thank you everyone. I'll look for your emails. Please reach out to us. If I'm not responsive, just ping me again because we're not ignoring you, all right?

Speaker Change #316: Thank you very much.

Dan: Thanks, Dan.

Speaker Change #318: Thank you everyone. This concludes today's event you may.

Speaker Change #320: At this time and have a wonderful day.

Speaker Change #319: <unk> you for your participation.