Earnings call transcript: BioLargo Q2 2025 revenue misses, stock drops 6.57%

BioLargo Inc. reported a Q2 2025 revenue of $3 million, missing the forecasted $4 million. The company’s stock reacted negatively, declining by 6.57% to near its 52-week low. According to InvestingPro analysis, the stock appears fairly valued at current levels, with a market capitalization of $56.7 million. Despite increased service revenue and a stable cash position, the revenue shortfall and uncertain future guidance weighed on investor sentiment.

Key Takeaways

• BioLargo’s Q2 revenue of $3 million missed the $4 million forecast.
• Stock price dropped 6.57%, nearing its 52-week low.
• Service revenue increased from $300,000 to $1.2 million over six months.
• The company reported a strong cash position of $3.5 million.
• Future earnings guidance remains uncertain, with projected negative EPS.

Company Performance

BioLargo’s overall performance in Q2 2025 showed a decline in revenue, falling from $5 million in the previous year to $3 million. This downward trend was consistent over the first half of the year, with six-month revenue dropping from $10 million to $6 million. InvestingPro data shows the company maintains a healthy gross margin of 43.56% and achieved revenue growth of 22.95% over the last twelve months. The company’s Financial Health Score stands at "FAIR," with particularly strong metrics in growth potential. Despite this, the company maintained its margins and reported growth in service revenue, indicating potential in specific areas of its business.

Financial Highlights

• Revenue: $3 million (down from $5 million YoY)
• Earnings per share: Not provided
• Cash Position: $3.5 million
• Net Stockholders’ Equity: Approximately $6 million

Earnings vs. Forecast

BioLargo’s Q2 2025 revenue fell short of the $4 million forecast by 25%. This miss is significant compared to the company’s historical performance, where it previously recorded higher revenues.

Market Reaction

Following the earnings announcement, BioLargo’s stock price fell by 6.57%, reaching levels close to its 52-week low of $0.1606. This decline reflects investor concerns over the revenue miss and future earnings potential.

Outlook & Guidance

BioLargo’s future guidance remains uncertain, with projected negative EPS for upcoming quarters. However, the company is targeting FDA approval for its CLEAR Up product by year-end and aims for a Q1 product launch. The company is also exploring battery factory partnerships and public funding opportunities.

Executive Commentary

CEO Dennis Calvert expressed confidence in the company’s potential, stating, "We believe the unseen value is multiples of our current valuation." He emphasized the company’s strategy, saying, "We’re not the check writer. We’re the vendor to make those ventures work."

Risks and Challenges

• Revenue Decline: Continued revenue shortfalls could impact investor confidence.
• Market Competition: Intense competition in the battery technology and environmental solutions sectors.
• Regulatory Approval: Delays in FDA approval for CLEAR Up could affect product launch timelines.
• Economic Conditions: Broader economic pressures could impact market demand and investment.

Q&A

During the earnings call, analysts focused on the company’s battery technology strategy and the timeline for CLEAR Up’s development. Questions also addressed the company’s approach to building partnerships and its role in future ventures.

Full transcript - BioLargo Inc (BLGO) Q2 2025:

Conference Operator: Good morning, everyone, and welcome to the Bio Largo Annual Second Quarter twenty twenty five Earnings Please note this conference is being recorded. I will now turn the conference over to your host, Brian Loper, Director of Investor Relations at Bio Largo. The

Brian Loper, Director of Investor Relations, Bio Largo: Great. Thank you, operator. Good morning, everybody. Welcome to Bio Largo’s Second Quarter twenty twenty five Earnings Results Conference Call for the months ended 06/30/2025. By now, everyone should have had access to the earnings press release.

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. 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 Q, 10 ks 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 Bio Largo CEO, Dennis Calvert.

Dennis Calvert, CEO, Bio Largo: Brian, thank you very much, and thank you, everyone, for joining us. And we’re excited to be here and share an update on the current events at the company. I wanna also point out that most recently, we put out a press release just two days ago that offers a brief summary of a lot of the content we’re gonna talk about today. And also just a few weeks ago, we put out a stockholder letter, which goes into a very deep dive. So those two pieces of information will be very helpful as you want to drill deeper into this presentation.

Also, at the end of this presentation, we did some bullet point summaries of some of those key points. It’s so much. I really believe that we can lean on that as opposed to cover all that in this presentation. Okay. Innovation engine for a better tomorrow.

We make life better. Purpose driven innovation. Right? The pillars of our company rely on high degree of purpose, impact investments, focused on the gaps in the market, cutting edge technology, how to how to qualify people. And we’ve been doing this for quite some time, and we’re now at the point of, we believe, harvesting the fruits of our investments over an extended period of r and d cycle and investing.

Who are we? Innovator scientists passionate about sustainability and human health driven by purpose to make life better. It’s a high calling, of course. Best in class solutions. We don’t believe it’s number one.

