Tuesday, 30 April 2019

BioLargo Engineering Awarded EPA Grant to Develop Methods to Remove Toxic Contaminants from Water


WESTMINSTER, CA / ACCESSWIRE / April 30, 2019 / BioLargo, Inc. (OTCQB: BLGO), a technology innovator and full service environmental engineering solutions provider, announced today that its engineering subsidiary had been awarded an SBIR Phase I Competitive Grant by the Environmental Protection Agency in the amount of $100,000 to investigate solutions for the removal of per- and polyfluoroalkyl substances (PFAS) from water. PFAS have been linked to cancer, fertility problems, asthma, and more, and are present in a vast range of manufactured goods including food, common household products (e.g., cleaning products, cookware), and electronics. PFAS also pose widespread and serious water safety problems around the world, with governments and industry actively seeking new technologies and processes to eliminate PFAS from groundwater and drinking water.
The mission of the SBIR (Small Business Innovation Research) program is to support scientific excellence and technological innovation through the investment of Federal research funds in technologies that have the potential for commercialization. The objective of ''Phase I'' research grants are to establish the technical merit, feasibility, and commercial potential of the proposed research and development efforts, and to determine the quality of performance of the small business awardee organization prior to providing further Federal support.





Randall Moore, President of BLEST commented, ''the removal of PFAS contaminants from water presents an important and very difficult challenge. Our team's extensive work in environmental engineering and remediation combined with our comprehensive work in electro-chemistry, advanced oxidation processes and advanced water treatment solutions combine to make our team uniquely qualified to solve issues surrounding environmental PFAS.''
Dennis P. Calvert, President and CEO of BioLargo added, ''This is another example of BioLargo's unique ability to leverage its science and engineering capabilities to deliver innovative real-life solutions to big problems that threaten our water, air and life. We earn the trust of our clients every day by delivering results and value in the most difficult cases. We are also grateful to the US EPA for recognizing our capabilities and supporting our efforts in finding solutions for the removal of PFAS from the environment.''
About BioLargo, Inc.
BioLargo, Inc. is an innovative technology developer and environmental engineering company driven by a mission to "make life better" by delivering robust, sustainable solutions for a broad range of industries and applications, with a focus on clean water, clean air, and advanced wound care. We develop and commercialize disruptive technologies by providing the capital, support, and expertise to expedite them from "cradle" to "maturity" (www.biolargo.com). Our engineering division features experienced professional engineers dedicated to integrity, reliability, and environmental stewardship (www.biolargoengineering.com). Our industrial odor control division, Odor-No-More (www.odornomore.com) features CupriDyne Clean Industrial Odor Eliminator (www.cupridyne.com), which eliminates the odor-causing compounds and VOCs rather than masking them, and is now winning over leading companies in the solid waste handling and wastewater industries and other industries that contend with malodors and VOCs. Our subsidiary BioLargo Water (www.biolargowater.ca) develops the Advanced Oxidation System "AOS," a disruptive industrial water treatment technology designed to eliminate waterborne pathogens and recalcitrant contaminants with better energy-efficiency and lower operational costs than incumbent technologies. Our subsidiary Clyra Medical (www.clyramedical.com) features effective and gentle solutions for chronic infected wounds to promote infection control and regenerative tissue therapy.
Contact Information
Dennis Calvert President and CEO BioLargo, Inc. 800-400-2863 x 2
Safe Harbor Act
This press release includes ''forward-looking statements'' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as ''expect,'' ''estimate,'' ''project,'' ''budget,'' ''forecast,'' ''anticipate,'' ''intend,'' ''plan,'' ''may,'' ''will,'' ''could,'' ''should,'' ''believes,'' ''predicts,'' ''potential,'' ''continue,'' and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results.

Monday, 29 April 2019

BioLargo Now Serving Cannabis and Hemp Industries via Five-Year Distribution Agreement with Cannabusters

Source: Tamarack Advisors
DENVER, CO / ACCESSWIRE / April 29, 2019 / BioLargo, Inc. announced its recent entry into the lucrative cannabis industry with a five-year white label distribution agreement to supply odor and VOC control products to Cannabusters Inc., a sister company of the Mabre Corporation (Mabre Air Systems), with over 40 years' experience delivering air quality control systems to industry world-wide. Cannabis growing and production facilities are facing increased scrutiny by regulators to better control hazardous air pollutants and odors (from ''terpenes''). These pungent aromas irk neighbors, city officials, and regulators, even as industry seeks to maintain good community relations and avoid legal entanglements and lawsuits over nuisance odors.






