Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

BioLargo Validates Market With Escalating Sales And Systematic Client Adoption


Sustainable tech incubator’s first big commercial success - Q1 revenues up 400% from last year and Q2 sales already passing Q1 results.

First 3 Top 10 waste handling customers under contract with +1,000 locations in recurring revenue model averaging $4 - $10k per month.

Engineering division ramping up commercial contracts with expanding services for design, construct and install bids for systems to deliver odor control products.

Novel Advanced wound care products in FDA review process.

AOS water treatment system received 59th government grant for on-site pilot project in commercial customer setting to validate its low cost, high performance claims.

BioLargo (OTC: BLGO) invested the past decade and just over 20 million dollars building out disruptive technologies for the markets of water treatment, industrial odor control, and advanced wound care. The first big commercial success is now unfolding for CupriDyne Clean ( as it is being adopted as the markets top performer and cost saving odor and VOC (volatile organic compound) control solution. The company, already serving three of the top 10 solid waste management companies with signed national purchase agreementswas recently awarded 100% regional adoption by a major customer. CupriDyne Clean reports to save customers 25% to 50% per month versus competing products that also do not work well. After extensive commercial field work with these customers, CupriDyne Clean is finding ever increasing rates of adoption. At the same time the company appears to be moving closer to FDA approvals for advanced wound care products, and is making moves toward commercialization of breakthrough water treatment technology.

BioLargo 10Q Reveals Major Sales Increases and Suggests Strong Growth to Continue

BioLargo’s recent 10Q reports, “Our revenue from product sales for the three months ended March 31, 2018 increased by over 400% - to approximately $225,000 - compared with the three months ended March 31, 2017 of approximately $45,000. The increase is due to an increase in the volume of sales of our CupriDyne Clean Industrial Odor Control product to landfills and waste processing operations, and of our Specimen Transport Solidifier pouches to the U.S. military. And, we are pleased to report that total sales generated in the first four and a half months of 2018 are approximately $425,000. Our average monthly revenue has increased from approximately $25,000 the first half of 2017, to almost $60,000 the second half of 2017, to approximately $95,000 per month thus far in 2018. Assuming sales continue at this level, we would expect total revenue for Odor No More to exceed $1,100,000 in 2018. However, we are expanding our sales force and infrastructure and attempting to scale our operations to increase sales significantly.”

The 10Q continues, “While management is optimistic that it can succeed in doing so, no assurances can be made of future revenues. We are optimistic for multiple reasons. First, we have experienced an increase in our government orders. Second, we were recently approved as the supplier for 100% of the regional locations operated by one of our large national waste management accounts. Sales for these locations are just now beginning. Third, we have been asked by multiple clients to submit bids to design, construct, install and service equipment and systems to expand the use of our product within their operations. If accepted, these bids will result in revenues from engineering services for the design/build aspects, as well as our future CupriDyne Clean sales. We have more than $300,000 in bids out at the request of our clients and once completed, assuming we are awarded these bids, product sales would naturally increase as our clients expand the use of our products in these locations. Fourth, we are expanding our sales staff, and intend to continue to do so the remainder of the year. It is important to note that our sales staff is a combination of sales, account relationship management and operations field support. We are actively working with our customers to insure that our customers experience the optimal success with our products and our clients are appreciative and supportive of our company. While these new sales staff additions have already contributed to improving incremental sales, they are early and still in training. We would normally expect them to be able to generate meaningful revenues as they complete their training program over the first 5 - 6 months of work with the company. We plan to continue to grow our sales staff over the next 9 - 12 months assuming the continued demand for our products with our national accounts continues to expand and capital resources continue to be available.”

BioLargo Engineering, Science & Technologies (BLEST)

The 10Q continuing, “BLEST has been retained as “Owner’s Engineer” for a proposed $687M integrated biofuels production project on the east coast; BLEST has more than 40 client proposals outstanding, for projects such as Legionella mitigation, VOC and oil & gas by-product control, and wastewater management, most significantly as a preferred supplier to a top oil & gas company to solve produced water clean up challenges at one of their facilities. If awarded, the contract is estimated to be worth $1.3M in revenue.”

Clyra Medical

“While we face delay in our first application for pre-market clearance filed with the FDA under Section 510(k), we have concluded design on a second product and are finalizing its 510(k) application. We remain confident that we will ultimately receive premarket clearance for our products, we can make no assurance or prediction as to success of Clyra’s efforts, and must wait patiently for the process with the FDA to conclude.

