Q2 2024 BioLargo Inc Earnings Call

Speaker Change: [music].

Yes.

Speaker Change: Greetings welcome to the bio Largo second quarter 2024 earnings results Conference call. At this time, all participants are in a listen only mode.

Operator: Welcome to the BioLargo Second Quarter 2024 Earnings Results Conference Call. At this time, all participants are in a listen only mode.

Operator: Welcome to the BioLargo Second Quarter 2024 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press door 0 on your telephone keypad. Please note this conference is being recorded.

Operator: If anyone should require operator assistance during the conference, please press star zero on your telephone. Please note this conference is being recorded. I will now hand the conference over to your host, Brian Loper. Great. Thank you, Holly. I appreciate that. Good afternoon, everyone.

Speaker Change: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Speaker Change: Please note. This conference is being recorded I will now hand, the conference over to your host Bryan Loper you may begin.

Brian Loper: I will now hand the conference over to your host, Brian Loper. You may begin.

Brian Loper: Great. Thank you, Holly. Appreciate that.

Bryan Loper: Great. Thank you Holli appreciate that good afternoon. Good afternoon, everyone and welcome to <unk> Q2, 2024 earnings results Conference call.

Brian Loper: Welcome to BioLargo's Q2 2024, for the month ended June 30th, 2024. By now, everyone should have had access to the earnings press release, which was issued on August 31st. This call is being webcast and is available for replay.

Brian Loper: Good afternoon, everyone. Welcome to BioLargo's Q2 2024 earnings results conference call for the month ended June 30, 2024. By now, everyone should have had access to the earnings press release, which was issued on August 6. This call is being webcast and is available for replay.

Speaker Change: For the months ended June 30th 2024 by now everyone should have had access to the earnings press release, which was issued on August 6th.

Speaker Change: Call is being webcast and is available for replay.

Brian Loper: In our remarks today, we will include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, our relationships with our customers, market, and potential growth opportunities. In addition, management and the additional forward-looking statements in response to your questions. Forward looking statements are based on management's current knowledge and expectations as it today, and are subject to certain risks and uncertainties, and may cause the actual results to differ materially from the forward looking statements.

Brian Loper: In our remarks today, we will include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements, and the results of operations, business strategies and plans, our relationships with our customers, market and potential growth opportunities. In addition, additional forward-looking statements, to your questions. Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risk, and may cause the actual results to differ materially from the four that are listed. A detailed discussion of such risks, cheese, and ham. Carrie, Ken Cue, and Adelope.

Speaker Change: Our remarks today. We will include statements that are considered forward looking within the meanings of securities laws, including forward looking statements about future results of operations business strategies and plans, our relationships with our customers market and potential growth opportunities.

Speaker Change: In addition management may make additional forward looking statements in response to your questions forward looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward looking statements a detailed discussion of such risks and uncertainties.

Brian Loper: A detailed discussion of such risks and uncertainties contained in our most recent form, 10-K, 10-Q and other reports filed at the SEC. The company undertakes no obligation to update any forward-looking statements.

Speaker Change: And in our most recent forms 10-K 10-Q, and other reports filed with the SEC. The company undertakes no obligation to update any forward looking statements and with that I will now hand, the call over to Biologics Chief Executive Officer, Dennis Calvert.

Brian Loper: The company undertakes no obligation to update the Statements. And with that, I will now hand the call over to BioLargo's officer. Hey Brian, thank you very much and thank you everyone for joining us. I also want to mention Charles Dargan is with us, our CFO. Charlie, say hi. Are you there? Yes, I'm here. Thank you very much Dennis. I'm good.

Brian Loper: And with that, I will now hand the call over to BioLargo's Chief Executive Officer, Dennis Calvert.

Dennis Calvert: Hey, Brian. Thank you very much and thank you everyone for joining US also want to mention Charles Darwin is with us our CFO, Charlie say, hi, there yeah.

Dennis Calvert: Hey, Brian. Thank you very much. And thank you, everyone, for joining us.

Dennis Calvert: I also want to mention Charles Darden is with us, our CEO, Charlie.

Charles Darden: Say hi. Are you there?

Charles Darden: Yep.

Charles Darden: I'm here. Thank you very much, Dennis. I'm good. Thank you for being here.

Speaker Change: Okay. Thank you. Thank you heard Dennis I'm. Good. Thanks. Thank you for being here great. We're gonna go quickly I know a lot of questions about sort of the status of some of the business development is burning question, everyone wants to talk about and so we've had a great quarter to start with that record quarter for our announcement.

Dennis Calvert: Thank you for being here. Great, we're going to go quickly. I know a lot of questions about the status of some of the business development are a burning question everyone wants to talk about. And so, we've had a great quarter; we'll start with that record quarter for our announcement. Remember, we're going to do a quick intro: BioLargo, we make life better. It's a big calling. We focus on innovation to help make the world and people's lives better. A better place, a better planet.

Dennis Calvert: Great. We're going to go quickly. I know a lot of questions about sort of status and some of the business development is a burning question everyone wants to talk about.

Dennis Calvert: And so we've had a great quarter, and we'll start with that record quarter for our announcement. Remember, we're going to do a quick intro, BioLargo. We make life better. It's a big calling. We focus on innovation to help make the world and people's lives a better life and a better place to a better planet. Sustainable innovation focused on high impact innovation, keen emphasis on air, water, and energy. Of course, Brian eloquently covered the cautionary forward-looking statements. They're real. Be sure and look at our cues in our case. We do a robust disclosure on risk factors.

Dennis Calvert: Also, sustainable innovation, focused on high-impact innovation, a keen emphasis on air, water, and energy. Of course, Brian eloquently covered the cautionary forward-looking statements, they're real, be sure and look at our Q's and our K's, we do a robust disclosure on risk factors. The nature of our business is high risk, you know; we're innovating things that have never been done before. And the good news is that we persevere and we overcome; that's going to be one of the hallmarks of BioLargo, overcoming the obstacles to success. Who are our innovators and scientists, entrepreneurs, passionate about sustainability and human health, driven by a purpose? Right? A better life?

Speaker Change: Remember, we're going to do a quick intro bio Largo, we make life better it's a big calling we focus on innovation to help make the world in People's lives.

Speaker Change: Better life in a better place to have a better planet.

Speaker Change: Sustainable innovation focused on high impact innovation.

Speaker Change: Keen emphasis on air water and energy of course, Brian eloquently covered the cautionary forward looking statements. The real we shouldn't look at are accusing case, we'd do a robust disclosure and risk factors the nature of our business is high risk.

Dennis Calvert: The nature of our business is high risk. You know, we're innovating things that have never been done before. And the good news is that we persevere and we overcome. That's going to be one of the hallmarks of BioLargo, overcoming the obstacles to success.

Speaker Change: If anything things that have never been done before and the good news is that we persevere and we overcome that.

Speaker Change: That's going to be one of the hallmarks of biologging overcoming the obstacles to success.

Dennis Calvert: Who are we? Innovators and scientists, entrepreneurs passionate about sustainability and human health, driven by a purpose, right? A life better?

Speaker Change: Innovators and scientists entrepreneurs passionate about sustainability in human health driven by purpose.

Speaker Change: Alright.

Speaker Change: Our.

Dennis Calvert: Guests in Class. Guests in classes are very important. We didn't think these innovations had a chance to be transformative as a technology innovation that can be a cornerstone of making change in the marketplace. We wouldn't do it. We'd make considerable investments in some of these assets. We're going to talk about those in particular. The adoption cycles are very frustrating sometimes, but the innovation is nonetheless. We believe we'll find a home in the marketplace for transformative change. And some of us take a long time. So we'll talk about that, too. Lots of engineering going on. Our engineers have joined us.

Dennis Calvert: Dustin Class, Dustin Class is very important. We didn't think these innovations had a chance to be transformative as a technological innovation that could be a cornerstone of making change in the marketplace. We wouldn't do it.

Speaker Change: Best in class Best in class is very important.

Speaker Change: We didn't think these innovations had a chance to be transformative technology innovation that can be a cornerstone of making change in the marketplace, we wouldn't do it.

Suitable investments in some of these assets, we will talk about those in particular the adoption cycles are very frustrating, sometimes but the innovation is nonetheless, we believe we will find a home in the marketplace for transformative change.

Dennis Calvert: We'd make considerable investments in some of these assets, and we're going to talk about those in particular. The adoption cycles are very frustrating sometimes, but the innovation is nonetheless, we believe. We'll find a home in the marketplace for transformative change. And some of us take a long time.

Speaker Change: And some of them to take a long time, so I'm glad that you lots of engineering going on our engineers, who joined us gosh almost five years ago.

Dennis Calvert: So we'll have that too. Lots of engineering going on. Our engineers have joined us, gosh, almost five years ago. World class people, 30, 25, 30 years of experience all around the world, doing the innovation and supporting our innovations for commercial adoption. We focus on problems without good solutions.

Dennis Calvert: Gosh, almost five years ago. World class people 30, 25, 30 years, experience all around the world, doing innovation supporting our innovations for commercial adoption. We focus on problems without good solutions. It's really important. There's something missing in the marketplace. That's where we like to live.

Speaker Change: Our World Class people 30, 25, 30 years of experience all around the world are doing innovation is supporting our innovations for commercial adoption.

Speaker Change: Some problems without good solutions, it's really important.

Dennis Calvert: It's really important. There's something missing in the marketplace. That's where we like to live.

Speaker Change: Something missing in the marketplace, that's where we'd like to live.

Dennis Calvert: At the parent company, we have the finance strategy, very much entrepreneurial spirit, find a market opportunity, find a way to get adoption, get yourself into the marketplace to create revenue and profit and ultimately validate technology for massive, what we think is massive opportunities for distribution and partnership, lots of engineers, lots R&D or group up a canvas, critical as well, four and a half million dollars in grants secured there over the time, also an innovator themselves, also support innovation, not going on there. Clear Medical, a transformative technology for infection control as antimicrobials that are used in medical settings. Oh my goodness, what a very exciting business that that company has been incubated for about 13 years and it's poised for significance. We've got some major partnerships that it's taken a while to get to where they are, but nonetheless we're highly encouraged and optimistic about the future, and we believe it's near at hand.

Dennis Calvert: At the parent company, we have the finance strategy, a very entrepreneurial spirit, find a market opportunity, find a way to get adoption, get yourself into the marketplace to create revenue and profit and ultimately validate technology for massive, what we think are massive opportunities for distribution and partnership. Lots of engineers, lots of R&D. Our group up in Canada is critical as well. Four and a half million dollars in grants have been secured there over time. Also, innovators themselves, also support innovation. There is a lot going on. Clear Medical, right, is a transformative technology for infection control as antimicrobials that are used in medical settings.

Speaker Change: At the parent company, we have the finance strategy.

Speaker Change: Very much entrepreneurial spirit client funding and market opportunity find a way to get get adoption get yourself into the marketplace to create revenue and profit. It ultimately got a technology for massive what we think is massive opportunities for distribution and partnership.

Speaker Change: Lots of engineers lots of R&D or group up in Canada is critical as well.

Speaker Change: Four and a half million dollars in grants secured there with the time.

Speaker Change: Also an innovator themselves also support innovation going on there.

Speaker Change: Medical right.

Speaker Change: Transformative technology for infection control.

Speaker Change: Microbial that are used in medical settings, Oh, my goodness, what a very exciting business.

Dennis Calvert: Oh my goodness, what a very exciting business. That company's been incubated for about 13 years, and it's poised for significance. And we've got some major partnerships that have taken a while to get to where they are, but nonetheless, we're highly encouraged and optimistic about the future, and we believe it's near at hand. Energy technology is the youngest.

Speaker Change: That company has been incubated for about 13 years, and it's poised for significance and we've got some major partnerships that it's taken awhile to get to where they are but nonetheless, we're highly encouraged and optimistic about the future and we believe it's near at hand.

Dennis Calvert: Energy technology is the youngest; we'll talk about the developments there. We've got a unique technology itself for long duration energy storage: that's batteries built for offloading renewables, balancing the grid, you know, large fixed-site batteries, 25 trailers. We'll talk about that. We think it's a transformative technology for long duration energy storage, O&M, flagship revenue generator for the company. POOP is one of the fastest-growing pet odor control products in the marketplace, breaking records continually. We'll talk about the detail of that and really transform the company, and it's because of its financial performance. We also do a lot of industrial odor control; over eight years, I think, in the field now, something like that. Really become expert in the field of odor and VOC, ultra-grant compounds; it's the gases that come off of chemistry and landfills.

Speaker Change: Energy technology as the youngest we'll.

Dennis Calvert: We'll talk about the developments there. We've got a unique technology ourselves for long-duration energy storage. That's batteries built for offloading renewable energy, balancing the grid, you know, large fixed site batteries, 20 foot trailers.

Speaker Change: We will talk about the developments there we've got a unique technology itself for long duration energy storage batteries built for Offloading renewables balancing the grid large fixed site batteries twentyfold trails to talk about that we think it is a transformative technology for long duration energy storage O&M flagship revenue.

Dennis Calvert: We'll talk about that. We think it's a transformative technology for long-duration energy storage. O&M, the flagship revenue generator for the company. POOF is one of the fastest growing pet odor control products in the marketplace, breaking records continually.

Speaker Change: Generating for the company.

Speaker Change: Poof is the one of the fastest growing pet odor control products in the marketplace breaking records continually will talk about the detail of that and really transformed the company and its because of its financial performance. We also do a lot of industrial odor control.

Dennis Calvert: We'll talk about the details of that and really transform the company, and it's because of its financial performance. We also do a lot of industrial odor control. Over eight years, I think, in the field now, something like that. Really, really become an expert in the field of odor and VOC, and ultra organic compounds.

Speaker Change: Over eight years I think in the field now something like that are really really become expert in the field of odor and DSC vault, we're gonna compounds, if the gas as they come off of chemistry and landfills The Clinton group relatively new.

Dennis Calvert: It's the gases that come off of chemistry and landfills. The equipment group is relatively new. That's focused on commercializing all of our water technologies, including PFAS. PFAS, of course, is a super hot topic. We're going to go into a little bit of a deeper dive. I think I'm going to ask Charlie to take a couple of these next two or three slides and provide some general commentary about these results. We're presenting both quarterly and annual results to try and give you a flavor for that. And so, Charlie, would you like to speak about some of these?

Dennis Calvert: The equipment group, relatively new, that's next focused on commercializing all of our water technologies, including PFAS. PFAS, of course, is a super hot topic; we're going to go into a little bit of a deeper dive.

Speaker Change: Thats focused on commercializing all of our water technologies, including P. Foss pathos.

Speaker Change: Of course, there's a super hot topics, we're going to go into a little bit of a deeper dive.

Dennis Calvert: I think I'm going to ask Charlie to take a cup of these next two or three slides and provide some general commentary about these results. We're presenting both quarterly and annual to try and give you a flavor for that. So, Charlie, would you like to speak about some of these?

Speaker Change: I think I'm going to ask Charlie to take a couple of these next two or three slides and provide some general commentary.

Charlie: These results, we're presenting both quarterly and annual to try and give you a flavor for that and so Charlie speak about some of these.

Charles Dargan: Sure. I'd love to thank Stanis, and I'm just going to kind of go through this the way I see it versus necessarily the slides. But yeah, as Dennis reported, and we have reported, we had record revenues, and this was a record quarter for BioLargo, which I am particularly proud of. We did about 5 million in revenue in the three months, and about almost 10, 9.8 million in the six months. We maintained our margin. So we produced gross profits of a little over $2 million for the 20, 24, three months, and $4.4 million for the six months. Now, while we did report net losses, those were very narrow.

Charlie: Sure.

Charles Darden: Sure, I'd love to thank Stanis, and I'm just going to kind of go through this the way I see it versus necessarily the slides. But, yeah, as Stanis reported and we have reported, we had record revenues, and this was a record quarter for Biolargo, which I am particularly proud of. We did about 5 million in revenue in the three months and about almost 10, 9.8 million in the six months. We maintained our margins, so we produced gross profits of a little over 2 million for the 2024-3 months and 4.4 million for the six months. Now, while we did report net losses, those are very narrow, and as you can see from our net loss per share, they're almost minuscule. A lot of it has to do with the non-cash charges that we take for certainly stock options and other non-cash expenses that we offer or issue, and those were 670,000 in the three months and almost 1.3 million in the six months.

Charlie: I'd love to think status and I'm, just going to kind of.

Speaker Change: Go through this.

Charlie: The way I see it versus necessarily the slides but.

Dennis Calvert: Yeah Dennis reported.

Dennis Calvert: And we have reported we had record revenues and this was a record quarter for biologics, which.

Dennis Calvert: Im particularly proud of.

We did about 5 million in revenue in the three months and about almost 10 $9 8 million in the six months, we maintained our margins. So we produced gross profits a little over $2 million for the 2020 for three months.

Dennis Calvert: <unk> and $4 $4 million for the six months now while we did report net losses those are very narrow and as you can see from our.

Charles Dargan: And as you can see from our..., per share, they're almost minuscule. And a lot of it has to do with the non-cash charges that we take for stock options and other non-cash expenses that we offer or issue. And those were $670,000 in the three months and almost $1.3 million in the six months.

Dennis Calvert: Net loss per share almost miniscule and a lot of it has to do with.

Dennis Calvert: The non cash charges that we take floor certainly stock options and other noncash.

Dennis Calvert: The expenses that we offer or issue.

Dennis Calvert: And those were 670000 and the three months and almost $1 3 million in the six months.

Charles Darden: and so from an operating perspective, we're making headway and becoming pretty close to cash flow break even. And if you look at our cash flow statement, we actually produced $330,000 of positive cash flow from operations in the six months. So very, very happy with that.

Charles Dargan: So from an operating perspective, we're making headway and becoming pretty close to cash flow break even. And if you look at our cash flow statement, we actually produced $330,000 of positive cash flow from operations in the six months. So we are very, very happy with that.

Dennis Calvert: So from an operating perspective, we're making headway and becoming pretty close too.

Dennis Calvert: Cash flow breakeven and if you look at our cash flow statement, we actually produced $330000 of positive cash flow from operations.

Dennis Calvert: In the six months, so very very happy with that and if you look at our balance sheet.

Charles Darden: And if you look at our balance sheet, you get to the point where we look really good. We're $4 million of working capital positive. And we have $4.8 million of cash on the balance sheet, $2.1 million of accounts receivable. So we're doing the right things at the right time. The operations are moving in the right direction. And we have very little as it comes to debt outside of accounts payable, which are normal parts of our operation. And we're only carrying about $184,000 in long-term debt, which most of which is, I believe, through our EIDL loans.

Charles Dargan: And if you look at our balance sheet, you get to the point where we look really good. We're $4 million in working capital positive, and we have, you know, $4.8 million of cash on the balance sheet, and $2.1 million of accounts receivable. So we're doing the right things at the right time. The operations are moving in the right direction. And we have very little as it comes to debt outside of accounts payable, which are normal parts of our operation.

Dennis Calvert: You get to the point, where we look really good were $4 million of working capital positive.

Dennis Calvert: And we have $4 $8 million of cash on the balance sheet $2 1 million of accounts receivable. So we're doing the right things at the right time.

Dennis Calvert: Operations are moving in the right direction, and we have very little as it comes to that.

Dennis Calvert: Outside of accounts payable, which are normal part parts of our operation.

Charles Dargan: And, you know, we're only carrying about $184,000 in long-term debt, most of which is, I believe, through our, you know, EIDL loans. So from that perspective, the company is in one of its best positions, certainly from a balance sheet, an income statement, and a cash flow situation. So, Dennis, kind of back to you.

Dennis Calvert: And you know we are only carrying about 184000 and long term.

Dennis Calvert: That which most of which is I believe through our.

Dennis Calvert: IDL loans so.

Charles Darden: So from that perspective, the company is in one of its best positions, certainly from a balance sheet and income statement and a cash flow situation.

Dennis Calvert: From that perspective, the company is in one of its best positions certainly from a balance sheet and income statement and the cash flow situation. So Dennis kind of back to you.

Dennis Calvert: So Dennis, kind of back to you. Yeah, no, I think that's great. And then the next slide basically takes our existing, which you referenced, $9.7 million a year-to-date revenue. And it doubles it. That's just a pure math formula. Of course, we're not trying to necessarily provide a projection for that. But we believe the current track will maintain. And we've got a chance to increase it. We believe that’s true. Big reliance on POOF. POOF stays the course. We believe these numbers can become real for the year. But it is a record year.

Dennis Calvert: Yeah, no, I think that's great. And then the next slide basically takes our existing, which you referenced, 9.7 million year-to-date revenue, and it doubles it. That's just a pure math formula. Of course, we're not necessarily trying to necessarily provide a projection for that, but we believe the current track will hold, and we've got a chance to increase it. We believe that's true because of a big reliance on POOF. POOF stays the course.

Dennis Calvert: Yeah, No I think that's great and then the next slide basically takes our existing there, which you referenced $9 7 million year to date revenue and it doubles. It that's just the pure math formula of course, we're not trying to necessarily provide a projection for that but we believe the current track we will maintain and we've got a chance to increase it we believe that is true.

Dennis Calvert: We believe these numbers can become real for the year. But it is a record year, and Charlie and I have a constant conversation about, you know, when will we be, when will we be in a position to remove questions about growing concern because we're, we are, and profit, our needs per share, and it's close, it's closer than everyone might imagine. It did take us a long time to get here, but it's a very encouraging moment.

Dennis Calvert: Big reliance on Poof Poof stays the course, we believe these numbers can become real for the year, but it is it is a record year and.

Dennis Calvert: And Charlie and I have a constant conversation about, you know, when will we be in a position to request a doubt going concern? Because we're in profit or needs for share. And it's closer than everyone might imagine. It did take us a long time to get here. But it's a very encouraging moment.

Dennis Calvert: Charlie and I have a constant conversation about.

Speaker Change: When will we be.

Charlie: When will we be in a position through questions about going concern.

Speaker Change: Because we were and profit earnings per share.

Speaker Change: And it's close it's closer than everyone might imagine it did take us a long time to get here, but it's a very encouraging moment and I just want to point out also the feedback we get and especially in the OTC Microcap community.

Dennis Calvert: And I just want to point out also the feedback we get, especially in the OTC micro-cap community, we are, given our balance sheet and our growth rate, an anomaly in the space. It is, it's, you know, as part of the OTCQX, which is a nice stepping stone on the way to success. We are one of a few hundred companies out of 10,000 that have met the specifications to actually remove the qualification. We call it... penny stock exempt.

Dennis Calvert: And I just want to point out, also, the feedback we get in, especially in the OTC microcap community. We are very much given our balance sheet and our growth rate and anomaly in the space. It is part of the OTC QX, which is a nice stepping stone on the way to success. We are one of a few hundred companies out of 10,000 that have met the specifications to actually remove qualification. They call it penny stock exempt. And then their linko, that means that we've had multiple years of six million or more in revenue. We have net shareholder equity.

Speaker Change: We are very much given our balance sheet and our growth rate an anomaly in this space. It is it's a you.

Speaker Change: As part of the OTC QSS.

Speaker Change: <unk>, which is a nice stepping stone on the way to success.

Speaker Change: We are one of a few hundred companies out of 10000.

Speaker Change: Met the specifications to actually remove qualification they call it.

