Full Year 2024 BioLargo Inc Earnings Call
Good day, everyone and welcome to the bio logo annual 2024 earnings results.
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Speaker Change: It is now my pleasure to turn the floor over to your host Bryan Loper, Sir the floor is yours.
Bryan Loper: Great. Thank you operator, good afternoon, everyone and welcome to <unk> annual 2024 earnings results Conference call.
Bryan Loper: Everyone will have access to the earnings press release issued tomorrow morning, before market open and the 10-K 8-K reports have been filed with the SEC. This call is being webcast and is available for replay.
Bryan Loper: Our remarks today. We may include statements that are considered forward looking within the meanings of six.
Bryan Loper: Curative laws, including forward looking statements about future results of operations business strategies and plans our relationships with our customers.
Bryan Loper: And market and potential growth opportunities. In addition management may make additional forward looking statements in response to your questions forward looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties that may cause the actual results to differ materially from forward looking statements a detailed discussion of such risk.
Bryan Loper: Certainties are contained our most recent Form 10-Q form 8-K, and other reports filed with the SEC. The company undertakes no obligation to update any forward looking statements and with that I'll now hand over the call to buy a lot of those chief Executive Officer, Dennis Calvert.
Bryan Loper: Hi, Brian and hi, everyone. Thank you for joining us today, we're going to jump right in here Biologging, we make life better the innovation engine for a better tomorrow as you everybody knows even with <unk>.
Bryan Loper: For over 10 years now.
Bryan Loper: And have an entire portfolio early market adoption of a couple of our assets and the number of big projects in the wings that we think will move the needle for the company.
Bryan Loper: Brian just covered all of our forward looking statement safe.
Bryan Loper: Safe Harbor.
Bryan Loper: Disclosures.
Bryan Loper: Make sure we've got that as always.
Bryan Loper: Let's see yeah, Rio referred to the Ks and the Qs look at all the risk factors the real we've been overcoming risk factors for well over a decade and.
Bryan Loper: And when they do present, some real challenges and we'll talk about some of those today, but.
Bryan Loper: Really that's the key to our business, we're overcoming challenges on the way to market adoption jewelry right innovators scientists engineers passionate about doing something important for sustainability human health driven to make life better I purpose focus.
Bryan Loper: We focus on best in class solutions.
Bryan Loper: Some problems you don't have a good solution like our P. Fast there's just not a good solution until we came along we'll talk about that and all of these assets right. These assets represent the potential for transformation in the marketplace at each one of these inventions and focus as a cornerstone to building the business at us commercial opportunity of significance really focused.
Bryan Loper: So that hurt us right potential to change the market transformative technology easier to say very difficult to do.
Bryan Loper: And we aim for partnership very capital conserving strategy. We ended <unk> proven partner find great partners leverage those partners to use our tool kit to go to the marketplace and May change and as a result, we're able to.
Bryan Loper: Once we find the right partner you have to do that adoption phase did it early market adoption proved preapproved derisked and as far as we can get early market adoption and when we find a partner to go and go big It really represents a significant windfall of opportunity for us as evidenced by the <unk> asset of course.
Bryan Loper: So in the portfolio, we're investing in a whole series of platforms really doesn't corporate office REIT focused on strategy and.
Bryan Loper: Capital and organizational infrastructure.
Bryan Loper: Hiring people CES, often I get the question how the world can you do all this while the answer is I don't have a we have teams of executives and Ceos in each of these companies who are quite skilled in their art and their field, who can really carry the ball they do the work.
Bryan Loper: We have an engineering group portion Oakridge, Tennessee, he's been with now over five years.
Bryan Loper: 30 year career.
Bryan Loper: <unk> Global company experience.
Bryan Loper: Literally worked all over the world as a result of that core competency.
Bryan Loper: Team of Phds, and scientists engineers can come together and support these various enterprises as we say with leveraging our core competency or core coffee a science engineering for a purpose.
Bryan Loper: And these assets we've made substantial investments in each of these there's a history history of how much money that we put in where we are in the adoption cycle and why do we do the things that we do and it's important to understand that the portfolio. We focus on leveraging our core competency with high impact ultimately get the technology needs of the market focus on <unk>.
Bryan Loper: Money do something great make some money, but also the exit yeah, there's often a time in the journey. When you look deep into the company you ask yourself, how do you do all this and why now.
Bryan Loper: Of course, as we as we become more skilled.
Bryan Loper: Gained traction and are in and the credibility that is so critical in the marketplace by partners and by customers and by Fannie hears as we achieve that critical mass.
Bryan Loper: We March down the journey towards exits and we believe the exits that have the potential in our portfolio of this magnitude.
Bryan Loper: Okay. So very critical big endeavors that can transform a market right and theres a pill.
Bryan Loper: Cornerstone it allows that to happen unmatched technology, that's right number one.
Catherine service strategy highly qualified people whoops a.
Speaker Change: A little bit of technology here in one second.
Bryan Loper: Yes.
Bryan Loper: Uh huh.
Bryan Loper: I think I'll get it there we go.
Bryan Loper: Really qualified people.
Bryan Loper: Engineers scientists budget Phds smart people driven by this impact opportunity coalescing around a mission.
Bryan Loper: Alright, and driven for this high impact.
Bryan Loper: We said the high impact is really important to the darkest of ours and we've had some where do you have to sort of just got it out to get through the adoption cycle that sometimes is taking years over a decade in many cases, a clearer is a great example, where now that that moment of significance and you look at the the toll on people and capital and <unk>.
Bryan Loper: Patients to get that technology, just right for the adoption cycle that we believe is right here before us and of course, we look at a huge price not only in the impact it can make for human life and human suffering.
Speaker Change: Connick, Weyerhaeuser and infection control, but the financial implications for our company. Our stakeholders are our staff. Our employees are leaders you know really it's a it's an economic engine that we built and now we get to watch the fruit of that and of course as you look at the portfolio. The P. Foster Big deal noticed we said $1 billion and $1 billion.
Speaker Change: Each of these has a little different dynamic in the way they find adoption, but to dig dig.
Speaker Change: Good day and of course, the battery checked we really when we look at the model on the application for this technology and the way, we're going to market and we think it's a multibillion dollar opportunity or more and again, we'll talk about how we got to that model.
Charlie: Okay, I'll get long winded on this and I'm going to do it I wanted to open up a lot of question to answer but the next I think I want to turn it over to Charlie.
Speaker Change: Charlie do you want to talk about our results briefly and any commentary you'd like to make it. Please do so.
Charlie: Okay. Dennis Thank you very much and good afternoon, everyone. Thanks for being with us.
Speaker Change: And before I jump into the financial highlights and Dennis.
Charlie: Touched on a few of these.
My comments, which is simply it's taken us a long time, but I think the core strategy.
Charlie: Using capital to identify and invest in new technologies with the help of experts and those technologies.
Charlie: Is working and you can see it and I'll explain at least in.
Charlie: Three of our subsidiaries, but after identifying technology and.
Charlie: Putting great management teams around it and then creating subsidiaries and giving them the capital to go make it work.
Charlie: Think for now it's coming to fruition and like I said I think we'll see it in the financial highlights so jumping into those.
Charlie: We did have an increase of.
Charlie: 45% and our overall sales and revenue, which we hit almost $18 million.