Planning and Permitting
Odor mitigation procedures are now a large part of the permitting process for companies considering entering the cannabis industry. With an industry growth rate of 34.6% annually, presenting a thorough and compelling initial application for a grow operation is more important than ever.
There have been a number of high-profile complaints and even fines for several large cultivation facilities. One of the largest cannabis facilities in the world has been the target of complaints from travelers at the nearby Edmonton International Airport and now performs daily aroma audits at its 800,000 square foot facility in a bid to keep the local peace. Two cultivation facilities in Colorado have been fined $2,000 and $14,000 respectively for their failures to remedy odor violations. Another facility on the central coast of California even had its permitted revoked, resulting in 75 jobs being lost. Stories like these highlight the pressing need for a reliable odor control solution in the industry.
BioLargo has a proven track record in eliminating VOCs and related odors in the waste handling industry, and these capabilities translate perfectly to the cannabis odor control industry. From their most recent annual report, ''a number of experts in the cannabis industry tell us that our products could become part of the 'best practices' operating procedures for this industry and are working toward that goal.'' With the global legal cannabis market expected to grow to $146.4B by 2025, and with an estimated 15,000 companies operating in California alone, BioLargo states ''(we) believe the opportunity for our product is significant. To that end, we are organizing a series of strategic relationships within the Cannabis industry to capture the opportunity quickly. We are working to finalize agreements with equipment manufacturers, regulatory consultants, key opinion leaders, and marketing partners. Our value proposition is unmatched for odor and VOC control and this is another great example how our platform continues to expand in high value markets.'' Very encouraging words.



Air Quality & the EPA
Odor is not the only issue. Volatile organic compounds (VOCs) emitted by plants can contribute to smog, a serious issue in places like California and Denver, two cannabis growing hotspots. VOCs, when mixed with nitrogen oxides emitted by automobiles and industrial sources, produce tropospheric ozone, a bluish, irritating and pungent gas that is a major form of smog in the lower atmosphere. Past studies have shown that cannabis plants are a rich source of potent VOCs called ''terpenes'', which give cannabis its distinct odor.
As more legal cannabis growing facilities crop up, the concern over air quality is steadily growing. It has been suggested that the 50,000+ plants being grown in Denver could potentially double the amount of smog-forming VOC's in the area. In fact, Colorado officials recently launched one of the largest studies to date of cannabis farm emissions, concerned that Denver's more than 600 indoor cannabis farms are worsening the city's air pollution, which is already perilously close to and sometimes violates federal limits. Because the EPA doesn't officially recognize the cannabis industry, it doesn't provide the same guidance it does for other industrial emissions. To pick up that slack, researchers aim to use their findings and computer simulations to better understand cannabis related air pollution.