We won’t continue to invest. Number one is a is a big claim. It’s always a debate. We understand it. And, of course, when you look at each of these technical platforms, there’s a there’s a myriad of claims associated with these technologies that we believe can make it number one.

For example, it works, but it’s safer. Safety being a key feature, big big claim. And each of those, that requires discernment, but we welcome the debate. And we do believe they have a chance to really transform markets. Focus where there’s a gap, gap in the market, not being filled by an incumbent.

And then aim for partnerships and capital conserving strategies, leveraging intellectual property, supply chain, partnerships on on really tackling a distribution challenge at a global scale. That’s how we approach our business. In the in the portfolio, there’s a number of commercial assets each at different stages of development. They’re at the parent company, of course, we’ve got our brilliant engineering team, you know, seniors, there’s a whole crew of people that that hail from twenty five and thirty years experience at a global scale, very large, important projects, highly skilled people. R and D at the on campus, University of Alberta, also an important component of our portfolio.

These enterprises support the commercial activities. Remember our structure. We form a subsidiary. We license into it. We incubate, if you will, these technologies for commercialization that allows for direct investment, allows for partnership to create, to be created and gives us leverage at the parent company to to really focus on leveraging our core competency of science and engineering, the innovation cycle, and supporting these commercial efforts.

Ultimately, they’re all for sale. Important to also know. I like this next slide. It’s important because what’s often missing is the unseen value. When you’re incubating, when you’re developing new technologies, it takes some time for adoption, for commercial traction, regulatory approval, all the the myriad of of challenges that you must overcome to success.

There’s a reason. The reason is both impact and value. Right? The unseen value. As they find commercial success given our our business model, our strategy, we believe the unseen value can be enormous, especially when you position these products for adoption where we might participate in a supply chain, partner for distribution, work to spread, and also build equity value that creates an exit.

Because we have a portfolio, the exit value is super critical, and it’s often missed. It’s a mistake to think of our company as a function of the revenue or earnings only. This equation has to go into the equation. It’s hard for people to do that. We understand that.

It’s difficult because it requires a a technical deep dive. It’s not a drive by. You have to peel the onion, understand what CLEAR is doing, understand what our PFAS solution means, understand what the battery technology means to the, really, the electrification of the world in a trillion dollar business. I mean, it’s an astonishing value proposition. In each of these, as we said, unmatched technologies, capital conserving, HQP, highly qualified people driven on purpose.

As we dissect those, the execution of that, of course, is the risk. We must execute. We must find the channel, get the regulatory burdens. The odor, O and M, is the most mature. We’re gonna talk about the bumps we’ve had in the last six months, in in some detail and the implications financially.

We’re still very hopeful about its future, by the way. So we’ll we’ll highlight that. CLEAR Up. My goodness. Thirteen year march to success, a significant investment, just under $20,000,000 total invested capital, now poised for significant success with distribution partners of global acclaim as well as regional and, two product categories going to market, significant investment in the last twelve to eighteen months in preparation of a launch of significance, dramatic significance.

And we’re preparing for that as soon as possible. We’ll talk about the timelines, and I’m sure that would come come up in the q and a. Just wanna remind you, the details on all these are in the appendix on this presentation, which we’ll just mention and then share in writing so people can go back. PFAS, long slug, lower margin, very difficult market, strategic for both The United States and industrial nations on a global scale. We are the cutting edge.

We believe we’re number one in that space, and we’re gonna win. Battery tech. Battery tech’s a big deal. Right? Sell don’t sell batteries.

Sell battery factories. A pretty basic business model. I’m gonna I’m gonna detail some of that briefly because it’s just an incredibly exciting component of our business, and we’ve been marching towards success for a number of years. I think our total invested capital is somewhere around 2 and a half million to get to where we’re at. Now that’s that’s a dramatic number.

It’s dramatic because if you showed showed me a company that had a breakthrough technology for battery tech with prototypes in hand and basic proof of claim on the technology as we have, right, and that was published just a couple months ago, third party validation, those companies probably spent, either a career or 25 to $50,000,000. And we’ve done this with a couple of million, 2 and a half million. It’s an astonishing achievement with such low capital. It is slow. It’s taken some time.

It took us a while to redesign, revalidate, and improve upon the work that was done by the original inventors. And we’re fortunate to have one of the co inventors on our team, and we’re marching towards success. The business model itself is really critical. We present a breakthrough technology for long duration. Long duration storage is the idea of green batteries that are grid scale on a fixed site that can be used to balance a grid, offload renewables, provide emergency backup for mission critical like data centers or the fastest growing segments in the world, and then arbitraging energy.

Right? The from the time you buy it to the time you use it. You buy when it’s low. You use it when it’s high. Use the battery technology to store that energy so that you can arbitrage the spread.