Charlie: And this has continued on.
Charlie: Very accelerated growth path as you see from.
Charlie: The slide.
Charlie: And to take that down into some specifics related to our subs odor no more had its revenue increased 36%.
And we had a slight increase in cogs related to raw materials, but the bad odor no more ended up producing $5 9 million and operating income a little higher than what we put here, but a very successful year and we expect that to continue.
Charlie: And of course much of what that is being developed there is through the proof product.
Speaker Change: Left our engineering Division produced an increase of 183% and its revenue and this would be third party revenue as Dennis has explained we have them doing a lot of R&D and.
Speaker Change: Worked for bio Largo that doesn't show up in our numbers because it's.
Speaker Change: Related party.
Speaker Change: For them the.
Speaker Change: Operating loss reduced to one <unk>.
Speaker Change: Four 5 million versus $1 6 million.
Speaker Change: A lot of what's been going on as they have costs related to their fixed fee contracts.
Speaker Change: And.
Speaker Change: That's a deeper dive and I am going to do here.
Speaker Change: And so the work also for the EC water treatment has taken up.
Speaker Change: Quite a lot of engineering time, but and then.
Speaker Change: It certainly made progress clearer as we mentioned here is the majority of our net loss and by the way our net loss was reduced to $4 3 million from $4 6 million last year and Clara is obviously ramping up for it.
Speaker Change: Manufacturing so we've hired additional consultants and professionals in salaries have increased as we brought new players on and we're very excited about what they are performing and also just to look at the balance sheet perspective.
Speaker Change: We had a considerable increase in our equipment and much of that in fact, almost well a lot of it is due to the equipment and the progress that clear is making on its manufacturing some of the other increase is related to our battery and AAC.
Speaker Change: <unk> needs.
Speaker Change: And going to the balance sheet I will just quickly.
Speaker Change: To give you some of the highlights which is we've got a very strong balance sheet and we're still sitting on ore has been able to have $3 5 million of.
Speaker Change: Cash we've had an increase in accounts receivable and that's because we're developing more business not that people aren't paying us we have very few bad debts and inventory has gone up fixed assets have gone up and as previously mentioned because we are spending.
Speaker Change: Related to equipment.
Speaker Change: And then actually overall our debt has declined certainly in accounts payable now we've had an offset to that because of the increase in and.
Speaker Change: The progress in manufacturing for clearer, we have taken on additional AP and some additional debt, but overall that comes down to a reduction in debt through.
Speaker Change: What we've been able to do and just a quick.
Speaker Change: Discussion of the cash flow because that really gets confusing.
Speaker Change: We're actually from the peers perspective of operations.
Speaker Change: At the same level or actually have improved year over year, even though we're showing an increase in the cash flow from operations, but that's part of that cash flow from operations. There is the working capital changes and those containers can be confusing to many people because an increase in that.
Speaker Change: Counts receivable, which we had is a good thing on the balance sheet that is a negative on the cash flow statement because it assumes that you are not converting our receivables into cash and that's another.
Speaker Change: That's another time for another discussions so really realistically the increase related to our increase in operating activities is solely from our working capital perspective, an increase in receivables, which is a negative and strangely enough. We have paid down our debt and that's all.
Speaker Change: Also a negative so realistically were improved.
Speaker Change: It improves overall balance sheet and cash flow situation and.
Speaker Change: As we've mentioned the offset to that is of course raising equity but.
Speaker Change: Pretty much all of that cash flow from financing as it related to declare his needs and so <unk> been able to raise additional equity related to their needs and the rest of it is actually exercises.
Speaker Change:
Speaker Change: Stock options and warrants and that includes clearer warrants so in our lexicon related to actual operation. We've had a major major improvement and you can see it also in the slide next slide related to.
Speaker Change: Our.
Speaker Change: Stockholders equity, which again has increased and it's about $6 million. So overall when I look at our year, we had a really really good year and.
Going forward, we hope to.
Speaker Change: Replicate that and improve on that.
Speaker Change: So Dennis very accurate yeah, very good Charlie Thank you yeah.
Speaker Change: Yeah, I think we also should mention that over the course of the last this last year. We added another 10 employees or up to employee count of about 44.
Speaker Change: And then we have other consultants, who work with us on a regular basis. So so we've got some critical mass and talent now thats pretty extraordinary and the other thing I'll mention is.
Speaker Change: And some of these consultants even you know they're just they're just at the pinnacle of their career and their space clear in particularly has a number of really high power consultants to help us navigate the FDA and things like that.
Speaker Change: And it's important because they they they journey with us and become almost an extension of our team and they don't show up in the head count, but the fact that we've got such a critical mass of talent.
Speaker Change: Gives us you know.
Speaker Change: Staying power I mean, we just have a lot of people that can do a lot of really special things and it's showing up the way it shows up as we move faster through the development cycle, we have more support on the customer side, we have the ability to reach out into the market for supply chain and sourcing to really get us into a go go faster and it shows and it.
Speaker Change: Those up with our partners and shows them, where their customers in a pretty awesome way.
Speaker Change: Okay. So let me go through the business units a couple of highlights real quick I think that are worthy of note and remember every on the phone may be an old shareholder, but theres new people too and so we've got a kind of a little bit of the old real quick and I would encourage everyone again to go to the to look at our social media. We've put a lot of information that we try to keep it current move.
Speaker Change: <unk> is the number one revenue generator in the portfolio and just to again give them two second worst story, that's like over 10 years of work.
Speaker Change: And we estimate we probably invested around $10 million.
Speaker Change: Approximately in the journey of developing this product line and it took a long time and it was painful I will say and then something happened along the way, but can add along the way we became expert that's what happened and because of our expertise in designing these products and packaging and labeling them and all the things that go with that we were.
Speaker Change: To partner up with someone who brought extraordinary marketing talent and that was the team for Vicki Guy marketing works, who created the brand poof and that's our partner customer right partner customer and we currently have eight unique products from 15, Skus and they've got something like 35 to 40000 retail outlets approximately and with all the big.
Speaker Change: National chains, and here's the thing that product works really well and poof has figured out how to market in an extraordinary way and they're so skilled at what they do so the major retailers are adopting what we hear from feedback all the time as the products are they really do work number one people love them They love the brand.
Speaker Change: Our retailers Loveland, because customers come in and ask for them and so it's really there is an ebb and flow, but proof has just been breaking records like crazy.
Speaker Change: And there is an ebb and flow right missile peaks and valleys, but over time, they've had a record year and of course, it's brought biologging into record territory year over year for the last two or three and a half years remember they've only been in the market about three years, three and a half years.
Speaker Change: And so the business deal the business deal is really pretty simple.
Speaker Change: We've made it a bargain when he said the proof will support you we'd love for you to take products, we'd like to help you with the supply chain. So we take a little cost personnel the margin will get little royalty on sales incremental and then we bargain that prices 70 for a piece of the equity upon exit okay. So just thinking about that right supply chain.
Speaker Change: Make a little money royalty may go out of money.
Speaker Change: Create an exit we're building brand value so as proof builds brand value our brand value goes up.
Speaker Change: That's one of those unseen values in the portfolio of biologic you can't see it yet.
Speaker Change: You have to think about it just doesn't show up okay, but one day it shows up in a big way with cash and so we really do believe that that product line's going to find the home with a big brand retailer because it's just so well suited and of course it demonstrates great.