BioLargo's Solution to the Cannabis and Hemp Odor Problem
Carbon filters, which have been the industry's answer to odor control thus far, simply are not doing the job effectively enough, leading to lawsuits and potential headwinds for the cannabis industry as a whole. This is a major problem that needs to be addressed immediately, and one in which BioLargo's state-of-the-art odor and VOC control solution for the waste handling industry may provide a real answer.
BioLargo's solution works by spraying a fine mist of their patented, environmentally safe product onto the stream of air leaving the facility, eliminating odors and VOCs along the way. The efficacy of the product has already been proven, with the four largest waste handling companies in the U.S. using it to control odors and VOCs at their transfer stations, landfills, and other odorous facilities. The product is also supported by BioLargo's in-house engineering services team that includes a host of valuable services to support the grower. The cannabis industry is only the tip of the potential revenue iceberg, as many other industries emit VOCs for which regulators mandate mitigation.
Conclusion
BioLargo's CupriDyne Clean is being positioned currently to be the best and most cost-efficient solution to the cannabis industry's odor and VOC problem. CupriDyne Clean offers a patented, environmentally friendly product platform with applications across multiple industries that deal with odors and VOCs, collectively representing a multi-billion-dollar odor and VOC control market. Having already been proven effective in combating the difficult odors of the solid waste handling industry, where the product is being adopted by several of the largest waste handling companies in the United States, BioLargo through its subsidiary Odor No More, Inc. can apply its award winning technology to the blossoming cannabis industry through their newly minted white label distribution agreement with Cannabusters, Inc.
Given the size and growth rate of the cannabis industry, establishing its CupriDyne Clean as a 'best practices' solution to odor control and its ability to offer critical operations support through its engineering services group has the potential for huge upside with very limited capital requirements.
Legal Disclaimer:
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Flathead Business Solutions LLC, which ownstamarackadvisorsinc.com, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Flathead Business Solutions LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Flathead Business Solutions LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as ''expects,'' ''will,'' ''anticipates,'' and ''estimates''; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief ''snapshot'' of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov,www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed withwww.otcmarkets.com; (c) for Canadian listed stocks: www.tsx.com and or www.sedar.com (d) obtaining and reviewing publicly available information contained in commonly known search engines such as Google; and (e) consulting investment guides at www.sec.gov andwww.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs atwww.otcmarkets.com. For full disclosure please visit http://tamarackadvisorsinc.com/legal-disclaimer/.
SOURCE: Tamarack Advisors

Monday, 22 April 2019

BioLargo Engineering Cannabis Services

Our intrepid engineering division BioLargo Engineering, Science & Technologies (BLEST) has extensive experience delivering environmental engineering, permitting and training services to countless industries. Today we want to highlight the services they offer to operators in the cannabis and hemp industries. BLEST’s environmental engineering services even have the potential to cross-fertilize (if you’ll excuse the pun) the odor control product sales work our new distributor partner is doing in the cannabis and hemp industries with our patented odor and VOC control products.

You can read about their list of cannabis-related services in their brochure here: https://bit.ly/2Gph7GV

Their engineering services for the cannabis and hemp industries include areas like:
  • Planning and Permitting
  • Training and OSHA
  • Waste Management
  • Air Quality
  • Water and Wastewater
Source: Inc.com











This is an enormous market in the US and has ever-increasing engineering needs. The global legal cannabis market is expected to grow to $146B by 2025 at an astounding 34.6% annual growth rate. In California alone there are more than 9,000 licensed growers and processors according to CalCannabis, making it an important industry for our seasoned engineering term to serve.


Monday, 15 April 2019

BioLargo's Odor-No-More Enters Cannabis and Hemp Odor Control Industry with Experienced Distribution Partner Through White Label Agreement

WESTMINSTER, CA / ACCESSWIRE / April 15, 2019 / BioLargo, Inc. (OTCQB: BLGO), developer of sustainable products and technologies and a full-service environmental engineering company, today announced that its wholly-owned subsidiary Odor-No-More, Inc. had entered into a five-year white label distribution agreement to supply odor and VOC control products to the cannabis and hemp industries with Cannabusters, Inc. (www.thecannabusters.com).