Speaker Change: Penny stock exempt exempt and then Theyre lingo that means that we've had multiple years of 6 million or more in revenue. We have net shareholder equity, it's significant and have met the reporting requirements to qualify.

Dennis Calvert: And in their lingo, that means that we've had multiple years of $6 million or more in revenue. We have net shareholder equity that's significant, and we have met the reporting requirements to qualify with good confidence in the financial statements that we report. A nice designation, okay?

Dennis Calvert: It's significant and have met the reporting requirements to qualify with good confidence in the financial statements that we report. A nice designation.

Speaker Change: With good confidence in the financial statements that we report a nice designation okay.

Dennis Calvert: Okay. Net shop stockover actually. We mention this every time because this is an important number. And notice, over the last two years, it's steadily risen. And what that shows is some discipline. It also shows that we have reduced; we've increased revenue. Number one, that's the biggest contributor. We've been able to finance some of the expansion of the subsidiaries with direct investment. which really is important, because that helps us preserve delusion. I also point out that the Q, if it's not on record at the moment, it'll be on record any minute. So everybody has a chance to see that tonight or in the morning, so it's in process of being filed as we speak.

Speaker Change: Yeah.

Speaker Change: Net short cycled directly we mentioned this every time because this is an important number and notice over the last two years, it's steadily risen.

Dennis Calvert: We mention this every time because this is an important number. Notice that over the last two years, it's steadily risen. And what that shows is some discipline.

Speaker Change: And what that shows this discipline. It also shows that we have reduced.

Dennis Calvert: It also shows that we have increased revenue, number one. That's the biggest contributor. We've been able to finance some of the expansion of the subsidiaries with direct investment, which really is important because that helps us preserve dilution. I also point out that the Q, if it's not on record at the moment, it'll be on record any minute.

Speaker Change: We've increased revenue number one that's the biggest contributor we've been able to finance some of the expansion of the subsidiaries with direct investment.

Speaker Change: Which really is important because that helps us preserve dilution.

Speaker Change: I'd also point out that the Q, if it's not on record at the moment it'll be on record any minute.

Dennis Calvert: So, everybody has a chance to see that tonight or in the morning, so it's in the process of being filed as we speak. But in that Q, you're going to notice some very specific things, like that the company has not needed to raise direct investment through private offerings in Q2, which means no direct private placements with what we call a unit offering and no dilution from that event. And why is that?

Speaker Change: Everybody have a chance to see that tonight or in the morning. So it's in process of being filed as we speak but in that Q, you're going to notice some very specific things like that the company has not needed to raise direct investment through private offerings in Q2.

Dennis Calvert: But in that Q, you're going to notice some very specific things, like that the company has not needed to raise direct investment through private offerings in Q2, which means no direct private placements with what we call a unit offering and no dilution from that event.

Speaker Change: Which means no direct private placements with the what we call unit offering and no dilution from that event and why is that.

Dennis Calvert: Right. That's the question. Why is that?

Dennis Calvert: And why is that? That's the question: why is that? Well, first reason is because the operating units have continued to grow and generate cash. We've also been able to bring in capital directly into those units. And another key factor is we had some exercise awards and the exercise of warrants while calculating your total issued and outstanding and the fully diluted count; there was some conversion. And so we're thankful for that. That's been very meaningful for the company as well.

Dennis Calvert: Well, the first reason is that the operating units have continued to grow and generate cash. We've also been able to bring in capital directly into those units. And another key factor is that we had some exercise awards, and the exercise of warrants, while calculating your total issued and outstanding, and the fully diluted count, there was some conversion.

Speaker Change: Right. That's the question why is that well first reason is because the operating units have continued to grow and generate cash. We've also been able to bring in capital directly into those units and another key factor is we had some exercise of warrants and exercise of warrants well calculated in your total issued and outstanding.

Speaker Change: And the fully diluted count.

Speaker Change: There were some conversion and so we're thankful for that that's been very meaningful for the company as well.

Charles Dargan: And so we're thankful for that. It's been very meaningful for the company as well. Generally speaking, this $5.9 million net shareholder equity is important because many of the national exchanges that we believe our company is on the route to being fully qualified for, and we want to pursue that. Generally speaking, $5 million should or equity requirement is a prerequisite to listing on an exchange, like a NASDAQ exchange, and so we're well in excess of that, and we believe it will continue to grow. So, Charlie, do you have any comments on those thoughts? Yeah, no, I think you're absolutely right.

Dennis Calvert: So generally speaking, this $5.9 million net shareholder equity is important because many of the national exchanges that we believe our company is on the route to being fully qualified for, and we want to pursue that. Generally speaking, $5.9 shareholder equity requirement is a prerequisite to listing on an exchange, like a NASDAQ exchange. And so we're well in excess of that, and we believe it will continue to grow.

Speaker Change: So generally speaking this this $5 $9 million net shareholder equity is important because many of the national exchanges that we believe our company is is on the route to being fully qualified for and we want to pursue that.

Speaker Change: Generally speaking our $5 million net shareholder equity requirement is a is a prerequisite to listing on the exchange like a NASDAQ exchange.

Speaker Change: And so we're well in excess of that and we believe it will continue to grow so Charlie you have any comments on those thoughts.

Charles Darden: So, Charlie, any comments on those spots? Yeah, no, I think you're absolutely right. And given the way that the operations have been moving and growing, I believe that, yes, I'm good with our revenue projections.

Charles Dargan: And given the way that the operations have been moving and, you know, growing, I believe that, yes, I'm good with our revenue projections and, extremely important for stockholders, positive stockholder equity and where we are now, which, again, we're going to continue to grow, which is, you know, necessary for any kind of uplisting or decision for management to make about moving to NASDAQ. So, yes, I am very positive about where the company is and very excited about how we've been growing and where we're headed. Yeah, that's good. And then and again, also very careful to preserve dilution. Be very, very careful.

Speaker Change: Yeah.

Speaker Change: Yeah, No I think you're absolutely right and given.

Charlie: Given the way that the operations have been moving and you know growing I believe that yes, I'm good with our revenue projections and extremely important about stockholders positive stockholders' equity and where we are now which again.

Dennis Calvert: And extremely important about stockholders' positive stockholders' equity and where we are now, which, again, we're going to continue to grow, which is necessary for any kind of uplifting or decision for management to make about moving to the NASDAQ. So yes, I'm very positive about where the company is and very excited for how we've been growing and where we're headed. Agreed, yeah. Good. And then, and again, also very careful to preserve delusion. Be very, very careful. We're in such a good position compared to, again, most companies on the OTC are at this stage of development to be able to finance direct investment into the subsidiaries, which is extraordinarily valuable because it helps preserve on the dilution side of the parent.

Charlie: Where we're going to continue to grow which is necessary for any kind of uplifting or decision for management to make about moving to the NASDAQ. So yes, I am very positive about where the company is and very excited for.

Charlie: How we've been growing and where we're headed.

Speaker Change: Agreed yes.

Speaker Change: Good and then and again also very careful to preserve our dilution be very very careful.

Dennis Calvert: We're in such a good position compared to, again, most companies on the OTC are at this stage of development to be able to finance direct investment into the subsidiaries, which is extraordinarily valuable because it helps preserve the dilution side of the parent. And the other thing is that we really are pursuing what we call a capital conservation strategy and the way we are developing this. I can get along with it; I don't want to do that, but, you know, it's as simple as this idea: build it, and they will come, or they come, and then we build it.

Speaker Change: We're in such a good position compared to again most companies on the OTC or at this stage of development to be able to finance direct investment into the subsidiaries, which is extraordinarily valuable because it helps preserve on the dilution side of the parent.

Dennis Calvert: And the other is we really are pursuing what we call a capital conservation strategy, and the way we develop business. You know, and I can get long way down. I don't want to do that. But, you know, it's as simple as this idea of "build it and they will come" or "they come and then we build it." And I say it that way because, in many cases, we're patient to build as we have customers, expand staff as we have accounts. Give an example; the engineering group just landed these new contracts with the Air Force, which are awesome.

Speaker Change: And the other is we really are pursuing what we call a capital conservation strategy and the way we develop business.

Dennis Calvert: And I say it that way because in many cases, We're patient to build as we have customers, expand staff as we have accounts. Give an example, the engineering group just landed these new contracts with the Air Force, which are awesome. And those, we expect those to generate about 110,000 or so a month. And we've added, I believe, in the last 60, 90 days, four people to the engineering group. So those are highly qualified engineering and support staff, which is awesome. But we did it when we had the contract in hand.

Speaker Change: Well I can get along with it I won't do that but you know it's as simple as this idea of build it and they will come or they come and then we build it and I say it that way because in many cases, we're patient to build as we have customers expand staff as we have accounts give you. An example, the engineering group.

Speaker Change: Just landed these new contracts with the Air Force, which are awesome and those we expect those to generate about 110000 or so a month and we've added I believe in the last 60 90 days for people to the engineering group. So those are highly qualified engineering and support staff, which is awesome, but.

Dennis Calvert: And we expect those to generate about 110,000 or so a month. And we've added, I believe, in the last 60, 90 days, four people to the engineering group. So those are highly qualified engineering and support staff, which is awesome. But we did it when we had the contract in hand.

Speaker Change: But we did it when we had the contract in hand.

Dennis Calvert: Foundation. Okay, so before those staff members come on board, it means everybody's pulling double duty. And then we backfill. And while that's hard on the team, it's really good for the income statement and the ultimate balance sheet because we have the cash flow to pay those people and expand with money in the bank. So we're really working hard to do that same thing in the battery and the water technology wherever we can work with folks on that kind of strategy.

Dennis Calvert: Okay, so before those staff members come on board, it means everybody's pulling double duty, and then we backfill. And while that's hard on the team, it's really good for the income statement and the ultimate balance sheet because we have the cashflow to pay those people and expand with money in the bank. So we're really working hard to do that. Same thing with the battery and the water technology. Wherever we can, we're focused on that kind of strategy. Real quick, business units. So, of course, everybody knows POOF. POOF is just killing it, and we're so grateful.

Speaker Change: Okay. So before those staff members come on board it means everybody's pulling double duty.

Speaker Change: And then we backfill and and while that's hard on this on the team. It's really good for the income statement and handle the ultimate balance sheet, because we have the cash flow to pay those people expand with money in the bank. So we're really working hard to do that same thing in the in the battery and the water technology wherever we can refocus on that kind of strategy.

Speaker Change: Okay.

Dennis Calvert: Okay, real quick business unit. So, of course, everybody knows poof poof is just killing it. And we're so grateful. And they're the team at Poof is projecting a second half of the year to be really significant. Now you're going to see in the queue that a little bit of drop off from Q1 to Q2, 10 to 12 percent top line. We attribute most of that to timing because revenues are continuing, of course. They also, I'm going to show you a couple of really important things. They've got new retailers. Now we experienced new retailers in the past.

Speaker Change: Real quick business unit. So of course, everybody knows Poof Hooper is just killing it and we're so grateful and there the team at <unk> is projecting second half of the year to be a really significant now youre going to see in the Q, we had a little bit of drop off from Q1 to Q2, 10% to 12% top line, we attribute most of that to <unk>.

Dennis Calvert: And the team at POOF is projecting the second half of the year to be really significant. Now, you're going to see in the Q, we had a little bit of a drop off from Q1 to Q2, 10 to 12 percent top line. We attribute most of that to timing, because revenues are continuing, of course. Also, I'm going to show you a couple of really important things.

Speaker Change: <unk>.

Speaker Change: Because revenues are continuing of course, they also I'm going to show you a couple of really important things they've got new retailers now we experienced new retailers in the past Walmart has the most notable and when they had to stock up for these new rutile or as we saw some.

Dennis Calvert: They've got new retailers. Now, we've experienced new retailers in the past. Walmart's the most notable.

Dennis Calvert: And when they had to stock up for these new retailers, we saw some, you know, volatility, if you will, in the consistency of the order flow while they stocked up and looked at a national distribution. Okay, so two new accounts have come on. Rouse, which is a big deal. And remember, Rouse is part of Kroger Foods. That's a ripple before a wave and then targets.

Dennis Calvert: Walmart's the most notable. And when they had to stock up for these new retailers, we saw some, you know, volatility, if you will, in the consistency of the order flow. Well, they stocked up and looked at a national distribution. Okay, so two new accounts that come on Rouse, which is a big deal. And remember Rouse is part of Program Foods. That's a ripple before wave. And then Target. Target's a new account. And of course, these big brands are just everyone knows these big brands. And so the big players continue to be big for the company Home Depot. Courses really coming on.

Speaker Change: Volatility if you will in the consistency of the order flow, while they stocked up and looked and looked at a national distribution.

Speaker Change: Okay. So two two new accounts that come on Ralph's, which is a big deal and remember Ross as part of Kroger foods.

Dennis Calvert: Target's a new account, and of course, these big brands are just, everyone has these big brands. And so the big players continue to be big for the company, Home Depot courses really coming on. And in each of these, they have their own life cycle of how the product gets distributed, and they get in all the stores, but it is expanding, and that's going to take me to their next stated goal. Oh, two slides away.

Speaker Change: That's a ripple before wave and then target target to new account.

Speaker Change: And of course these big brands are just everyone knows these big brands and so the big players continue to be big for the company home Depot of course is really coming on and in each of these they have their own lifecycle of how product gets distributed and they get them all the stores, but it is expanding and that's going to take me to their next stated goal.

Dennis Calvert: And in each of these, they have their own life cycle of how product gets distributed, and they get in all the stores. But it is expanding.

Dennis Calvert: And that's going to take me to their next stated goal. Oh, two slides away. Here we go. Okay, so remember our relationship to POOSE, right? We did a business deal. The business deals resupply. We're the supplier of the product. So we wholesale the product to POOSE, then builds their brand, manages distribution, sets up retailers, sets up advertising. They do all the work to get that brand and that product situated in the marketplace. We also do product development. There's a lot of product development going on. We're really busy with that. We support them in any way possible because we're hooked at the hip, the business partners.

Dennis Calvert: Here we go. Okay, so remember our relationship to POOF? We did a business deal. The business deal is that we supply. We're the supplier of the product. So we wholesale the product to Pouf. Pouf then builds their brand, manages distribution, sets up retailers, and sets up advertising.

Speaker Change: Two slides away here, we go okay. So remember our relationship to pose.

Speaker Change: Right. We did it we did a business deal the business deals, we supply where the where the supplier of the product. So we wholesale the product to Houston builds their brand.

Speaker Change: Is it distribution setup retailers sits up advertising they do all the work to get that brand and that product situated in the marketplace. We also do product development and there's a lot of product development going on really busy with that we support them in any way possible.

Dennis Calvert: They do all the work to get that brand and that product situated in the marketplace. We also do product development. There's a lot of product development going on. We're really busy with that. We support them in any way possible because we're hooked at the hip.

Dennis Calvert: We're business partners. We receive a manufacturer's margin, a small royalty, and then we bargain in exchange for exclusivity for a piece of the equity of the brand, on a 20% of the exit when it's eventually sold. Now, again, I just have to highlight this.

Speaker Change: Because we were hooked up the hip business partners, we receive a manufacturer's margin a small royalty and then we bargain in exchange for exclusivity for a piece of that of the equity of the brands.

Dennis Calvert: We receive a manufacturer's margin, a small royalty. And then we bargain in exchange for exclusivity for a piece of the equity of the brand on a 20% of the exit when it's eventually sold. Now, again, I just have to highlight this as proof is growing and building a national brand. Our equity in that brand is increasing; their success is our success. And people forget that, right? So we believe that as that brand establishes prominence and it finds an exit, we're going to be a recipient of a very large check. I've always said, we think it's going to be north of 100 million.

Speaker Change: The percent of the exit when it eventually sold.

Speaker Change: Now again I'm just I just have to highlight this as proof is growing and building a national brand our.

Dennis Calvert: As proof is growing and building a national brand, our equity in that grant is increasing. Their success is our success, and people forget that, right?

Speaker Change: Our equity in that brand is increasing.

Speaker Change: Their success is our success and people forget that right. So we believe that as that brand establishes prominence and at times an exit.

Dennis Calvert: So we believe that as that brand establishes prominence and it finds an exit, we're going to be a recipient of a very large check. I've always said we think it's going to be north of $100 million. And what's great about this relationship, the success of POOF has turned out to be good for both parties in such a meaningful way that we believe they want to continue to expand the brand. And how do we know that?

Speaker Change: We're gonna be a recipient of a very large check I've always said, we think it's gonna be north of a 100 million.

Dennis Calvert: And what's great about this relationship and the success of POOSE has turned out to be good for both parties in such a meaningful way that we believe they want to continue to expand the brand. And how do we know that? Well, because we know what their goals are. They share their goals with us. Okay. And the first goal is they say we're targeting 20% quarter-over-quarter growth. Okay. So we'll get a little volatility there, right? But when you take 20%, so let's say start with a million. When you go up one quarter is 120, another quarter is 120, and you do that four times.

Speaker Change: And what's great about this relationship and the success of Booth has turned out to be good for both parties in such a meaningful way that we believe they want to continue to expand the brand and how do we know that well because we know what their goals are they share their goals with us.

Dennis Calvert: Well, because we know what their goals are. They share their goals with us. Okay, and the first goal is, they say, we're targeting 20% quarterly growth. Okay, so we get a little volatility there, right? But when you take 20%, let's say start with a million, when you go up one quarter, it's 120, another quarter is 120, and you do that four times, that's over a hundred percent growth.

Speaker Change: And the first goal as they say, we're targeting 20% quarter over quarter growth.

Speaker Change: So we get a little volatility there right, but when you take 20%.

Speaker Change: They start with $1 million in Europe, one quarter's 120 in other quarters 120, and you do that four times, that's over 100 per cigarette so what they're saying to US is they believe they can achieve consistently over time, 100% year over year growth.

Dennis Calvert: That's over a hundred percent growth. So what they're saying to us is they believe they can achieve consistently over time a hundred percent year-over-year growth. We know that most recently best evidence is they're in about thirty, thirty-five thousand retail outlets. Nothing like that. They're state of goals to get to eighty thousand retail outlets, and they continue the march. The the lights and the liturizer have both launched new campaigns, new orders, new distribution. Pretty busy and then put potty potty pants. Put potty pants. Go to the web. They're being advertised, are being promoted. I don't believe they're on a retail store yet.

Dennis Calvert: So what they're saying to us is they believe they can achieve consistently over time 100% year-over-year growth. We know that most recently. The best evidence is that they're in about 30,000-35,000 retail outlets, something like that.

Speaker Change: We know that most recently.

Speaker Change: Best evidence is there and about 30 35000 retail outlets something like that.

Dennis Calvert: Their stated goal is to get to 80,000 retail outlets, and they continue to march. The Wipes and Molitorizer have both launched. New campaigns, new orders, new distribution. Pretty busy. And then Poof Potty Pants. Go to the web.

Our stated goal is to get to 80000 retail outlets and then continue the March.

Speaker Change: The wipes and Melitta riser and both launched new campaigns, new orders new distribution.

Operator: Greetings. Welcome to the BioLargo Second Quarter 2024 Earnings Results Conference Qual. At this time, all participants are in a listen only mode.

Speaker Change: Busy and then poof pod potty pads Poop party that go to the web.

Dennis Calvert: They're being advertised, they're being promoted, but I don't believe they're in a retail store yet. I don't think they're on a shelf.

Speaker Change: They're being advertising being promoted I don't believe they're on a retail store yet I don't think they're on the shelf, but we know that from a production side, they're on the way and so again very exciting in each of these product innovations as an extension of our intellectual property. So this is a flourishing relationship inspected to continue stated goal of 100 person.

Operator: If anyone should require operator assistance during the conference, please press door 0 on your telephone keypad. Please note this conference is being recorded.

Dennis Calvert: I don't think they're on a shelf. But we know that from a production side they're on the way, and so again very exciting. Each of these product innovations is an extension of our intellectual property. So this is a flourishing relationship expected to continue stated goal hundred percent growth of the year, and that'll take us into just under twenty million. Ascent other other assets coming to market the meaningful way and so that's good news for the company.

Dennis Calvert: But we know that from a production side, they're on the way. And so, again, very exciting. And each of these product innovations is an extension of our intellectual property. So this is a flourishing relationship, expected to continue, stated goal, 100% growth for the year. And that'll take us into just under $20 million, absent other assets coming to market in a meaningful way. And so that's good news for the company.

Brian Loper: I will now hand the conference over to your host, Brian Loper. You may begin. Great. Thank you Holly. Appreciate that.

Speaker Change: Gross for the year and that'll take us into with just under $20 million.

Brian Loper: Good afternoon, everyone. Welcome to BioLargo's Q2 2024 Earnings Results Conference Call for the month ended June 30, 2024. By now, everyone should have had access to the Earnings Press release, which was issued on August 6. This call is being webcast and is available for replay. In our remarks today, we will include statements that are considered forward looking within the meanings of securities laws, including forward looking statements about future results of operations, business strategies and plans, our relationships with our customers, market and potential growth opportunities.

Speaker Change: Absent other other assets coming to market I mean, the way and so that's good news for the company.

Dennis Calvert: Clear. You know clear is it's just people forget this is this is these are ideas product ideas that go back to the origin story of the company. We first said we're going to put about six or seven hundred thousand equipment; that number is going to be over one point three million. And what we've been focused on for a little over a year with our partner is the national rollout of a co-branded product that we believe will be transformative in the medical field medical device. Remember we've already secured FDA clearance under five ten K. Okay, so now it's all about the product.

Speaker Change: Clearer.

Dennis Calvert: You know, clear as it is just... People forget these are product ideas that go back to the origin story of the company. We first said we were going to put about six or seven hundred thousand in equipment. That number is going to be over 1.3 million.

You know clear is it's just people forget. This is this is a these are ideas product ideas that go back to the origin story of the company.

Speaker Change: We at first and said, we're gonna put about six or 700000 in equipment.

Speaker Change: There's going to be over $1 3 million and what we've been focused on for a little over a year with our partner is the national rollout of a co branded product that we believe will be transformative in the medical field medical device remember, we've already secured FDA clearance under five 10-K.

Dennis Calvert: And what we've been focused on for a little over a year with our partner is the national rollout of a co-branded product that we believe will be transformative in the medical field. It's a medical device. Remember, we've already secured FDA clearance under 510K. Okay, so now it's all about the product. It has taken quite some time.

Brian Loper: In addition, management and the additional forward looking statements in response to your questions. Forward looking statements are based on management's current knowledge and expectations as it today in our subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward looking statements. A detailed discussion of such risks and uncertainties contained in our most recent form, 10K, 10Q and other reports filed at the SEC. The company undertakes no obligation to update any forward looking statements.

Speaker Change: Okay. So now it's all about the product it has taken quite some time. It's also been very taxing taxi and financially is taxes from a staffing perspective.

Dennis Calvert: It's also been very taxing, taxing financially, taxing from a staffing perspective, and very exciting. Our optimism and confidence that these products will find significance in commercial rollout through partnership have never been higher. I can also say that we've got multiple parties who have come to the table at different stages, but the main relationship that we've been over a year in development for is moving forward, and we're just very anxious to show up one day and say, "OK, we're ready to launch."