Speaker Change: Okay, and so what does all that mean or we go another.
Speaker Change: Another year another record year for basic product lines more products and expansion and I want to reiterate that the product is the highlight of the story.
Speaker Change: That is the highlight of the story people love the product.
Speaker Change: And the chemistry of it says we know the game and she says it works when that when that chemistry comes across organic matter, it's going to dismantle it so of molecule per molecule. When you put that product on an organic molecule molecule by molecule, it's going to break it down is to eliminate or eliminate.
Speaker Change: Alright doesn't come back.
And so that's the winning formula and they do they just go into a market that in an extraordinary way. So we're very optimistic about it even though theres been an ebb and flow everybody knows that.
Speaker Change: We've seen some of that ebb and flow with the AD spend in the infrastructure and the buildup, but just remember we represent about 20% to 25% of their revenue. So if we're doing $15 million, it's probably three or four acts on the other side right for what Theyre doing and Thats pretty extraordinary.
Speaker Change: So me a product in three years and is that kind of number they really deserve accommodation and we're thankful to be in business with those folks.
Speaker Change: Next on the plate everybody, so anxious to know about clearer medical.
Speaker Change: Okay I had the privilege of going to a conference in Barcelona. This last week. Some of these pictures of that from that conference.
Speaker Change: We were there for the European wound Management Association.
Speaker Change: Which is very much a clinical event and I got the firsthand sit there on the frontline for a bit and watch clinicians come by and asked about the product.
Speaker Change: <unk>.
Speaker Change: The punch line to that story goes like this they look at the stats they ask a few questions here.
Speaker Change: You know what the number one question is where do I get it.
Speaker Change: Where do I get it how can I get this product and use it had been often clinicians say Oh my gosh I needed. This last night from one of my patients.
Speaker Change: And so that's when you know you're hitting home. That's when you know you're hitting home and you got to remember that again in this asset class the technology and the products are the are the key feature now. This is a 14 year investment 14 years I think the total invested capital is pushing about $19 million to $20 million and you say who is the <unk>.
Speaker Change: Can invest 19 or $20 million in 13 years to watch an asset on its way to market well we did in.
Speaker Change: And the beauty in this case is that it has such a transformative opportunity to literally take the market become number one so we looked at that we said, we get again of being caught in a really good partner somebody we can trust and we also did the same thing on manufacturing don't build manufacturing by manufacturing right rent it.
Speaker Change: Was there a third party to really scale up.
Speaker Change: As everybody knows one of the questions that came out of that our partner for distribution came in and said you know we love you I'm paraphrasing, they didn't say that but we love you, but you've got to be able to produce the scale. If we turn on our machine and start producing you have to keep up.
Speaker Change: And so for a small company, that's a pretty tall order well, we just had a confirmation meeting with all the parties about seven or 10 days ago I can't remember the last week and it was very successful to essentially confirm steel capability. That's what we did we confirm scale kimco. So it does all that mean it means we're coming in on the launch pad.
Speaker Change: And we think it is near at hand, that's there's a lot of work even though we described some of that in the 10-K you can look at it there's a lot of work to do and there's logistics and some filings and all this stuff has to happen to really see a product take a national rollout, but the fact is that we pay a dear price to be here to our investment in direct and equipment is over $2 million.
Speaker Change: About 2 million to one.
Speaker Change: And plus the burn rate I mean my.
Speaker Change: Supporting all the staff and all the infrastructure I think the total number was $3 7 million last year, a total invested on the clear side. So that came from a combination of two sources. One is from direct investors, who invested in that project that portfolio of asset with the parent company biological dialogue also invested about 900000 last year and I think about one four.
Speaker Change: One 6 million something like that over the last two years, we've made it so think about that.
Speaker Change: <unk> is investing alongside the investors.
Speaker Change: Okay.
Speaker Change: We're supporting that asset to make sure it can get through the gate and client as channel because we know the price on the other side of so significant not just for us but for human health.
Speaker Change: Standard of care to the distributors.
Speaker Change: As a community that we're investing in that that ecosystem is really critical keystone's invested over 3 million. We think the numbers will be close to five by the time, they're done and we've developed a clean room for sterilization.
Speaker Change: And then of course, our distribution partner, so we're coming on that moment, where we say okay. What's missing check the box are we ready to go okay. So stay tuned.
Speaker Change: Significant information that will unfold, we think near as NAND and just to reiterate the product is.
Speaker Change: The showcase the probably specific big market surgical procedures. The concept really is pretty simple we have broad spectrum efficacy and is it works across a whole bunch of different pathogens that works really well.
Speaker Change: Copper iodine complex right.
Speaker Change: It's gentle no tissue damage and a sensitivity it has proven efficacious efficacious means it works against biofilm disrupting biofilm. So that's a big claim and has some sustained activity and again the summary of all of those claims I mean really one simple thing damir product that can do all.
Speaker Change: And one product.
Speaker Change: You can't find it.
Speaker Change: And so as a result of the set of claims that combine all those features into our products.
Speaker Change: Has the potential of being number one in the world.
Speaker Change: Make no mistake about what we're talking about number one in the world and is it worth 14 years and $20 million Oh, yeah.
Speaker Change: It's worth a lot more than that.
For impact.
Speaker Change: Ecosystem for our investors with a clearer direct investors for the biological investors I mean, it's taken a community to get that done and so the market is so big and again, it's a diverse portfolio. Many different markets. We can touch surgical we think is going to go big wound and burn is another big one and that's why we were in Europe at the Barcelona have yet to establish relationships.
Speaker Change: With distributors now.
Speaker Change: There's a lot of complications that go with that international sales.
Speaker Change: Some of the markets will be able to take products based on an FDA label SDA clear label get us in the game, where you already have.
Speaker Change: Okay. So that's just about scaled support making sure the distribution knows how to get the you get the product to the market and so that's that's encouraging because it means you can go a little faster and then the big price, especially in the Western European Nations is going to require what's called a CE Mark and you know that.
Speaker Change: Mark it's nascent certification for Europe, and so that takes a lot of clinical work a little bit of money. So we're not anxious to plow money into it because we're so close to getting going.
Speaker Change: Perhaps you can pass them early distribution using the FDA label secondary source of the CE Mark It makes it a little cash you have put the cash to work get the Clinical's. So all of that's in the works.
Speaker Change: And again the more we do it the more we get acclimation that we're on the right track and so we're very encouraged and excited about the moment and in the near term catalysts that can really move the needle for the company okay.
Speaker Change: Look that up for questions in a few minutes to stick with me well I'm talking about battery Tech because we think it's probably the biggest in the portfolio and a P classes running number number two as well are three and four and these guys. Those are these are so big and.
Speaker Change: We did have a delay I'll tell you we took an extra year to get through the work that we've done to really prove out the technology internally and the next step is to get third party validation for the guidance I can assure you the timeline. The second that's the battery's sale Thats Oncall, our Spartan cell, that's a 301 hour.
Speaker Change: Well and that is.
Speaker Change: There's a big sale and its ruggedized kind of heavy selling weight to it and you take those sales and you stack them up its racks and racks make pants impacts make modules and module will go into a trailer and next thing you know you've got a megawatt hour of energy storage.
Speaker Change: Grid scale, okay. So it has a bunch of features.