Cannabusters is an odor solutions provider comprised of experts with decades of air quality control experience through their sister company Mabre Corporation. Cannabusters was formed to leverage BioLargo's patented CupriDyne Clean technology in its aggressive push into the cannabis and hemp industries because of the product's record of unparalleled performance and safety serving customers in the waste handling industry.
Cannabusters has committed to a comprehensive marketing program that includes more than 25 trade show events over the next two years to quickly introduce the Cannabusters product to the cannabis and hemp industries. BioLargo's subsidiary Odor-No-More has committed to manufacture and supply its products containing the patented CupriDyne Clean formula to be distributed under the "CannabustersTM" brand.
Cannabusters, Inc. President Dominic Paulhus commented, "There has been an explosion of cannabis grow operations across North America over the past few years. We have watched the industry struggle to control the odors that naturally come with cannabis production. With CannabustersTM our goal was to provide a state-of-the-art odor and VOC control solution for cannabis and hemp growers who won't put up with non-performing products. We identified CupriDyne Clean as the best chemistry product for this goal because of its track record in industries with tough odors and the knowledge and expertise of the Odor-No-More team. We're proud to announce this partnership."
BioLargo President & CEO Dennis P. Calvert commented, "The legal cannabis market is still rapidly evolving in the US and we are just now learning the magnitude of the opportunity for odor control in this market. In our backyard in California, there are more than 5,000 licensed mixed-light and indoor growing facilities according to the licensing body CalCannabis. Our experience and internal calculations show that a typical 10,000 sq ft facility may use, conservatively, $5,000 of product or more per month. This figure does not include install, service, maintenance, or equipment revenues. Given the fact that the state of California alone received applications for nearly 20,000 cultivation licenses in 2018, we believe the market for cannabis cultivation odor control will grow dramatically in the next few years - and that's only California."
Odor-No-More, Inc. President Joseph Provenzano said, "Cannabusters, Inc. has an exceptionally qualified team and we look forward to leveraging the CupriDyne Clean formula and our existing infrastructure into this large and emerging industry under the Cannabusters brand. Within the cannabis and hemp industries, we have identified a number of key relationships to complement this agreement and are working to finalize new agreements with equipment manufacturers, regulatory consultants, key opinion leaders, and marketing partners. Our value proposition is unmatched for odor and VOC control and this is another great example of how our platform continues to expand in high-value markets."

###

BioLargo's CupriDyne Clean is an award winning and environmentally friendly formula that eliminates odors and volatile organic compounds "VOCs" without the need for fragrances and other masking agents.




The Company's role in rapidly growing emerging markets like the Cannabis industry has been coined a "Pick and Shovel Play" as the company supplies critical tools to help industry members optimize their operations.



About BioLargo, Inc.
BioLargo, Inc. is an innovative technology developer and environmental engineering company driven by a mission to "make life better" by delivering robust, sustainable solutions for a broad range of industries and applications, with a focus on clean water, clean air, and advanced wound care. We develop and commercialize disruptive technologies by providing the capital, support, and expertise to expedite them from "cradle" to "maturity" (www.biolargo.com). Our engineering division features experienced professional engineers dedicated to integrity, reliability, and environmental stewardship (www.biolargoengineering.com). Our industrial odor control division, Odor-No-More (www.odornomore.com) features CupriDyne Clean Industrial Odor Eliminator (www.cupridyne.com), which eliminates the odor-causing compounds and VOCs rather than masking them, and is now winning over leading companies in the solid waste handling and wastewater industries and other industries that contend with malodors and VOCs. Our subsidiary BioLargo Water (www.biolargowater.ca) develops the Advanced Oxidation System "AOS," a disruptive industrial water treatment technology designed to eliminate waterborne pathogens and recalcitrant contaminants with better energy-efficiency and lower operational costs than incumbent technologies. Our subsidiary Clyra Medical (www.clyramedical.com) features effective and gentle solutions for chronic infected wounds to promote infection control and regenerative tissue therapy.
Contact Information
Dennis Calvert President and CEO BioLargo, Inc. 800-400-2863
Safe Harbor Act
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," 'will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results.
SOURCE: BioLargo, Inc.



Wednesday, 10 April 2019

BioLargo Spotlight: Microbrewing Industry is Battling Wastewater Challenges

We at BioLargo Engineering, Science & Technologies are making strides to position ourselves in the engineering services marketplace as a pacesetter in innovative wastewater treatment services. This includes our wastewater engineering services as well as our cutting-edge water treatment technology – BioLargo’s AOS water treatment platform. But it also means that we have a passion for helping people seek out solutions to their water and wastewater problem so that they can get back to what matters – their business. Today we want to explain the challenges small breweries face with wastewater in beer production and speak to the solutions that can remedy those problems.












Craft beer brewing (commonly known as “microbrewing”) serves an ever-growing market for high-quality, small-batch beer and ciders. There are more than 7,000 brewpubs, microbreweries and regional craft breweries in the United States, with 1,000 expected to be added in 2019.  In 2017, they produced over 750 million gallons of beer, about 10% of total U.S. beer production.