All of those need applications are expected to grow to approximately a four between a 3 and $4,000,000,000,000 market over the next fifteen or so years fifteen or so years. That was published by The Economist in in September. Just two weeks ago, an article came out from Fortune magazine talking about the next trillion dollar investment cycle, and that’s in energy and energy storage combined with big data, data centers, AI driven AI driven. This is a tool that has an insatiable demand. And with that demand, we believe the thesis is pretty basic.

If you have a good battery and even if you have a better battery like we do, a good battery, by the time you get to scale, you can sell all you can make before you can make them. And so with that premise, we’re out recruiting partners to form joint ventures to create battery manufacturing facilities. We’ve indicated in our prior disclosure that we’ve executed four MOUs for a myriad of clients, but I wanna I wanna go up to a little bit higher level and share that with you real quick. There’s really three categories that are sort of shaking loose on that business deal making. Right?

One would be impact. So what does that mean? Impact. People that wanna see employment. They’d like their 500 to a thousand people employed in their community.

That’s one. Workforce development, workforce training, high-tech job creation. Right? This initiative to bring back high-tech manufacturing to The United States Of America to support this global transition, right, to the demand, to supplying energy real time all the time with resiliency to back up the grid, to back up the emergency use and the and the need to be live real time all the time. Right?

That that’s resilience or redundancy is what it’s called. When you look at the impact, there’s people that wanna see that happen that are willing to put financial resources available to see these factories come to their community and and and solve some of those big problems. What’s fascinating is over time, it begins to look very much like a real estate. Of course, it’s manufacturing. It’s got some high-tech component, but there’s basically project oriented financing.

And we believe that the public funding available in both states, regional, national, international is substantial because people want the answer. It’s it’s part of a national agenda. And we we can see that as evidenced by historical tax credits and many incentives to bring these high-tech jobs to a community, to a country, to a region. Right? So our plan is well designed to leverage that type of financing, that’s impact financing.

The second would be financial opportunity. Right? Developers. Think about developers. They they build, they develop, They create equity value, and they sell.

That’s a developer mindset. There’s a whole world of developers that wanna see, wanna leverage, have the opportunity to leverage the kind of opportunity that we bring for selling battery factories, not batteries. Right? And then finally, the third, which we call more of a strategic. So who would be a strategic partner?

Well, energy companies, data center developers, big data, people that are really in the business of providing AI. You know, they have they have such significant capital base and high growth trajectory. I would argue, and it is an argument. We’re we’re actually working on some some article to this to this effect. But I would argue that if you listen to the financial news regularly and you listen to all the the chitter chatter about AI and data centers and this explodes exploding industry and the demand, you’re gonna notice the caveat that they always the CEO will always say, and he says, if we can get enough energy or enough storage to meet our demand, then we can meet our target.

Then we can meet our target. Okay? And when you go into this industry and you peel back the onion on supply and energy and access to the grid and this issue of resiliency and redundancy and access to storage that can not catch fire, that can be drawn upon for long extended period of times because the grid is unable to meet the insatiable demand for energy. That’s what we’re talking about. Then you’ll see what we see, which is a massive gap in the market that we intend to fill.

And we believe we can fill it. We got the right people, right strategy, and we’re executing on a daily basis. So it’s very exciting. And, the next step for us is really pretty basic, which is to take our MOUs and move towards definitive contracts. Definitive contracts will become then hard money in the real estate lingo.

So he’s gonna write a check to make sure that we have the tools to execute in a specific location. And then in that business model, right, we’re getting actually paid to design, project manage, build these these factories in exchange for a piece of income on a royalty and an equity participation that we negotiate as a minority equity stakeholder. This is a very capital conserving strategy that has the ability to scale at a global level. Just think about it. Right?

Where where where are we limited? Well, we’re limited by capital just like everybody else. The difference here is in the benefit of the bargain. The benefit of the bargain for our partners, we’re actually giving more than we’re taking. Why can we do that?

Well, because we’re thinking globally. We think that this is the kind of technology that needs a global rollout. It needs a global skill. The world needs it. The data the these data companies, these data center managers, and big AI providers need energy and energy storage in an insatiable way.

So we think it’s extraordinarily rare moment in a in a corporate journey to be well positioned. Now remember, one of the common questions we always get is, who are you, and how in the world do you have a technology for long duration that’s, quote, better than what’s available in the market? And, of course, that goes to the tribute to the inventors that spent almost a decade inventing this technology with all that r and d prior to our involvement. And it really is a complement to the work, the work of discovery, the work of testing and failing, expertise, of course. And so we’re fortunate.

We’re fortunate to be here to to to take up where they left off, to then revalidate that technical achievements, prototype, scale up, develop scaling model, develop the business model, develop the the way to produce at scale manufacturing, that’s where that’s where we’re focused, and we’re leveraging on technology that is, an absolute winner, an absolute winner. I’m gonna drop that. We’ll come back to those questions in a minute. I’m gonna turn this next topic over to Charlie to review some of the basic economics of our performance over the last quarter and year to date. Go ahead, Charlie.