Speaker Change: And the teachers really again promise a potential main number one in this space and we believe that no make no question about it we believe it wouldn't be doing it if we didn't think so remember our thesis and we don't think its number one they'll do it safer sustainable durable efficient extraordinary efficiency and why is this important because this is a humongous market.
Speaker Change: This article's now I don't know four months old something like that.
Speaker Change: Clean their interest in Australian dollars business long duration energy storage batteries that are grid scale that can be drawn for an extended period of time and provide energy for a balanced grid offloading renewables.
Speaker Change: And so no matter what the source of energy no matter, what the source of energy you need storage.
Speaker Change: They go hand in glove data centers big data AI.
Speaker Change: Renewable energy grid balancing.
Speaker Change: You can't make batteries fast enough. Okay. So again in that model.
Speaker Change: Also the safety risk associated with lithium and note that the big lithium.
Speaker Change: Tim patterns storage facility up in Moss landing I think they're on their third.
Speaker Change: With a virus third and so as a result of those activities City and city Council now Danny battery factories, especially using lithium there needs to be a better alternative.
Speaker Change: What's interesting about this too is in the international markets as they go out and talk about talk to people about the opportunity to be partners with us some of the international markets. They you know fires a real thing you can manage it but the real issue is the geopolitical risks associated with China dominated supply chain.
Speaker Change: Essentially the world isn't an outcry moment, we just can't do it this way we have to have alternatives and so we agree and so that we're one of those alternatives thats going to have a chance to really make a big impact.
Speaker Change: I'm going to get to that third party validation of a second but it's coming in now and I just want to tell you. It was a lot more difficult to find that tool than I would have ever imagined.
Speaker Change: Explain that in a second I'm not going to go through the data on this but this is a direct comparison to lithium.
Speaker Change: We put it in here. So you can look at it later, okay bottomline as it just has a bunch of features that lithium can't stack up that's the bottom line, Okay and the next one is really very similar this is the comparison.
Speaker Change: Again, it's got so much information packed into this whole presentation.
Speaker Change: Various other technologies and how we stack up and here again, here's the bottomline to nine times the energy the energy density of lithium lithium high voltage, okay and that operates at a higher temp, but we like that because you can insulated hole temperature yet.
Speaker Change: And no thermal runaway is no no no extraordinary fire risk explosion risks and we have a cost of goods advantage. That's astonishing it can be 60% to 70% cost of goods advantage.
Speaker Change: Again, that's producing to scale, okay, not producing five batteries to scale you have to get to scale and then our third party testing excuse me and our internal testing we've.
Speaker Change: We've replicated the data from prior.
Speaker Change: Studies remember this technology at eight years of R&D before we took over.
Speaker Change: So we've been able to take it where it was and take it forward and continue to advance it which we're doing including improved technology. There's this little graph to the left that's pretty tacky, okay, but basically it's three reactions and one.
Speaker Change: And as the voltage goes up you get this this reaction kinetics and the chemistry that represents a technical breakthrough it's astonishing and as a result, we were able to generate energy density, which is sort of punch for the weight right above youre punching way and.
Speaker Change: A nice curve, even distribution curve of in and out and these are these are cycle curves on the right. We show charge and discharge when you test the battery. That's what you do you test the charge and the <unk>.
Speaker Change: The charge in charge out time stability Youre looking for chemistry, Reg down and then the reliability of the images that some cabello consistent curve. We've done all that okay. So what's missing well, we got to get a third party validated somebody else Who's got a validated in fact I've had group's saving that you know if once you get third party validation, we're in but I can't do anything until you get it and then.
Speaker Change: We did take some time in fact, it's probably nine months longer than we would've ever estimated.
Speaker Change: I'll talk about in just a second one I get to that time of digital to put us in the market.
Speaker Change: So it isn't competitive products, but they give you order of scale, we're focused on the left side really.
Speaker Change: It's large format grid scale trailers and here's the image of what we think our trailer with very close proximity where at the cell technology level. Okay make sure you got the cell technology, we're developing the sales that go in those racks.
Speaker Change: And I noticed that you opened the door and you pull them out out of Iraq. So the drop in vertical they stack up.
Speaker Change: Sales.
Speaker Change: Salesman racks are excellent past Ashland, a module with the module.
Speaker Change: The module is a controller units a computer that attaches to these modules that that spreads energy in and out monitors its slow in slow out his charge is heat all the details of the light operates and it also allows us to program uniquely to the integration of how it's going to interact with the grid.
Speaker Change: Theres, a whole or to that is fascinating and so we're in the cell tower technology business to produce sales at scale that then go into modules and modulate the in and out of energy for long duration storage.
Speaker Change: What are you doing all that well theres just so many markets and we think of course renewable energy and grid scale storage is number one but it's more if you've got that capability you're also in the Microgrid development.
Speaker Change: Simple simple language micro grids. This idea of a source of energy.
Speaker Change: George of energy the metering out of energy.
Speaker Change: Our micro grid, you have plugged into the big grid, you got some micro grid self sufficiency balanced your micro grid, that's the future.
Speaker Change: Access to reliable safe long duration storage is critical for Microgrid development and hence.
Speaker Change: The next trillion dollar business. According to the economist, we're going to get a piece of it okay.
Speaker Change: So this is a long timeline the first the first valuations of around 20 million worried about $43 million valuation. Just so you know that's where we raised capital.
Speaker Change: Very gentle onto the investors very friendly we think a very ultra conservative valuation. We think we're going to go up <unk> on the next couple of milestones that we click off so whereas this complete third party validation testing we've got a group couple of groups that want to do it we're coming in into May. It's a hopefully we're going to be able to get that third party validation that will.
Speaker Change: Help us really speak to the investment community and we think it's critical and so as you can imagine people say, we love you, but I need third party validation that we got it I understand and then on the business model.
Speaker Change: He knows this.
Speaker Change: We decided we don't sell batteries will sell battery factories, what does that mean.
Speaker Change: Capital conserving strategy, making partnerships, who will put up capital because they want the.
Speaker Change: The price they want the product what's the price.
Speaker Change: Appointment job creation net exports energy reliability grid scale deployment.
Speaker Change: <unk> alright.
Speaker Change: So we're putting people in the business, it's like a franchise the franchise new battery factories right.
Speaker Change: Alright, great business model. So when you run that model and 10 factories you have about a one five net present value I forgot 1 billion net present value.
Speaker Change: 1.5 billion on the plan of course, there's risk to it you've got to show up in the battery and third party validation you got some work to do we're not trying to mince words on that.
Speaker Change: <unk> is a great plan and we have we have a number of major projects and discussions with.
Speaker Change: The number one objective right now is showing third party validation. The second is are you prepared to build to scale are you prepared to scale up the engineering and of course, we point to the pedigree of our engineers and say you know we've been building massive in our team and their 30 year career at proven the ability to scale to this level and so so again very exciting.
Speaker Change: I would say, it's not easy, but really meaningful okay, and then of course <unk> got so much going on P fossil and keep it really light and the interest of time.
Speaker Change: Ethos forever chemicals is the byproduct of Nonstick coatings that is estimated at <unk> 17 trillion dollar global problem all in okay. All in.
Speaker Change: You can't look at Internet search like Google.
Speaker Change: And if their everyday everyday.