In contrast to the major brewery operations that make brands like Coors and Budweiser, many craft breweries are located in condensed residential areas. Some are even integrated with restaurants and/or organize tours of their brewing facilities wherein customers get to learn about the brewing process from the brewers themselves. One thing that most people don’t know is that microbreweries, just like industrial breweries, create large volumes of wastewater per unit of beer produced. In fact, the average microbrewery produces almost 10 gallons of wastewater for each gallon of beer produced. That’s more than 7.5 billion gallons of wastewater per year. Brewery wastewater is laden with high levels of organics including bacteria and yeast, undigested carbohydrates, and chemicals including ethanol, aldehydes and ketones.  All of these constituents add to what is called the “organic carbon load” of the wastewater. In addition to this organic carbon load, brewery wastewater sometimes contains suspended and colloidal solids, excess nitrates/ammonia, and microbial activity.

Many cities require that microbreweries treat their wastewater on-site prior to discharge to the sewer, or face increasing fines and penalties. This is well-articulated in a 2016 news piece by CBC news in this video, which describes Vancouver’s wastewater infrastructure struggling with the load from the city’s many craft breweries. Because of this, microbreweries seek new ways to reduce wastewater volumes and contaminant loads. The challenge for any small business is doing so without disrupting operations and breaking the bank.















BLEST offers solutions to these problems for microbreweries, including engineering consulting, permitting services, design, and wastewater treatment (including the BioLargo AOS system). We understand the wastewater issues that brewers contend with, and we are able to provide custom-engineered treatment systems suited for microbrewery needs, including:

  • COD/BOD treatment systems
  • Denitrification Systems – MBBRs, Packed Bed Bioreactors
  • Lamella Style Clarifiers
  • Dissolved Air Floatation (DAF) Systems (fine solids removal)
  • Potable water treatment to remove chlorine, solids, lead, bacteria, etc. prior to brewing
  • AOS for influent water treatment and AOS for bacteria control
  • Water capture, treatment and reuse systems
Additionally, many microbreweries in brew pubs prefer to start up in “historic” structures. These structures often require environmental, structural and safety related upgrades to meet newer building codes.  BLEST is positioned to provide a package of engineering services that can address these issues as well as services and products provided to the BioLargo family of companies. 

The national market for on-site waste water treatment for the craft brewing industry is, according to our internal market research, approximately $200 Million. The total market for overall wastewater treatment for industrial facilities is of course orders of magnitude larger than that. Targeting a small fraction of the total market provides significant revenue potential and an opportunity to serve a growing market segment local to all BioLargo geographic locations. Even within the immediate areas of BioLargo’s Westminster and Oak Ridge offices, there are several dozen micro- and craft breweries, many of which are in need of wastewater treatment solutions.

What is a BioLargo Spotlight?
It’s an exciting time at BioLargo. We’re moving fast, and it can be difficult to keep our stockholders and the investing public informed of our progress. In light of this, we will be posting a series of short articles titled “BioLargo Spotlight”, highlighting certain business activities and other important information in between our required SEC filings. Of course, these do not replace our public filings, which contain more complete information than can be delivered in this forum, and thus we urge you to carefully read and rely on those filings for definitive information, and to review our risk factors and caution regarding forward-looking statements. We are optimistic about our business as we work hard to continue to grow and ultimately generate profits for our stockholders.  

Legal Disclaimer
Our attorneys remind us that while we believe these developments are important and that these small victories could add up and lead to big victories, at this stage they do not rise to the level of an official material disclosure. As the size and magnitude of these developments become material, we will naturally report that information in an 8-K and our regular SEC filings

Monday, 1 April 2019

BioLargo Letter to Stockholders Highlights the Impact of its Innovative Technology Assets

Dear Stockholders,

With the challenging development cycles and barriers to entry our company has faced on its journey to commercialize its important platform technologies, one might ask the question – why do we do this?

The answer is easy:
  1. What we’re doing is important
  2. What we’re building will be huge
  3. We believe we’re going to win.

With your support, we’ve invested over $20 million developing ground-breaking technologies that will make life better for our planet and all of us.  We’ve introduced these technologies into markets that give us massive revenue potential. And importantly, our success in the odor business has given us the confidence that with our disruptive products and creative commercial strategies, we know we will succeed with all our technologies.

Last Friday (March 29th), we published our annual report (click here), and in it you’ll learn that we have so much to be excited about at BioLargo.