Dennis Calvert: It has taken quite some time. It's also been very tax taxing, financially taxing from a staffing perspective. Very exciting; our optimism and confidence that these products will find significance in commercial rollout through partnership has never been higher. I can also say that we've got multiple parties who have come to the table, all in different stages. But the main relationship that we've been over a year in development for is moving forward. And we're just very anxious to show up one day and say, okay, we're ready to launch. And so we hope that soon, but we definitely believe we're heading the right direction.

Speaker Change: Very exciting.

Speaker Change: Our optimism and confidence that these products will find significance and commercial rollout through partnership has never been higher I can also say that we've got multiple parties, who now have come to the table all in different stages, but the main the main relationship that we've been over a year in development for is moving forward and.

Dennis Calvert: And with that, I will now hand the call over to BioLargo's chief executive officer, Dennis Calvert. Hey, Brian. Thank you very much. And thank you, everyone, for joining us. I also want to mention Charles Darden is with us, our CEO, Charlie. Say hi. Are you there? Yep. I'm here. Thank you very much, Dennis. I'm good. Thank you for being here. Great. We're going to go quickly. I know a lot of questions about sort of status and some of the business development is a burning question everyone wants to talk about.

Speaker Change: And we're just very anxious to show up one day and say, Okay. We are ready to launch and so we hope that soon.

Dennis Calvert: So we hope that soon, but we definitely believe we're heading in the right direction. I also want to say clearly... You know, sometimes the significance of the product and what it represents is kind of lost. What does that mean?

Speaker Change: But we definitely believe we're heading in the right direction.

Dennis Calvert: I also want to say, on clearer, you know, sometimes the significance of the product and what it represents is kind of lost, you know, what was that mean? I mean, you know, just show me the numbers. Well, the numbers, the numbers will show up eventually. We know that, and range is that. But the meaningfulness really is that we have a chance to be a change agent in the field of infection control in the surgical suite. So we're talking about and gentleness and broad spectrum efficacy with no harm to the body with a leave-in product and some data that supports biofilm efficacy.

Speaker Change: I also want to say unclear.

Speaker Change: Sometimes the significance of the product and what it represents is kind of lost you know.

Dennis Calvert: And so we've had a great quarter and we'll start with that record quarter for our announcement. Remember, we're going to do a quick intro, BioLargo. We make life better. It's a big calling. We focus on innovation to help make the world and people's lives a better life and a better place to a better planet. Sustainable innovation focused on high impact innovation, keen emphasis on air, water, and energy. Of course, Brian eloquently covered the cautionary forward looking statements.

Speaker Change: Well, what does that mean it means.

Dennis Calvert: That means, you know, just show me the numbers. Well, the numbers will show up eventually. We know that, and we're anxious for it. But the meaningfulness, really, is that we have a chance to be a change agent in the field of infection control in the surgical suite. That's what we're talking about, gentleness and broad-spectrum efficacy with no harm to the body with a leave-in product and some data that support biofilm efficacy.

Speaker Change: Show me the numbers well the numbers the numbers will show a potentially we know that and we're anxious for that but the meaningfulness really is that we have a chance to.

Speaker Change: Be a change agent in the field of infection control and surgical suites. So we're talking about.

Speaker Change: And gentleness and broad spectrum efficacy with no harm to the body with a lead in product and some data that supports biofilm efficacy.

Dennis Calvert: They're real. Be sure and look at our cues in our case. We do a robust disclosure on risk factors. The nature of our business is high risk. You know, we're innovating things that have never been done before. And the good news is that we persevere and we overcome. That's going to be one of the hallmarks of BioLargo, overcoming the obstacles to success. Who are we? Innovators and scientists, entrepreneurs passionate about sustainability and human health, driven by a purpose, right?

Dennis Calvert: When you put all those claims together, those products, Uh... Those claims have been proven, and when you put them all together in a claim set, it makes it number one in the world, and again, in the world. So I just, I don't know how to make it more clear. And if that's true, which we know it is true, that's representing over 13 years of work and probably about $18 million dollars, or the best part, to really get that product situated for a massive scale rollout with big brands and big partners to make a meaningful impact on the world. Now, Keystone's a big part of that. We've talked openly about it; it's in our queue.

Dennis Calvert: When you put all those claims together, those products had those claims have been proven, and when you put them all together in a claim set, it makes it number one in the world. And, again, in the world. So I just, I don't know how to make it more clear. And if that's true, which we know it is true, that's representing over 13 years of work and probably about 18 million dollars of investment to really get that product situated for massive scale rollout with big brands and big partners to make a meaningful impact for the world.

Speaker Change: When you put all of those claims together those products.

Speaker Change:

Speaker Change: I had those claims are improving and when you put them all together in a claim set it makes it number one in the world.

Speaker Change: And again in the World. So I, just I don't know how to make.

Speaker Change: Make it more clear.

Speaker Change: And if that's true, which we know it is true.

Dennis Calvert: A life better? Guests in class. Guests in classes are very important. We didn't think these innovations had a chance to be transformative as a technology innovation that can be a cornerstone of making change in the marketplace. We wouldn't do it. We'd make considerable investments in some of these assets. We're going to talk about those in particular. The adoption cycles are very frustrating sometimes, but the innovation is nonetheless. We believe we'll find a home in the marketplace for transformative change.

Speaker Change: That's representing over 13 years of work and probably about $18 million of investment to really get that product situated for massive scale rollout with big brands and big partners to make a meaningful impact for the world know keystone's, a big part of that we've talked openly about its in our queue.

Dennis Calvert: Now, Keystone's a big part of that. We've talked to openly about it; it's in our cube. Keystone's a large manufacturer, really well-situated, probably held, significant player. And this is the machine that actually makes the product. And we've also had to supplement that with other equipment. That's what that, you know, 1.3 plus million is about. And our partner at Keystone's also made dramatic investment. And we're, we're into the file steps of preparing for a product launch. Very exciting.

Dennis Calvert: Keystone's a large manufacturer, really well-situated, privately held, a significant player. And this is the machine that actually makes the product. And we've also had to supplement that with other equipment. That's what that 1.3 million plus is about.

Speaker Change: Keystone is large manufacturer really well situated privately held cigna.

Speaker Change: Significant player and this is the machine that actually makes the product a.

Dennis Calvert: And some of us take a long time. So we'll talk about that, too. Lots of engineering going on. Our engineers have joined us. Gosh, almost five years ago. World class people 30, 25, 30 years, experience all around the world, doing innovation supporting our innovations for commercial adoption. We focus on problems without good solutions. It's really important. There's something missing in the marketplace. That's where we like to live, at the parent company we have the finance strategy, very much entrepreneurial spirit, find a market opportunity, find a way to get adoption, get yourself into the marketplace to create revenue and profit and ultimately validate technology for massive, what we think is massive opportunities for distribution and partnership, lots of engineers, lots R&D or group up a canvas, critical as well, four and a half million dollars in grants secured there over the time, also an innovator themselves, also support innovation, not going on there.

Speaker Change: And we've also had to supplement that with other equipment. That's what that you know 1.3 plus million is about and our partner at Keystone has also made dramatic investment.

Dennis Calvert: And our partner at Keystone's also made a dramatic investment, and we're into the final steps of preparing for product launch. We're very excited.

Speaker Change: Where we're into the final steps of preparing for.

Speaker Change: Product series.

Speaker Change: Yeah.

Dennis Calvert: Full circle story for the company.

Speaker Change: Full circle story for the company Pithos kill you with a lot of detail going on with these loss P. Fast that's forever chemicals related to non stick coatings.

Dennis Calvert: Full circle story for the company. PFAS. I won't kill you.

Dennis Calvert: PFAS. I won't kill you with a lot of detail going on with PFAS. PFAS. That's forever chemicals related to non-stick coatings. Big companies use this chemistry to make non-stick coatings for years. It's now considered one of the most significant pollutants in the world. Global problem. Okay, ready for this? This is new. New slide. It's fascinating. When the industry started using PFAS, it was sold anywhere from $50 to about $1,000 a pound. That means the raw chemistry was sold into industry, used to combine with products or making products at about that price. The cost to remove it from the environment is between $2.7 and $18 million a pound.

Dennis Calvert: A lot of detail going on with PFAS. PFAS. That's Forever Chemicals. Related to nonstick coatings. Big companies used this chemistry to make nonstick coatings for years. It's now considered one of the most significant pollutants in the world. A global problem. Okay, you ready for this?

Speaker Change: Big companies use this chemistry to make nasty coatings for years is now considered one of the most significant pollutants in the world.

Global problem, Okay ready for this this is new news slides, it's fascinating when the industry started using P. Pause it was sold anywhere from $50 to about $1000 a pound.

Dennis Calvert: This is new. This slide is fascinating. When the industry started using PFAS, it was sold anywhere from $50 to about $1,000 a piece. That means the raw chemistry was sold into industry, used to combine with products or make products, and at that price, the cost to remove it from the environment is between $2.7 and $18 million dollars a day. What's the point?

Speaker Change: That means the raw chemistry was sold into industry used to combine with products are making products.

Speaker Change: Think about that price the costs to remove it from the environment.

Dennis Calvert: Clear medical, a transformative technology for infection control as antimicrobials that are used in medical settings, oh my goodness, what a very exciting business that that company has been incubated for about 13 years and it's poised for significance and we've got some major partnerships that it's taken a while to get to where they are but nonetheless we're highly encouraged and optimistic about the future and we believe it's near and hand. Energy technology is the youngest, we'll talk about the developments there, we've got a unique technology itself for a long duration energy storage, that's batteries built for offloading renewables, balancing the grid, you know large fixed-site batteries, 25 trailers, we'll talk about that, we think it's a transformative technology for long duration energy storage, O&M, flagship revenue generator for the company, POOP is one of the fastest-growing pet odor control products in the marketplace, breaking records continually, we'll talk about the detail of that and really transform the company and it's because of its financial performance, we also do a lot of industrial odor control over eight years I think in the field now, something like that, really become expert in the field of odor and VOC, ultra-grant compounds, it's the gases that come off of chemistry and landfills.

Speaker Change: It's between two seven and $18 million a pound.

Speaker Change: Okay, what's the point, it's it's it's to compare.

Dennis Calvert: Okay, what's the point? It's to compare. It generated billions in revenue. It's going to cost trillions to clean it up. And this is the travesty of the industry. It's estimated to be social costs about 17 trillion. And remember, I tell the story all the time. I asked the water engineer when time in the water table. I said, how long does it take to get in that water table? It's 50 years. How long does it take to get out? He said it'll be at least 50 years. And these top companies were the largest producers of PFAS production for industry, estimated annual profits of about a billion.

Dennis Calvert: It's to compare. It generated billions in revenue. It's going to cost trillions to clean it up, and this is the travesty of the industry. It's estimated to have a social cost of about $17 trillion. And remember, I tell this story all the time.

Speaker Change: It generated billions in revenues can house trillions to clean it up.

And this is the travesty of the industry.

Speaker Change: 17, its estimated would be social costs about 17, Trulia and remember I tell the story all the time as the water engineer onetime in the water table.

Dennis Calvert: I asked a water engineer one time about the water table. I said, how long did it take to get into that water table? He said, 50 years. How long does it take to get out?

Speaker Change: How long how long would it take to get into that water to say it was 50 years, how long it would take to get out he said there'll be at least 50 years.

Dennis Calvert: He said it'll be at least 50, and these top companies were the largest producers of PFAS production for industry, estimated annual profits of about a billion. This is going to be an industry that's going to be around for the next 25 years, and we're well situated here to be a winner. We're going to talk about that. Its primary benefit is that we're the most excellent collector.

Speaker Change: These top top companies, where the largest producers of P. Fast production for industry estimated annual profits of about $1 billion.

Dennis Calvert: This is going to be an industry that's going to be around for the next 25 years. Okay, and we're well situated here to be a winner.

Speaker Change: This is gonna be an industry, that's going to be around for the next 25 years.

Speaker Change: And we're well situated here to be a winner.

Dennis Calvert: We're going to talk about that. It's primary benefit is we're the most excellent collector. The most excellent collector. When you compare all other technologies, we super concentrate the contaminant. We also offer a destruction technique as well. But the main value proposition is that we can create a waste stream that's sub-pound or two pounds versus 40,000 pounds of carbon. We do have our first count. I want to schedule for like Stockholm and New Jersey, supposedly in the field sometime in October and November. We our installation will have to be done when the building is built. So you see that little building?

Speaker Change: About that.

Speaker Change: The primary benefit is where the most excellent collector.

Speaker Change: Most excellent collector when you compare us to all other technologies, we super concentrate the contaminant. We also offer a destruction technique as well, but the main value proposition is that we can create a waste stream, that's a pound or two pounds versus 40000 pounds requirement.

Dennis Calvert: When you compare us to all other technologies, we super concentrate the contaminant. We also offer a destruction technique as well, but the main value proposition is that we can create a waste stream that's a pound or two pounds versus 40,000 pounds of carbon. We do have our first account. I want to schedule for like Stockholm and New Jersey, and we're supposed to go in the field sometime in October or November.

Speaker Change: Do have our first account.

Speaker Change: It's scheduled for like Stockholm, and New Jersey, supposedly going to field, sometimes October and November.

Dennis Calvert: The equipment group, relatively new, that's next focused on, commercializing all of our water technologies, including PFAS, PFAS of course is a super hot topic, we're going to go into a little bit of a deeper dive.

Speaker Change: Our installation will have to be done when the building is built.

Dennis Calvert: Our installation will have to be done when the building is built. So you see that little building? That's electrical, that's plumbing, that's access, that's all the things that a general contractor is gonna do. So if we face delay, we might face delay, from our perspective, we'll be ready to go, and we're in construction now, and we've received the bulk of our payment, and because of our milestone obligations, we've been able to recognize some of the revenue. So it's a very good situation. I have also said this publicly, and I want to say it again, and I would welcome a challenge, okay?

Speaker Change: You see that little building.

Speaker Change: That's that's electrical that's plumbing that's access that's all the things that are general contractors can do so.

Dennis Calvert: That's electrical. That's plumbing. That's access. That's all the things that the general contract is going to do. So if we face delay, we might face delay. From our perspective, we'll be ready to go, and we're in construction now, and we've received the bulk of our payment. And because of our milestone obligations, we've been able to recognize some of the revenue. for this. So it's a very good situation.

Charles Dargan: I think I'm going to ask Charlie to take a cup of these next two or three slides and provide some general commentary about these results, we're presenting both quarterly and annual to try and give you a flavor for that, and so Charlie would you like to speak about some of these? Sure, I'd love to thank Stanis and I'm just going to kind of go through this the way I see it versus necessarily the slides, but yeah, as Stanis reported and we have reported, we had record revenues, and this was a record quarter for Biolargo, which I am particularly proud of.

Speaker Change: If we face delay we might face to like from our perspective, we'll be ready to go and we are in construction now and we've received the bulk of our payment and because of our milestone obligations. We've been able to recognize some revenue for this so it's a very good situation. I also have said this publicly and I want to say it again and I welcome the challenge to our <unk>.

Dennis Calvert: I also have said this publicly, and I want to say again, and welcome a challenge, okay? To our knowledge, and that's the caveat, we don't know of any other company that's actually secured a commercial account from an alternative technology. So be really clear, not an ion exchange, not a carbon. Those are old technologies, been around a long time, okay? And they do have some market adoption of old tech with customers who need to move quickly to get PFAS out of drinking water. That's where they moved. From an alternative technology perspective, we think we're the only account company in the world that we know of; it's got a commercial account.

Dennis Calvert: To our knowledge, that's the caveat. We don't know of any other company that's actually secured a commercial account from an alternative technology. So be really clear, not an ion exchange, not a carbon.

Speaker Change: Knowledge.

Speaker Change: So that's the caveat, we don't know of any other company, that's actually secured a commercial account.

Speaker Change: From an alternative technology, so be really clear not an ion exchange not a carbon those are old technology has been around a long time, okay, and then and they do have some market adoption of old Tech.

Dennis Calvert: Those are old technologies, have been around a long time, okay? And they do have some market adoption of old tech, with customers who need to move quickly to get PFAS out of drinking water. That's where they move, from an alternative technology perspective. We think we're the only company in the world that we know of that's got a commercial account.

Charles Dargan: We did about 5 million in revenue in the three months and about almost 10, 9.8 million in the six months, we maintained our margins, so we produced gross profits of a little over 2 million for the 2024-3 months and 4.4 million for the six months. Now while we did report net losses, those are very narrow and as you can see from our net loss per share, they're almost minuscule and a lot of it has to do with the non-cash charges that we take for certainly stock options and other non-cash expenses that we offer or issue, and those were 670,000 in the three months and almost 1.3 million in the six months, and so from an operating perspective, we're making headway and becoming pretty close to cash flow break even.

Speaker Change: Who with customers who needed to move quickly to get people outside of drinking water that's really moved.

Speaker Change: From an alternative technology perspective.

Speaker Change: We think we're the only account company in the World that we know it's got a commercial account, it's a big statement and it's the good news is small enough.

Dennis Calvert: It's a big statement, and the good news is it's small enough where we believe our risk of failure is extraordinarily low. It's something we can manage at this stage in the development of the technology. So this is a big win, and we have multiple trials underway, and we've most recently expanded into some other fields, leachate being one of them. This is a new slide. Let's see what you can see. Untreated leachate in the middle. Right to the left, right?

Dennis Calvert: It's a big statement, and the good news is small enough to where we believe our risk of failure is extraordinarily low. It's something we can manage at the stage of the development of the technology. So this is a big win, and we have multiple trials underway, and we've most recently expanded into some other fields, leachate being one of them.

Speaker Change: To where we believe our risk of failure is extraordinarily low it's something we can manage at this stage of the development of the technology. So so this is a big win.

Speaker Change: And we have multiple trials underway and.

Speaker Change: And we most recently expanded into some other fields leachate being one of them. This is a new slide so once you see a untreated leach it in the middle.

Dennis Calvert: This is a new slide. I'm going to say, once you see it, untreated leachate in the middle, right to the left, right? Post-AEC. That means that we've hit this with one, two, three treatment systems, one after the other, and produced post-AEC PFAS-free water, even to a non-detect status. Now, this is leachate. Leachate is the water that comes out of a lot of the landfill. Landfills, landfill business is good for Biolargo, remember? We've been serving that industry for over 10 years, where I already have national accounts. They're really going to fall under extreme pressure because the regulatory news is tightening for managing the waste streams. The PUC, that's probably Utility Commission, historically would take the concentrated PFAS, excuse me, to concentrate a leachate that has high concentration of PFAS, and they would treat it at the PUC.

Dennis Calvert: Post-AEC. That means that we've hit this with one, two, three treatment systems, one after the other and produced post-AEC PFAS-free water, even to a non-detect status. Now this is leachate. Leachate is the water that comes out of the bottom of a landfill.

Speaker Change: Right to left right post AUC that means that we've hit this with one to three treatment systems one after the other and produced.

Speaker Change: Post E C P phosphate water.

Speaker Change: Even to another tech status now this is Lee J B changes the water that comes out of the bottom of landfill.

Dennis Calvert: Landfill business is good for BioLargo. Remember, we've been serving that industry for over 10 years. We already have national accounts, but they're really going to fall under extreme pressure because of the regulatory news that is tightening for managing the waste. Okay, the PUC, that's the Public Utility Commission, historically would take the concentrated PFAS, excuse me, the concentrated leachate that has a high concentration of PFAS, and they would treat it at the PUC, that's the Public Wastewater Treatment.

Speaker Change: Phil landfill business is good for Myelography remember, we've been serving that industry for over 10 years, where you have national accounts are there, they're really gonna call under extreme pressure because of the regulatory news is tightening for managing the waste streams. Okay. The PUC that's public utility Commission historically would take the concentrated pithos.

Charles Dargan: And if you look at our cash flow statement, we actually produced $330,000 of positive cash flow from operations in the six months. So very, very happy with that. And if you look at our balance sheet, you get to the point where we look really good. We're $4 million of working capital positive. And we have $4.8 million of cash on the balance sheet, $2.1 million of accounts receivable. So we're doing the right things at the right time.

Speaker Change: <unk> excuse me the concentrate Leach Inc. That has high concentration of people and they were treated at the PUC, that's the public wastewater treatment.

Dennis Calvert: That's the public wastewater treatment. All right, Utility Commission. They don't want it anymore. That means it's going to go because it's being designated under Circle and Rickr as a hazmat. We're predicting that the cost of treat is going to go up dramatically. In fact, we think it's about 10x. So, what's our value proposition? Well, this is a pretty good graph. I know it's hard to see. This will make this publicly available, so if you can't read it all, basically the blue line described the cost of treat, assuming the cost of waste handling. Let's call it the three dollar number.

Dennis Calvert: All right, you killed the commission. They don't want it anymore. That means it's going to go because it's being designated under CERCLA and RCRA as a hazmat. We're predicting that the cost of treatment is going to go up dramatically. In fact, we think it's about 10x. So, what's our value proposition? Well, this is a pretty good graph, but I know it's hard to see. We will make this publicly available, so if you can't read it all, basically, the blue lines describe the cost to treat, assuming the cost of waste handling. Let's call it the $3 number.

Speaker Change: Alright until the commission.

Speaker Change: They don't want it anymore.

Speaker Change: That means it's going to go because it has been designated under Cercla, Rick or as a hazmat.

Speaker Change: We are predicting that the cost to treat its going to go up dramatically.

Speaker Change: We think it's about 10 X.

Speaker Change: So what's our value proposition well this is a pretty good graph I know it's hard to see this we will make this publicly available. So if you can't read it all basically the blue lines describe the cost to treat assuming the cost of waste handling waste handling let's call. It let's call. It the $3 number. So this is a 10 year life.

Charles Dargan: The operations are moving in the right direction. And we have very little as it comes to debt outside of accounts payable, which are normal parts of our operation. And we're only carrying about $184,000 in long-term debt, which most of which is, I believe, through our EIDL loans. So from that perspective, the company is in one of its best positions, certainly from a balance sheet and income statement and a cash flow situation.

Dennis Calvert: So, this is a 10-year life cycle, right? On a drinking water system that would treat basically water, it says you were 10,000 people, 10-year life cycle costs. We have between a 40 and 300 percent lower life cycle costs than a carbon system. And the variable is what's going to happen to the cost of handling. Now, we've taken a pretty bold statement. The end time will prove us right or wrong, but we're predicting a 10X and a current cost of treat, a 10X. The cost of handling hazmat for PFAS is going to go through the roof.

Dennis Calvert: So, this is a 10-year life cycle, right, on a drinking water system that would treat basically the water associated with 10,000 people, 10-year life cycle cost. We have between a 40% and 300% lower life cycle cost than a carbon system. And the variable is what's going to happen to the cost of handling. Now, we've made a pretty bold statement. Again, time will prove us right or wrong.

Speaker Change: Cycle right.

Speaker Change: On a on a.

Speaker Change: Drinking water system that would treat basically water associate with 10000 people 10 year lifecycle cost we have between a 40.

Speaker Change: And 300%.

Speaker Change: Lower lifecycle cost than a carbon system.

Speaker Change: And the variable is what's going to happen to the cost of handling now we've taken a pretty bold statement in time will prove us right or wrong, but we're predicting a 10 X and the current cost of tree.