Speaker Change: The hot topic of regulatory alright, here's the pipeline.
Speaker Change: Is there any environment, it's been it's been accumulating for 50 years it needs to come out has been linked to vertex cancer, if youre going to take it out.
Speaker Change: The alternatives of carbon ion exchange that currently adopted in the marketplace. That's old Tech and you ended up with a truck of spent material a truck and we end up with a pound or two of concentrated paphos.
Speaker Change: So that's called selective extraction.
Speaker Change: Super concentration with Super concentrate the contaminant. It turns out if you can super concentrate then destruction is so much more manageable.
Speaker Change: So we've I don't know 15 17 trials, we've got a couple of big industrial accounts now coming on we're speaking all over the world literally.
Speaker Change: As an expert in P fast time to Chandler. She is a professional expert in this field.
Speaker Change: And what's happened, it's fascinating, but what's happened and you may recall that I was invited to participate in the environmental trade.
Speaker Change: Hey, Ralph Technology Trade Advisory Committee to the Secretary of Commerce, we've had about four meetings, where there because it <unk> make no mistake about it we're there because of the peak awesome innovation at a chance to potentially influence policy, which is awesome.
Speaker Change: And we're in good company there some of the biggest players in the world.
And it's nice it's a good situation for bio <unk> assets, its team and our and our stockholders to have access to that knowledge and relationships.
Speaker Change: But it just points to the fact that people look at our technology is potentially a transformative tech.
Speaker Change: Very competitive field and we have done the work to compete done the work to compete okay and I think we're probably three or four years ahead of.
Speaker Change: Pretty much.
Speaker Change: Most of the technology, you'll see in the market I mean, we've got we've got an edge when you hang onto it.
Speaker Change: You know our data is compelling.
Speaker Change: And here's the thing people talking about drinking water, but it's not just drinking water.
Speaker Change: Leachate, it's groundwater is industrial wastewater municipal wastewater on and on and on it goes. It's also stripping membrane system knows we just saw pads on the stripping of membranes that means some of the competition using membranes.
Speaker Change: To collect we can actually stripped the peak pass off the membrane.
Speaker Change: So some of our competitors to be our customers get it and and also pathos destruction technology is a big deal. So what happens is this this field is evolving.
Speaker Change: The slowest most slowest to adopt and most difficult client in the world is municipal drinking water.
Speaker Change: Why because it's a political decision drinking water human safety. Most of these people are public officials. They may very slow adoption decisions, well, who makes fast adoption decisions.
Speaker Change: Engineers and business people.
Speaker Change: Industrial they won't move quick so we've got to just just new relationship. We just got the go forward on a commercial scale pilot that means we get paid to go through the customization for an industrial client who has a very special situations well, that's where we shine the brightest and guess what we could pay for it we get paid to prove it and then.
Speaker Change: We get paid to scale it up and just think about all of our journey that's.
Speaker Change: That's how you do it.
Speaker Change: It's easy to say, it's very difficult to do but we're really excited about it and then of course everybody's waiting for New Jersey as are we and the New Jersey project, we might push out to the fall, but let's say, we got a chance in the summer, but they have broken ground finally, what because of the ice thall and so we're in the process now of trying to to get the.
Speaker Change: You will have access to the installation okay. So let me see here if I can get to the next one.
Speaker Change: Uh huh.
Speaker Change: Okay here we go.
Speaker Change: We just finished a case study in this case studies you can get published all over the industry.
Speaker Change: And it does really chase system.
Speaker Change: Unusual because we had access to competitive data that was published in the fitness and hard to read here on the deck, but you can look afterwards, but the fitness to go through this research history about the competitive profile of competition.
Speaker Change: Here's the pipeline, we save 90%.
Speaker Change: 90%.
Speaker Change: Are you Kidding me alright, so so is that real.
Speaker Change: Prove it but yeah, Israel and so this is an astonishing case study in which we can we can literally look at our client size book, if you're super concentrate user system you can reduce your maintenance you can reduce the consumption of carbon you can reduce the the recycling of carbon you can reduce the the necessity to clean up the carbon before you do.
Speaker Change: Disposal and because of the incremental cost of taking that action, we can say.
Speaker Change: 90% really over lifecycle costs, that's pretty astonishing.
Speaker Change: And so again that will get published in but it's a modified work product that's defensible here's our like Stockholm of course, the small scale unit, but still very important as a reference site as you can imagine I don't want to show you the leachate, because it's really important.
Speaker Change: Tom's leachate.
Speaker Change: Nasty nasty water can you change the water that comes out of the bottom of landfill.
Speaker Change: And so this is the whole market I mean.
Speaker Change: You know and <unk>.
Speaker Change: In firefighting foams, the whole market in the industrial and municipal wastewater the whole market. Each of these has a nuance or technology can work in all of them and the thing you know people say what have you been doing well we've been refining the technique, we are using our technology in all these markets.
Speaker Change: So that we have not one way to make money, we've got 20 ways to make money with one invention.
Speaker Change: Okay and the most successful that we're experiencing which has been awesome as with the industry and especially in engineering side would call is teaming agreements teaming agreements teaming agreement does that mean.
Speaker Change: That means an engineering firm.
Speaker Change: It has a client that needs a solution.
Speaker Change: And people like us.
Speaker Change: <unk> group teams with them to bring the solution to bear.
I know you named firm who already has upon it.
Speaker Change: <unk> you create a team you can solve it to solve the problem for the client.
We have engineering firms that now are working on five and 10 and we have one that's brought US 24 projects.
Speaker Change: 24, and they don't go.
Speaker Change: This is a slow selling cycle, sometimes it's six months a year or even two years.
Speaker Change: But theyre very big Theres significant projects and so our scope of the average project has gone up our confidence in our position to transform the industry has gone up our data has gone up and our reputation has gone up.
Speaker Change: We're in a position now where literally were presumed credible.
Speaker Change: And that's new that's taken US a long time and of course, it takes a lifetime to get there in a minute to screw it up.
Speaker Change: So you got to show up and you've got to deliver and the good news is our engineers have a career of doing that.
Speaker Change: So we're really confident so in summary, right transfer the technology.
Speaker Change: We had a couple of nice cars.
Speaker Change: Some wins under our belt, we've got more coming.
Speaker Change: And we think the future for the company. This is extraordinarily bright and again just think about.
Speaker Change: Small public companies trying to find their way on innovation.
Speaker Change: We've proven our model in a system that works we have evidence that we have money in the bank.
Speaker Change: And almost no debt and knocking on the door for significance for clearer and more coming and so we just think it's the best time in the history of the company. So I'm going to stop now and we're going to open it up for questions.
Speaker Change: Alright, Thank you very much Dennis lots of information there a lot going on with dialog all good times.
Speaker Change: First question.
Speaker Change: We have here.
Speaker Change: In your 10-K, you mentioned the two day inspection to confirm manufacturer.
Speaker Change: Hmm clearly product.
Speaker Change: Yeah capability.
Speaker Change: Verify capability right.
Speaker Change: Okay. Yeah. So the question is how did the inspection go and what is to be expected over the near term.
Speaker Change: So it was very successful you know.
Speaker Change: There's a lot of techno speak and detect mouth technical things that are going on in those meetings.
Speaker Change: And it's a it's a meeting of technical people.