Charlie Dahlman, Yeah. Our Chief Financial

Charlie Dahlman, Chief Financial Officer, Bio Largo: Thanks, Dennis. And good morning to everyone. And, yeah, we get to this part of the presentation that’s just gonna talk briefly about our numbers. We publicly filed yesterday, so, you have them. And this slide represents, where we are on our net stockholders’ equity.

Even though, you know, we’ve had losses over the last six months, we’ve been able to maintain our, equity position through raising capital, equity capital, certainly through Bio Largo, but also through, Clara. We did some warrant exchanges. And that has allowed us to be right around $6,000,000 and maintaining $6,000,000 in our, equity. So the rest of the balance sheet, we’ve got 12,500,000 We still are on about $3,500,000 of cash. And yes, you’ll notice that we now have a note receivable, and that’s related to Ikigai and Poof.

And they are maintaining the payments on the note receivable, so that’s why it’s current. Regular AR, and then we have about a million 7 in equipment and leases. And then on the other side of the balance sheet, you’ll notice that our debt obligations have gone up a little bit, but most of that’s related to Clara and Clara getting ready to launch the wound care product. So for us, we’re in a good space. The balance sheet is strong and, we move forward.

So from the p and l perspective, we only did about 3,000,000 in revenue versus 5,000,000 last year in the three months ended June 30. And then in the six months, we did 6,000,000 in revenue versus almost 10, last year. And pretty much all of that’s related to, as we’ve spoken and disclosed, and I’m sure Dennis will talk further, icky guy and the reduction of sales with the POOF product. You’ll notice that our service revenues, have gone up dramatically. We’ve gone from 300,000 to a million 2 in the six months.

And in the three months, we went from 125,000 to 771,000. So we’ve been improving there, increasing our revenue there, and then, you know, we go forward. The best part is, we’ve maintained our margins. We actually improved margins in the three months, but in the six months, we maintained them. So we’re not losing on the margin side, it’s just a reduction in sales.

SG and A, we’ve maintained. We’re very vigilant about maintaining and managing our expenses, certainly as we’re in a reduced revenue time period, but we’re managing our expenses. So when you go to the cash flow, you’ll notice, obviously, our usage of cash in operating activities went up. But if you look at it, it’s pretty much all because of carrying accounts receivable or note receivables. And CLIRA.

Dennis Calvert, CEO, Bio Largo: Exactly. CLIRA. Yep.

Charlie Dahlman, Chief Financial Officer, Bio Largo: And CLIRA. Yep. Totally agree. And Klara. So, important there to note that, like I said, Klara is now ramping up for production of, the wound care product, as we hope that next year we’ll be launching it.

So it’s not that we’re spending. We’re spending because we need to. And so I think that’s pretty much it, Dennis. Anything else? Otherwise, it’s back to you.

Dennis Calvert, CEO, Bio Largo: No. Thank you, Charlie. Very good. Yeah. The, if you look at the investments that have been made clear to ramp up infrastructure and the logistics of preparation for skilled manufacturing, it’s pretty dramatic.

It represents a major portion of our net loss. And so, yeah, we’ve been very diligent to maintain consistent overhead. We shrink when we can. Very, very careful, especially when, we have not been able to rely upon the cash flow that we were historically relying upon for, this POOF sales. We are thankful that, Ikigai and POOF have been able to maintain their payment schedule, which is great.

And we’re really hoping for the best and doing everything in our power to support them as they reposition themselves for growth. And we’re again, we remain optimistic. You know, the people often ask the question, you know, predict the future. I’m like, I I wish I could. I think we’re at a spot where what we can what we know is true.

Right? What we know to be true is they’re very good at marketing. They’re very, very good at selling product. Okay? So if they can find if they can if they can get in a strong position to do that, they’ll do well, and they can sell themselves.

They probably could sell themselves out of just about anything. And so we’re hoping for the best and wanna support them as best we can. We also wanna do that in a very careful way to preserve the integrity of our position, our position relative to financial implications. You know, we didn’t sign up to be the bank, And we do find ourselves providing financing for our partner, which puts a heavy burden on us. I I will say that in my opinion, the fact that we’ve been able to do so is a testimony to our business strategy and our management.

We’re we’re doing a good job of managing a very difficult spot. And we’re hopeful that they’ll stabilize and continue the growth growth track that we know they’re capable of. Right? They’re extraordinarily skilled in that area. And of course, they’re great products.

And so we’re hoping for the best, but we do have a lot of uncertainty. I I will comment on the management side. Uncertainty is difficult. It makes us operate in a way that will not allow us to assume that we’re gonna receive the payments that we expect. And so that makes us shore up our capital position so that we, as as we say, save for a rainy day, we’re really good at saving for a rainy day as evidenced by our net shareholder equity.

