Below is an article by Tamarack Advisors published this morning that contains a deep and in-depth interview with BioLargo President and CEO Dennis Calvert. Access the article directly here, or read on below!
DENVER, CO / ACCESSWIRE / November 28, 2017 / While covering BioLargo
(OTCQB: BLGO), Tamarack Advisors has watched the company advance its
disruptive technologies in the large markets of water treatment, air
quality/treatment, and advanced wound care. It’s been a long journey
that has tested management and investors, but for those patient
investors that held on, the company’s most recent press release and 10Q
filing could signal a tipping point. The company is beginning to
deliver sales on one of its many award-winning products, and appear
poised for considerable growth in the years to come.
BioLargo recently reported
on their progress in a press release. Tamarack Advisors sat down with
BioLargo’s CEO, Dennis Calvert to learn more about BioLargo’s progress.
claimed that CupriDyne Clean is the only odor control product used by
the waste handling industry that actually works, breaking down
odor-causing compounds without using masking fragrances. The solid waste
industry and wastewater segments are sizable verticals for BioLargo to
target. Having said that, what will it take for the company to generate
sales in the $300,000 per month or $4,000,000 annual range or greater?
short answer is that we are just getting started with CupriDyne Clean.
The three National Purchasing Agreements already in place and our new
engineering division, BioLargo Engineering Science & Technologies
set the stage for our continued expansion, as our existing customers
expand the use of our products across their very large organizations. We
are pleased to see these early-stage revenues because they are a good
indicator of industry adoption and we do expect our sales to grow far
more quickly as we break out within these companies. We also have
additional corporate accounts in the works. We believe our sales will
grow faster and should even exceed those figures. How will we do this?
We’ll continue to sell our way up to the top decision makers who control
the deployment of solutions like ours for large national companies. We
will invest in more sales and support staff to support the growth. We
will increase our marketing efforts to help get the word out. We are
also starting to expand CupriDyne Clean into new markets, such as
wastewater treatment facilities. There are more than 900 public wastewater treatment facilities in California alone,
and our first clients are some of the largest and most well-known
operations in the industry. To help understand the size of the
wastewater treatment industry, the 2015 Census figures report that the
total wastewater industry in California alone includes 740,303 active
firms (including municipalities and private companies) and represents
just under $1 billion in payroll. The number of large California firms
employing more than 500 people is reported at 6,060 representing about
50% of the total payroll for the California industry alone.
has the acquisition of your new engineering division changed things for
CupriDyne Clean? How do you expect that to accelerate market adoption
of this product?
Our recent addition of the
company’s new in-house engineering team is allowing us to expand our
capabilities and open new opportunities with existing and new clients.
For example, one client has asked us to design and build a portable
misting system that could deliver our CupriDyne Clean product over the
surface of a landfill. Our engineers are working on the project as we
speak. In another example, our engineers recently conducted a small
study that shows our CupriDyne Clean can eliminate some dangerous
contaminants out of a gas plume, which refers to the flow of pollutants
in the form of vapors or smoke released into the air like you might see
coming from a power generation plant. Early success in this study points
to expanding high-value uses of the product to help maintain air
quality for industry. Our continued success working with clients to
manage VOC’s (Volatile Organic Compound) is an expanding market well
beyond simple odor control.
We believe CupriDyne Clean may provide
solutions to a number of very large industrial operations we haven’t
even considered yet, helping maintain and improve air quality for
numerous industries. And, now we have the team on board with the
experience and knowledge to serve these customers. We are exploring
multiple commercial opportunities.
you can capture a good segment of the odor control and air quality
control market – does that mean the opportunity for CupriDyne Clean is a
$15 to $20 million annual business or is it potentially bigger?
believe the potential is much bigger! The international markets are
also quite large, and we are just now able to invest some time and money
pursuing those markets. Most recently, we participated in a trade
mission to China which helped us understand the needs in this area.
Their air quality problems are widely reported.
The trade mission allowed us to sit and talk with more than a dozen
industrial companies that all expressed interest in the large and
important odor and air quality control markets there, and rolling out
CupriDyne to China, something we are working on currently.
is arguably best known for its breakthrough in water treatment with the
AOS, (Advanced Oxidation System). We understand and agree that
projecting sales is difficult, but can you tell us where BioLargo is in
terms of its expectation of first revenues from this $860 billion
The AOS is one of our star products
for sure and you are correct, newly developing sales are very difficult
to forecast. We are quite proud of the fact that even though our first
foray into the water industry began only 3 years ago, our breakthrough
technology is already nearing its commercial launch. The first research
project, I’ll remind you, was a research project at the University of
Alberta to help solve the contaminated water issues around the oils
sands industry. Until then, the AOS technology was just an idea. Our
success in that early proof of claim work encouraged us to start
BioLargo Water. Now, after three years of hard work, we have arrived at
this point with a proven technology, a number of strategic
relationships, over 50 government grants, and the early attention of a
very large $860 billion industry as an up-and-coming contender. Of
course, there is work to do to get our AOS seated in the marketplace and
we are facing the important task of scaling up the technology with our
new engineering team. We believe our proven AOS value propositions of
high performance and low cost will be the successful drivers to make it
What’s your strategy for monetizing the AOS?
are very active in pursuing three pathways to monetize the AOS: first,
acquire large grants from public funding agencies to help us break
through to commercialization via rigorous commercial piloting. Second,
develop strategic alliances with larger companies; and third, pick a
segment and go direct-to-market. We are working diligently and are
highly encouraged by a long list of stakeholders in each area to
continue to pursue all three strategies and I can confidently predict
our inevitable success with this product because of this.