Speaker Change: And generally.
Speaker Change: Generally the CEO in the business guys don't go it's Kew.
Speaker Change: QA QC, it's tracking project management.
Speaker Change: The FDA compliance data tracking what happens when there's a mistake what happens when there's a fixed who's doing QA QC on the interaction between the companies what are the system integration system integration is not just how do you get an invoice how do you get an invoice track QA QC comply with the FDA.
Speaker Change: Hit all the trouble spots and providing system provides confidence for the distributors right.
Speaker Change: All of that's going on at the same time.
Speaker Change: The key result of the meeting was to confirm that Keystone is prepared to produce a significant volume of product to meet what we believe is a.
Speaker Change: Very large flowing channel that requires speed and volume to be able to fill the inventory of their channels and thats. The primary that's the primary result.
Speaker Change: Of course, there's more work to do but but the thing is that we believe that we're now in a position where we can say to our partners. Okay.
Speaker Change: Is there anybody questioning that we've got the chance to really do this in a very significant and meaningful way to scale. That's the question. The answer is yes, we can do it and that's what that's what that's what happened. So it was very successful so what we hope to happen now is the meeting of the minds.
Speaker Change: Cross the Ts and dot the I's and let's go.
Speaker Change: Let's go right I mean really.
Speaker Change: Okay. So yeah.
Speaker Change: Yes. It is very exciting we always hesitate as you can imagine only because.
There is so much we don't control and Thats, good and bad but this is just the way it is and as a result, we're very careful because.
Speaker Change: We know we've spent a lot of thinking about it we spent over 13 years and $20 million.
Speaker Change: Our partner Keystone's with close to <unk> 5 million just to be ready to manufacturer.
Speaker Change: And so I think just don't screw it up.
Speaker Change: So I'm sure that take the time to get it right.
Speaker Change: Let's go out and do this okay.
Speaker Change: Alright.
Speaker Change: Changing gears here to the battery now what is the status of the third party validation of their Spartans Don.
Speaker Change: Timeframe.
Speaker Change: Right now we're shooting for me, yes, we.
Speaker Change: Got a crude coming in which is awesome and we think it's we think it's the right fit so we're going to come in for onsite and will spend a day or two really going through the technical evaluation.
Speaker Change: It took us a while but we said what we want if someone's coming to validate what we've done now, which you do but what we've done.
Speaker Change: Come see what we've done and help us validate it because it's all here, we've got infrastructure and people and processes and equipment testing themselves and it's transparent.
Speaker Change: It will come down and help us validate that what we're saying is the truth and we know it's the truth, but we need someone else to help us say that to the world and so we're hoping that we can accomplish that end of April early may hopefully get into a final report within the may time frame.
Speaker Change: Yes, So we'll see right we hope so and we've got a lot of people are really interested in seeing that.
Speaker Change: I can tell you that in the in the deal, making that's going on the.
Speaker Change: The basic response is here at all time, if it's true isn't ready if it's true.
Speaker Change: Do you have a chance to be number one in the world.
Speaker Change: Hmm I hear it all the time.
Speaker Change: And I say well.
Speaker Change: We know it to be true.
Speaker Change: That doesn't mean everything is done so let's be clear on that what does that mean everything is done it means the art of success in the battery manufacturing field as the steel manufacturing, that's called <unk> robotics that needs scale of supply chain.
Speaker Change: It needs offtake, and Theres, a lot of chicken and egg going on okay.
Speaker Change: All of that starts with a better technology, that's where we're at then third party validation then scaled manufacturing Vince field off but that's what it is.
Speaker Change: Theres a lot going on all at once but it starts with better technology and a market that is estimated to be the next trillion dollar business.
Speaker Change: Okay, So I understand that.
Speaker Change: We're technically yes.
Speaker Change: Again, here's the beauty.
Speaker Change: The inventors that invented this eight years doing the invention before us.
Speaker Change: And so just think about our model, we probably invested about 2 million $2 million is real money, but $2 million not $25 million.
Speaker Change: Most battery companies to get to the stage of dropped $25 billion or maybe $150 million.
Speaker Change: Okay, So who can do it for two well biological opinion.
Speaker Change: That's the point.
Speaker Change: That's the point because we picked it up with eight years of R&D, we leveraged our core competency, we did incremental invested and we didn't go we didn't have to go higher Sierra we do all that.
Speaker Change: We didn't have to go higher lead engineers, we've already got all those we didn't have to go higher chemists. We've already got all those we've hired a couple of people who are extraordinary narrowly focused on the skill set and then developed a business model that says I will build you a factory.
Speaker Change: July.
Speaker Change: It's incredible and so again, you know theres a lot of work to do.
I'm, not suggesting fast or easy, but it's real it's meats and so therefore, we believe it's worth the investment so we're investing to see that future happen for our stakeholders.
Speaker Change: Alright, alright, changing gears to approve so it looks like product revenue was down in Q4 from Q3.
Speaker Change: Why is that product revenue tailing off them if there is.
Speaker Change: So much opportunity for more channel partners.
Speaker Change: Well. This is this is a conundrum for everyone you know our business model relies on other people.
Speaker Change: Right to market and launch the product that means AD spend and distribution all the things that go with that so we're in a position where that's tubes business.
Speaker Change: The group is handling their business so recoup.
Speaker Change: Regroup to grow more stabilized to be ready for the next push make sure infrastructure's in place QA QC all those things are happening all the time. So I don't have a direct answer I have an indirect answer which is.
Speaker Change: Customers Love this product we've watched curve go from zero.
Speaker Change: <unk> business model.
Speaker Change: <unk> five <unk> of our revenue so that put in the 45 $40 million to $50 million range in three years.
Speaker Change: That's remarkable.
Speaker Change: That's remarkable you don't lose perspective.
Speaker Change: And it's a brand that has staying power the product works, it's a unique way because it works so well they've got an extraordinary brand. So our position is really simple how can we help what can we do to help.
Speaker Change: Let's continue rowing and go out and get the market and let's go poof.
Speaker Change: Right.
Speaker Change: Love to hear it.
Speaker Change: How 'bout Cooper dying why isn't it growing in the waste sector or haven't any other alternative uses of Cooper <unk> been able to sell.
Speaker Change: Well their selves, but youre right. They are not huge they are not huge homerun. So.
Speaker Change: I would say at a dinner just the other day with the institutional Investor and we were talking.
Speaker Change: And we can ride a little I.
Speaker Change: I can write a term paper on all of these are positive signs.
Speaker Change: And how they fit in the world demand.
Speaker Change: Demand.
Speaker Change: Novelty margin acceptance.
Speaker Change: All of these things.
Speaker Change: We lived it and we're doing a lot of time okay.
Speaker Change: These products don't have a lot of margin. Okay. So industrial odor control is a low margin business.
Speaker Change: Alright, so it was that low margin business. It means that you don't have a lot of extra money to plough into marketing and promotion and branding and pay for the distribution of the product.
Speaker Change: So it is hard earned business.
Speaker Change: We also find that an industrial owner.
Speaker Change: A lot of times people won't spend money unless of course too.
Speaker Change: With the regulators not pumping them on the head there not spending money.
Speaker Change: And so all of those things go into the mix, yes, it's really fascinating.
Speaker Change: We've even had customers say you know we love your products, but you can't ever mentioned, our name and don't tell anyone we have any odor.