You know, we’re just not gonna allow uncertainty to overrun the company so that we can survive and thrive because the unseen value is multiples of our current valuation. That’s just the reality. And so keep them alive, get them into the go mode, make sure Clearing gets to the to the starting gate and can start really capturing the value that we’ve invested now thirteen years and massive sums of money to get to. And do its do its purpose, impact the world for a greater good. I mean, that’s what it is.

It’s gonna transform the industry, we believe. It has a chance to be a dominant player in its in its market space with some of the largest partners in the world, really featuring a technical breakthrough, for patient outcomes for infection control and wound care. Okay. Same thing with battery tech. You gotta get to the starting gate.

We’re we’re knocking on. We see it. We see it. It’s in sight. We know that there’s public funding.

We know that there’s a trillion dollar market on the other side, and we don’t know of any technology that matches the technical prowess of what the technology can provide. We just don’t. And we say it often. We say we believe it’s number one. Let’s let’s just be clear.

We believe it’s number one. And that’s an argument. It’s an argument based on the entire product feature. Right? High energy density, high efficiency, 95% round trip efficiency, low cost of goods, recyclable components, no rare earth elements, no no China supply chain.

Right? It’s a perfect situation for bringing high-tech jobs back to The US Of A. And, of course, our strategy is build factories with partners. So it’s a great model. So so why again, why do we highlight it?

It’s worthy of our pursuit. It’s it’s worth it. And, yes, there’s some things we gotta get through. Form those partnerships, get them into definitive contracts, pull in the financing, you know, leveraging public financing wherever possible, and get on with our purpose, which is which is the point. So that’s a lot.

Okay. Now I just wanna point out. I’m not gonna go through these, but I just wanna open up for questions. When we go into the appendix, we took the press release and it’s really simple. We took the press release.

I’m just going to highlight them so you see they’re there. We’ll come back to them. Appendix of highlights. We took the press release, and we took the shareholder letter, and as well as the queue, and we consolidated those into a bullet point presentation for each operating unit. I’m not going read them all.

It’s a lot. CLIRA, they’re all in those that those documents we just referenced. I’m just gonna show you they’re here. Energy, why is it important? Each one of these becomes a thesis for defense of our strategy, and we think it’s credible and real.

And there’s substantial activity in each, And each one we break down specifically. Okay? And we might refer to those when we talk about q and a. So let’s stop now, open this to q and a, and then see, see if we need to drill deeper on any of these, items. Okay.

Brian?

Brian Loper, Director of Investor Relations, Bio Largo: Alright. Thank you for that. Exciting stuff. So question. Can you provide any additional insight into the challenges and successes to the barriers to entry for the salinity battery?

Dennis Calvert, CEO, Bio Largo: Sure. I can actually. So let’s do let’s see here. Let’s I’m gonna pull up that slide so that you can see it. I hope you’ll listen while I’m talking.

Yep. Provide the the barriers to entry.

Brian Loper, Director of Investor Relations, Bio Largo: Yeah. So I I have

Dennis Calvert, CEO, Bio Largo: an unusual perspective. You know? When we were asked to join the, environmental technology trade advisory committee for the secretary of commerce, I I I kinda thought to myself, you know, what do I have to share with this team of 40 people that are representatives on the front line of industry in the environmental technology side? And over time, I I really challenged myself to add value, right, to do something worthy of the time that that requires for both our companies and for The United States Of America. And I it became very apparent that our experience, our experience, Biologa’s experience, my personal experience in innovating across multiple industries gives us an insight to the barriers to entry and both regulatory frameworks, incentives, incentive structures, competitive barriers, supply chain barriers, all these things that come to bear on the execution of strategy.

Okay. The battery checks are different. So in the battery technology, the first challenge is technical proof of of claim. We’ve achieved a lot of that. The next step will be to take that, the cell technology in a in a scaled up version, which we’re doing now, assemble cells into a larger module.

Okay? So cells go into racks. Racks go into a pack. And you put a computer on the top, and that computer distributes energy, and it measures electricity flow in and out of the cells. And then you do computer modeling to replicate its interaction with the flow of energy that that mimics the activity of the grid or renewable energy.

Right? Whatever use case you wanna use. That piece of the puzzle is really critical to adoption, and it is it is ahead of us. We haven’t done it. From a science and engineering perspective, what I can say is that for science engineering, it’s not fearful at all.

It’s a it’s an engineering task. It needs to be done. Of course, for nontechnical people, it it can be a much bigger issue to overcome. For technical people, it’s not as big of an issue, but you have to do the work. And that’ll take some time and some money, but, it’s all achievable.