Dennis Calvert: So Dennis, kind of back to you. Yeah, no, I think that's great. And then the next slide basically takes our existing, which you referenced, $9.7 million a year-to-date revenue. And it doubles it. That's just a pure math formula. Of course, we're not trying to necessarily provide a projection for that. But we believe the current track will maintain. And we've got a chance to increase it. We believe that's true. Big reliance on POOF. POOF stays the course. We believe these numbers can become real for the year.

Dennis Calvert: But we're predicting a 10x on the current cost of treating. Ateni, The cost of handling hazmat for PFAS is going to go through the roof. And as it does, it makes some of these incumbent technologies so economically unsound, and, in addition, they're going to have a very difficult time meeting specifications when it's all the way down to four parts per trillion, and there's an expectation that ultra-short chain molecules will continue to fall under regulatory pressure. Right now, we have long and short chains, and there's an ultra-short category. We believe they're all gonna find regulatory pressure. And as they do, especially for the ultra-short, ion exchange and carbon systems simply can't meet SPAC.

Speaker Change: Dennis.

Speaker Change: The cost of handling hazmat for P. Foss who's going to go through the roof.

Dennis Calvert: And as it does, it makes some of these incumbent technologies so economically unsound. And in addition, university. You're going to have a very typical time meeting specification when it's all the way down to four parts per trillion. And there's an expectation that ultra short chain molecules will continue to fall into regulatory pressure. Right now, we have long and short, and there's an ultra short category. We believe they're all going to find regulatory pressure. And as they do, especially for the ultra short, ion exchange and carbon systems simply can't meet back. Okay, so that means what you thought the old stuff could do is not going to work as the regulatory enforcement continues.

Speaker Change: And as it does it makes some of these incumbent technologies so economically on sales.

Speaker Change: And in addition.

Speaker Change: They're going to have a very difficult time meeting specification when its all the way down to four parts per trillion.

Dennis Calvert: But it is a record year. And Charlie and I have a constant conversation about, you know, when will we be in a position to request a doubt going concern? Because we're in profit or needs for share. And it's closer than everyone might imagine. It did take us a long time to get here. But it's a very encouraging moment. And I just want to point out, also, the feedback we get in, especially in the OTC microcap community, we are very much given our balance sheet and our growth rate and anomaly in the space.

Speaker Change: And there's an expectation that ultra short chain molecules will continue to fall under regulatory pressure right now we have long short.

Speaker Change: And Theres, an ultrashort category, we believe they're all gonna find regular regulatory pressure and as they do.

Speaker Change: Especially for the ultrashort.

Speaker Change: I own exchange and carbon systems simply can't meet spec.

Dennis Calvert: OK, so that means what you thought the old stuff could do is not going to work as regulatory enforcement continues. They're going to need to change out. In addition, right, carbon systems have an issue. It's called breakthrough. Breakthrough means it works, it works, it works, and it doesn't work. So there are a lot of problems with that system, and of course, our value proposition number one is cost efficiency and super concentration and then turnkey destruction. We have a backlog of prospects. We're beating the bushes daily.

Speaker Change: So that means what you thought the old stuff could do it.

Speaker Change: There's not going to work as the regulatory enforcement continues if they're going to need to change out. In addition, right carbon systems have having an issue was called a breakthrough breakthrough means it works. It works it works and it doesn't work.

Dennis Calvert: They're going to need to change out. In addition, right, carbon systems have an issue called breakthrough. Breakthrough means it works, it works, it works, and there doesn't work. So there's a lot of problems with that system. And of course, our value proposition number one is cost efficiency and super concentration, and then attorney key destruction. We have a backlog of prospects; we're beating the bushes daily. We have strategic partnerships, we have channel partnerships; it's all expanding. It's all really, really, really a great sign. And we still are challenged by the fact that we're in an early adopter stage.

Dennis Calvert: It is part of the OTC QX, which is a nice stepping stone on the way to success. We are one of a few hundred companies out of 10,000 that have met the specifications to actually remove qualification. They call it penny stock exempt. And then their linko, that means that we've had multiple years of six million or more in revenue. We have net shareholder equity. It's significant and have met the reporting requirements to qualify with good confidence in the financial statements that we report.

Speaker Change: So there's a lot of problems with that system and of course, our value proposition number one is cost efficiency and super concentration and then a turnkey destruction.

Speaker Change: We have a backlog of prospects were.

Speaker Change: We'll be beating the bushes daily we have strategic partnerships with channel partnerships. It's all expanding its all really really really a great sign.

Dennis Calvert: We have strategic partnerships. We have channel partnerships. It's all expanding. It's all really, really, really a great sign.

Dennis Calvert: And we are still challenged by the fact that we're in an early adopter stage. Right? So decision makers that are primarily influenced by political considerations have a very difficult time adopting emerging tech.

Speaker Change: And are we still are challenged by the fact that we're in we're in an early adopter stage.

Dennis Calvert: Right, so for decision makers that are primarily influenced by political considerations, they have a very difficult time adopting emerging tech. The alternative markets like Leach 8, like groundwater, like industrial wastewater, municipal wastewater will lean more heavily towards business and engineering decisions. And in those cases, we have a very good chance of earlier adoption. So the fact that our technology can work in all of those different markets because the nature of its design is a significant advantage for us. And we believe that we'll continue to see adoption and expand it in these other markets.

Speaker Change: So for.

Speaker Change: Decision makers that are primarily influenced by political considerations.

Dennis Calvert: A nice designation. Okay. Net shop stockover actually. We mention this every time because this is an important number. And notice, over the last two years, it's steadily risen. And what that shows is some discipline. It also shows that we have reduced, we've increased revenue. Number one, that's the biggest contributor. We've been able to finance some of the expansion of the subsidiaries with direct investment, which really is important, because that helps us preserve delusion.

Speaker Change: They have a very difficult time adopting emerging tech.

Dennis Calvert: The alternative markets, like leachate, like groundwater, like industrial wastewater, and municipal wastewater, will lean more heavily towards business and engineering decisions, and in those cases, we have a very good chance of earlier adoption. So, the fact that our technology can work in all of those different markets, because of the nature of its design, is a significant advantage for us. And we believe that we'll continue to see adoption and expanded interest in these other markets. Bad or intense?

Speaker Change: The alternative markets like leachate like groundwater like.

Speaker Change: Industrial wastewater municipal wastewater.

Speaker Change: We will lean more heavily towards.

Speaker Change: Business and engineering decisions and in those cases, we have a very good chance of earlier adoption. So the fact that our technology can work in all of those different markets because of the nature of its design is a significant advantage for us and we believe that will continue to see adoption and.

Dennis Calvert: I also point out that the Q, if it's not on record at the moment, it'll be on record any minute. So everybody have a chance to see that tonight or in the morning, so it's in process of being filed as we speak. But in that Q, you're going to notice some very specific things, like that that the company has not needed to raise direct investment through private offerings in Q2, which means no direct private placements with what we call a unit offering and no delusion from that event.

Speaker Change: Expanded interest in these other markets okay.

Dennis Calvert: Okay, battery tech, salinity battery, right, sodium, liquid sodium. It runs about 160 C. That's a, that's a, that's in the world of liquid sodium batteries that floats in compared to lithium at higher, right, so above room temperature, but the beauty of a battery that can operate at 160 C is that it requires no parasitic load to keep it cool. What does everybody tell you about batteries? Don't let it get hot. Our is actually loves the heat. So we have a little bit of a presentation. Let's see if I can make it work here real quick.

Speaker Change: That are intact.

Dennis Calvert: salinity battery, right? Sodium, liquid sodium. Friends about 160 C. That's in the world of liquid sodium batteries that's low-timp, compared to lithium attire, right, so above room temperature, but the beauty of a battery that can operate at 160C is that it requires no parasitic load to keep it cool.

Lindsay: So Lindsay battery right sodium liquid sodium.

Speaker Change: It's about 160 see that's not that's a that's a best in the world of liquid sodium batteries that slow tien compared to lithium and it's higher right above room temperature, but the beauty of a battery that can operate at 160 C is that it requires no parasitic load to keep it cool.

Dennis Calvert: And why is that? That's the question, why is that? Well, first reason is because the operating units have continued to grow and generate cash. We've also been able to bring in capital directly into those units. And another key factor is we had some exercise awards and the exercise of warrants while calculating your total issued an outstanding and the fully deluded count, there was some conversion. And so we're thankful for that. That's been very meaningful for the company as well.

Speaker Change: Well, it's everything about batteries don't let it get hot.

Dennis Calvert: What does everybody tell you about batteries? Don't let them get hot! Don't let them get hot. Ours actually loves the heat.

Speaker Change: He got hot ours actually loves the heat.

Dennis Calvert: So we have a little bit of a presentation. Let's see if I can make it work here real quick. There we go. Let's see if we made this work. Salinity is not a lipid. Rather, it uses a unique battery chemistry involving molten salt electrolytes with high energy density, low cost per kilowatt hour, no risk of fire or explosion, high operational efficiency, and no self-discharge. All of Salinity's components and materials can be sourced within North America and do not include rare earth elements.

Speaker Change: So we have a little bit of a presentation to see if I can make it work here real quick.

Dennis Calvert: There we go. Let's see if we make this work. Solinity is biolod days next generation battery factor designed to provide safe long last and environmentally conscious, large format, long duration battery energy storage. Solinity is not a lithium battery. Matters, it uses a unique battery chemistry involving molten salt electrolytes with high energy density, low cost per kilowatt hour, no risk of fire or exposure, high operational efficiency, and no self-destruction. All of salinity's components and materials can be sourced within North America and do not include rare earth elements. Applications include grid-scale storage, renewable energy storage, charging stations for electric vehicles, and a variety of other commercial and industrial applications.

Speaker Change: There you go.

See we make this work.

Speaker Change: So liberty is viral load those next generation battery designed to provide long lasting and environmentally conscious large format long duration battery energy storage.

Robert: So liberty is not a lithium battery Robert it uses a unique battery chemistry involving molten salt Electrolyzed with high energy density low cost per kilowatt hour no risk of fire or explosion soy operational efficiency and those self discharge.

Dennis Calvert: So generally speaking, this $5.9 million net shareholder equity is important because many of the national exchanges that we believe our company is on the route to being fully qualified for and we want to pursue that. Generally speaking, $5.9 shareholder equity requirement is a prerequisite to listing on an exchange, like a NASDAQ exchange. And so we're well in excess of that and we believe it will continue to grow. So Charlie, any comments on those spots?

Speaker Change: All of salinities components and materials can be sourced within North America and do not include rare Earth elements.

Dennis Calvert: Applications include grid-scale storage, renewable energy storage, charging stations for electric vehicles, and a variety of other commercial and industrial applications. BioLargo has a unique partner-centered business model to roll out micro factories and gigawatts, and the first man in the footage. The world needs a revolution. Okay, thank you very much.

Speaker Change: Applications include grid scale storage renewable energy storage charging stations for electric vehicles, and the variety of other commercial and industrial applications.

Dennis Calvert: BioLargo has a unique partner-centred business model to roll out micro-festories and gigantries.

Speaker Change: <unk> has a unique partner centric business model rollout micro factories.

Dennis Calvert: Yeah, no, I think you're absolutely right. And given the way that the operations have been moving and growing, I believe that, yes, I'm good with our revenue projections. And extremely important about stockholders' positive stockholders' equity and where we are now, which, again, we're going to continue to grow, which is necessary for any kind of uplifting or decision for management to make about moving to the NASDAQ. So yes, I'm very positive about where the company is and very excited for how we've been growing and where we're headed.

Dennis Calvert: The first batch of prototypes were recently. The world needs a... Okay, thank you very much.

Speaker Change: The first battery prototypes for recently.

The world needs arise.

Speaker Change: Okay. Thank you very much.

Speaker Change: Okay.

Dennis Calvert: Okay, we include this slide because we wanted to be public records. You can look at it later. There's so much data you can't possibly present it. But basically, we have a series of features that make it a very attractive commercial offering. And we covered some of those, right? This is the design. Once you make your sales, which we're making sales now, and you can refine the manufacturing technique to produce them to scale, you take those sales and you assemble them in racks, and racks make packs. And ultimately, you create these packs, these modules that can store energy.

Dennis Calvert: OK. We include this slide because we want it to be a public record so you can look at it later. There's so much data you can't possibly present. But basically, we have a series of features that make it a very traffic commercial off, and we covered some of those, right? This is the design, once you make your cells, which we're making cells now, and you can refine the manufacturing technique to produce them to scale.

Speaker Change: Include this slide because we wanted to be public records you can look at it later, there's so much data you can't possibly be presented but basically we have a series of features that make it a very attractive commercial offering.

Speaker Change: And we've covered some of that is right. This is the design once you make yourselves, which we're making sales now and you can refine the manufacturing technique to produce them to scale.

Dennis Calvert: You take those cells and you assemble them in racks, and racks make packs, and ultimately, you create these packs, these modules that can store energy, okay? Primarily focused on offloading renewable energy and balancing the grid, okay? So these are one to two megawatt hour units on the left, basically 20 foot trailers, and these are small 25 kilowatt hour units on the right, something you might put next to your home or next to an EV charging station and the like, okay?

Speaker Change: Take those sales and assembled and racks and racks make paths and ultimately you create these tax these modules.

Speaker Change: That can store energy, Okay, primarily focus on offloading renewable and balancing the grid okay.

Dennis Calvert: Okay, primarily focused on offloading renewable and balancing the grid. Okay, so these are one to two megawatt hour units on the left. Basically, 25 trailers. And these are small 25 kilowatt-hour units on the right. Something you might put next to your home or next to an AV charging station and be like, okay? This is our little manufacturing facility, pilot facility. This is producing sales. We're testing sales now. We made an announcement just to bow. I don't know. A little bit ago. Let me see if I can remember that. Here we go. Next slide. In June, right?

Dennis Calvert: Agreed, yeah. Good. And then, and again, also very careful to preserve delusion. Be very, very careful. We're in such a good position compared to, again, most companies on the OTC are at this stage of development to be able to finance direct investment into the subsidiaries, which is extraordinarily valuable because it helps preserve on the delusion side of the parent. And the other is we really are pursuing what we call a capital conservation strategy and the way we develop business.

Speaker Change: So these are one to two megawatt hour units on the left basically 20 foot trailers and these are small 25 kilowatt hour units all right something you might put next to your home or next to a.

Speaker Change: EV charging station and the like.

Speaker Change: The subtle manufacturing facility pilot facility. This produces this is producing cells, we're testing sales now.

Dennis Calvert: This is our little manufacturing facility. It's a pilot facility. This is producing cells.

Speaker Change: We made an announcement just about Oh, I don't know little bit ago.

Dennis Calvert: You know, and I can get long way down. I don't want to do that. But, you know, it's as simple as this idea of build it and they will come or they come and then we build it. And I say it that way because in many cases, we're patient to build as we have customers expand staff as we have accounts. Give an example, the engineering group just landed these new contracts with the Air Force, which are awesome.

Speaker Change: Let me see if I can remember that here we go next.

Dennis Calvert: And we expect those to generate about 110,000 or so a month. And we've added, I believe in the last 60, 90 days, four people to the engineering group. So those are highly qualified engineering and support staff, which is awesome. But we did it when we had the contract in hand. Foundation. Okay, so before those staff members come on board, it means everybody's pulling double duty. And then we backfill. And while that's hard on the team, it's really good for the income statement and the ultimate balance sheet because we have the cash flow to pay those people and expand with money in the bank. So we're really working hard to do that same thing in the in the battery and the water technology wherever we can work with folks on that kind of strategy.

Speaker Change: Next slide.

Dennis Calvert: We're testing cells now. We made an announcement just about, oh, I don't know, a little bit ago. Let me see if I can remember that.

Speaker Change: In June right June July Okay. So just recently announced that we were making our first sales we're in the testing and refinement of the manufacturing process. We're just beginning to work on the scale up to what we call them smart and cell and the Spartans they'll be a tenet of this smaller cell unit that we believe will be the commercial design.

Dennis Calvert: June's lock. Okay, so just recently announced that we were making our first sales. We're in the testing and the refinement of the manufacturing process. And we're just beginning to work on the scale up to what we call the Spartan Cell. And the Spartan Cell will be a 10X of this smaller cell unit that we believe will be the commercial design. Okay, so we're making good progress. What's unusual about our strategy is we believe the business model is quite unique. Cell battery factories don't sell batteries. Cell factories, not batteries. Okay, why? Why do they? Well, I'm going to show you why.

Dennis Calvert: Here we go. Next slide, in June, right? June-July.

Dennis Calvert: Okay, so just recently announced that we were making our first cells. We're in the testing and the refinement of the manufacturing process. We're just beginning to work on the scale up to what we call the Spartan cell and the Spartan cell will be a 10x of this smaller cell unit that we believe will be the commercial design.

Dennis Calvert: Okay, so we're making good progress. What's unusual about our strategy is we believe the business model is quite unique. Sell battery factories, don't sell batteries, self-factors, not batteries, okay? Why? Why do that?

Speaker Change: Okay. So we're making good progress.

Speaker Change: What's unusual about our strategy as we believe that the business model is quite unique.

Speaker Change: Cell battery factories don't sell batteries cell factories not batteries, okay why.

Speaker Change: Why do that.

Dennis Calvert: Well, I'm going to show you one. The average battery factory is going to take two and a half years to set up and start operations. We believe that with about a hundred, that battery factory can produce 1.5 gigawatt hours of battery storage cells and packs per year, and in today's market, that would generate half a billion dollars in top-line revenue. So what we've done is we've gone out to the marketplace and said we'd like to put our partners in the business. So who are the partners? Well, it could be a financial type, somebody that wants to make money.

Speaker Change: Well I'm going to show you why.

Dennis Calvert: The average battery factory is going to take two and a half years to manufacture to set up. Make operational. We believe that with about a hundred million dollar capex. That battery factory can produce 1.5 gigawatt hours of battery storage sales and packs. Per year. And at today's market, that would generate half a billion dollars top-line revenue. So we've gone what we've done is we've gone out to the marketplace and said we'd like to put our partners in the business. So who are the partners? Well, it could be a financial type to make money. It could be someone's in the renewable energy business.

Speaker Change: The average battery pack that you can take two and a half years, many back to set up make operational.

Speaker Change: We believe that with about $100 million Capex.

Speaker Change: That battery factory.

Can produce one five gigawatt hours of battery storage cells and packs.

Speaker Change: Per year and in today's market that would generate half of $1 billion top line revenue.

Dennis Calvert: Okay, real quick business unit. So of course everybody knows poof poof is just killing it. And we're so grateful. And they're the team at poof is projecting a second half of the year to be really significant. Now you're going to see in the queue that a little bit of drop off from Q1 to Q2 10 to 12 percent top line. We attribute most of that to timing because revenues are continuing of course.

Speaker Change: So we've got what we've done is we've gone out to the marketplace and said, we'd like to put our partners in the business.

Speaker Change: So who are the partners.

Speaker Change: Well it can be a financial type somebody wants to make money. It can be someone's in the renewable energy business. It can be a public utility can be countries. It.

Dennis Calvert: It could be someone that's in the renewable energy business. It could be a public utility. It could be countries.

Dennis Calvert: It could be a public utility. It could be countries. It could be land developers. Energy parks. Data centers. Big data. People that want a lot of batteries. And our model is to put them in the business. And what we seek in that business relationship is a 6% royalty. And 19% carry interest in the equity of the project. That means that as credits are generated, which right now would represent about 40% credit. that can accrue to the general partnership. We would participate based on our equity ownership. It also allows for clean financing. It also allows for leverage and scale a building with an income.

Dennis Calvert: It could be land developers, energy parks, data centers, Big Data, people that want a lot of batteries, okay? And our model is to put them in the business. And what we seek in that business relationship is a 6% royalty and a 19% carried interest in the equity of the project. That means that as credits are generated, which right now would represent about 40% of the credit, that can accrue to the general partnership.

Speaker Change: It could be land developers energy parks data centers big data.

Dennis Calvert: They also I'm going to show you a couple of really important things. They've got new retailers. Now we experienced new retailers in the past. Walmart's the most notable. And when they had to stock up for these new retailers, we saw some, you know, volatility, if you will, in the consistency of the order flow. Well, they stocked up and looked at a national distribution. Okay, so two new accounts that come on Rouse, which is a big deal.

Speaker Change: People don't want a lot of batteries.

Speaker Change: And our our model is to put them in the business and what we are seeking that business relationship is a 6% royalty.

Speaker Change: In 19% carried interest in the equity of the project.

Speaker Change: That means that as credits are generated or which right now would represent about 40% credit.

Dennis Calvert: We would participate based on our equity. It also allows for clean finance (inaudible). It also allows for leverage and scalability with the name. Okay, so we've gone out to the marketplace, and we have at least seven interested parties at the table. We have lots of handshakes going on, not formalized business deals yet, primarily because we're working on the financing and we're working on the equity to pull this off as we advance the science of the better.

That can accrue to the general partnership we would participate based on our equity ownership.

Dennis Calvert: And remember Rouse is part of program foods. That's a ripple before wave. And then target. Target's a new account. And of course, these big brands are just everyone knows these big brands. And so the big players continue to be big for the company Home Depot courses really coming on. And in each of these, they have their own life cycle of how product gets distributed and they get in all the stores. But it is expanding.

Speaker Change: It also allows for a clean financing. It also allows for leverage and scale are building with the names.

Dennis Calvert: Okay, so we've gone after the marketplace, and we have at least seven of these interested parties at the table. We have lots of handshakes going on, not formalized business deals yet, primarily because we're working on the financing and we're working on the equity to pull this off as we advance the science of the values. The excitement and the response from our proposal is astounding. I believe that this is a type of business opportunity that not only conserves capital but highlights the core competencies of our company: engineering, the deal making, the support, the training, the handover, leveraging the balance sheet and the capital resources of people that want a lot of batteries.

Speaker Change: Okay. So we've gone out to the marketplace and we have.

Speaker Change: At least seven of these interested parties at the table.

Speaker Change: We have lots of handshakes going on are not formalized business deals yet primarily because we're working on the financing and work on the equity to pull this off as we advance the science of the batteries.

Dennis Calvert: And that's going to take me to their next stated goal. Oh, two slides away. Here we go. Okay, so remember our relationship to POOSE, right? We did a business deal. The business deals resupply. We're the supplier of the product. So we wholesale the product to POOSE then builds their brand, manages distribution, sets up retailers, sets up advertising. They do all the work to get that brand and that product situated in the marketplace.

Dennis Calvert: The excitement and the response to our proposal is astounding. I believe that this is the type of business opportunity that not only conserves capital but highlights the core competencies of our company. Engineering..., the dealmaking, the support, the training, the handover, leveraging the balance sheet and the capital resources of people that want a lot of batteries, okay?

Speaker Change: The excitement and the response from our proposal is astounding.

Speaker Change: I believe that this is the type of business opportunity there not only conserve capital but highlights.

Speaker Change: The core competencies of our company engineering.

Speaker Change: The dealmaking the support the training the handover.

Speaker Change: Leveraging the balance sheet and the capital resources of people that want a lot of batteries.

Dennis Calvert: We also do product development. There's a lot of product development going on. We're really busy with that. We support them in any way possible because we're hooked at the hip, the business partners. We receive a manufacturer's margin, a small royalty. And then we bargain in exchange for exclusivity for a piece of the equity of the brand on a 20% of the exit when it's eventually sold. Now, again, I just have to highlight this as proof is growing and building a national brand.