Speaker Change: Okay. So this is the real world right.
Speaker Change: So the answer is thats, a very nice piece of business for us, but it's not the main piece of business. It pays the bills that supports infrastructure that allowed us to become expert it allowed us to know what we know.
Speaker Change: The knowledge and the intellectual property that was created from that journey made it possible to do what we're doing with <unk>.
Speaker Change: So it's a good thing and it is good thing is still here because we think it's a nice piece of business, but relative to where youre going to plough, your time energy and passion, but youre not going to do it at low margin product.
Speaker Change: With a high level of turnover in the marketplace and so it's that simple doesn't mean.
Speaker Change: It means it is what it is.
Speaker Change: And it's a nice piece of business and by the way every every industrial odor control client and the market should be using our product will there I don't know.
Speaker Change: Right.
Speaker Change: Yeah.
Speaker Change: There you go.
Speaker Change: Alright quite a bit.
Speaker Change: A few questions here on the water side of the business.
Speaker Change: We'll start with the first one first.
Speaker Change: Exactly what went wrong with the Garrett Callahan partnership to market sell.
Speaker Change: Minimum liquid discharge units.
Speaker Change: Well yeah. So it's good good question.
Speaker Change: No.
Speaker Change: It has not yielded the fruit that we anticipated for sure everybody knows that in fact, we had we had really high level of expectation about seeing the fruits the fruit bear out sooner and it simply hasn't.
Speaker Change: So I'd say, it's a couple of things right. One is again, it's a very very much a situation, where we're working with a company that has an existing revenue profile with existing products with existing margins and I don't know 130 years of experience.
Speaker Change: One of the best companies in the market for that okay.
Speaker Change: It's still a new product.
Speaker Change: So you got to go find adoption. So we haven't found adoption yet so that could be early in the market it can be margin.
Speaker Change: It can be sensitivity to shifting political wins all of those can play a role we believe that that asset will find its way to market.
Speaker Change: And so here's the thing from a financial perspective.
Speaker Change: We're staying full to have your accounting is in our portfolio. We believe there are winter company and so we're going to win with them, they're high quality people with a commitment to excellence in the marketplace and they've proven that over 100 years. So our association is a good one and we're going to do whatever we can do to help support them in getting that technology adopted in the marketplace. We're actually.
Speaker Change: Very active still.
Speaker Change: Here's the thing to remember very active is an interesting word it means that most of the heavy lifting is already done.
Speaker Change: Okay. So the investments already made.
Speaker Change: We're not continuing to plow significant capital into that asset.
Speaker Change: Maintaining and operating so we'd get adoption and it's incremental.
Speaker Change: And your account is committed to really lead the charge on the client adoption side and they have a huge presence in the market. So the answer is no.
Speaker Change: It hasn't yielded the fruit that we expect it to yield.
Speaker Change: But we still believe it will.
Speaker Change: And so it's time to work with our partner and get those deals done and that's what we're doing.
Speaker Change: Yeah.
Speaker Change: And in that same light.
Speaker Change: What about the New Jersey a project that's.
Speaker Change: That's been discussed for months, but the 10-K indicates it's still not installed.
Speaker Change: Yeah, it's hard to keep up you know, it's funny I watch I watch the political news and if you don't watch it every day, it's hard to keep up because it moves so fast and the same thing is going on at <unk>.
Speaker Change: So the general contractor controls the build of the building until that buildings Bill we don't have a place to put our machine.
Speaker Change: And so when the snow on the ground is frozen they can't build the building lay the power due to the plumbing.
Speaker Change: So now the snowfall happens and when that happens and they can build the building we could put the machine in the building.
Speaker Change: Is it just real simple it's not complicated.
Speaker Change: And this is the nature of the business and so.
Speaker Change: So permitting delay general contractors July whatever doesn't matter, we show up when the when we're when we're able to execute in accordance with our commitment we show up and that's what we always do so it will happen I know I wish it was faster because the reference size is very important to us, but here's the problem is it just is what it is.
Speaker Change: Yes.
Speaker Change: The best we can show up when the building is ready.
Speaker Change: And hopefully this summer we'd heard we've actually heard rumblings like fall they were like what the Hell pardon My language.
Speaker Change: Really.
Speaker Change: Anyway, we're going to try and get this thing done right, but we're ready if the buildings ready tomorrow, we're ready tomorrow.
Speaker Change: Okay, great. Besides new Jersey, other any EC projects ready to announce are you proceeding at a pace you expected for the AUC product.
Speaker Change: Well that's a good question.
Speaker Change: That the.
Speaker Change: It's interesting because the level of confidence internally and the level of external confidence in us has increased so dramatically.
Speaker Change: Even just even the.
Speaker Change: So if I'm a technology trade Advisory committee role with Secretary of Commerce.
Speaker Change: And as we mentioned earlier, we've got agreement from the EPA to do joint collaboration of testing for validation purposes with both the New Jersey side as well as with research facility in Cincinnati.
Speaker Change: Remember that value tiers was the executive director of that research facility for 'twenty, two over 30 year career.
Speaker Change: Just I mean again, just cut to the chase Okay. I am sorry, it's taken so long to get that done, but it's about as good as it gets in the world.
Speaker Change: We are at <unk> chemical.
Speaker Change: A publication of validation for that technology, and we have done the work to be credentialed incredible for the world.
Speaker Change: So what we are witnessing now is high level of adoption from companies that want to team with us team.
Speaker Change: Team with us what does that mean remember we talked about a minute ago that means our engineering firm with a client has a problem and engineering firm brings us to the table and we work together to solve it.
Speaker Change: It's as good as it gets and we have so much of it now going on so.
Speaker Change: Are we happy with of course, we want more sales faster.
Speaker Change: Of course, and we're doing everything in our power to do that but this is the nature of innovation and again I'm going to point out to you that every other innovator of this alternative to carbon in the ion exchange not one of them that we know of has a commercial account.
Speaker Change: We do.
Speaker Change: And we also have projects that are stacking up with the teaming agreements that are incredible and significant and so we're going to win and again I know, it's hard for people to be patient, but it's dramatic and yes. We've had clients that put pause on they say, we're going to do it we're going to do it we're going to do it and then they don't.
Speaker Change: I mean, what does that tell you.
Speaker Change: They are waiting for someone to make them do it.
Speaker Change: They're not going to do it until somebody makes them do it.
Speaker Change: That's the way it works now some of these markets that the clients are proactive they have money. They have capital resources. They are proactive are there already under EPA mandate some.
Speaker Change: Some of these times not even under EPA mandate, they're not going to do it until the government tells them they have to.
Speaker Change: So the good news is all of the regulatory thrust is heading in the direction supporting our agenda right. So that's good news. The other is that we've got the credibility and years of experience to position ourselves as the winter and a very competitive market against $1 billion competitors make no mistake about it.
Speaker Change: They got more money just imagine you are on the frontline or are they going to be able to support you.
Speaker Change: Yes, the answer is yes.
Speaker Change: This is why we're continuing to muscle up on the infrastructure of our company to be credible in that way, but here's the thing when you can save somebody 80, or 90% operating costs over the lifecycle and you've got a proven tech that's now being validated right now.
Speaker Change: Uh huh.
Being positioned to be collaborative and validated by the U S. EPA give me a break.
