Biolargo Inc

Good afternoon, ladies and gentlemen, and welcome to the BioLargo first quarter 2022 earnings results. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Brian Loper. Sir, the floor is yours.

Thank you, operator. Good afternoon, everyone, and welcome to BioLargo's Q1 2022 results conference call. By now, everyone should have had access to the earnings press release, which was issued on Tuesday prior to market open, and the 10Q report filed with the SEC. This call is being webcast and is available for replay. In our remarks today, we may include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, our relationships with our customers, market and potential growth opportunities. In addition, Management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties are contained in our most recent Form 10-K, Form 10-Q, and other reports filed at the SEC. The company undertakes no obligation to update any forward-looking statements. And with that, I now hand the call over to BioLargo's Chief Executive Officer, Dennis Calvert.

Hey, thank you, Brian. This is Dennis Calvert. I appreciate everyone joining us today. We've got a lot to cover, and again, we appreciate you following the company. The quarter was an exceptional quarter. You know, as always, we have a big vision for BioLargo. In many ways, we feel like we've just scratched the surface, and yet at the same time, we're breaking records on a pretty consistent basis, so we're pretty excited about that. They also... We'll give the listener and reader some understanding of the trending that's going on, which is pretty dramatic, as we continue to march ahead towards increased revenue and ultimately profit, which we think we are now demonstrating a viable pathway for. So we want to talk about that a little bit. Recall that BioLargo's mission statement is we make life better, right? Sustainable solutions for some of the biggest problems that face our planet at cleaner air, cleaner water, cleaner earth. We have the environmental group. which embodies three of our operational subsidiaries, commercial. We have BioLargo Engineering, Science and Technologies, BioLargo Water, primarily focused on R&D, and O&M Environmental. And of course, we have Clear Medical that is in the development stage, first revenues, post-FDA clearance, and really positioned quite well for ramp-up and spin-out, which is very exciting. We're going to focus mostly today on the environmental group, the core competency of the company, and where we're have extreme excitement about the things that are happening and coming in our near future. The financial highlights are certainly worth highlighting, right? We broke all revenue records company-wide, pushing just under a million dollars. The trend is significant. Of course, we still feel like the opportunity has just been scratched the surface, as we mentioned before. And we have business that's in the pipeline of great significance. We want to talk quite a bit about that. And we believe that this is a time which the balance sheet has had such a great cleanup period. We've reduced our debt to a really negligible, almost immaterial level. We've got one operating subsidiary, O&M Environmental, that turned its first profit. The engineering group is just shy of profitability. Literally one or two orders would have taken the profitability. And so it's a very exciting time. So then that focuses on our R&D group, which is working on a commercial strategy to get its AOS commercial. And then CLIRA, as we mentioned, that has its first sales, really preparing to ramp up a commercial effort with proper funding. When we analyze the financial highlights, here we go. As we mentioned before, Company-wide revenues came in just under $1 million. That's a 69% increase over the same quarter in 2021, 69% increase. Owned and environmentalist revenue was $598,000, representing an 87% increase over the same period prior year. It's very small, but significant in its meaning, operating income at $13,000. It's important to know that that's fully accrued, so that's an accrued profit for the subsidiary. which means the corporate office is still incurring its expenses for public company reporting, legal accounting, all the things that it takes to operate that public entity. Engineering came in for third-party revenue. Remember, this is third-party. It's also important to note that they're heavily involved in R&D as well. So this revenue is a record revenue, 177% increase with a very small loss. And again, as I pointed out, a significant increase amount of their time is also committed to R&D with a heavy emphasis on our AEC PFAS solution.