Dennis Calvert: Now, the caveat to all this is there's a lot of work to do, so it's early in this stage. We've also historically been able to bring in direct investment capital. Again, another capital conserving strategy for BioLargo so that we don't dilute on a continual basis the parent company, giving us the capital necessary to advance these causes. And right now, we're focused on a couple things, the scale for the battery design, the refinement of the modeling for a battery factory, the processes and the capital and the time, so we're doing extensive detail in that area, and then the partnerships and what those Personally, and I think corporately, we're very excited because it's not only does the battery itself represent a significant opportunity, but the business model promises scalability.

Dennis Calvert: Okay, now the caveat to all this is a lot of work to do. So it's early in this stage. We've also historically been able to bring in direct investment capital. Again, another capital conserving strategy for BioLargo so that we don't dilute on a continual basis, the parent company. Give us capital necessary to advance these causes, and right now we're focused on a couple of things. The scale of the battery design, the refinement of the modeling for a battery factory, the processes and the capital and the time. So we're doing extensive detail in that area, and then the partnerships and what those could look like on the various financing that comes to bear.

Speaker Change: Now the caveat to all this is a lot of work to do so it's early in this in this stage.

Speaker Change: We've also historically been able to bring in direct investment capital again, another capital conserving strategy for Biologging. So that we don't dilute on a continual basis the parent company cash.

Speaker Change: Capital necessary to advance these causes and right now we're focused on a couple of things the scale up of the battery design.

Speaker Change: The refinement of the modeling for a battery factory the processes and the capital and the time. So we're doing extensive detail in that area and then the partnerships and what those could look like under various finance when it comes to bear.

Dennis Calvert: Our equity in that brand is increasing their success is our success. And people forget that, right? So we believe that as that brand establishes prominence and it finds an exit, we're going to be a recipient of a very large check. I've always said, we think it's going to be north of 100 million. And what's great about this relationship and the success of POOSE has turned out to be good for both parties in such a meaningful way that we believe they want to continue to expand the brand.

Speaker Change: I'm personally and I think Corporately, we're very excited because it's not only is the battery itself represent a significant opportunity, but the business model presents scalability okay.

Dennis Calvert: Personally, and I think corporately we're very excited because it's not only is the battery itself represented significant opportunity, but the business model presents scale ability.

Dennis Calvert: Okay, so that's the business update for the quarter.

Brian Loper: So that's the business update for the quarter. I think we're going to open it up to questions now. So, Mr. Loper, are you with me? Yes, sir. Thank you very much, Dennis. That was a great overview that dived into some key areas of the business. Thank you for doing that. If anybody had trouble with that video about the salinity battery, we are going to make it available on BioLargoEner

Speaker Change: So that's the business update for the quarter I think we're going to open it up to questions now.

Brian Loper: I think we're going to open it up to questions now.

Brian Loper: So, Mr. Loper, are you with me?

So Mr. Loeb, where are you with me.

Dennis Calvert: And how do we know that? Well, because we know what their goals are. They share their goals with us. Okay. And the first goal is they say we're targeting 20% quarter of a quarter growth. Okay. So we'll get a little volatility there, right? But when you take 20% So let's say start with a million when you go up one quarter is 120 another quarter is 120 and you do that four times.

Brian Loper: Yes, sir. Thank you very much, Dennis. That was a great overview. Dove into some key areas of the business. Thank you for doing that.

Mr. Loeb: Yes, Sir thank you very much Dennis that was a great overview dove into some key areas of the business.

Mr. Loeb: Thank you for doing that.

Brian Loper: If anybody had trouble with that video about the solenoid battery, we are going to make it available on biolargoenergy.com. All right. So yeah, excellent news. This quarter with record revenue, right? I mean, it's got to be the key takeaway here. Another positive quarter, record quarter, having a record year, like 5 million in Q2. We're up to almost 10 million so far this year. And we've seen this now for a number of quarters in a row, which is terrific for folks that have been holding for a while, but we're also ready for payday. So I'm kind of wondering, from your perspective, you know, we're on an upward trajectory with poof, clear up with the water tack, with battery.

Speaker Change: If anybody had trouble with that video about the solemnity battery, we are going to make it available on bio Largo energy Dot com.

Dennis Calvert: That's over a hundred percent growth. So what they're saying to us is they believe they can achieve consistently over time a hundred percent year over your growth. We know that most recently best evidence is they're in about thirty thirty five thousand retail outlets. Nothing like that. They're state of goals to get to eighty thousand retail outlets and they continue the march. The the lights and the liturizer have both launched new campaigns, new orders, new distribution.

Mr. Loeb:

Mr. Loeb: Alright.

Brian Loper: All right. So, yeah, excellent news with record revenue, right? I mean, that's got to be the key takeaway here.

Mr. Loeb: So yeah excellent news.

Mr. Loeb: This quarter.

Mr. Loeb: With record revenue right I mean, we've got to be the key takeaway here another.

Brian Loper: Another, positive Record Quarter, Record Quarter, Having a record year. $5 million in Q2, we're up to almost $10 million so far this year. And we've seen this now for a number of quarters in a row, which is terrific for folks that have been holding for a while, you know, but we're also ready for payday. So, I'm kind of wondering... From your perspective, you know, we're on an upward trajectory with POOF, CLEARUP, with the water tech, and batteries. But what would have to happen for BioLargo to stop seeing such growth? What would happen to stop scene growth? What would derail it?

Mr. Loeb: Positive quarter record quarter, having a record year.

Mr. Loeb: 5 million in Q2.

Dennis Calvert: Pretty busy and then put potty potty pants put potty pants go to the web. They're being advertised are being promoted. I don't believe they're on a retail store yet. I don't think they're on a shelf. But we know that from a production side they're on the way and so again very exciting and each of these product innovations is extension of our intellectual property. So this is a flourishing relationship expected to continue stated goal hundred percent growth of the year and that'll take us into just under twenty million. Ascent other other assets coming to market the meaningful way and so that's good news for the company. Clear.

Mr. Loeb: Almost 1 million so far this year.

Mr. Loeb: And we've seen this now for a number of quarters in a row, which is terrific for folks that have been holding for a while.

Mr. Loeb: But we're also ready for payday.

Mr. Loeb: So I'm kind of wondering from your perspective.

Speaker Change: On an upward trajectory with coos clearer, but the water tack with battery.

Dennis Calvert: But what would have to happen for Biolargo to stop seeing such growth?

Speaker Change: But what would have to happen for bio Argo to stop scheme such growth.

Dennis Calvert: What would have to happen to stop seeing growth? So you mean, what would derail it? What's the risk of having it derailed?

Speaker Change: What would have to happen to stop seeing growth I mean, what would derail it what's the risk of having to derail that.

Dennis Calvert: You know clear is it's just people forget this is this is these are ideas product ideas that go back to the origin story of the company. We first said we're going to put about six or seven hundred thousand equipment that number is going to be over one point three million. And what we've been focused on for a little over a year with our partner is the national rollout of a co branded product that we believe will be transformative in the medical field medical device.

Dennis Calvert: That's a question. Yeah, well, I think, yeah, okay, that's fair enough. I think there's a couple of things in dynamic on that interesting question. The first is that I think Poof has demonstrated significance in their ability to meet their targets over time. So we don't expect that to change. They are in a very competitive market, so rest assured it's just like competition, but they're extraordinarily good at what they do, and the product lines are expanding, and the retail outlets are expanding, and they're doing great.

Speaker Change: That's the question.

Dennis Calvert: What's the risk of having it derailed? Is that the question? Well, I think, yeah, okay, that's fair enough. I think there's a couple things that are dynamic about that. It's an interesting question.

Speaker Change: Yeah, well I think yeah, Okay. That's fair enough I think theres, a couple of things and dynamic on that it's interesting question. The first is that I think proof as demonstrated.

Dennis Calvert: The first is that I think POOF has demonstrated significant success in their ability to meet their targets over time, so we don't expect that to change. They are in a very competitive market, so rest assured there's a lot of competition, but they're extraordinarily good at what they do, and the product lines are expanding, and the retail outlets are expanding, and... They're doing great.

Speaker Change: Significance in their ability to meet their targets over time, so we don't expect that to change.

Speaker Change: They are in a very competitive market. So rest assured there's just a lot of competition, but they're extraordinarily good at what they do and the product lines or expanding in the retail outlets are expanding and they're they're doing right. Okay. So that's one.

Dennis Calvert: Remember we've already secured FDA clearance under five ten K. Okay, so now it's all about the product. It has taken quite some time. It's also been very tax taxing financially taxing from a staffing perspective very exciting our optimism and confidence that these products will find significance in commercial rollout through partnership has never been higher. I can also say that we've got multiple parties who have come to the table all in different stages.

Dennis Calvert: Okay, so that's one. We also have expanding commercial opportunities of significance, you know, Clear being one of them. When it finally does launch, and we believe, as I said before, we're close to being able to move forward in a significant way. When it does, the economics will astound you, and I've said on the number of occasions, if we like poof and implications to our company, clear as, you know, could be a could be a seven to 10 X from that. I mean, it is a dramatic development and with significant distribution and revenue growth of extraordinary opportunity.

Dennis Calvert: Okay, so that's one. We also have expanding commercial opportunities of significant importance. CLEAR being one of them, when it finally does launch, and we believe, as I said before, we're close to being able to move forward in a significant way, when it does, the economics will astound you. And I've said on a number of occasions, if we like Poof and the implications to our company, CLEAR could be a 7 to 10x growth from that.

Speaker Change: We also have expanding commercial opportunities of significance.

Speaker Change: Clearly being one of them.

Speaker Change: When it finally does launch and we believe as I said before we're close to being able to move forward in a significant way when it does the economics will astound you set.

Speaker Change: Set a number of occasions, if we like poof and implications to our company a clear as you know it could be a could be a seven to 10 extra Matt I mean, it is a dramatic development.

Dennis Calvert: But the main the main relationship that we've been over a year in development for is moving forward. And we're just very anxious to show up one day and say okay, we're ready to launch. And so we hope that soon but we definitely believe we're heading the right direction. I also want to say on clearer, you know, sometimes the significance of the product and what it represents is kind of lost, you know, what was that mean?

Dennis Calvert: I mean, it is a dramatic development, and with significant distribution and revenue growth of extraordinary opportunities. Hence, we've now invested 13 years and $18 million. We're not messing around.

Speaker Change: And with significant distribution and revenue growth of an extraordinary opportunity.

Dennis Calvert: Hence, we've now invested, you know, 13 years and $18 million. We're not messing around. We're real serious about that product line and the importance for the world. Okay, in addition, the engineers have demonstrated, like in this last quarter, the generate revenue about a million dollars. That was a record quarter for the engineers. It's not missed that. Of that, there was some equipment sold. It was part and parcel of projects. So it wasn't. It's a margin that's a markup on the supply of equipment. So it's not services, but that's part and parcel of what they've done.

Speaker Change: Hence, we've now invested 13 years and $18 million, we're not messing around.

Dennis Calvert: We're really serious about that product line and its importance to the world. Okay. In addition, the engineers have demonstrated, like in this last quarter, how they generate revenue without a million dollars. That was a record for the engineers. It's not missed that.

Speaker Change: Serious about that product line and the importance for the world.

Speaker Change: Okay.

Speaker Change: In addition, the engineers have demonstrated like in this last quarter. They generated revenue of about $1 million that was a record quarter for the engineers, it's not missed out of.

Dennis Calvert: I mean, you know, just show me the numbers. Well, the numbers, the numbers will show up eventually. We know that and range is that. But the meaningfulness really is that we have a chance to be a change agent in the field of infection control in the surgical suite. So we're talking about and gentleness and broad spectrum efficacy with no harm to the body with a leave in product and some data that supports biofilm efficacy.

Dennis Calvert: Of that, there was some equipment sold. It was part and parcel of projects, so it wasn't, it's a margin that's a markup on the supply of equipment.

Speaker Change: Of that there was some equipment sold that was part and parcel of projects. So it wasn't.

Speaker Change: It's a it's a margin that's a markup on the supply of equipment.

Dennis Calvert: So it's not services, but that's part and parcel of what they did. And we also believe that the water company with the equipment group is also going to continue to expand. So, you know, what threatens us? Well... Not much. I mean, we have competition to overcome at every level.

Speaker Change: So it's not services, but that's part and parcel what they've done and we also believe that the water company with the equipment group is also going to continue to expand so.

Dennis Calvert: And we also believe that the water company with the equipment group is also going to continue to expand.

Dennis Calvert: So, you know, so what threatens us? What threatens us? Well, not much. I mean, we have competition to overcome at every level. But our balance sheet is strong; our cash position is strong. We've demonstrated the ability to make sure that we get the capital necessary to execute. We deploy capital conserving strategies. We feature transformative tech that times a foothold. You know, so as we form these partnerships, you know, we've had some that have moved very slowly. Gary Collins, one of them. It's a very slow developing relationship. It's still very, very good. And we predict success.

Speaker Change: You know so what threatens us what threatens us well.

Dennis Calvert: When you put all those claims together, those products had those claims have been proven and when you put them all together in a claim set, it makes it number one in the world, and, again, in the world. So I just, I don't know how to make it more clear. And if that's true, which we know it is true, that's representing over 13 years of work and probably about 18 million dollars of investment to really get that product situated for massive scale rollout with big brands and big partners to make a meaningful impact for the world.

Speaker Change: Not much.

Speaker Change: I mean, we have competition to overcome at every level.

Dennis Calvert: But our balance sheet is strong, our cash position is strong. We've demonstrated the ability to make sure that we get the capital necessary to execute. We deploy capital-conserving strategies. We feature transformative tech that finds a foothold. Uh, as we form these partnerships, we have had some that have moved very slowly. Gary Cowan is one of them.

Speaker Change: But our balance sheet is strong our cash position is strong we've demonstrated the ability to make sure that we get the capital necessary to execute.

Speaker Change: We will deploy capital conserving strategies.

Speaker Change: We feature transformative attack that signs a foothold.

Speaker Change:

Gary Collins: So as we form these partnerships you know we've had some that have moved very slow Gary Collins one of them. It's a very slow developing relationship is still very very good.

Dennis Calvert: It's a very slow, developing relationship. But it's still very, very good. And we predict success. I know it's hard for people to understand how that could take so long. I guess as you look back at our development cycle on industrial odor control, which took us years to find our foothold in the marketplace. It's kind of the nature of, you know, presenting disruptive tech in an old, stodgy market that's slow to adopt. Nonetheless, we predict success. I don't know if that answers the question, but we're not in a position of feeling a significant level of fear about things that can derail us from continuing to be successful.

Gary Collins: And we predict success I know its hard for people to understand how that could take so long.

Dennis Calvert: I know it's hard for people to understand how that could take so long. I guess as you look back at our development cycle on the industrial control that took us years to find our foothold in the marketplace. It's kind of the nature of, you know, presenting disruptive tech in an old, stodgy market that's low to adopt. Nonetheless, we predict success.

Dennis Calvert: Now, Keystone's a big part of that. We've talked to openly about it, it's in our cube. Keystone's a large manufacturer really well-situated, probably held, significant player. And this is the machine that actually makes the product. And we've also had to supplement that with other equipment. That's what that, you know, 1.3 plus million is about. And our partner at Keystone's also made dramatic investment. And we're, we're into the file steps of preparing for a product launch. Very exciting. Full circle story for the company.

Gary Collins: I guess as you look back at our development cycle on the industrial one control that took us years to find a foothold in the marketplace.

It's kind of the nature of presenting disruptive tech in a in an old stodgy market is slow to adopt.

Gary Collins: Nonetheless, we predict success so.

Dennis Calvert: So I don't know if that answers the question, but we're not, we're not in a position of feeling a significant level of fear on things that can derail us from continuing to be successful. In fact, it's the opposite. The opposite is that, with our diversity, with our leveraging our core competency, conserving capital in the way we do.

Gary Collins: I don't know if that answers the question, but we're not we're not in a position of feeling a significant level of fear.

Dennis Calvert: PFAS. I won't kill you with a lot of detail going on with PFAS. PFAS. That's forever chemicals related to non-stick coatings. Big companies use this chemistry to make non-stick coatings for years. It's now considered one of the most significant pollutants in the world. Global problem. Okay, ready for this? This is new. New slide. It's fascinating. When the industry started using PFAS, it was sold anywhere from $50 to about $1,000 a pound.

Gary Collins: On things that can derail us from continuing to be successful.

Dennis Calvert: In fact, it's the opposite. The opposite is that with our diversity, with our leveraging of our core competence, conserving capital in the way we do, we think the future is exactly the opposite, quite promising and very exciting since we are in a better financial position with more critical mass and more customers and more revenue, more success than we've ever had before. So we think it's time to leverage that up. Okay. Great.

Gary Collins: In fact, it's the opposite.

Gary Collins: The opposite is that with our diversity with our leveraging our core competency.

Gary Collins: Conserving capital and the way we do we think the future is exact is exactly the opposite quite promising and very exciting since we're in a better financial position with more critical mass and more customers and more revenue more success than we've ever had before.

Dennis Calvert: We think the future is exact is exactly the opposite, quite promising and very exciting since we're in a better financial position with more critical mass and more customers and more revenue, more success than we've ever had before. So we think it's time to leverage that up, okay?

Dennis Calvert: That means the raw chemistry was sold into industry used to combine with products or making products at about that price. The cost to remove it from the environment is between $2.7 and $18 million a pound. Okay, what's the point? It's to compare. It generated billions in revenue. It's going to cost trillions to clean it up. And this is the travesty of the industry. It's estimated to be social costs about 17 trillion.

Gary Collins: So we think it's time to leverage that up okay.

Brian Loper: Great, yeah, thank you for answering that.

Speaker Change: Great Yeah. Thank you for answering that.

Speaker Change:

Michael Scherch: So first question here, before we dive into the subsidiaries, gentlemen. Michael Scherch says, thank you for the call on the Q&A. The growth was accompanied by a delusion of the share capital.

So.

Speaker Change: First question here before we dive into the subsidiaries.

Brian Loper: So, first question here, before we dive into the subsidiaries. Gentleman Michael Scherch says thank you for the call and the Q&A. The growth was accompanied by a dilution of the shareholding.

Speaker Change: Hmm.

Michael shirts: Gentlemen, Michael shirts says, thank you for the call and the Q&A.

Speaker Change: The growth was accompanied by a dilution of the share capital.

Dennis Calvert: Are there plans to stop the delusion? Yeah, sure, thank you. So, of course, yes, so two things have happened there. One, notice that last quarter, which we already mentioned, we have not raised any money directly into the parent company, nor have we tapped into our equity line because we didn't need it. So then how do you support innovation like our battery tech and the medical company, right? So the answer is you bring direct investment in, which is what we focused on in the past and will continue to focus on in the future. The parent company, BioLargo, has supplemented those endeavors from time to time to make sure they get where they need to go.

Dennis Calvert: Are there plans to stop the dilution? Yeah, sure. Thank you.

Speaker Change: Their plans to stop the dilution.

Dennis Calvert: And remember, I tell the story all the time, I asked the water engineer when time in the water table. I said, how long does it take to get in that water table? It's 50 years. How long does it take to get out? He said it'll be at least 50 years. And these top companies were the largest producers of PFAS production for industry, estimated annual profits about a billion. This is going to be an industry that's going to be around for the next 25 years.

Speaker Change: Yeah.

Dennis Calvert: So, of course, yes. So, two things that happened there. One, notice that last quarter, which we already mentioned, we have not raised any money directly into the parent company. Nor have we tapped into our equity line because we didn't need it.

Speaker Change: Sure. Thank you so of course, yes.

Speaker Change: So two things have happened there one noticed it last quarter, which we already mentioned we have not raised any money directly into the parent company nor have we tapped into our equity line, because we didn't need it.

Speaker Change: So then how do you support innovation like our battery tack in the medical company ranked so the answer is you bring direct investment in which is what we focus on in the past and will continue to focus on the future. The parent company by a lager has supplemented those endeavors from time to time to make sure they get where they need to go last year.

Dennis Calvert: So then how do you support innovation like our battery tech and the medical company, right? So the answer is you bring direct investment, which is what we've focused on in the past and we'll continue to focus on in the future. The parent company, BioLargo, has supplemented those endeavors from time to time to make sure they get where they need to go. Last year, we made an investment of about 750,000 and made it clearer.

Dennis Calvert: Okay, and we're well situated here to be a winner. We're going to talk about that. It's primary benefit is we're the most excellent collector. The most excellent collector. When you compare all other technologies, we super concentrate the contaminant. We also offer a destruction technique as well. But the main value proposition is that we can create a waste stream that's sub-pound or two pounds versus 40,000 pounds of carbon. We do have our first count.

Dennis Calvert: Last year, we made investment of about 750,000 clearer. It's important to note that we did that on the same terms as the current round of investment. So the investors who come in, we basically matched the price. We've also recently done the same thing in the battery tech where the valuation is set. It needs a little more money. We've been in the inviable position to advance capital to advance its cause while we then seek third party investment capital into those subsidiaries without deluding the parents. Okay, so that's pretty dramatic in the last 100 days, right? And so if you look at the share count, the dilution impact is continuing to lessen.

Speaker Change: We made an investment of about 750000 clearer.

Dennis Calvert: It's important to note that we did that on the same terms as the current round of investment. So the investors who've come in, we basically matched the price. We've also recently done the same thing in the battery tech where the valuation is set, and it needs a little more money. We have been in the enviable position to advance capital to advance its cause while we then seek third-party investment capital into the subsidiaries without diluting the parent. OK, so that's pretty dramatic in the last 100 days.

Speaker Change: It's important to note that we did that on the same terms as the current round of investment.

Speaker Change: The investors who have come in we basically match the price. We've also recently done the same thing in the battery check where the valuation is set it needs a little more money.

Dennis Calvert: I want to schedule for like Stockholm and New Jersey, supposedly in the field sometime October and November. We our installation will have to be done when the building is built. So you see that little building? That's electrical. That's plumbing. That's access. That's all the things that the general contract is going to do. So if we face delay, we might face delay. From our perspective, we'll be ready to go and we're in construction now and we've received the bulk of our payment. And because of our milestone obligations, we've been able to recognize some of the revenue, for this. So it's a very good situation.

Speaker Change: In the enviable position to advance capital to advance its cause while we then see third party investment capital into the subsidiaries without diluting the parents.

Speaker Change: Okay. So that's pretty dramatic in the last 100 days.

Dennis Calvert: And so if you look at the share count, the dilution impact is continuing to lessen. And of course, I did mention that we had a conversion of warrants and some option coverage that did face some dilution in the last quarter, but those were already factored into the fully diluted sheer count, and now they've converted from a warrant to an execution. All of that's getting better, so we think it's a very good sign, and we think it can continue. Go ahead.

Speaker Change: Right and so if you look at the share count.

Speaker Change: The dilution impact is continuing to lessen.

Dennis Calvert: And of course, I did mention that we had conversion of warrants and some option coverage that did face some dilution in the last quarter, but those were already factored into the fully diluted share count, and now they've converted from a warrants to an execution. So all of that's getting better. So we think it's a good, it's a very good sign, and we think it can continue.

Speaker Change: And of course, I did mention that we had a conversion of warrants and some option coverage that did face.