Speaker Change: Good as it gets and again I'm sorry, it's taken so long because it's incredible.
Speaker Change: We're proud of it so we're going to win we're going to win big.
Speaker Change: Not that go ahead, alright, well since we've been talking Theres been a few questions. It seems investors are pretty excited about a clearer.
Speaker Change: Let's go back to that when we wrap this call up but can you give us a launch date for that.
Speaker Change: That.
Speaker Change: I wish I had.
Speaker Change: My lips to God's ear, where say a creator's everyday that we get that data in our in our brain. Okay. The answer is we don't know.
Speaker Change: That's the answer we don't know.
Speaker Change: I wish you did and I think it certainly seems like it's right here in front of us and we've done the work we've been scrubbed.
Speaker Change: Kitting regularly throughout this process.
Partner wants to know that we can produce the scale of what we just did that one.
Speaker Change: Okay.
Speaker Change: What else well, there's always something to do but nothing that's a deal killer. That's the way to think about it there's nothing a deal killer. So we shouldn't go mode. Soon we're going to be working very closely and what Steve Harrison CEO. It clears done as a symbol of this extraordinary team.
Speaker Change: You know.
Speaker Change: 30 year, QA QC med device production people.
Speaker Change: Project managers extraordinary for med device companies FDA compliance people I mean, it's just astonishing the level of talent. He has had to put in place plus the capex.
Speaker Change: The Capex. So just think about it most companies can't even get the people and then they don't have the money to do the infrastructure and we've done all of it.
Speaker Change: We put the people in place and done the infrastructure, we've done the QA QC, we've done the <unk>.
Speaker Change: Financing of the equipment, we brought in the partners. We've produced we've shown we can produce to scale and we're dealing with some of the biggest companies in the world.
Speaker Change: And so it's a big deal and so right. So what I say in the presentation just don't screw it up.
Speaker Change: Just get it done don't screw it up that's the most important the most important thing.
Speaker Change: Is to make sure the systems are in place to provide QA QC and produce the scale and when that is ready it's going to go and so we're coming really close to that Mark and I think it is.
Speaker Change: <unk>.
Speaker Change: For all kinds of reasons human health high impact this is a global product.
Speaker Change: Again I was just I was just staying sitting and looking at the.
Speaker Change: They look at it you say I want it to.
Yesterday from a patient.
Speaker Change: Alright, that's what we got is a game changer. So it was really good.
Speaker Change: So that's the answer I believe it's really soon.
Speaker Change: Yeah.
Speaker Change: Then of course folks are dying to know do you have any sales estimates for 25 for once clear it does launch.
Speaker Change: I think it's a little premature.
Speaker Change: The the way to think about it is.
Speaker Change: Your partners are very big companies.
Speaker Change: So I'll tell you what we do know.
Speaker Change: We knew that in order to meet the Mark of proving we could produce to scale right. So that's the Mitch Mark that that was the ability to produce a million units a year type two products.
Speaker Change: Okay.
Speaker Change: As for your types of food products Okay.
Speaker Change: So.
Speaker Change: We're going to have that all of that more than that I'm not really sure.
Speaker Change: So we just have to go through the process, but any of those marks its pretty significant rapidly for clearer.
Speaker Change: So.
Speaker Change: Nobody says you got to do a million units sell 10000, this is not going to happen.
Speaker Change: So we just need to let it unfold.
Speaker Change: We're not we're not in a position to really forecast that.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Right.
Speaker Change: I mean, 'twenty 'twenty four was an exciting year for biologic, though.
Speaker Change: Think of it as something like 45% growth company record and I believe you've been doing that pretty steadily for some years.
Speaker Change: So can you just kind of wrap up with.
Speaker Change: 2024, and kind of what you're most excited about in the coming quarters here.
Speaker Change: Yeah.
Lukasz: I mean, the Lukasz, there's so much.
Lukasz: Back to the thesis right technology that has a chance to be disruptive high quality people capital and serving right.
Lukasz: Purpose high impact.
Lukasz: A clear Ah is a high impact asset for human health.
Lukasz: That comes.
Lukasz: The impact of World for an incredibly good thing great healing wounds, avoiding infections is a big deal.
Lukasz: So that that's fulfilling I'm very excited about that and I think we now have scale manufacturing capability technology that's proven.
Lukasz: Clearance with regulators I mean, just get the parties align and go go do it and that's where we're at big deal.
Lukasz: I believe that the <unk> will find adoption through significant teaming agreements with credible players have been in the business a long time and got big balance sheets, and we're going to see some hits there nice wins, there is some nice wins and it's going to start to to multiply.
Lukasz: Battery check when you're in a validation and I hope I hope that we can put some real capital behind that asset directly into the subsidiary.
Lukasz: So it's got the tools to really execute at a level that's required to compete in that market and so that would be the next milestone and then of course proof of that its way.
Lukasz: We know their stated goals when we started it's ebbed and flowed slightly with performance, but the products are winners proof proof proof has proven the technology has a home in the right market with the right marketing it takes marketing too. So it's not just technology and all the support to get that distribution, which is <unk>.
Lukasz: Critical but it's a it's a winner.
Lukasz: And so look the pet industry is almost.
Lukasz: Not recession proof, but grinning ear.
Lukasz: People love their pets.
Lukasz: Okay and so this is a market that we think will just continue to grow okay and so again. This is what's the what's the beauty of biologic multiple shots on goal.
Lukasz: <unk> core competency leveraging those pillars around right high impact capital conserving very protective of our capital base.
Lukasz: In a stronger financial position we've ever been in.
Lukasz: We will have a shareholders meeting coming up on June 19th and we encourage everyone to be there.
Lukasz: We think that uplifting to a national market for our securities as a very critical piece of the step we should as we execute continually see an.
Lukasz: Upgrading of our our valuation, which means price increase and we think that will only.
Lukasz: Byrne the need to move quicker to get our securities listed in the National market as I've said since inception, we want to do that when the wind is fully in the sales and the expectations of growth and multiplication of our earnings potential is at hand.
Lukasz: And so as we again adoption with a new market like a clearer that could that could do at any of these assets as they find adoption that can propel us into what we would consider.
Lukasz: The prices that are more reflective of the underlying value as described in the slide where we talk about the hidden value of our assets I mean right. That's the point, we put these big numbers out because underlying the core assets of our portfolio is the massive value what does it take to unleash what people have to know about it.
Lukasz: You got to give you got to get off on OTC market, you got to get into a national exchange with the confidence in the revenue some predictability and your sales cycle.
Lukasz: And all of that's happening so again, we're proud of the business.
Lukasz: You know I always say I, just sorry, it's taken so long, but man is it worth it.
Lukasz: I mean literally literally we've got we've got assets that are worth for careers.
Lukasz: And one business.
Lukasz: And so.
Lukasz: What we're doing is awesome.
Lukasz: I hope that helps you.
Speaker Change: Fantastic Yeah, absolutely. Thank you for that.
Lukasz: Other questions for today.
Lukasz: Okay, everybody sure cycles rainy June 19th look for the notice and then of course as always reach out to US you can look at our website read our filings for the most up to date knowledge and reach out to us. If we can do any questions and thank you for your time, everybody great year Biologging I appreciate it.
Speaker Change: Thank you everyone. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.