Advanced Oxidation System (NYSE:AOS)

“$235,000 Canadian grant awarded from the Canadian Government to fund the first on-site AOS pilot project, in the poultry industry, planned for 2018, the purpose of which is to lay the foundation for commercialization of the AOS; and the company has also submitted and are currently submitting applications for a series of substantial government grants (totaling more than $4M USD) to focus on specific targets in industry, like wastewater, food processing and oil and gas applications.

Dennis P. Calvert, President of BioLargo, commented, “We are highly focused on executing our plan to grow sales and infrastructure for Odor-No-More, excited to see our engineering division bidding on significant projects, remain patient with the FDA at Clyra, and are looking forward to our pilot project for the AOS in Canada."

Understanding Market Size and Potential Sales

BioLargo management believes that landfills would typically use an average of $10,000 per month of CupriDyne Clean while smaller transfer facilities use between $4,000 to $6,000 per month. When we run the math for just the first 3 national customers, one thousand locations at a conservative average use of $5,000 per month equals $5 million per month or $60 million per year. The BioLargo web site displays the most recent investor presentation that includes market opportunities for just CupriDyne Clean in only the solid and liquid waste industries. Given the lack of substantive operating history, the company is naturally careful to avoid forecasting sales or predicting the rate of adoption. However, a 10% market capture of landfills, transfer stations, and wastewater treatment plants is estimated to be approximately $131,280,000 in CupriDyne Clean sales per year. Given the low cost and high performance of CupriDyne Clean, 10% appears to be conservative, but management is quick to point out that the growth curve is highly dependent upon proper staffing and financial resources, and it is working hard to staff up and strengthen balance sheet.

We notice that the opportunities for the company’s odor control products may also find traction in other industries as the word gets out. Recent law suits for nuisance odor control problems in populated areas seems to be getting increased attention as evidenced by a recent lawsuit victory against the marijuana growing industry and a $50 million class action award against a hog farm operator in North Carolina. We also recall that the company had developed a number of consumer products for the companion pet market that included stain and odor control that never found their way to meaningful market penetration. With the company’s successful pivot into the B2B market, these consumer products may just find a welcome licensing opportunity to help drive revenue and profits. Time will tell.

The company’s other products in the incubation stages are Clyra Medical advanced wound care products, and the award winning AOS water treatment system. To round out the operations team, the company has also recently added a new top-flight engineering division. The engineering division is already commercial, Clyra Medical is expected to be commercial in 2018, and the AOS system is expected to be commercial in 2018/2019. All the company’s products are billed as potential disrupters in very large markets. The company is also gaining industry attention with its recent High Tech Innovation Award for 2017, Best Horizonal Disruption by OCTANe, the leading tech accelerator in Southern California, giving recognition to its various disruptive technology advancements, and its most recent research grant awarded by the prestigious Metropolitan Water District of Southern California, the largest drinking water supplier in the world.

2018 is all about execution and ramping up sales and infrastructure. Management believes current commercial opportunities are only the ‘tip of the iceberg’.

Financial Highlights

  • Q1 2018 revenues increased 400% over Q1 2017 and continuing strong growth in current quarter in May 2018,
  • $5.4 million debt was converted to equity in 2018
  • Outstanding shares at end of Q1 number 106,406,584 with the recent conversion of debt to equity the number climbs to approximately 122,000,000
  • In late 2017, the company secured a backup financing of $10 million ATM line of credit
  • Detailed financials in recent 10k.


BioLargo is subject to the risks of competition, dilution, patent infringements, unforeseen lawsuits, inability to raise capital, unforeseen management changes, and the unknown. A complete list of risk factors is detailed in the year end 10K.


Having followed BioLargo for over 3 years, we find management to be persistent and creative in achieving company goals. We believe the current share price of $.26 and low market cap valuation of approximately $26 million is primarily the result of impatience by early investors as the company methodically grows is infrastructure and sales, as well the company’s recent delay in the FDA process for the company’s advanced wound care products. However, with the increasing sales and the obvious long term commitment by management to successfully commercialize the ever expanding portfolio of disruptive technical assets, we are lead to conclude that BioLargo is well positioned to experience growth in sales in excess of $10 million in the next 18 to 24 months and continuing, and, we believe BioLargo is a bargain at today’s prices. All of these developments should improve the company valuation in 2018 and beyond. If the FDA approvals come through as expected, we would predict the company to enjoy an even more rapid climb in valuation.