Speaker Change: Some dilution in the last quarter, but those were already factored into the.

Dennis Calvert: I also have said this publicly, and I want to say again, and welcome a challenge, okay? To our knowledge, and that's the caveat, we don't know of any other company that's actually secured a commercial account from an alternative technology. So be really clear, not an ion exchange, not a carbon. Those are old technologies been around a long time, okay? And they do have some market adoption of old tech with customers who need to move quickly to get PFAS out of drinking water.

Speaker Change: Fully fully diluted share count and now they've converted from a warrant to an execution. So.

Dennis Calvert: That's where they moved. From an alternative technology perspective, we think we're the only account company in the world that we know of, it's got a commercial account. It's a big statement, and the good news is small enough to where we believe our risk of failure is extraordinarily low. It's something we can manage at the stage of the development of the technology. So this is a big win, and we have multiple trials underway, and we've most recently expanded into some other fields, leachate being one of them.

Speaker Change: All of that is getting better.

Speaker Change: So we think it's a good it's a very good sign and we think it can continue.

Brian Loper: Go ahead. All right, all right.

Speaker Change #100: Go ahead.

Brian Loper: I'm not right or wrong. So yeah, let's dive into the money mate. We have a few questions here about poop. So Mr. Falk asked, it appears merchants are well stocked with, will there be a bit of a slowdown in wholesale sales? Yeah, we don't know that. So, Joe, I appreciate that question. I don't know.

Speaker Change #101: Right right. So yeah, let's dive into the moneymakers a few questions here about Peru.

Joe: So yeah, let's dive into the money makers. A few questions here about proof. Mr. Falk asks, it appears merchants are well stocked with proof. Will there be a bit of a slowdown and wholesale sales? Yeah, we don't know that. So, Joe, I appreciate that question. I don't know. We don't have any indication that that's the case. I think that the sell through a product is really marketing driven or proof. I think that's how they would answer the question. And they've got expanded marketing and expanded product line. So right now, we have no reason that we're aware of to predict a reduction in sales for proof.

Mr Fault: Mr Fault.

Speaker Change #103: It appears merchants are well stocked with crews well there'd be a bit of a slowdown in wholesale sales.

Speaker Change #103: Yeah, we don't know that so Joe I appreciate that question I don't know, we don't have any indication that that's the case.

Dennis Calvert: We don't have any indication that that's the case. I think that selling through a product is really marketing driven or proof. I think that's how they would answer the question.

Speaker Change #104: I think that the sell through of product is really marketing driven or Peru.

Speaker Change #104: I think that's how they would answer the question and they've got expanded marketing and expanded product line.

Dennis Calvert: And they've got expanded marketing and an expanded product line. So right now, we have no reason that we're aware of to predict a reduction in sales for. All right. Mr. Ginger Ellie, the poof potty pads would seem to be an excellent addition to the product line. Are there sales projections from Pooth Inc. or O&M for the Pads? No, I wish I did have them.

Speaker Change #104: So right now we have no reason that we're aware of to predict a reduction in sales for both.

Dennis Calvert: This is a new slide. I'm going to say once you see it, untreated leachate in the middle, right to the left, right? Post-AEC. That means that we've hit this with one, two, three treatment systems, one after the other, and produced post-AEC PFAS free water, even to a non-detect status. Now, this is leachate. Leachate is the water that comes out of a lot of the landfill. Landfills, landfill business is good for biolargo, remember?

Yeah.

Mr. Ginger Ellie: All right, Mr. Ginger Ellie, the proof potty pads would seem to be an excellent addition to the product line. Are their sales projections from proof ink or O&M for the pad? that you can share. No, I wish I did have it. You know, I don't even know how to even touch it. We, first of all, you know, the marketing and the budgets as well within the control of poofing. They control their spend. I know historically that, when to sell more, they spend more. And the beauty has been they get a nice rate of return. So they get a nice return of dollar spend versus dollars generated.

Speaker Change #105: Oh right, Mr. Ginger L a F.

Speaker Change #106: <unk> potty pads, which seem to be an excellent addition to the product line or their sales projections.

Speaker Change #107: <unk>, Inc, or O&M for the pads that you can share.

Speaker Change #108: No I wish I did have it you know I don't even know how to even touch it.

Dennis Calvert: You know, I don't even know how to even touch it. First of all, you know... The marketing and the budgets are well within the control of Poof, Inc. They control their spend. I know historically that when they sell more, they spend more, and the beauty has been a nice rate of return, right? So they get a nice return on the dollar spend versus the dollars generated by revenue. So that metric has been a really favorable metric for POOF, and that's where their expertise rests. But they're also under no obligation to give us forecasts in that way.

Speaker Change #108: We.

Dennis Calvert: We've been serving that industry for over 10 years, where I already have national accounts. They're really going to fall under extreme pressure because the regulatory news is tightening for managing the waste streams. The PUC, that's probably utility commission, historically would take the concentrated PFAS, excuse me, to concentrate a leachate that has high concentration of PFAS, and they would treat it at the PUC. That's the public wastewater treatment. All right, utility commission.

Speaker Change #108: First of all you know.

Speaker Change #109: The marketing and the budgets as well within the control of Poof, Inc. They control their spend.

Speaker Change #110: I know historically that went to sell more they spend more.

Speaker Change #110: And the beauty has been then you get a nice rate of return right. So they get a nice.

Speaker Change #110: The return of dollar spend versus dollars generated revenue so that that metric has been a really favorable metric purpose and that's where their expertise wrist.

Dennis Calvert: And revenue. So that that metric has been a really favorable metric for Poof and that's where their expertise rests.

Dennis Calvert: They don't want it anymore. That means it's going to go because it's being designated under circle and rickr as a hazmat. We're predicting that the cost of treat is going to go up dramatically. In fact, we think it's about 10X. So, what's our value proposition? Well, this is a pretty good graph. I know it's hard to see. This will make this publicly available, so if you can't read it all, basically the blue line described the cost of treat, assuming the cost of waste handling.

Dennis Calvert: But they're also under no obligation to give us forecast in that way. And so the way we think about it is they're going to go test market, find the market, build customer awareness, and refine it continually. That's what they do. And given their track record, we bet it'll I would bet it's going to be a nice hit. Nice home run.

Speaker Change #111: But they're also not under no obligation to give us forecast in that way and so our the way we think about it is they're going to go test market and the market build customer awareness and refine it continually that's what they do.

Dennis Calvert: And so the way we think about it is they're going to go test, market, find the market, build customer awareness, and refine it continually. That's what they do. And given their track record, I would bet it's going to be a nice hit, a nice home run.

Speaker Change #112: And given their track record, we've been a little but I would bet, it's gonna be a nice hit nice homerun, but.

Dennis Calvert: But that's all I got. Okay. All right. So let's move on to clear. So, you mentioned during the presentation that you've been working on a deal for over a year now, a co-branded product for commercial scale, roll out, that that's all moving forward. You mentioned that there are multiple parties involved, and I was wondering if you could clarify if that's in the deal and production, and distribution. Yes, all right, yeah, we should be more clear.

Brian Loper: But that's all I got. Okay.

Speaker Change #111: That's all I got.

Speaker Change #111: Okay.

Dennis Calvert: All right. So let's move on to cleaner. So you had mentioned during the presentation that you've been working on a deal for over a year now, co-branded product for commercial scale, roll out that that's all moving forward. Yeah, you mentioned that there are multiple parties involved. And I was wondering if you could clarify if that is in the deal and production distribution. Yeah, sorry. Yeah, we should be more clear. Thank you for the clarification question. Yeah, that we should be more clear. So the product focused on the cervical suite, which is Bio Cleanse, is a product that's already cleared under 15 K.

Dennis Calvert: Let's call it the three dollar number. So, this is a 10-year life cycle, right? On a drinking water system that would treat basically water, it says you were 10,000 people, 10-year life cycle costs. We have between a 40 and 300 percent lower life cycle costs than a carbon system. And the variable is what's going to happen to the cost of handling. Now, we've taken a pretty bold statement. The end time will prove us right or wrong, but we're predicting a 10X and a current cost of treat, a 10X.

Speaker Change #113: Oh right right.

Speaker Change #113: Let's move on to clear now.

Speaker Change #114: So you had mentioned during the presentation.

Speaker Change #115: <unk> been working on a deal for over a year now or co branded product for commercial scale roll out, but that's all moving forward.

Speaker Change #116: Yep, you mentioned that there are multiple parties involved.

Speaker Change #117: And I was wondering if you could clarify is that in the deal and production and distribution.

Dennis Calvert: Thank you for the clarification question. Yeah, we should be clear. The product focused on the surgical suite, which is BioCleanse, is a product that's already cleared under 510K, is a medical device by the FDA. As we co-brand it, we would then be required to file paperwork with the FDA, and if there's any enhancement to the claim set, those would also have to be approved under review by the FDA.

Speaker Change #118: Yeah, sorry, yeah, we should be more clear. Thank you for the clarification question Yeah.

Speaker Change #118: We shouldn't be more clear so.

Dennis Calvert: The cost of handling hazmat for PFAS is going to go through the roof. And as it does, it makes some of these incumbent technologies so economically unsound. And in addition, University. You're going to have a very typical time meeting specification when it's all the way down to four parts per trillion. And there's an expectation that ultra short chain molecules will continue to fall into regulatory pressure. Right now, we have long and short, and there's an ultra short category.

Speaker Change #118: The.

Speaker Change #119: Product focused on the surgical suite.

Speaker Change #120: His bio Glens is a product that's.

Speaker Change #120: Already cleared under five 10-K.

Dennis Calvert: That's a med device by the FDA. And as we co-branded, we would then be required to file paperwork with the FDA. And if there's any enhancement to the claims set, those would also have to be approved under review by the FDA. Okay. And that exact detail that we don't believe it's an elongated process, but there is some process. Okay. So that's that's underway relative to the concept of other parties in order to successfully produce this product with our intended partner. We needed to bring scale manufacturing capability. And we found that through Keystone Industries. And we entered into a supply arrangement with Keystone so that they can contract manufacture to an FDA spec.

Speaker Change #120: That's a med device by the F D a.

Speaker Change #120: And.

Speaker Change #120: As we co brand. It we would then be required to file paperwork with the F D. A.

Speaker Change #120: And if theres any enhancement to the claims that those would also have to be approved.

Speaker Change #120: Under review by the FDA.

Dennis Calvert: We believe they're all going to find regulatory pressure. And as they do, especially for the ultra short, ion exchange and carbon systems simply can't meet back. Okay, so that means what you thought the old stuff could do is not going to work as the regulatory enforcement continues. They're going to need to change out. In addition, right, carbon systems have an issue is called breakthrough. Breakthrough means it works, it works, it works, and there doesn't work.

Dennis Calvert: Okay, and that exact detail there. We don't believe it's an elongated process, but there is some process, okay, so that's underway, relative to the concept of other parties. In order to successfully produce this product, with our intended partner, we needed to bring scaled manufacturing capability, and we found that through Keystone Industries, and we entered into a supply arrangement with Keystone so that they could contract manufacture to an FDA spec. We like them very much.

Speaker Change #120: And that exact detail of that.

Speaker Change #120: We don't we don't believe it's an elongated process, but there is some process. Okay. So that's that's underway.

Speaker Change #120: Relative to the concept of other parties in order to successfully produce this product.

Speaker Change #120: With our intended partner.

Speaker Change #120: We needed to bring scale manufacturing capability and we found that through Keystone industries, and we entered into a supply arrangement with Keystone. So that they can contract manufacturer to an F. D. A spec we like them very much they meet spec. They can meet volume requirements there are substantial.

Dennis Calvert: So there's a lot of problems with that system. And of course, our value proposition number one is cost efficiency and super concentration and then attorney key destruction. We have a backlog of prospects, we're beating the bushes daily, we have strategic partnerships, we have channel partnerships, it's all expanding. It's all really, really, really a great sign. And we still are challenged by the fact that we're in an early adopter stage. Right, so for decision makers that are primarily influenced by political considerations, they have a very difficult time adopting emerging tech.

Dennis Calvert: We like them very much. They meet spec. They can meet volume requirements. They're substantial. They're experts. And they also they also have other channels in which they currently sell product that might be really good for us. There's a high level of collaboration. And he said all that the focus is on these products to get ready for the scale required to support supply. Okay. That's it.

Dennis Calvert: They meet spec, they can meet volume requirements, they're substantial, they're experts, and they also have other channels through which they currently sell products that might be really good for us. There's a high level of collaboration. Having said all that, the focus is on these products to get ready for the scale required to support supply. Okay? That's it.

Speaker Change #120: They're experts and they also they also have other channels in which they currently sell product that might be really good for us there's a high level of collaboration.

Speaker Change #120: Having said all that the focus is on these products to get ready for the scale required to support supply okay. That's it.

Dennis Calvert: So, in that relationship, there's basically three parties. There's our distributor. Right. That would then share a brand on a co-branded product. They would secure some rights to exclusivity, naturally; that's how it works. There's us, which is basically called a virtual manufacturer. That means that our label, our liability, are claims that are approved through a clearance with the FDA, a clearance process under $5.10K, or a label are produced under contract manufacturing with a qualified FDA contract manufacturer. That's what we've got, so there's three parties in that deal.

Dennis Calvert: So in that relationship, there are basically three parties. There's our distributor, right, that would then share a brand on a co-branded product. They would secure some rights to exclusivity, naturally. That's how it works. There's us, which is basically called a virtual manufacturer. That means that our label, our liability, our claim, which are approved through a clearance process under 510K for a label, are produced under contract manufacturing with a qualified FDA contract manufacturer.

Speaker Change #120: So in that relationship there's basically three parties, there's our distributor.

Speaker Change #120: Right that would then share a brand on a co branded products. They would secure some rights to exclusivity naturally that's how it works there is us which is basically called virtual manufacturer that means that our label. Our liability are claims that are approved through a clearance.

Dennis Calvert: The alternative markets like Leach 8, like groundwater, like industrial wastewater, municipal wastewater will lean more heavily towards business and engineering decisions. And in those cases, we have a very good chance of earlier adoption. So the fact that our technology can work in all of those different markets because the nature of its design is a significant advantage for us. And we believe that we'll continue to see adoption and expand it in these other markets.

Speaker Change #120: With the F D. A clearance process under five 10-K for a label.

Speaker Change #120: Produced.

Speaker Change #120: Under contract manufacturing with a qualified F D a contract manufacturer.

Dennis Calvert: That's what we've got. So there are three parties in that deal. OK, in addition, remember that we have multiple product designs. Those other product designs have other partners that are coming to the, so that would include burn, wound, dermatology, dental, potential ocular, we don't have a lot of work there yet, so eye care, and more, and more. Our patents cover a lot of different areas in the healthcare and medical field that we can apply.

Speaker Change #120: That's what we've got so there's three parties in that deal.

Dennis Calvert: OK, in addition, remember that we have multiple product designs. Those other product designs have other partners that are coming to the table. So that would include burn, wound, dermatology, dental, potential ocular. We don't have a lot of work there yet, so I care. And more and more, our patents cover a lot of different areas in the healthcare and medical field that we can apply. Those are the ones that are on the drawing board. The good news in the platform is that we can actually see potential medical medical device, even drug pathways. There's all sorts of opportunities for this technology.

Speaker Change #120: In addition.

Speaker Change #120: Remember that we have multiple product lines as the other product designs have other partners that are coming to the table.

Dennis Calvert: Okay, battery tech, salinity battery, right, sodium, liquid sodium, it runs about 160 c. That's a, that's a, that's in the world of liquid sodium batteries that floats in compared to lithium at higher, right, so above room temperature, but the beauty of a battery that can operate at 160 c is that it requires no parasitic load to keep it cool. What does everybody tell you about batteries? Don't let it get hot. Our is actually loves the heat.

Speaker Change #120: So that would include burn wound dermatology dental potential ocular we don't have a lot of work there yet so I care.

Speaker Change #120: And more and more our patents cover a lot of different areas and in the health care and medical field that we can apply that.

Dennis Calvert: Those are the ones that are on the drawing board. The good news is that the platform can actually see potential medical device and even drug pathways. There are all sorts of opportunities for this technology. Right now, we're focused on getting our surgical product under a co-branded partnership launched, and that will provide ample proof of claim and financial success and all the things that we're all looking forward to. We're really anxious to get that done. Yeah, absolutely.

Speaker Change #120: Those are the ones that are on the drawing board. The good news and the platform is that we can actually see potential medical medical device, even drug pathways, there's all sorts of opportunities for this technology right.

Dennis Calvert: Right now, we're focused on getting our surgical product under a co-branded partnership launched. And that will provide ample proof of claim and financial success, and all the things that we're all looking for. And so we're really anxious to get that done. Yeah, absolutely. And this is something we've been talking about for quite a while now. So it's been frustrating to say the least for some day to share all this, but not quite see it on the balance sheet quite yet.

Speaker Change #120: Right now we're focused on getting our surgical product under a co branded partnership launched.

Dennis Calvert: So we have a little bit of a presentation. Let's see if I can make it work here real quick. There we go. Let's see if we make this work. Solinity is biolod days next generation battery factor designed to provide safe long last and environmentally conscious, large format, long duration battery energy storage. Solinity is not a lithium battery. Matters, it uses a unique battery chemistry involving molten salt electrolytes with high energy density, low cost per kilowatt hour, no risk of fire or exposure, high operational efficiency, and no self-destruction.

Speaker Change #120: And that one provides ample proof of claim and financial success in all of the things that we're all looking for it. So we're really anxious to get that done.

Speaker Change #120: Yeah, absolutely I mean, this is something we've been talking about for quite a while now so it's been frustrating to say the limits for some.

Dennis Calvert: And this is something we've been talking about for quite some time. So it's been frustrating, to say the least, for some to hear all this but not quite see it on the balance sheet quite yet. So, Mr. Gingerelli asks, in general... When can we expect clearer sales to begin, and what is an estimate of the dollar? Yeah, it's really hard, so it's, of course, the burning question for everyone, when and how much, right? So there you go, Pat, you nailed it. When and how much?

Speaker Change #120: All of this but not quite see it on the balance sheet quite yet.

Dennis Calvert: So Mr. General, in general terms, when can we expect clearer sales to begin, and what is an estimate of the dollar value? Yeah, it's really hard. Yeah, so it's, of course, the burning question for everyone. When and how much? So there you go, Pat, we nailed it. When and how much? It's taken so long, and we're in such the throes of preparation that I think it's a mistake to pin down the date. We're now at a position where we just believe that we've done the work necessary to get this partnership going. And it's going to take its normal course.

So Mr Ginger ale and.

Speaker Change #121: In general terms when can we expect clearance sales to begin and what is an estimate of the dollar value.

Dennis Calvert: All of salinity's components and materials can be sourced within North America and do not include rare earth elements. Applications include grid scale storage, renewable energy storage, charging stations for electric vehicles, and a variety of other commercial and industrial applications. BioLargo has a unique partner-centred business model to roll out micro-festries and gigantries. The first batch of prototypes were recently. The world needs a... Okay, thank you very much.

Speaker Change #122: Yeah, it's really hard so.

Speaker Change #121: Yeah. So.

So of course, the burning question for everyone when and how much [laughter]. So there you go Pat you nailed it when and how much.

Speaker Change #121:

Speaker Change #123: It's taken us so long and we're in such the throes of preparation.

Dennis Calvert: It's taken us so long, and we're in such the throes of preparation, that I think it's a mistake to pin down a date. We're now at a position where we just believe that we've done the work necessary to get this partnership going, and it's going to take its normal course. Once that happens, there are a series of things that will happen. The first is the formation of the formal relationship.

But I think it's a mistake to pin down a day.

Speaker Change #124: We're now in a position where we just believe that we've done the work necessary to get this partnership going.

Dennis Calvert: Okay, we include this slide because we wanted to be public records. You can look at it later. There's so much data you can't possibly present it. But basically, we have a series of features that make it a very attractive commercial offering. And we covered some of those, right? This is the design. Once you make your sales, which we're making sales now, and you can refine the manufacturing technique to produce them to scale, you take those sales and you assemble them in racks and racks make packs.

Speaker Change #125: And it's gonna take its normal course once that happens there's a series of things that will happen right. The first is the formation of the formal relationship that's a contract. So when she gets contract there's deposits there's orders.

Dennis Calvert: Once that happens, there's a series of things that will happen. The first is the formation of the formal relationship. That's a contract. So once you get to contract, there's deposits, there's orders. There's then making sure paperwork with the FDA is complete. And there's a process that goes through; that process could be anywhere from what's called four to seven months. That's reality. Okay, so there's a deal that's signed first, then there's the final prep to launch the product, then there's sales training, and there's distribution. And so all in, from the time you say go, you're probably talking about six to 12 months before you hit your full run rate.

Dennis Calvert: That's a contract. So once you get your contract, there's deposits, there's orders. There's been... making sure paperwork with the FDA is complete, and there's a process that goes through that process could be anywhere from, let's call it, four to seven months.

Speaker Change #125: There's then.

Speaker Change #125: Making sure paperwork with the F T as complete and there's a process that goes through that process can be anywhere from let's call. It four to seven months.

Dennis Calvert: And ultimately, you create these packs, these modules that can store energy. Okay, primarily focused on offloading renewable and balancing the grid. Okay, so these are one to two megawatt hour units on the left. Basically, 25 trailers. And these are small 25 kilowatt hour units on the right. Something you might put next to your home or next to an AV charging station and be like, okay? This is our little manufacturing facility, pilot facility.

Speaker Change #125: That's reality.

Dennis Calvert: That's reality. So there's a deal that's signed first, then there's the final preparation to launch the product, then there's sales training, and there's distribution. And so all in, from the time you say go, you're probably talking about six to 12 months before you hit your full run rate.

Speaker Change #125: So there is a deal that signed first then there's the final prep to launch product then their sales training and Theres distribution and so all in from the time, you say go you're probably talking about six to 12 months before you hit your full run rate.

Speaker Change #125: Your full run rate, it's hard for us to predict the full run rate, but it wouldn't surprise us if those revenues are.

Dennis Calvert: It's hard for us to predict the full run rate, but it wouldn't surprise us if those revenues, as it hits full run rate, could easily exceed four and five times the revenue that we're doing at POOF. Okay, so it's a big business, or more. If you look at the size of the market that we're focused on and the idea that we are a transformative technology in that industry, with claims and safety profiles that the other incumbents cannot meet, and we've combined it with a global partner of highly recognized brand and sophistication and standing in the marketplace,

Dennis Calvert: It's hard for us to predict the full run rate, but it wouldn't surprise us. If those revenues, as it hits full run rate, could easily exceed four and five times the revenue that we're doing, it poof. Dave. Okay, so it's big business or more. If you look at the size of the market that we're focused on, and the idea that we are a transformative technology in that industry, with claims and safety profile that the other incumbents cannot meet, and we've combined it with a global partner of highly recognized brand and sophistication and standing in the marketplace, we think that that product is the kind of product that could over time go into the quarter to half a billion in revenue kind of profile.

Speaker Change #125: As it hits full run rate.

Speaker Change #125: Could easily seed.