As you read through this letter, we believe you will agree that the positives of our business far outweigh the negatives and that we are well-positioned to grow our company now and in the future.

But we do not believe, for one second, that the market recognizes the value of what we’ve created – in fact, we believe that each of our business units described below have independent value that far exceeds our current company-wide “market value”. Let’s take a closer look together - read on below for more information.

Odor-No-More’s CupriDyne Clean

We know this business unit is capable of generating enough cash flow to fund BioLargo’s entire business. How will we achieve that result with our limited financial resources? In two ways – first, by focusing on our national customers that represent over 3,000 potential locations to use our products and services, and second, by expanding into new industries, such as cannabis, with experienced partners who allow us to support, rather than capitalize, the efforts.

We’ve now proven that CupriDyne Clean (www.cupridyne.com) is simply the best odor and VOC (volatile organic compound) control product on the market, known for its industry-best performance, safety and cost-effectiveness. The four largest waste handling companies in the U.S. use it to control odors and VOCs at their transfer stations, landfills, and other smelly facilities. We are ramping up to expand our infrastructure to support these customers. Getting to this point with these big companies has been harder than we thought it would be, but we’re now over that hump. This segment alone represents an estimated $1.3B total addressable market for CupriDyne Clean, and just the four top customers we’re serving represent more than 3,000 locations. Revenues per location in this market range from $2,500 to as much as $20,000/month. If we secure a 30% penetration rate with just these national customers, and we benchmark revenues at the lowest and ultra-conservative figure per month, these customers present an opportunity equal to $2,500,000 per month or more. We are steadily marching ahead in this market, growing our staff as resources permit and winning customers because of our performance, value and service.

Solid waste handling isn’t the only market for CupriDyne Clean. Our product is now being pulled into new, high growth and high margin markets like cannabis production and processing where operators are scrambling to identify adequate odor control solutions that are part and parcel to their operating permitting requirements. There are more than 15,000 cannabis production sites in California alone, and many are abruptly discovering that the smell of their facilities bothers both neighbors and regulators. Rather than distract from our inroads in waste handling, we’ve started working with partners who are experienced in the industry and well-capitalized to take advantage of this massive opportunity. We will keep you posted on these very exciting developments as they unfold. And the cannabis industry is only the beginning. Many industries emit VOCs that regulators require they manage – and CupriDyne Clean manages them better than anything out there. Now that the product’s high value proposition has been proven in its first market, the flood gates can open in additional industries.

BioLargo Engineering, Science & Technologies (BLEST)

We are proud to say that our engineering division BioLargo Engineering, Science & Technologies (BLEST) is nearing its goal of achieving positive cash flow and thereby contributing to the corporate overhead. Less than 18 months old, we believe that the decision to acquire/build the engineering division will ultimately prove to have been a pivotal and financially beneficial decision for BioLargo. Not only do its external client contracts generate cash flow for the company (which we expect to increase dramatically in 2019), but it also dramatically changes our other business units’ capacity to put their technology assets into action through engineering and scale-up. The existence of our engineering division gives BioLargo Water the necessary resources to execute its pre-commercial and commercial pilots without needing incredibly expensive support from an outside engineering service provider. This benefit cannot be overstated.

The engineering division made significant progress in 2018 toward becoming a profit center for BioLargo. Some highlights include:
  • BLEST was retained to serve as “Owner’s Engineer” for a proposed integrated biofuels production project on the east coast worth approximately $687M.
  • BLEST began a time and materials contract to test the emissions from an energetic materials incinerator at a large U.S. military installation on the East coast. This contract is worth almost $100,000 and is expected to lead to more than $300,000 of work in 2020.
  • BLEST is providing wastewater treatment equipment and services to a microbrewery in Southern California, representing the company’s initial foray into food & beverage wastewater treatment.
Clyra Medical Technologies

