Co. Gets 2nd Contract for Air Quality Services at Air Force Bases

Clean tech company BioLargo Inc. (BLGO:OTCQB) announced that its engineering subsidiary has been given another contract to provide air quality services to U.S. Air Force bases.

The latest is for two bases in Arizona for up to four years, with an expected annual revenue of US$812,000, the company said. Earlier this month, BioLargo announced a similar contract for three New Mexico bases for up to five years with a potential annual revenue of US$650,000.

"We are pleased and honored to continue providing vital engineering services to the United States Air Force and supporting their active mission and environmental compliance needs," said BioLargo Engineering, Science and Technologies President Randall Moore. "These new contracts will provide for over $100,000 a month of ongoing fixed revenues while we continue to expand our abilities to support new opportunities."

The latest four-year prime contract secures pricing for services over the term of the contract but does not guarantee continuation of the contract over that duration, the company said.

In the past, BioLargo's engineers have continued providing services through the duration of the prime contract.

Technical Analyst Clive Maund said he had recommended a good entry point in February as BioLargo went on to nearly double in price. 

In an update on June 7, when the stock was about US$0.26 per share, Maund told Streetwise Reports that the "timing couldn't be better" for the stock now in June. He said it is a "great buy spot here after a long correction from the February high." The share price climbed to US$0.32 by June 17. It was at US$0.27 per share on Friday.

The Catalyst: 'A Great Quarter and a Great Year'

Last month, BioLargo 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 a 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.

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

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.

On June 11, the company announced it had manufactured its "liquid sodium" prototype battery cells that it says are long-lasting and safer than lithium-ion batteries. BioLargo's Cellinity™ battery cells have no runaway fires or risk of explosion, don't decrease in performance over thousands of uses, and store more energy per unit of weight than lithium batteries, the company noted.

Also this month, BioLargo said subsidiary Clyra Medical Technologies Inc. selected a company to support manufacturing of its medical products, including its surgical wound irrigation solution, Bioclynse.

Analyst: PFAS Market Important

Oak Ridge Financial analyst Richard Ryan in an updated note on May 16 noted that BEST's solution for Per- and polyfluoroalkyl substances (PFAS) will also be important to the company going forward.

"The large emerging market for PFAS removal and BLGO’s growing validation in this opportunity should not be overlooked," wrote Ryan, who maintained his "Buy" and a bull case price target of US$0.50 per share.

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.

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

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.

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$81.04 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.

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.
2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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