Dennis Calvert: This is producing sales. We're testing sales now. We made an announcement just to bow. I don't know. A little bit ago. Let me see if I can remember that. Here we go. Next slide. In June, right? June's lock. Okay, so just recently announced that we were making our first sales. We're in the testing and the refinement of the manufacturing process. And we're just beginning to work on the scale up to what we call the Spartan Cell.

Four and five times the revenue they were doing at booth.

Speaker Change #126: Okay. So it's a big business.

Or more.

Speaker Change #125: If you look at the size of the market that we're focused on.

Speaker Change #125: And the idea that we are a transformative technology.

Speaker Change #125: In that industry.

Speaker Change #125: With claims and safety profile with the other incumbents cannot meet.

Dennis Calvert: And the Spartan Cell will be a 10X of this smaller cell unit that we believe will be the commercial design. Okay, so we're making good progress. What's unusual about our strategy is we believe the business model is quite unique. Cell battery factories don't sell batteries. Cell factories not batteries. Okay, why? Why do they? Well, I'm going to show you why. The average battery factory is going to take two and a half years to manufacture to set up.

Speaker Change #125: And we've combined it with our global partner of.

Speaker Change #125: Our highly recognized brand and sophistication and standing in the marketplace.

Dennis Calvert: We think that that product is the kind of product that could, over time, go into the quarter to half a billion and revenue proof kind of proof, so it's very important to get perspective on what we think the future can hold. The timing of it is extraordinarily uncertain.

Speaker Change #125: We think that that product is the kind of product that could over time go into the quarter to a half a billion in revenue kind of profile.

Dennis Calvert: So it's very important to get perspective of what we think the future can hold. The timing of it is extraordinarily uncertain. And so it is what it is.

Speaker Change #125: So it's very important to get perspective.

Speaker Change #125: What we think the future can hold the timing of it is extraordinarily uncertain.

Dennis Calvert: Make operational. We believe that with about a hundred million dollar capex. That battery factory can produce 1.5 gigawatt hours of battery storage sales and and packs. Per year. And at today's market, that would generate half a billion dollars top-line revenue. So we've gone what we've done is we've gone out to the marketplace and said we'd like to put our partners in the business. So who are the partners? Well, it could be a financial type to make money.

Dennis Calvert: And so, it is what it is. What I can say is it's meaningful, and it's to date. If it happens the way we think it's going to happen, it would be one of the biggest commercial successes in the portfolio of the company, but we do have others in the works. So we think there's more to come. In a roundabout way to say, you just have to wait it out.

And so it is what it is what I can say is it's meaningful.

Dennis Calvert: What I can say is it's meaningful, and it's to date. If it happens the way we think it's going to happen, it would be one of the biggest commercial successes in the portfolio of the company, but we do have others in the works. So we think there's more to come. Round about way to say, you got to weigh it out. Yeah.

Speaker Change #125: And it's to date if it happens the way, we think it's going to happen. It would be one of the biggest commercial successes in the portfolio of the company.

Speaker Change #125: We do have others in the works. So we think there's more to come.

Speaker Change #125: Roundabout way of saying it.

Speaker Change #125: You got to wait it out.

Speaker Change #127: [laughter] yeah.

Dennis Calvert: Pat's got another question: are there products for wound care that are on par with Clear at this time regarding effectiveness? Are they on the drawing board, or are they on pause? What was the question? On par. Are they as effective? Par. On par. Thank you. Yeah. So are they able to compete in the market? Yeah. We think so. Yeah, for sure. So wound and burn is a classic. That's a market where we anticipated years ago, and we've always believed that it would have a showcase for the technology in that market. It's not as big as surgery.

Dennis Calvert: Pat's got another question for you. Are there products for wound care that are on par with clearance? Regarding effects. Are they on the drawing board, or are they on pause? What was the question? On par. Are they as effective?

Speaker Change #127: Pat's got another question for you are there products for wound care that are on par with clear at this time regarding effectiveness.

Dennis Calvert: Par, on par. Thank you. Yeah. Yeah. So are they able to compete in the market? Yeah, we think so. Yeah, for sure. So wound and burn is a class.

Dennis Calvert: It could be someone's in the renewable energy business. It could be a public utility. It could be countries. It could be land developers. Energy parks. Data centers. Big data. People that want a lot of batteries. And our model is to put them in the business. And what we seek in that business relationship is a 6% royalty. And 19% carry interest in the equity of the project. That means that as credits are generated, which right now would represent about 40% credit, that can accrue to the general partnership.

Speaker Change #128: Are they on the drawing board or they're on pause what was the question on on part a are they as a sub par.

Speaker Change #129: On par. Thank you yeah, yeah. So they are they able to compete in the market. Yeah. We think so yeah for sure so wound and burn is a classic.

Dennis Calvert: You know, that's a market that we anticipated years ago, and we've always believed that it would be a showcase for the technology in that market. It's not as big as surgery, okay? It's not as big a market, but it layers in, right? So when you say a wound care product, that's a product in the lingo of that industry that primarily refers to chronic infected wounds.

Speaker Change #129: That's a market, where we anticipated years ago.

Speaker Change #129: And we've always believed that it would have a showcase for the technology in that market, it's not as big as surgery.

Dennis Calvert: It's not as big a market. But it layers in, right? So when you say a wound care product, that's a product in the lingo of that industry, primarily refers to chronic infected wounds, but it's much more, right? It's much more. It's bandages and dermatology, and it just goes on and on and on. And so in each of those is sort of a submissed market within the category. And when you put them all together, it's still not as big a surgery, okay? So on par, yes, broad spectrum efficacy, gentleness, no systemic, no local talks, data from research that proves it's got biofilm efficacy.

Speaker Change #129: It's not as big a market.

Speaker Change #129: But it layers in right. So when you say a wound care product that's a product that in the in the lingo of that industry, primarily refers to chronic infected wounds, but it's much more right. It's much more it's bandages and dermatology and it just goes on and on and on and so in each of those has sort.

Dennis Calvert: We would participate based on our equity ownership. It also allows for clean financing. It also allows for leverage and scale a building with an income. Okay, so we've gone after the marketplace and we have at least seven of these interested parties at the table. We have lots of handshakes going on, not formalized business deals yet, primarily because we're working on the financing and we're working on the equity to pull this off as we advance the science of the values.

Dennis Calvert: But it's much more, right? It's much more. It's bandages and dermatology, and it just goes on and on and on. And so, each of those is sort of a sub-niche market within the category. And when you put them all together, it still is not as big as surgery. OK, so on par, yes, broad spectrum efficacy, gentleness, no systemic, no local tox data from research that proves it's got biofilm efficacy.

Speaker Change #129: Sub niche market within the category and.

Speaker Change #129: And when you put them altogether.

Speaker Change #130: It's not as big a surgery okay.

Speaker Change #131: So on par, yes, broad spectrum efficacy gentleness no systemic no local talks.

Dennis Calvert: The excitement and the response from our proposal is astounding. I believe that this is a type of business opportunity that not only conserves capital but highlights the core competencies of our company, engineering, the deal making, the support, the training, the handover, leveraging the balance sheet and the capital resources of people that want a lot of batteries. Okay, now the caveat to all this is a lot of work to do. So it's early in this stage.

Speaker Change #131: Data from research that proves its got biofilm efficacy.

Dennis Calvert: Yeah, that's a winner, right? So not only is it on par, I think I would argue that it's superior to all the products that it will compete with. We believe it's superior, which is why I'm just going to remind everyone we've been willing to invest 13 years and 18 million dollars to get here. It's no time to cower. We're in it to win it. All right, all right.

Speaker Change #132: Yeah, that's a winner.

Dennis Calvert: Yeah, that's a winner, right? Not only is it on par, but I think I would argue that it's superior to... All the products that we'll compete with. We believe it's superior, which is why I'm just going to remind everyone we've been willing to invest 13 years and $18 million to get here. It's no time to cower; we're in it to win.

Speaker Change #132: So not as it not only is it on par I think that would argue that it's.

Speaker Change #132: It is superior to <unk>.

Speaker Change #132: All the products that will compete with we believe it's superior which is why I'm just going to remind everyone. We've been willing to invest 13 years and $18 million to get here.

Speaker Change #132: It's no time due to cower, we're in it to win it.

Speaker Change #133: All right all right.

Dennis Calvert: We've also historically been able to bring in direct investment capital. Again, another capital conserving strategy for BioLargo so that we don't dilute on a continual basis, the parent company. Give us capital necessary to advance these causes and right now we're focused on a couple of things. The scale of the battery design, the refinement of the modeling for a battery factory, the processes and the capital and the time. So we're doing extensive detail in that area and then the partnerships and what those could look like on the various financing that comes to bear. Personally and I think corporately we're very excited because it's not only is the battery itself represented significant opportunity but the business model presents scale ability. Okay, so that's the business update for the quarter.

Speaker Change #134: I'm moving on to water. So this is a question by Mr. Goh She sure Sharon.

Dennis Calvert: Moving on to water. So this is a question by Mr. Goshi. Sure, for on. It's a two-parter, but we'll break it down here. All right, so competitively time. How long do you estimate it will take before competitors can develop a similar PFAS treatment solution, considering the technological advancements and market position? It's a good question. We don't know anyone that's working on a similar design. So, we start with that. We think we're unique in our thinking about the product. You know, the EPA came out and said to the world, "We're going to sponsor innovation for destruction technologies."

Dennis Calvert: All right. Moving on to water. So this is a question by Mr. Cheer her on.

Speaker Change #135: It's a two parter, but we'll break it down here alright, so competitive lead times.

Dennis Calvert: It's a two-parter, but we'll break it down here. Competitively, how long do you estimate it will take before competitors can develop a similar PFAS treatment considering the technological advancements and market mark? Good question. We don't know anyone that's working on a similar design.

Speaker Change #136: How long do you estimate it will take before competitors can develop a similar P fast treatment solution, considering the technological advancements and market position.

Speaker Change #137: It's a good question, we don't know anyone that's working on a similar design. So you start with that we think we're unique in our thinking about the product you know the EPA came out and said to the world, we're going to sponsor innovation for destruction technologies.

Dennis Calvert: So we'll start with that. We think we're unique in our thinking about the product. You know, the EPA came out and said to the world, we're going to sponsor innovation for destruction technology, and the theme at that time was what they call in-the-field or in-situ destruction in the field. But since then, PFAS has become of global importance. It's now designated a $17 trillion market, but the incumbents are falling short.

Dennis Calvert: And the theme at that time was what they'd call in the field or in situ destruction out in the field. But since then, the PFAS has become global importance. Now, it has a $17.20 market. The incumbents are falling short. Regulatory enforcement has been expanded to circular and rickram, which means the hazards materials in sales are really critical to handle carefully in compliance with the law. A lot of money flew into destruction, which is fine. There's nothing to quote wrong with that. But the thesis, in our opinion, at inception, should have been, could have been, to focus on super concentration.

Speaker Change #138: And the theme at that time was.

Brian Loper: I think we're going to open it up to questions now. So Mr. Loper, are you with me? Yes, sir. Thank you very much, Dennis. That was a great overview. Dove into some key areas of the business. Thank you for doing that. If anybody had trouble with that video about the solenoid battery, we are going to make it available on biolargoenergy.com. All right. So yeah, excellent news. This quarter with record revenue, right?

Speaker Change #138:

Speaker Change #138: What they would call in the field or institute destruction out in the field, but since then the P. Foster has become global importance now designated 17 trillion dollar market. The incumbents are falling short regulatory enforcement has been expanded to cercla, Rick around which means that has the hazardous materials themselves are are really critical to handle carefully.

Dennis Calvert: Regulatory enforcement has expanded to CERCLA and RCRA, which means the hazardous materials themselves are really critical to handle carefully in compliance with the law. A lot of money flew into destruction, which is fine.

Speaker Change #138: One is with the law.

Speaker Change #139: A lot of money flew into destruction, which has which is fine there's nothing wrong with that but the thesis in our opinion at inception.

Dennis Calvert: But the thesis, in our opinion, at inception, should have been, could have been, to focus on superconcentration, because if you super concentrate, destruction is actually very easy. Right now, people say destruction is so hard because of what? Well, because you're dealing with 80,000 pounds of junk, and depending on the destruction technique, you've got pressure and energy and explosiveness and the production of gases and the creation of toxic molecules that are the result of the destruction technique.

Speaker Change #139: Right should have been could have been to focus on supercuts filtration.

Dennis Calvert: Because if you super concentrate, destruction is actually very easy. Right now, people say destruction is so hard because what? Well, because you're dealing with 80,000 pounds of junk. And if you depend on the, on the destruction technique, you've got pressure and energy and explosiveness and production of gases and the creation of toxic molecules that are the result of the destruction technique. I mean, it's all sorts of stuff going on. Okay. So we look at that market and we say, look, we've thought we're in the patent process. We have a lot of, we have a lot of know how to trade secrets.

Speaker Change #139: Because if you're super concentrate destruction is actually very easy.

Brian Loper: I mean, it's got to be the key takeaway here. Another positive quarter, record quarter, having a record year, like 5 million in Q2, we're up to almost 10 million so far this year. And we've seen this now for a number of quarters in a row, which is terrific for folks that have been holding for a while, but we're also ready for payday. So I'm kind of wondering, from your perspective, you know, we're on an upward trajectory with poof, clear up with the water tack, with battery.

Speaker Change #140: Right now people say destruction, so hard because what well because you're dealing with 80000 pounds of junk.

Speaker Change #141: Okay, and if depending on the on the destruction of technique, you've got pressure in energy and explosiveness and production of gases and.

Speaker Change #141: And the creation of of a toxic molecules that are the result of the destruction technique I mean, it's all sorts of stuff going on okay, and so we look at that market and we say look.

Dennis Calvert: I mean, there's all sorts of stuff going on, okay? So we look at that market, and we say, look. We're in the patent process. We have a lot of know-how and trade secrets. We've invested three and a half years in this actual design, and the creation of the design comes from 25 years of field experience by what we would call world-class environmental engineers. I mean, they've been doing this thing for 25 and 30 years, right? So can someone come up with something comparable?

Speaker Change #142: We've got we're in the patent process, we have a lot of we have a lot of know how and trade secrets, we've invested three and a half years on this actual design and the creation of the design comes from 25 years of field experience by what.

Dennis Calvert: We've invested three and a half years on this actual design, and the creation of the design comes from 25 years of field experience by what we would call world-class environmental engineers. I mean, they, they've been doing this thing for 25 and 30 years, right? So can someone come out with something comparable? I guess in theory, it's capable, but we've got a patent advantage. We've got three and a half years of junk. We've got career experience, and we've now advanced ourselves to a commercial status that no one with the alternative technology has even gotten a commercial account.

Brian Loper: But what would have to happen for biolargo to stop seeing such growth? What would have to happen to stop seeing growth? So you mean what would derail it?

Speaker Change #142: What we would call World class Environmental engineers.

Speaker Change #142: I mean, they've been doing this thing for 25, and 30 years right, so because someone come out with something comparable.

Dennis Calvert: What's the risk of having it derailed? That's a question. Yeah, well, I think, yeah, okay, that's fair enough.

Dennis Calvert: I guess in theory, it is. It's capable, but we've got a patent advantage, we've got three and a half years of a jump, we've got career experience, and we've now advanced ourselves to a commercial status that no one with the alternative technology has even gotten a commercial account. So I don't know. I don't think they can catch us. I think we're in a pretty good spot. And the incumbent technologies that are finding deployment are gonna have a very difficult time. I mean, it's just not going to last.

Speaker Change #143: I guess in theory it's.

Dennis Calvert: I think there's a couple things in dynamic on that interesting question. The first is that I think poof has demonstrated significance in their ability to meet their targets over time. So we don't expect that to change. They are in a very competitive market, so rest assured it's just like competition, but they're extraordinarily good at what they do and the product lines are expanding and the retail outlets are expanding and they're doing great.

Speaker Change #143: It's capable, but we've got patent advantage, we've got three and a half years job, we've got career experience and.

Speaker Change #143: We've now advanced ourselves to a commercial status that that no one with the alternative technologies, even gotten a commercial account.

Dennis Calvert: So I don't know. I don't, I don't think they can catch us. I think we're in a pretty good spot. And the incumbent technologies that are finding deployment are going to have a very difficult time. I mean, that's just not going to last. And the crazy thing about that is when we look at the politics, if you will, of the customer's making decisions about deploying old technologies, you know, what's happening is they're more concerned with the politics of making a safe choice. We get a safe choice, and they don't pay the bills. The federal government or the state or the public utility pays those bills, and they pass the cost to the rate payer.

So I don't know I don't I don't think they can catch us I think we're in a pretty good spot and the incumbent technologies that are finding deployment are going to have a very difficult time.

Dennis Calvert: Okay, so that's one. We also have expanding commercial opportunities of significance, you know, clear being one of them. When it finally does launch and we believe as I said before, we're close to being able to move forward in a significant way. When it does, the economics will astound you and I've said on the number of occasions, if we like poof and implications to our company, clear as, you know, could be a could be a seven to 10 X from that. I mean, it is a dramatic development and with significant distribution and revenue growth of extraordinary opportunity.

Speaker Change #143: I mean, that's it's just not going to last and and the Crazy thing about that is when we look at the politics. If you will of the customers, making decisions about deploying old technologies.

Dennis Calvert: And the crazy thing about that is when you look at the politics, if you will, of the customers making decisions about deploying old technology. What's happening is they're more concerned with the politics of making a safe choice. We get it. Safe choice. And they don't pay the bills. The federal government or the state or the public utility pays those bills, and they pass the cost to the rate payer.

Speaker Change #143: You know what's happening is they're more concerned with the politics of making a safe choice, we get it safe choice and they don't pay the bills.

Speaker Change #143: The federal government or the state or the public utility pays those bills and they pass the cost to the ratepayer.

Dennis Calvert: That's what happens. Okay? So, you know, they're more interested in not failing. And so it's really easy to say, I'm going to go with the carbon or ionic change system. when there's no scaled deployment of alternative technology in the marketplace yet. And if they got to go fast, that's what they do. They go fast with something that's safe politically, even if the cost to handle the waste stream is 5x. That's what they'll do. You know why? Because they're just going to pass the rate back to us in the form of higher bills for their water.

Speaker Change #143: That's what happens.

Dennis Calvert: That's what happens. Okay. So, you know, they're more interested in not failing.

Speaker Change #143: So you know they're more interested in not failing.

Dennis Calvert: Hence, we've now invested, you know, 13 years and $18 million. We're not messing around. We're real serious about that product line and the importance for the world. Okay, in addition, the engineers have demonstrated like in this last quarter, the generate revenue about a million dollars. That was a record quarter for the engineers. It's not missed that. Of that, there was some equipment sold. It was part and parcel of projects. So it wasn't. It's a margin that's a markup on the supply of equipment. So it's not services, but that's part and parcel what they've done.

Dennis Calvert: And so it's really easy to say, I'm going to go with a carbon or ion exchange system when there's no scaled deployment of alternative technology in the marketplace yet, and if they have to go fast, that's what they do. They go fast with something that's safe politically, even if the cost to handle the waste stream is higher than that. That's what they'll do. You know why?

Speaker Change #143: And so it's really easy to say I'm going to go with a carbon or onyx shade system.

Speaker Change #143: When there's no scaled deployment of alternative technology in the marketplace yet.

Speaker Change #143: And if they Gotta go fast that's what they do they go they go fast with something that's safe politically even if the cost to handle the waste stream is buybacks.

Dennis Calvert: Because they're just going to pass the rate back to us in the form of higher bills for their water. We're trying to break that model. So you understand how difficult it is. We're lobbying on both sides of the aisle. We're in the Senate, we're in Congress. We don't have professional lobbyists.

Speaker Change #143: And so what they'll do you know why because they are just going to pass the rate the rate back to us in the form of higher bills for the water.

Dennis Calvert: We're trying to break that model. So understand how difficult it is. We're lobbying with both sides of the aisle. We're at the Senate, we're at the Congress. We didn't have professional lobbyists. We're working with the Department of Defense. We're working all the channels to really go to the people that care and say, look, not only can you solve the issue, but you could save billions, literally billions and billions for the United States of America and other countries. So, you know, that's what we're doing. And we will find our way through it. I believe we will find our way through it.

Speaker Change #144: We're trying to break that model. Okay. So just so I understand how difficult. It is you know weird lobbying with both sides of the aisle. We're at the Senate for at the Congress.

Dennis Calvert: And we also believe that the water company with the equipment group is also going to continue to expand.

Dennis Calvert: So, you know, so what threatens us? What threatens us? Well, not much. I mean, we have competition to overcome at every level. But our balance sheet is strong, our cash position is strong. We've demonstrated ability to make sure that we get the capital necessary to execute. We deploy capital conserving strategies. We feature transformative tech that times a foothold.

Speaker Change #144: We do have professional lobbyist, where we're working with the department of defense.

Dennis Calvert: We're working with the Department of Defense. We're working all the channels to really go to the people that care and say, look, not only can you solve the issue, but you could save billions, literally billions and billions for the United States of America and other countries. So, you know.

Speaker Change #144: We're working all the channels to really go to the people that care and.

Speaker Change #144: And say look not only can you solve the issue, but you could say billions literally billions and billions for the United States and other countries.

Speaker Change #144: You know.

Speaker Change #144: That's what we're doing and we will find our way through it I believe we will find our way through it but also find their way into some meaningful partnerships that will move significantly in the marketplace.

Dennis Calvert: And we will find our way through it. I believe we will find our way through it. We'll also find our way into some meaningful partnerships that will move significance in the marketplace. But in the early days, you know, they talk about the adoption cycle and the valley of death and all that, right?

Dennis Calvert: We'll also find our way into some medical partnerships that will move significance in the marketplace.

Dennis Calvert: You know, so as we form these partnerships, you know, we've had some that have moved very slow. Gary Collins, one of them. It's a very slow developing relationship. It's still very, very good. And we predict success.

Dennis Calvert: But the early days, you know, they talk about the adoption cycle and the value of death and all that, right? The fact that we've got a commercial account, proven technology, and we're in a financially stable business. We are in a financially stable business. And we're innovating in a highly difficult, slow-adopting, critical market: PFAS. So, yeah, I think we're going to win.

Speaker Change #145: The early days you know when they talk about the adoption cycle in the valley of death, and all that right. The fact that we've got a commercial account proven technology and we're in a financially stable business.

Dennis Calvert: The fact that we've got a commercial account, proven technology, and we're in a financially stable business. We are in a financially stable business, and we're innovating in a highly difficult, slow-adopting, critical market, PFAS. So yeah, I think we're going to win.

Dennis Calvert: I know it's hard for people to understand how that could take so long. I guess as you look back at our development cycle on the industrial control that took us years to find our foothold in the marketplace. It's kind of the nature of, you know, presenting disruptive tech in an old, stodgy market that's low to adopt.

Speaker Change #145: We are in a financially stable business.

Speaker Change #145: And we're innovating in a highly difficult slow adopting critical market P. Foss. So yeah, I think we're going to win so.

Speaker Change #145:

Dennis Calvert: Another question from the analysts... cost analysis of some... Can you give us a little more color on the assumptions you made in your cost analysis regarding the cost advantage of AED? particularly in relation to the current regulatory environment and potential future tightening, step-up, and cost. Yeah, let's see. Yeah, boy, I need Tanya on the phone.