The second is we’re gonna need to scale manufacturing. You know, test is notorious for its vertical scaling capability. You know, I think they went into, South Haven, Tennessee close to my home in Memphis, and they built they opened a factory and went live in less than a year, so my understanding, a gigafactory meant massive installation, billion dollar installation. You took over an old building and turned it into a battery factory. Well, that’s a company that’s I don’t know how many they’ve done.

I suspect 20 or more manufacturing facilities of giga scale. And so they did very, very fast, and and they have achieved scale because they’ve got so much history. They’re brilliant at that. They’re brilliant at that. Okay.

That’s both expertise and capital for deployment. Hence, the reason we’re pursuing a strategy we are so that we can access that kind of capital in scale globally. Right? Now that that execution barrier is real. You have to get to scale because in order to capture the margin on manufacturing, you need to go vertical in accessing the ingredients and then literally making each component in the factory.

That means manufacturing electrodes, manufacturing the ceramic insulators, manufacturing the stainless steel, manufacturing the, connectivity and the ceiling and the loading of chemistry into the pack and the testing, and then the assembly of a of a pack, a rack, a pack, and a module and the testing. All of that is designed to be manufactured in our locations that we’re focused on, forming these partnerships. Right? Another significant barrier. From a regulatory barrier, it’s pretty actually.

If you have a battery and you can prove it safe and you can justify your claim of extended functionality, which is a warranty, then really you just need safety data. And most of that safety data is tied up in the UL certification, which is really pretty basic. Okay? So so it’s not a regulatory barrier as much as it is as a practical barrier of skilled manufacturing, improving your claim. And so that’s a that’s a that’s a task.

It’s a big task. Okay? And and I think the argument for support of our strategy says, we know we have a number one contender. We know it. And we’re not we’re not bashful about it, and we’re not afraid.

Okay? Now we have to prove it, and we have to prove it over and over and not screw it up. Make sure we get it right. That’s how it works. And then along that journey, and here’s the way I would say it.

From this moment forward, every step we take, we become more credible. Every step we take. And if we do the work, we get the prize. So we have to do the work. And so what we believe we can do is is provide additional capital that will come into our battery company without diluting the parent.

We believe that will happen. We also believe that we’ll have these partnerships that will head into definitive contracts and contracts return into deposits and highly leveraging public funding. Public funding is massive. And don’t and make no mistake, Tesla. Tesla built their company using federal funding, both the DOE and the the tax credits that were available.

And if you go back and study their business model and how they scaled, they were masters at leveraging those funding tools from the public interest for the initiative of of transitioning the to an electrification of the world. They did it, and they did really well at it. You know what they didn’t do? They didn’t focus on long duration. That’s where the gap is.

They focus on EV charging stations. Now they have an initiative in the, long duration side for that that’s, fixed side grid scales, but they’re deploying primarily lithium. There’s a lot of talk about alternative technologies coming to market. I would argue that there’s those are years, if not decades away. There’s a lot of work to do.

Remember, when we started this acquisition with this battery technology, I asked our engineers. I said, you know, just like everybody else asks of us. Right? When you hear the story, what’s the first thing you think? Who are these people to have a number one technology opportunity in the fastest growing trillion dollar market in the world?

Who are these people? That’s what everybody asks. It’s a good question. Right? And here’s the answer.

The innovators that spent ten years of their career, ten years of their thirty five year careers focused on this technology did the work to identify the secret, the secret to to manufacturing, to high energy density, to techniques for manufacturing that made the performance work that we believe will contend for the number one spot in the world. Okay? So now what’s our job? Take it from there. Take it through the additional journey of scaling manufacturing, dealing with all the critics, overcoming the the hurdles, find the right partners, make the deals.

So so it’s very exciting. And I know that’s a long answer, but I think we covered the covered the barrier and the mission ahead. Next.

Brian Loper, Director of Investor Relations, Bio Largo: Yes, sir. Great slide and explanation there. Alright. Next question. Will Bio Largo be funding the cost to build battery factories?

Will you be involved in designing and building the factories?

Dennis Calvert, CEO, Bio Largo: Yeah. It’s a good question. So the business model again is unique and other industries. I had call with an institutional fund recently about a week ago and listened to the story, he said, you know, it’s like Qualcomm on steroids. Listen to that.

And that that’s a compliment. I I took it as a compliment. Qualcomm on steroids. Right? So the idea is there’s a technology core.

At the core, there’s technology, and there’s a strategy. And then the implementation strategy is to leverage that core competency. Now we have two core comp I would argue two or three. Two obvious ones. One is the technology itself, and the second is the technical support from our engineering group that allows us to actually say to a partner, I’ll build you a factory.

And it will be a good factory, and it will meet its timelines, and it will achieve success. And we stand for that, and we’re credible in the in the position for that sort of strategy. Okay? As a result, that venture, that JV can access public funding. Right?

So the venture will finance itself. Now that may be financing from a partner. That can be equity or debt. It also could be public funding. We’re not the financier of the venture.