respect to funding grants, we have been awarded more than 50 research
grants and climbing, from various Canadian public and private agencies,
including the Canadian National Research Council – Industrial Research
Assistance Program (NRC-IRAP) and the National Science and Engineering
Research Council of Canada (NSERC). Through a project funded by a grant
from the Metropolitan Water District of Southern California pursuant to
its Innovative Conservation Program, we confirmed the technical
capabilities of our AOS system to disinfect and decontaminate poultry,
dairy and municipal tertiary effluent wastewater. We are engaged in
active discussions with a number of very large funding agencies and are
preparing formal submissions to occur in the near term.
respect to strategic alliances, we have a number of ongoing discussions
under NDA with leading companies in industry. These include dedicated
water treatment companies and actual corporate clients from specific
industries like food processing, where we have already completed
significant testing to prove our claims. Our scale-up work with our
engineers is critical to support these discussions and we believe that
we will find success in this area as that work is completed. We expect
to more fully report on our work in this area in the coming months. As
for timing, we could see early revenues from our AOS in 2018, depending
on the status of our strategic licensing and grant efforts. This
opportunity has an enormous potential to become very big, very fast. Our
go-direct-to-market efforts could have us in the field in late 2018.
change gears and talk about your subsidiary, Clyra Medical. Wound care
is an $18 billion-dollar industry that appears to have a substantial
unmet need for better solutions because of stubborn and
difficult-to-treat wounds such as diabetic wounds, pressure wounds,
antimicrobial resistance, and the high cost of current solutions. You
recently submitted a 510(k) application for your Clyra Medical product –
what can you tell us about this?
care products are very exciting because we figured out how to
incorporate the ”gold standard” of antimicrobials – iodine – into
products without its traditional cytotoxicity issues. In addition, our
third-party testing also confirms that the product has some extended
antimicrobial efficacy which makes it a perfect complement to an
infection control and regenerative tissue therapy strategy. So, I
suppose in summary, the applications for our products are broad and
In late September, Clyra submitted an
application for premarket notification under Section 510(k) for a wound
care product. It is now in the formal 90-day review process by the FDA,
which we hope is completed around the end of the year or in the first
part of 2018. In anticipation of FDA approval of this first product, and
of additional products already in development, Clyra accepted
$1,000,000 of investments, $250,000 of which was from BioLargo.
once the FDA process is complete, how is Clyra going to commercialize
your technology in the medical field? What are its future plans?
the wound care product under FDA submission, Clyra’s management is
actively engaged in arranging for clinical work with what are called
”key opinion leaders.” For example, you may have seen our reporting
about Dr. Brock Liden’s involvement. Dr. Liden is a practicing wound
care specialist physician and has been working with our technology for
some time. Additionally, Clyra management has had discussions with
multiple potential strategic partners for distribution or licensing of
the initial wound care product. These discussions are dependent on a
successful FDA process and have been preliminary in nature, so we will
have to wait and see on their success.
As far as future plans,
Clyra has two additional products that are far along in the development
stage. Once ready, they will be submitted to the FDA under the same
510(k) process. We’re very excited about those additional products – one
is in the dental field – and we will announce them as soon as Clyra’s
ready to do so.
Having followed your
company for quite some time, we were quite surprised when you announced
the acquisition of an in-house engineering team. What advantages do you
see it providing? How will it help BioLargo make money?
had been working with this group of lead engineers since 2016 through
our relationship with Chicago Bridge & Iron (NYSE: CBI). When a
large division of CB&I was sold, managing Engineer Randy Moore
and his team became available and reached out to us. The decision to
bring them in-house was easy. As lead engineers with one of the largest
engineering companies in the world, the team has incredible backgrounds
working to solve some of the most well-known natural and industrial
challenges in recent history. As lead technical innovators serving
clients around the world, our team is equipped to address even the most
demanding situations in the marketplace.
We expect our engineers
to help the company in three primary ways – through the provision of
professional services to outside clients; commercializing AOS; and by
developing technologies for our other existing products.
respect to outside professional services, our team is currently
evaluating, bidding, negotiating, and generally pursuing commercial
opportunities. They have decades of relationships with clients that
require their services and are reaching out to those clients. They are
also providing subcontracted services to CB&I (their former
employer) which has recently been sold and is now known as APTIM.
respect to AOS, the team is taking the AOS from the lab to the field.
In the coming months, they will be working to design a pilot-ready
system capable of field-testing and subsequent commercialization.
are also there to assist with existing products. Just last week, they
met with one of our industrial odor clients to design and build a
portable system that can deliver our CupriDyne Clean product to the
surface of landfills for odor control.
Engineering in itself can
be a very large business and now we have a world-class team to serve our
internal and external client needs.
Thanks for your time Dennis. Any final comments?
are enjoying the flywheel effect and its momentum is powerful. We are
often reminded that our continued focus on our worthy mission to Make
Life Better through innovation, as well as our continued ability to
attract exceptionally qualified talent and the support of our investors
and public funding sources, are all critical components to our success.
Technologies like ours can be a catalyst for change for good and we are a
living testimony to the power of innovation combined with purpose for
the greater good. In many ways, we are just getting started and we can’t
wait for tomorrow. I encourage our stakeholders to read the updates in
our recently filed quarterly report with the SEC for a complete understanding of the highlights in this interview.
Thanks, Dennis, we are very excited to report on your progress in the coming weeks and months.
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SOURCE: Tamarack Advisors