Dennis Calvert: Another question from the analyst: cost analysis assumptions. Can you give us a little more color on the assumptions you made in your cost analysis regarding the cost advantage of AEC, particularly in relation to the current regulatory environment and potential future tightening step up and cost to your competitors? Yeah, let's see. Yeah, wow. We need Tony on the phone. Yeah, sure. Let me come up with a little bit of that. Let's see. Yeah, when we looked at that, we did a systematic approach, and we can we can read detail it as well later, happy to have some of this published.

Speaker Change #146: And another question from the analysts.

Dennis Calvert: Nonetheless, we predict success. So I don't know if that answers the question, but we're not, we're not in a position of feeling a significant level of fear on things that can derail us from continuing to be successful. In fact, it's the opposite.

Speaker Change #147: Cost analysis assumptions.

Speaker Change #148: Can you give us a little more color on the assumptions you made in your cost analysis regarding the cost disadvantage of AUC, particularly in relation to the current regulatory environment and a potential future tightening step up in cost to your competitors.

Dennis Calvert: The opposite is that with our diversity, with our leveraging our core competency, conserving capital in the way we do. We think the future is exact is exactly the opposite, quite promising and very exciting since we're in a better financial position with more critical mass and more customers and more revenue, more success than we've ever had before.

Speaker Change #148: Yeah, let's say.

Yeah, well I need time, you're on the phone [laughter] yeah sure.

Speaker Change #148: Yeah.

Dennis Calvert: Yeah, sure, let me... We've come up with a little bit of that, let's see. Yeah, when we looked at that, we took a systematic approach, and we can re-detail it as well later. We're happy to have some of this published. I'm actually doing a presentation next Thursday where all that data is going to be public information at the Sustained SoCal event, and that's going to be online as well as, I believe, and it's also local at UCI, the University of California, Irvine. I encourage anyone to come.

Speaker Change #148: We come up with a little bit of that let's say.

Speaker Change #148: Yeah.

Speaker Change #148: When we looked at that we.

Speaker Change #148: We did it we did a systematic approach and we can we can re detailed as well later happy to have some of this published I'm actually doing a presentation next Thursday, where all of that data is gonna be public information at the sustained socal event.

Brian Loper: So we think it's time to leverage that up, okay? Great, yeah, thank you for answering that.

Dennis Calvert: I'm going to actually do in the presentation next Thursday, where all that data is going to be public information at the sustained SOCAL event. So, and that's going to be online as well as, I believe. And it's also local at UCI here in Wisconsin. I encourage anyone to come. When you do the analysis, two things. We looked at what the systems were commonly deployed, a flow rate, the average population served, looked at the CAP-X, and then we calculated the amount of waste stream, and we looked at the average cost to treat waste, and we also looked at the average cost to transport waste, okay?

Speaker Change #148: And that's gonna be online as well as I believe and its also local and you see I hear was California, Irvine encourage anyone to come.

Dennis Calvert: So first question here, before we dive into the subsidiaries, gentlemen, Michael Scherch says, thank you for the call on the Q&A. The growth was accompanied by a delusion of the share capital. Are there plans to stop the delusion? Yeah, sure, thank you. So of course, yes, so two things have happened there. One, notice that last quarter, which we already mentioned, we have not raised any money directly into the parent company, nor have we tapped into our equity line because we didn't need it.

Dennis Calvert: When you do the analysis, two things. We looked at what systems were commonly deployed. A flow rate, the average population served by the CAP-AC. And then we calculated the amount of waste stream. And we looked at the average cost to treat waste. And we also looked at the average cost of transporting waste. OK, and we built a model. OK, and so in our system, for a small system, for a small community.

Speaker Change #150: We looked at the Gwen when you do the analysis two things we looked at what the systems were commonly deployed.

Speaker Change #150: Our flow rate. The average population served with the Capex and then we calculate the amount of waste stream and we looked at the average cost to treat waste and we also looked at the average cost of transport waste, Okay, and we built the model, okay and so.

Dennis Calvert: And we built a model, okay? And so in our system, for a small system, for a small community, you know, to replace the module or the carbon replacement for carbon system, you're going to spend something like 21,600 bucks. And that's for the AC, the carbon system would be two and a. The disposal for 14,000 pounds of apartment, be roughly $45,000, $400 versus $45,000, okay? So it's that kind of analysis. And then when you look at a bigger system, capital cost is probably in the $4 to $8 million range, replacing a carbon module, right, for a large carbon system to handle that kind of flow rates, about $300,000. Ours would cost about $6,000.

Speaker Change #150: In our system for a small system for a small community.

Dennis Calvert: You know, to replace the module or the carbon replacement for a carbon system, you're going to spend something like $21,600, and that's for the AC. The carbon system would be two and a half times that number, almost 50,000. Our disposal, at $3 a pound, is 413 bucks. The disposal for 14,000 pounds of carbon would be roughly 45,000. $400 versus $45,000. Okay, so it's that kind of analysis

Speaker Change #151: You know to replace the module or the car or the carbon replacement for carbon system youre going to spend something like 21600 Bucks.

Dennis Calvert: So then how do you support innovation like our battery tech and the medical company, right? So the answer is you bring direct investment in, which is what we focused on in the past and will continue to focus on the future. The parent company, BioLargo, has supplemented those endeavors from time to time to make sure they get where they need to go. Last year, we made investment of about 750,000 clearer. It's important to note that we did that on the same terms as the current round of investment.

Speaker Change #151: And that's for the AC the carbon system would be two and a half times that number almost 50000, our disposal $3 a pound is 413 months.

The disposal for.

Speaker Change #151: [laughter] 14000 pounds of apartment B 40, roughly $45000.

Speaker Change #151: $400 versus 45000.

Dennis Calvert: So the investors who come in, we basically matched the price. We've also recently done the same thing in the battery tech where the valuation is set. It needs a little more money. We've been in the inviable position to advance capital to advance its cause while we then seek third party investment capital into those subsidiaries without deluding the parents. Okay, so that's pretty dramatic in the last 100 days, right? And so if you look at the share count, the dilution impact is continuing to lessen.

Speaker Change #152: Okay. So it's that kind of analysis.

Speaker Change #152: And then when you look at a bigger system right capital cost is probably in the $4 million to $8 million range.

Dennis Calvert: And then when you look at a bigger system, right, capital costs are probably in the $4 to $8 million range, replacing a carbon module. Right, for large carbon systems to handle that kind of flow rate, it's about $300,000. Ours would cost about $6,000. We produce the waste stream of carbon, that's 540,000 pounds of waste, right to destroy that, call it and destroy it, and be about $3 million. $3 million, OK. Ours is about.

Speaker Change #152: Placing a carbon module.

Speaker Change #152: For large carbon systems to handle that kind of flow rates about $300000 ours would cost about 6000.

Dennis Calvert: You produce the waste stream of carbon; that's 540,000 pounds of waste, right? To destroy that, call it and destroy it, and be about $3 million, $3 million. Okay, ours is about estimate disposal for our system, and then estimate disposal for that 540,000 is $1.6 million. So the module replacement when the carbon is spent and the replacement is almost equal to the CAP-AX when the carbon is spent, that's approximately $4.9 million on a system that costs $48 million to build, okay? So then the assumption curve, when you look at those numbers, as you calculate the cost to manage the waste stream, if that number continues to climb, the economics swing in our favor dramatically.

Speaker Change #152: We produce the waste stream requirement, that's 540000 pounds of waste right.

Speaker Change #152: Alright to destroy that call it and destroy it would be about $3 million.

Dennis Calvert: And of course, I did mention that we had conversion of warrants and some option coverage that did face some dilution in the last quarter, but those were already factored into the fully diluted share count and now they've converted from a warrants to an execution. So all of that's getting better. So we think it's a good, it's a very good sign and we think it can continue. Go ahead. All right, all right.

Speaker Change #152: $3 million.

Speaker Change #152: Okay ours is about.

Dennis Calvert: Estimated disposal cost, for our system, and then the estimated disposal cost for that $540,000 is $1.6 million. So the module replacement, when the carbon is spent, and the replacement is almost equal to the CAPA, when the carbon is spent, that's approximately 4.9 million on a system that costs $4 to $8 billion to build. Okay, so then the assumption curve, when you look at those numbers, as you calculate the cost to manage the waste stream, if that number continues to climb, the economics swing in our favor dramatically. So again, we said between 400% and 300% savings on the lifecycle costs of the system.

Estimate disposal.

Speaker Change #152: For our system.

Speaker Change #152: <unk> is and then estimated disposal for that 50 540000 is $1 6 million.

Speaker Change #152: So the module replacement when the carbon the spin and the replacement.

Speaker Change #152: It's almost equal to the capex when the carbon is spin that's approximately 4.9 million.

Brian Loper: So yeah, let's dive into the money makers.

Speaker Change #152: On a system the cost for the 8 million to build.

Dennis Calvert: A few questions here about proof. Mr. Falk asks, it appears merchants are well stocked with proof. Will there be a bit of a slowdown and wholesale sales? Yeah, we don't know that. So Joe, I appreciate that question. I don't know. We don't have any indication that that's the case. I think that the sell through a product is really marketing driven or proof. I think that's how they would answer the question. And they've got expanded marketing and expanded product line. So right now, we have no reason that we're aware of to predict a reduction in sales for proof.

Speaker Change #153: Okay. So then the assumption curve when you look at those numbers as you as you calculate the cost to manage the waste stream. If that number continues to decline the economics swinging our favorite dramatically. So again, we said between 400 and 300% savings on the lifecycle cost of the system and we'll try and get some.

Dennis Calvert: So again, we said between 40% and 300% savings on the life cycle cost of the system, and we'll try and get some public information out so people can see that in more detail. Again, that's a lot of detail.

Dennis Calvert: And we'll try and get some public information out so people can see that in more detail. Again, that's a lot of detail there, Brick.

Speaker Change #153: Public information out so people can see that in more detail.

Speaker Change #153: So again, there's a lot of detail.

Brian Loper: Great, thank you for that. I appreciate it. Those are all the questions we have time for today, but thank you very much, Dennis, for the answers and going through this all with us. Yeah, thanks everyone for joining us, and again, stay in touch, reach out to us anytime, and we appreciate you very much. Keep plugging away.

Brian Loper: Thank you for that. I appreciate it. Those are all the questions we have time for today, but thank you very much, Dennis, for the answers and going through this all. Yeah, thanks everyone for joining us and, again, stay in touch, reach out to us anytime, and we appreciate you very much. Keep plugging away. Good to see you tonight, and you may disconnect your lines at this time. Thank you.

Speaker Change #154: Great. Thank you for that I appreciate it.

Speaker Change #155: Those are all the questions we have time for today, but thank you very much Denis for the answers and going through this all with us yes.

Dênis: Yes, thanks, everyone for joining us and again stay stay in touch reach out to us anytime and we appreciate you very much keep plugging away.

Dennis Calvert: All right, Mr. Ginger Ellie, the proof potty pads would seem to be an excellent addition to the product line are their sales projections from proof ink or O&M for the pad, that you can share. No, I wish I did have it. You know, I don't even know how to even touch it. We, first of all, you know, the marketing and the budgets as well within the control of poofing they control their spend.

This concludes today's conference, and you may disconnect your lines at this time. Thank you.

Speaker Change #157: This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

Dennis Calvert: I know historically that went to sell more they spend more. And the beauty has been they get a nice rate of return. So they get a nice return of dollar spend versus dollars generated. And revenue. So that that metric has been a really favorable metric for poof and that's where their expertise rests. But they're also under no obligation to give us forecast in that way. And so the way we think about it is they're going to go test market, find the market, build customer awareness and refine it continually. That's what they do. And given their track record, we bet it'll I would bet it's going to be a nice hit. Nice home run. But that's all I got.

Brian Loper: Okay. All right.

Brian Loper: So let's move on to cleaner. So you had mentioned during the presentation that you've been working on a deal for over a year now, co branded product for commercial scale, roll out that that's all moving forward. Yeah, you mentioned that there are multiple parties involved.

Dennis Calvert: And I was wondering if you could clarify if that in the deal and production distribution. Yeah, sorry. Yeah, we should be more clear. Thank you for the clarification question. Yeah, that we should be more clear. So the product focused on the cervical suite, which is bio cleanse is a product that's already cleared under 15 K. That's a med device by the FDA. And as we co branded, we would then be required to file paperwork with the FDA.

Dennis Calvert: And if there's any enhancement to the claims set, those would also have to be approved under review by the FDA. Okay. And that exact detail that we don't we don't believe it's an elongated process, but there is some process. Okay. So that's that's underway relative to the concept of other parties in order to successfully produce this product with our intended partner. We needed to bring scale manufacturing capability. And we found that through keystone industries.

Dennis Calvert: And we entered into a supply arrangement with keystone so that they can contract manufactured to an FDA spec. We like them very much. They meet spec. They can meet volume requirements. They're substantial. They're experts. And they also they also have other channels in which they currently sell product that might be really good for us. There's a high level of collaboration. And he said all that the focus is on these products to get ready for the scale required to support supply.

Dennis Calvert: Okay. That's it. So in that relationship, there's basically three parties. There's our distributor. Right. That would then share a brand on a co branded product. They would secure some rights to exclusivity, naturally, that's how it works. There's us, which is basically called a virtual manufacturer. That means that our label, our liability, are claims that are approved through a clearance with the FDA, a clearance process under $5.10K or a label are produced under contract manufacturing with a qualified FDA contract manufacturer.

Dennis Calvert: That's what we've got, so there's three parties in that deal. OK, in addition, remember that we have multiple product designs. Those other product designs have other partners that are coming to the table. So that would include burn, wound, dermatology, dental, potential ocular. We don't have a lot of work there yet, so I care. And more and more, our patents cover a lot of different areas in the healthcare and medical field that we can apply.

Dennis Calvert: Those are the ones that are on the drawing board. The good news in the platform is that we can actually see potential medical medical device, even drug pathways. There's all sorts of opportunities for this technology. Right now, we're focused on getting our surgical product under a co-branded partnership launched. And that will provide ample proof of claim and financial success and all the things that we're all looking for. And so we're really anxious to get that done. Yeah, absolutely. And this is something we've been talking about for quite a while now.

Dennis Calvert: So it's been frustrating to say the least for some day to share all this, but not quite see it on the balance sheet quite yet. So Mr. General in general terms, when can we expect clearer sales to begin and what is an estimate of the dollar value? Yeah, it's really hard. Yeah, so it's of course the burning question for everyone. When and how much? So there you go, Pat, we nailed it.

Dennis Calvert: When and how much? It's taken so long and we're in such the throws of preparation that I think it's a mistake to pin down the date. We're now at a position where we just believe that we've done the work necessary to get this partnership going. And it's going to take its normal course. Once that happens, there's a series of things that will happen. The first is the formation of the formal relationship.

Dennis Calvert: That's a contract. So once you get to contract, there's deposits, there's orders. There's then making sure paperwork with the FDA is complete. And there's a process that goes through that process could be anywhere from what's called four to seven months. That's reality. Okay, so there's a deal that's signed first, then there's the final prep to launch product, then there's sales training and there's distribution. And so all in from the time you say go, you're probably talking about six to 12 months before you hit your full run rate.

Dennis Calvert: It's hard for us to predict the full run rate, but it wouldn't surprise us. If those revenues as it hits full run rate could easily exceed four and five times the revenue that we're doing it poof. Dave. Okay, so it's big business or more. If you look at the size of the market that we're focused on, and the idea that we are a transformative technology in that industry, with claims and safety profile that the other incumbents cannot meet, and we've combined it with a global partner of highly recognized brand and sophistication and standing in the marketplace, we think that that product is the kind of product that could over time go into the quarter to half a billion in revenue kind of profile.

Dennis Calvert: So it's very important to get perspective of what we think the future can hold. The timing of it is extraordinarily uncertain. And so it is what it is. What I can say is it's meaningful, and it's to date, if it happens the way we think it's going to happen, it would be one of the biggest commercial successes in the portfolio of the company, but we do have others in the works. So we think there's more to come.

Dennis Calvert: Round about way to say, you got to weigh it out. Yeah. Pat's got another question are there products for wound care that are on par with clear at this time regarding effectiveness? Are they on the drawing board or they on pause? What was the question? On par. Are they as effective? Par. On par. Thank you. Yeah. So are they able to compete in the market? Yeah. We think so. Yeah, for sure.

Dennis Calvert: So wound and burn is a classic. That's a market where we anticipated years ago, and we've always believed that it would have a showcase for the technology in that market. It's not as big as surgery. It's not as big a market. But it layers in, right? So when you say a wound care product, that's a product in the in the lingo of that industry, primarily refers to chronic infected wounds, but it's much more, right?

Dennis Calvert: It's much more. It's bandages and dermatology, and it just goes on and on and on. And so in each of those is sort of a submissed market within the category. And when you put them all together, it's still not as big a surgery, okay? So on par, yes, broad spectrum efficacy, gentleness, no systemic, no local talks, data from research that proves it's got biofilm efficacy. Yeah, that's a winner, right? So not only is it on par, I think I would argue that it's superior to all the products that it will compete with.

Dennis Calvert: We believe it's superior, which is why I'm just going to remind everyone we've been willing to invest 13 years and 18 million dollars to get here. It's no time to to cower. We're in it to win it. All right, all right.

Dennis Calvert: Moving on to water. So this is a question by Mr. Goshi. Sure, for on. It's a two-parter, but we'll break it down here. All right, so competitively Time. How long do you estimate it will take before competitors can develop a similar PFAS treatment solution, considering the technological advancements and market position? It's a good question. We don't know anyone that's working on a similar design. So, we start with that. We think we're unique in our thinking about the product.

Dennis Calvert: You know, the EPA came out and said to the world, we're going to sponsor innovation for destruction technologies. And the theme at that time was what they'd call in the field or in situ destruction out in the field. But since then, the PFAS has become global importance. Now, it has an $17.20 market. The incumbents are falling short. Regulatory enforcement has been expanded to circular and rickram, which means the hazards materials in sales are really critical to handle carefully in compliance with the law.

Dennis Calvert: A lot of money flew into destruction, which is fine. There's nothing to quote wrong with that. But the thesis, in our opinion, at inception, should have been, could have been, to focus on super concentration. Because if you super concentrate, destruction is actually very easy. Right now, people say, destruction is so hard because what? Well, because you're dealing with 80,000 pounds of junk. And if you depend on the, on the destruction technique, you've got pressure and energy and explosiveness and production of gases and the creation of toxic molecules that are the result of the destruction technique, I mean, it's all sorts of stuff going on.

Dennis Calvert: Okay. So we look at that market and we say, look, we've thought we're in the patent process. We have a lot of, we have a lot of know how to trade secrets. We've invested three and a half years on this actual design and the creation of the design comes from 25 years of field experience by what we would call world-class environmental engineers. I mean, they, they've been doing this thing for 25 and 30 years, right?

Dennis Calvert: So can someone come out with something comparable? I guess in theory, it's, it's capable, but we've got patent advantage. We've got three and a half years of junk. We've got career experience and we've now advanced ourselves to a commercial status that, that no one with the alternative technology has even gotten a commercial account. So I don't know. I don't, I don't think they can catch us. I think we're in a pretty good spot.

Dennis Calvert: And the incumbent technologies that are finding deployment are going to have a very difficult time. I mean, that's, it's just not going to last. And the crazy thing about that is when we look at the politics, if you will, of the customer's making decisions about deploying old technologies, you know, what's happening is they're more concerned with the politics of making a safe choice. We get a safe choice and they don't pay the bills.

Dennis Calvert: The federal government or the state or the public utility pays those bills and they pass the cost to the rate payer. That's what happens. Okay? So, you know, they're more interested in not failing. And so it's really easy to say, I'm going to go with the carbon or ionic change system, when there's no scaled deployment of alternative technology in the marketplace yet. And if they got to go fast, that's what they do.

Dennis Calvert: They go fast with something that's safe politically, even if the cost to handle the waste stream is 5x. That's what they'll do. You know why? Because they're just going to pass the rate back to to us in the form of higher bills for their water. We're trying to break that model. So understand how difficult it is. We're lobbying with both sides of the aisle. We're at the Senate, we're at the Congress.

Dennis Calvert: We didn't have professional lobbyists. We're working with the Department of Defense. We're working all the channels to really go to the people that care and say, look, not only can you solve the issue, but you could say billions, literally billions and billions for the United States of America and other countries. So, you know, that's what we're doing. And we will find our way through it. I believe we will find our way through it.

Dennis Calvert: We'll also find our way into some medical partnerships that will move significance in the marketplace. But the early days, you know, they talk about the adoption cycle and the value of death and all that, right? The fact that we've got a commercial account, proven technology, and we're in a financially stable business. We are in a financially stable business. And we're innovating in a highly difficult, slow-adopting, critical market PFAS. So, yeah, I think we're going to win.

Dennis Calvert: Another question from the analyst, cost analysis assumptions. Can you give us a little more color on the assumptions you made in your cost analysis regarding the cost advantage of AEC, particularly in relation to the current regulatory environment and potential future tightening step up and cost to your competitors? Yeah, let's see. Yeah, wow. We need Tony on the phone. Yeah, sure. Let me come up with a little bit of that. Let's see.

Dennis Calvert: Yeah, when we looked at that, we did a systematic approach and we can we can read detail it as well later, happy to have some of this published. I'm going to actually do in the presentation next Thursday, where all that data is going to be public information at the sustained SOCAL event. So, and that's going to be online as well as I believe. And it's also local at UCI here in Wisconsin.

Dennis Calvert: I encourage anyone to come. When you do the analysis, two things. We looked at what the systems were commonly deployed, a flow rate, the average population served, looked at the CAP-X, and then we calculated the amount of waste stream, and we looked at the average cost to treat waste, and we also looked at the average cost to transport waste, okay? And we built a model, okay? And so in our system, for a small system, for a small community, you know, to replace the module or the carbon replacement for carbon system, you're going to spend something like 21,600 bucks.

Dennis Calvert: And that's for the AC, the carbon system would be two and a The Disposal for 14,000 pounds of apartment, be roughly $45,000, $400 versus $45,000, okay? So it's that kind of analysis. And then when you look at a bigger system, capital cost is probably in the $4 to $8 million range, replacing a carbon module, right, for a large carbon system to handle that kind of flow rates, about $300,000, ours would cost about $6,000.

Dennis Calvert: You produce the waste stream of carbon, that's 540,000 pounds of waste, right, to destroy that, call it and destroy it and be about $3 million, $3 million, okay, ours is about estimate disposal for our system, and then estimate disposal for that 540,000 is $1.6 million. So the module replacement when the carbon is spent and the replacement is almost equal to the CAP-AX when the carbon is spent, that's approximately $4.9 million on a system that costs $48 million to build, okay?

Dennis Calvert: So then the assumption curve, when you look at those numbers, as you calculate the cost to manage the waste stream, if that number continues to climb, the economics swing in our favor dramatically. So again, we said between 40 and 300% savings on the life cycle cost of the system, and we'll try and get some public information out so people can see that in more detail. Again, that's a lot of detail. Great, thank you for that, appreciate it.

Brian Loper: Those are all the questions we have time for today, but thank you very much, Dennis, for the answers and going through this all with us.

Dennis Calvert: Yeah, thanks everyone for joining us, and again, stay in touch, reach out to us anytime, and we appreciate you very much. Keep plugging away.

Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you.