That means that we’re the vendor to the venture. And when we vend into the venture, we generate revenue, revenue in the form of engineering services, project management, the lead on the design build, the provisioning of the equipment, the training of the staff, and the execution of a of a production facility that produces batteries that come out the other end for commerce, and we get paid to do that. We also ask for a royalty for the transfer of technology into that operation, and then an equity carry in exchange for the transfer of the business opportunity that is forecasted to generate a half a billion a year. Understand this. Per factory, half a billion a year with a margin that should exceed 16% net income after debt service and after royalty.

16% on half a billion. Run the number. It’s over 75 to 90,000,000. Okay? These are extraordinary opportunities.

In exchange for transferring that opportunity to our partner, we get paid, and we carry an interest in the venture. What that means is that our balance sheet will not carry the day. It doesn’t have to. The ventures can stand alone with the combination of our investor partners, public funding, and the the architecture of creating an economic opportunity that’s visible to the participants. And that’s what we’re doing.

And we think that that’s a globally scalable model. So, yeah, we’re not the check writer. We’re we’re the vendor to make those ventures work. Okay?

Brian Loper, Director of Investor Relations, Bio Largo: Alright. Question. What is the latest on New Jersey and the AEC project?

Dennis Calvert, CEO, Bio Largo: Yeah. That’s a great question. So we we did just ship the AEC. We posted some of the images in our social media, so you can see those on LinkedIn, on on Twitter, on Facebook. And I don’t know if they made it to our blog yet, but we’ll work on that for sure.

Anyway, the unit was packaged up, I think it was last Wednesday or Thursday, and within twenty four hours, it landed in Lake Stockholm. Pretty cool. And so the images show it’s, being unwrapped. You know, it’s it’s, big big forklifts, big heavy equipment is moving into the facility. As everybody knows, we were waiting for the general contractor to finish manufacturing.

Now we’ll go through a a setup and a test phase to go live. Remember that we have the state EPA and the federal EPA both agreed to participate in validation work, which is super important because we’ll have the really the most prominent voice of opinion in the world doing that validation work for us, which will be critical for to have an on-site location in which prospective customers can come and touch and feel and see. And it’s a beautiful machine. It really works. And so we’re very excited.

And we’ll have a a go live date soon. I don’t know what that is today, but we’ll we’ll certainly make an announcement when it goes live. And and it’s a very, you know, significant long, hard fought win, but but it’s a it’s a good one. So there you go. Next.

Brian Loper, Director of Investor Relations, Bio Largo: There we go. Alright. How can you be so confident about CLEAR Up given that it’s taken so long?

Dennis Calvert, CEO, Bio Largo: Yeah, it’s human nature to wonder, right? When things take a long time, it makes you fearful, I get it. And we witnessed that in the ebb and flow. So I would point to a couple of things that are really important. One, we’ve just raised about 3,300,000.0 in Clara, and those investors are investing in a private company.

So that’s not by a Largo. That’s investing in our subsidiary, Clara Medical. The capital is really important, of course. We’re thankful for those investors. But those investors do have an advantage.

You know what that is? They get an NDA. They sign an NDA. They agree not to trade. And as a result, they can they can know what’s what’s up.

So $3,300,000 worth of investors just came into the company. There’s a reason. And the reason is because we can see the launch pad in sight, and the partnerships are so significant. So we also know what we have in terms of the technical prowess of our invention. It’s a it’s a game changer.

It’s a winner. It’s it’s going to raise the profile for human health, and we believe it can do so over a long period of time at global scale. That’s what it is. It’s it has a chance to set the standard. And with the right partnerships, which we believe we have in place now and are preparing to launch, we can do just that.

K? So this is this is, you know, twenty plus years of ideas, thirteen years of investment, and now a couple of years of really a mad scramble to get those products to to be ready for mass production at scale. And so, yeah, it’s hard. It’s difficult. Lots of barriers to overcome.

Our partners are very excited. There’s been no no waning of excitement. And, we keep checking off the barriers to getting that product ready for scale. As of last count, we’re we’re hoping that we can be in a in a position to finish this next phase of third party testing, the product design for validation for the final logistical paperwork that gets filed with the FDA. And we’re hoping to get that done before the end of the year.

And then everything there from there is receiving confirmation of receipt, timelines, training, manufacturing to to to large opening inventories, and then launching. And so it’ll take a few months from that, but we’re still we’re still hoping we got a shot at getting that done for q one. But, yeah. No. It’s we’re we’re not fearful and we’re not I know it tries everyone’s patience, but, I know that from a value perspective, the CLEAR initiative is worth multiples on our current valuation.

So it’s worth it. Okay?

Brian Loper, Director of Investor Relations, Bio Largo: Great. Thanks for that. All right. Let’s see here. Yep.

We have one more that just came in. Do you have insight on Proof’s operations as far as advertising spend, the number of stores that they’re in?