Clyra Medical is another massive opportunity. It’s almost entirely independent from our other work because it obtains working capital through third party investors rather than relying on the parent company for financial support. While its first commercial product traverses through the arduous FDA 510(k) application process, we acquired the “SkinDisc”, a revolutionary product that regenerates tissue using stem cells (and has 250 case studies proving it, with no adverse reactions). Although the FDA process has been slow, and while we thought we could get approval without an expensive large animal study, we’re about to embark on that challenge and now feel we have a clear path to the finish line. We remain confident that this application will succeed in the face of these expanded requirements, and – more than that – that these new requirements simply highlight the uniqueness of the Clyra product and hint at its highly differentiated value proposition that will come to bear once it goes to market. The world has simply never seen a low-dose iodine-based wound care product like ours that delivers the “gold standard” in antimicrobial activity without the side-effects traditionally associated with iodine-based products. This unique property is part of what led to the expanded requests by the FDA, but is also a big part of why this product will be a powerhouse when it goes to market.

A quote from the annual report says it nicely, “We believe this product’s future role in the advanced wound care industry will be disruptive to many incumbent competing products like silver, hypochlorous acid and even other iodine-based products and therefore our extraordinary investment of time and money will have significant opportunity to generate a considerable return on investment as the products find their way through the FDA process for clearance and then to market adoption.  Simply stated, we believe it is worth it and that we will succeed.”

We should remind the reader that when this product does go commercial, its target market is very large. Clyra’s products have an estimated total addressable market of more than $2.5B by 2022.

BioLargo Water’s Advanced Oxidation System (AOS)

Our Advanced Oxidation System (AOS) is one of our most important technology assets and is very close to commercialization. This technology has significant potential to revolutionize water treatment and allow cost-effective treatment across several industries. We therefore believe it has a very bright commercial future and that that future is coming very soon.

The AOS was developed in collaboration with numerous leading academics at universities across Canada and the US and was supported by more than 65 government grants. The result of all this work is a patented water treatment technology that can eliminate both biological pathogens and hard-to-treat pharmaceutical micropollutants from waste water more cost-efficiently and while using less electricity than any other technologies. We also recently reported the results of an independent study confirming its usefulness to cost effectively remove micropollutants from water – an unprecedented achievement for the AOS. We expect this work to be published in science journals around the world in 2019, which will be highly impactful to promote the value of the AOS in the water treatment industry.

However, it’s not enough just to invent a powerful technology – it has to be proven in the field through pre-commercial pilots in order to demonstrate to industry players that it is robust and economical enough for the real world. That is exactly what we are doing right now with the AOS. We have several field pilots underway to demonstrate the economic feasibility and technical prowess of the AOS in real-world settings at poultry producing facility, a microbrewery, and soon in a stormwater treatment and reuse setting. These pre-commercial pilots represent a significant turning point in the AOS’ development cycle, and will pave the way for commercial trials and eventually sales and strategic partnerships or licensing opportunities.

Is all this work and money to develop this technology worth it? Yes. Not only does the technology have a total addressable market in the water industry of approximately $44B, but it has the potential to enable cost-efficient water treatment and reuse in countless settings, creating a better future for the world. There is a reason our company slogan is “we make life better”.

Looking forward in 2019

In 2019 we expect to achieve a number of crucial milestones that will, together, have a significant positive impact on our company’s value. These include:
  • Securing direct outside investment capital into BioLargo Water and Clyra Medical Technologies
  • Executing strategic partnerships to deploy our technology assets into new markets such as cannabis production for CupriDyne Clean
  • FDA approval of our Clyra product
  • Successful of our pre-commercial AOS pilots and subsequent commercial launch.

At the outset of this letter we mentioned a trend of converting our technology assets into monetized commercial assets. We are seeing this happen right now, and this is reflected by the shift of our resources away from R&D activities and toward commercial activities, marketing, and sales. Reflected by this is the fact that our fundamentals are improving: our two commercial business units generated revenues of $1,364,000 – more than twice 2017’s number – and our monthly cash burn rate is decreasing.

BioLargo has built an incredible portfolio of patented, proven technology assets that are, in the near future, expected to create enormous value for the company and its shareholders. We believe the value of these assets is not currently reflected by the parent company’s market capitalization, but we believe that it won’t be long until this changes. We hope that after reading about the outlook of our company’s dynamic business units you will agree that our future is ever brighter for BioLargo.  

Sincerely,

Dennis P. Calvert
President & CEO
BioLargo, Inc.