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Clean Tech Co. Sees Positive Operating Cash Flow, Record Revenues

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BioLargo Inc. announced record quarterly revenues of US$4.76 million for the three months ending March 31, a 28% increase over the first quarter of 2023. Find out why one analyst sees a bull market coming for the company.

Clean tech company BioLargo Inc. (BLGO:OTCQB) announced record quarterly revenues of US$4.76 million for the three months ending March 31, a 9% increase over the fourth quarter of 2023 and a 28% increase over the first quarter of that year.

The company also generated positive cash flow of US$481,000 for the first quarter of 2024, compared with a negative US$2,000 in the fourth quarter of 2023.

BioLargo noted its net stockholder's equity increased from US$4.2 million to US$5.1 million in Q1 2024. 

"We've had a great quarter and a great year," President and Chief Executive Officer Dennis Calvert said during a webcast on the results. "We still feel we're just getting started in so many ways, but it is a significant milestone."

Net loss was US$775,000, a 32% decline over the previous quarter and 57% increase compared to the same period in 20203, the company said. Net loss included US$623,000 in non-cash equity compensation expenses.

"Our goal, of course, is positive net income, and results like these bring us closer to achieving that goal," Calvert noted in a release.

The Catalysts: Pet Odor Control, Water Contamination

BioLargo is made up of several subsidiaries that work in different sectors, a "family of products," including ONM Environmental, BioLargo Engineering, BioLargo Water, BioLargo Energy Technologies, Clyra Medical Technologies, and the new BioLargo Equipment Solutions & Technologies Inc. (BEST) subsidiary.

Two standout products have been ONM Environmental with its pet odor control product, Pooph (which the company said is responsible for 85% to 90% of revenues); and BEST's solution to treat water contaminated with the so-called "forever chemicals" that have been getting more attention from local and national environmental regulators.

Pooph reported a 64% increase in revenues from the third quarter of 2023 to US$4.37 million in the fourth quarter. The safe and eco-friendly products are being sold through retailers like Amazon, Walmart, and Chewy. Calvert said this week that the company continues to see 20% quarter-over-quarter growth, which is roughly 100% year-over-year.

"So far, they've consistently hit that mark," Calvert said.

'Looking Smarter and Smarter'

Per- and polyfluoroalkyl substances (PFAS) are a group of thousands of synthetic chemicals used in everything from the linings of fast-food boxes and non-stick cookware to fire-fighting foams and other purposes. High concentrations of some PFAS may lead to adverse health risks such as cancer, hormonal disruption, and reduced immune system effectiveness, although research is still being conducted. They are called "forever chemicals" because they break down very slowly.

The U.S. Environmental Protection Agency recently finalized standards for protecting communities from PFAS and designated two widely PFAS substances as hazardous under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as Superfund.

This means that materials containing these chemicals, perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS), will need to be transported using special protocols.

BioLargo's Aqueous Electrostatic Concentrator (AEC) technology removes more than 99% of PFAS chemicals from water, the company said.

"We're looking smarter and smarter" for developing the technology, Calvert said. "This has been almost four years of work."

Analyst Richard Ryan of Oak Ridge Financial last month increased the firm's target price on the company's stock to US$0.50 per share from US$0.45 per share and maintained his Buy rating following the announcements.

"The recent EPA regulations should help drive investor attention to BioLargo's unique technology offering," Ryan wrote. "The large emerging market for PFAS removal and BioLargo's growing validation in this opportunity should not be overlooked."

The EPA has noted about 70 million people are exposed to PFAS in U.S. drinking water, but that testing has only checked about one-third of the nation's public water systems. As many as 200 million Americans could be exposed. Check this map of PFAS detections across the U.S.

A Major Bull Market for Co.?

Technical Analyst Clive Maund noted that each of BioLargo's subsidiaries and products represents "years of developmental work and investment by the company that is now being brought to fruition with market-ready products and services that are being rolled out and gaining widespread acclaim and uptake."

In February, Maund predicted a major bull market for the stock and predicted it could rise as high as US$1 per share in the next one to two years.

"While this may seem improbable given the number of shares in issue, the rapid growth prospects for the company's various businesses bring this well within the realms of possibility," he wrote.

In another big step for BioLargo, the company upgraded to the OTCQX Best Market exchange under the same symbol, BLGO. 

It noted that the OTCQX upgrade requires that companies meet high financial standards, follow best practice corporate governance, and comply with applicable security laws.

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BioLargo Inc. (BLGO:OTCQB)

*Share Structure as of 2/20/2024

“With the dramatic increase in our revenues and growth of our operations over the last three years, we are constantly seeking to improve every aspect of our company," Calvert said. "Upgrading to OTCQX is a natural next step and highlights our optimism about our future."

Ownership and Share Structure

About 14.6% of BioLargo is owned by insiders and management, according to Yahoo Finance. They include Chief Science Officer Kenneth Code with 8.44%, CEO Calvert with 3.32%, and Director Jack Strommen with 1.64%, Reuters reported.

About 0.04% is held by the institution First American Trust, Reuters said.

The rest, about 85%, is retail.

Its market cap is US$98.86 million, with about 295.97 million shares outstanding and about 253.84 million free-floating. It trades in a 52-week range of US$0.45 and US$0.15.

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Important Disclosures:

  1. BioLargo Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, [COMPANY] has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of BioLargo Inc.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Contributing Author Disclosures

  1. Author Certification and Compensation: [Clive Maund of] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed. Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

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