Dennis Calvert, CEO, Bio Largo: You know, we don’t have a lot of operating, insight, and that’s part of the problem. It’s very difficult to forecast. And, of course, with some of the uncertainty on receipt of the money owed to us, it makes us very cautious to do a lot of optimistic forecasting. Again, I’d I’d go back to the basics, which is they had grown to over 50,000,000 in run rate, which is astonishing. Just about three, three and a half years.

So that’s pretty remarkable. It was in 40,000 stores. Don’t know if that’s still the number, but, you know, whatever’s going on there that they need to manage, we believe they can and should and will, and we’re optimistic in that regard. But we’re cautious because, they gotta do it. We can’t do it for them.

And, of course, we’re here to help if we’re able. So I wish I had more information, but I think I think that’s I think that’s all I got for the moment.

Brian Loper, Director of Investor Relations, Bio Largo: Alright. Let’s see here. Tell us about your appointment to the US Department of Commerce Environmental Technologies Trade Advisory Committee, heck of an acronym there. But how is this beneficial to BioLargo?

Dennis Calvert, CEO, Bio Largo: I think it’s enormously valuable to Bio Largo. We asked to join there. In fact, the language is very specific. So just make sure you get it. It’s in the press release that we issued when we started back in January.

It was the start. The company so me as a person on behalf of Bio Largo was appointed to the committee. And that’s important to note. I’m there because of Bio Largo. Bialargo is there because of what?

Our technology. Right? So the decision makers who appointed us there recommended us to the Secretary of Commerce to be appointed. That’s how it works is because of our technology. So they they see a future for us that’s important.

That’s why we’re there. So why is it important? Well, it’s mostly PFAS. It turns out there’s a lot of other things to talk about because of our experience and especially in the environmental side. So so, yeah, it’s it does a series of things.

One is there’s a chance for us to make influence. Influence for impact, that’s worthy because that will translate to watching just to point out, I was named as the chairman of the subcommittee, which is enabling innovative technology. So I’m the chairman of the subcommittee. Why is that important? Well, the subcommittee is where the work is.

The big committee is where decisions are are put forth for public view. We just did some some social media posting on the most recent, letters of recommendation to the Secretary of Commerce. Those are on my LinkedIn. They’re also on the company LinkedIn. So you can see those.

We also link them on Twitter as z, you know, x now, of course. Anyway, you can see all those. But the the the chance as a as an insider on the front line on the cutting edge of environmental tech, that’s us, to have influence over policy that promotes trade and promotes economic resources to drive adoption of of the leading edge of innovative technology, yeah, it’s all about Biolargo, man. I mean, it’s a it’s a perfect spot. And so I’m thankful, and I’m learning a lot, watching watching all this machine go through and also really understanding the the fine balance between the trade off of regulatory frameworks, which is the the stick and the carrot, which is incentives, the carrot and the stick, carrot and the stick.

You hear it often in regulatory frameworks. Watching that unfold, we have a chance to lobby for that’s not the right word. Argue argue for, discernment and the things that can advance America’s interest, which is the mission of the secretary of commerce under the executive branch. It’s not a it’s not a judicial, and it’s not a legislative position. It’s bipartisan, and it’s designed to advance American enterprise for the environment and for Americans’ interests.

So, yeah, it’s a great spot. Thankful to be there.

Brian Loper, Director of Investor Relations, Bio Largo: Alright. Alright. And there’s been a request for me to answer a question. All right. So drum roll.

How many employees at Bio Largo and related entities? So I know this one. Pretty sure there’s 41 full time employees, which includes Clara and your Canadian operations. And Clara has increased from three to 10 full time employees just this year.

Dennis Calvert, CEO, Bio Largo: Alright. Perfect. Alright. Okay. Well, I think we’re probably gonna wrap it up.

What do you think?

Brian Loper, Director of Investor Relations, Bio Largo: Yep. Sounds good. Thank you for the update, Dennis.

Dennis Calvert, CEO, Bio Largo: I maybe I can do a quick closing. Yeah. I’ll just encourage everyone to do a deep dive. You know? Investors, stockholders can take a deep dive.

They wanna they wanna own a lot of Pollo Largo, especially when it’s cheap. And, with the pressure that we’ve been under, we’ve seen some some some real pressure on the stock of late, and we believe it’s a it’s a nice situation for the long term thinker as a buying opportunity. And, of course, we’ll continue to push on on execution. There’s so much meat on the bone. I just wanna make sure that you see those additional slides in the appendix.

They’re important. They’ll be available online, you could pull those up. And then, of course, we welcome touching base with our investors anytime. So as we say, go buy a Largo. We’ll keep plugging away.

Thank you very much.

Brian Loper, Director of Investor Relations, Bio Largo: Great. Thanks, Dennis.

Conference Operator: Thank you very much. This does conclude today’s conference call. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation.

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