BioLargo Inc.'s (BLGO:OTCQX) subsidiary, Clyra Medical Technologies Inc., entered into agreements with multiple wholesale distributors and sales agents for its two products that tackle wound and skin infections and promote wound healing, reported Oak Ridge Financial Analyst Richard Ryan in a May 19 research note. Clyra's products are based on a proprietary copper-iodine technology.
"We believe commercial introduction could occur within the next nine months," Ryan wrote. "Clyra has a chance to be one of the most impactful and profitable operations for BioLargo."
Infection control, Clyra's focus, is one of the challenging environmental problems for which BioLargo invents and develops innovative platform technologies with an eye toward commercialization. Others include PFAS contamination, advanced water and wastewater treatment, industrial odor and volatile organic compound control, and air quality control.
Buy Rating
Oak Ridge gave a price target on BioLargo of US$0.35. Compared to the new target, BioLargo was trading at the time of the report at about US$0.21 per share. Thus, the implied return potential is 3%. The company is rated Buy.
BioLargo has 302.8 million shares outstanding. It has a market cap of US$63.6 million (US$63.6M). Its 52-week range is US$0.16–0.33 per share.
Preparing For Rollout
The wound care market opportunity is large, and each agreement Clyra entered into, for sales and distribution in the U.S. and abroad, could generate material revenue. All parties involved are working toward a commercial launch of Clyra's products. Clyra and its distribution and manufacturing partners are working on systems integration for purchasing, accounting, forecasting, logistics, and quality assurance. Once ready, technical training and product rollout can take place.
Ryan pointed out that Clyra has invested more than 14 years of work and nearly US$20M of funds into its product development.
Pooph Sales Decrease
The added expenses during Q1/25, tied to preparing to launch Clyra's products, in large part accounted for BioLargo's net loss of US$1.9M versus US$775,000 in Q1/24. Of the US$1.9M total, US$1.4M are attributable to Clyra.
Revenue during Q1/25 totaled US$3.3M, down from the previous quarter's US$3.7M and down from the prior year's US$4.8M. Pooph sales followed a similar trend. They amounted to US$2.6M and comprised 79% of total revenue. The total was lower than US$2.7M in Q4/24 and US$4.2M in Q1/24. Pooph sales primarily drove BioLargo's topline softness, noted Ryan, after a very strong period a year ago.
Accounts receivables during Q1/25 increased by about US$1.04M quarter over quarter to US$4.21M from US$3.17M, likely related to Pooph. At quarter's end, BioLargo had US$2.56M in cash, minimal debt and shareholders' equity of US$5.1M, a strong balance sheet in other words.
Market trends are difficult to anticipate given Pooph has been on the market only for three years, and current sales are below expectations. However, management remains confident in its eventual success. For BioLargo's ONM Environmental division, management expects about the same level of sales in Q2/25 as in Q1/25, most of which were of Pooph products.
BioLargo's engineering segment has seen an uptick in service-related sales as industrial polluters are consulting with the company on possible PFAS remediation solutions. This should offset the weakness in Pooph sales expected throughout full-year 2025 (FY25).
"We estimate [overall] FY25 revenues to be US$16M, down from our previous estimate of US$18M," Ryan wrote.
Other Initiatives Advancing
BioLargo's pipeline of potential PFAS projects has "grown significantly," Ryan reported, as customers and potential partners become more at ease with the technology and as final Environmental Protection Agency regulations for remediation are released. Federal and state funding has begun being allocated for PFAS remediation. BioLargo's first commercial PFAS remediation project is awaiting installation.
"The large emerging market for PFAS removal and BioLargo's growing validation in this opportunity should not be overlooked," added the analyst.
As for BioLargo's long-duration battery storage program, it is progressing though still in the early stages. The company's batteries offer important technical advantages over lithium batteries. Third-party validation is needed, and this could happen in the near term.
"A key summation is that BioLargo has a unique diversified portfolio of solutions that can address the needs of very large global end markets, thus allowing the company to have 'many shots on goal.'"
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Important Disclosures:
- BioLargo Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- 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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Disclosures for Oak Ridge Financial, BioLargo Inc., May 19, 2025
Analyst Certification: I, Richard Ryan, certify that the views expressed in this research report accurately reflect my personal views about the subject company and its securities. I also certify that I have not been, am not, and will not be receiving direct or indirect compensation related to the specific recommendations expressed in this report. Important Disclosures: The analyst or a member of his/her household does not hold a long or short position, options, warrants, rights or futures of this security in their personal account(s). As of the end of the month preceding the date of publication of this report, Oak Ridge Financial did not beneficially own 1% or more of any class of common equity securities of the subject company. There is not any actual material conflict of interest that either the analyst or Oak Ridge Financial is aware of. The analyst has not received any compensation for any investment banking business with this company in the past twelve months and does not expect to receive any in the next three months. Oak Ridge Financial has been engaged for investment banking or advisory services with the subject company during the past twelve months and does anticipate receiving compensation for such services in the next three months. Oak Ridge Financial has not served as a broker, either as agent or principal, buying back stock for the subject company’s account as part of the company’s authorized stock buy-back program in the last twelve months. No director, officer or employee of Oak Ridge Financial serves as a director, officer or advisory board member to the subject company. Oak Ridge Financial Rating System: Oak Ridge Financial utilizes a two-tier rating system for potential total returns over the next 12 months. Buy: The stock is expected to have total return potential of at least 15%. Catalysts exist to generate higher valuations and positions should be initiated at current levels. Investors requiring time to build positions may consider current levels attractive. Hold: The stock is expected to have total return potential of less than 15%. Fundamental events are not present to make it a Buy. The stock may be an acceptable longer-term holding. Valuation and Price Target Methodology: Based on our estimates, we believe that the projected success of Pooph, alongside the current valuation of Clyra Medical, provides investors with underlying support and a conservative degree of upside, while the diverse array of technologies within BLGO’s portfolio offer investors an interesting “call option”, if you will. We are reaffirming a Buy rating and are lowering our Price Target to $0.35 (previously $0.38). Our PT is based on a FY25 Revenue multiple of 5.0x, which is in line with historical industry valuations and transactions, and an independent valuation of Clyra Medical based on recent equity valuations. When considering our “bull case” scenario, we believe the PFAS technology has enough commercial interest to support 2025 revenues of $10M. Based on a FY25 Revenue multiple of 3.5x, which is in line with historical valuations within the water filtration industry, we believe the AEC can support a bull case PT of $0.44 (previously $0.47).
Oak Ridge Financial does not make a market in the subject security at the date of publication of this report. Other Disclosures: The information contained in this report is based on sources considered to be reliable, but not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made as of this date and are subject to change without notice. This report has been prepared solely for informative purposes and is not a solicitation or an offer to buy or sell any security. The securities described may not be qualified for purchase in all jurisdictions. Because of individual requirements, advice regarding securities mentioned in this report should not be construed as suitable for all accounts. This report does not take into account the investment objectives, financial situation and needs of any particular client of Oak Ridge Financial. Some securities mentioned herein relate to small speculative companies that may not be suitable for some accounts. Oak Ridge Financial suggests that prior to acting on any of the recommendations herein, the recipient should consider whether such a recommendation is appropriate given their investment objectives and current financial circumstances. Past performance does not guarantee future results. Additional information is available upon request.
