Biolargo Inc

Greetings. Welcome to the BioLogo Third Quarter 2023 Earnings Results Conference Call. At this time, all participants have been placed on a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Brian Loper. You may begin.

Thank you, Operator. Good afternoon, everyone, and welcome to BioLargo's Q3 2023 quarterly results conference call. By now, everyone should have had access to the earnings press release, which was issued last Wednesday prior to market open, and the 10Q report filed at the SEC. This call is being webcast and is available for replay. In our remarks today, we may include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, our relationships with our customers, market and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions. 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, 10Q, and other reports filed at the SEC. The company undertakes no obligation to update any forward-looking statements. And with that, I will now hand the call over to BioLargo's Chief Executive Officer, Dennis Calvert.

Hey, Brian. Thank you very much, everyone. We appreciate your time and attention. And we got a great story to share, a great quarter, and a great story going forward. So we're going to cover a lot pretty quick. BioLargo would make life better. It's a purposeful mission. with special greater better solutions for air water and energy and we deploy a strategy of invention invent it prove it and partner it and each of those we're going to describe in great details we talk about our business development how the business is proceeding brian so eloquently covered the safe harbor statements and so you're well aware of that we will be talking about forward-looking statements urge everyone to rely on the decay in the queue for the detailed risk factors and also Once in a while, everybody says, I need more information. We also have a newsletter. Make sure we get your email. Go to our blog or reach out to alexatbiolargo.com, alexatbiolargo. Let's make sure you're on that list because we do put a lot of information out. We want everybody in tune with the progress. So who are we? We're science and engineers, entrepreneurs, passionate about making a difference, driven to make life better, focused on sustainable innovation. Sustainable innovation, that's the key. We focus on best-in-class solutions. That's really critical, best-in-class. All of the innovation that we focus on, the ones where we really pour our heart and soul and money into, is focused on high impact as a potential to disrupt a market. Highly intensive engineering, lots of engineering going on, and science. And, of course, we focus on problems that don't have good solutions. Good solutions is the key, right? We do it better. And the portfolio of the company acts like an innovation engine. You know, we've been innovating now for over 16 years. We have eight technologies, four commercial units. We've got an engineering group called BioLargo Engineering Science and Technology. We also have an R&D group called BioLargo Water, headquartered in Edmonton, Canada, on the campus of the University of Alberta, a group that's received over 100 grants and counting. Then we have four operating units. And these operating units are really focused on commercializing our technology. Commercializing CLIRA, BioLargo Energy, O&M Environmental, and BioLargo Equipment. I will point out BioLargo Equipment, the segment accounting has not been segmented yet, but it will be so Q1 2024 as we're commercially launching technologies with customers in PFAS and water treatment through our partnerships. In each of these operating units, there's a cornerstone of technology that sort of forms the base, the base of value, the base of attention. You know, as we say, we're looking for replication and margin, innovation that can give us competitive edge supported with talent, people, and services. So for Clear, a long journey, over $13 million invested, cleared through FDA, a disruptor in the way that infection control can be managed in the surgical suite as well as advanced wound care. It's chronic infected wounds. We have major partnerships in negotiation. We're very confident, optimistic. They're moving forward. We're anxious to get them across the finish line into the go mode. And we believe we're going to experience dramatic revenue and cash flow and ultimately profit from those endeavors that we've invested heavily for over 10 years. It's ideas that Clear are now commercially exploiting go back over 15 years since the inception of the company. And it was a difficult and arduous battle to get through the obstacles, and now we're knocking on the door, very excited about the next step of that evolution of the company. O&M Environmental, of course, has POOF. POOF.com, if you haven't seen the infomercial about POOF.com, PET and odor control, make sure you see it. I can't even describe it. It's so compelling. They're just blowing out numbers through a partnership. I'm going to describe that in a minute. And the basis of technical innovation for O&M is odor and VOC, volatile organic compound control. And I just want to point out the beauty in this structure is that there's a number of additional Cuperdine-based products in the portfolio with similar opportunities to what's going on with POOF as well as in the industry. The equipment group, we mentioned that. It's water. All the water innovations that are in the portfolio focus on a commercial focus. That's a little engineering services, equipment. Maintenance and service, we're going to talk about the business model in a second. Battery. Battery is the youngest in the asset portfolio. We acquired this technology, and the inventors had spent about eight years developing a commercial-ready design. So we like to say we're not in the battery R&D business. We're not in the hope-we-can-figure-it-out business. We're in the making battery business. It's quite different. And so we have a small-scale facility, almost finished in Oak Ridge, Tennessee. I'm going to show you some pictures. And we believe we'll have these first – batteries off the production line towards the end of the year and ready for additional rounds of testing, but also to start positioning for commercialization. I think it's very exciting. And so each of these represents a commercial platform, potentially best in class. We believe they're best in class and capable of disrupting markets. Relative to performance, it's just been a great year, best year ever, and it's getting better. I mean, this is, As we say, it took a long time to get here, but now that we're here and enjoying the fruit of planting seeds for well over a decade, heavy emphasis on R&D, we're now watching technologies find adoption and scale through partnerships, which is really our business model. Remember, invent, prove, and partner. So through Q3, about 7.9 million, well on track to do over 10 million, which, of course, is another approximately 100% year-over-year growth. Maybe more. We don't really know until we get deep towards the end of the quarter because a lot of the revenue is being produced through partnerships. So we get a lot of that information late. 134% over last year. Pretty remarkable. And as we see a steady growth curve.