Greetings! Welcome to the BioLargo third quarter 2023 earnings results conference call. At this time, all participants have been placed on a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Brian Loper. You may begin. Thank you, operator. Good afternoon, everyone, and welcome to BioLargo's Q3 2023 quarterly results conference call. By now, everyone should have had access to the earnings press release, which was issued last Wednesday prior to market open and the 10-Q report filed at the SEC. This call is being webcast and is available for replay. In our remarks today, we may include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, our relationships with our customers, market and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current knowledge and expectations as of today, and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties are contained in our most recent Form 10-K, 10-Q, and other reports filed at the SEC. The company undertakes no obligation to update any forward-looking statements. With that, I will now hand the call over to BioLargo's Chief Executive Officer, Dennis Calvert. Hey, Brian. Thank you very much, everyone. We appreciate your time and attention, and we got a great story to share, a great quarter, and a great story going forward. So we're gonna cover a lot pretty quick. At BioLargo, we make life better. It's a purposeful mission with special, greater, better solutions for air, water, and energy. And we deploy a strategy of invention, invent it, prove it, and partner it. And each of those, we're gonna describe in great detail as we talk about our business development and how the business is proceeding. Brian so eloquently covered the safe harbor statements, and so you're well aware of that. We will be talking about forward-looking statements. Urge everyone to rely on the 10-K and 10-Q for the detailed risk factors. And also, once in a while, everybody says, "I need more information." You know, we, we also have a newsletter. Make sure we get your email, go to our blog, or reach out to alex@BioLargo.com. Alex at BioLargo. Just make sure you're on that list, 'cause we, we do put a lot of information out. We want everybody in tune with the progress. So who are we? We're science and engineers, entrepreneurs, passionate about making a difference, driven to make life better, focused on sustainable innovation. Sustainable innovation, that's the key. Okay? We focus on best-in-class solutions. That's really critical, best in class. All of the innovation that we focus on, the ones where we really pour our heart and soul and money into, is focused on high impact, has a potential to disrupt a market. Highly intensive engineering, lots of engineering going on, and science. Of course, we focus on problems that don't have good solutions. Good solutions is the key, right? We do it better. And the portfolio of the company acts like an innovation engine. You know, we've been innovating now for over 16 years. We have eight technologies, four commercial units. We've got an engineering group called BioLargo Engineering, Science & Technology. We also have an R&D group called BioLargo Water, headquartered in Edmonton, Canada, on the campus of the University of Alberta, a group that's received over 100 grants and counting. Then we have 4 operating units, and these operating units are really focused on commercializing our technology. Commercializing Clyra, BioLargo Energy, ONM Environmental, and BioLargo Equipment. I will point out, BioLargo Equipment, the segment accounting has not been segmented yet, but it will, it will be so Q1 2024, as we're commercially launching technologies with customers in PFAS and water treatment through our partnerships. In each of these operating units, there's a cornerstone of technology that sort of forms the base, the base of value, the base of attention. You know, as we say, we're looking for replication and, and margin, innovation that can give us competitive edge, supported with talent, people, and services. So for Clyra, long journey, over $13 million invested, cleared through FDA, a disruptor in the way that infection control can be managed in this, in the surgical suite, as well as advanced wound care. It's chronic infected wounds. We have major partnerships in negotiation. We're very confident, optimistic. They're moving forward. We're anxious to get them into across the finish line, into the go mode, and we believe we're gonna experience dramatic revenue and cash flow, and ultimately profit from those endeavors that we've invested heavily for over 10 years. It's ideas that Clyra are now commercially exploiting, go back over 15 years since the inception of the company, and it was a difficult and arduous battle to get through the obstacles, and now we're knocking on the door. Very excited about the next step of that evolution of the company. ONM Environmental, of course, has POOPH, Pooph.com. Make sure if you haven't seen the infomercial about Pooph.com, pet and odor control, make sure you see it. I can't even describe it. It's so compelling. They're just blowing out numbers through a partnership. I'll describe that in a minute. And at the basis of technical innovation for ONM is odor and VOC, volatile organic compound control. And I just want to point out, the beauty in this structure is that there's a number of additional CupriDyne-based products in the portfolio with similar opportunities, what's going on with POOPH, as well as in the industry. The equipment group, we mentioned that, it's water, water, and water—all the water innovations that are in the portfolio, focused on a commercial focus. That's a little engineering services, equipment, maintenance and service. We're gonna talk about the business model in a second. Battery. Battery is the youngest in the asset portfolio. We acquired this technology, and the inventors had spent about eight years developing a commercial-ready design. So it's like, we like to say, we're not in the battery R&D business. We're not in the hope we can figure it out business. We're in the making battery business. It's quite different. So we have a small scale facility, almost finished in Oak Ridge, Tennessee. I'm gonna show you some pictures, and we believe we'll have these first batteries off the production line towards the end of the year, and ready for additional rounds of testing, but also to start positioning for commercialization. I think it's very exciting. So each of these represents a commercial platform, potentially best in class. We believe they're best in class, and capable of disrupting markets. Relative to performance, it's just been a great year, best year ever, and it's getting better. I mean, this is, as we say, it took a long time to get here, but now that we're here and enjoying the fruits of planting seeds for well over a decade, heavy emphasis on R&D, we're now watching technologies find adoption and scale through partnerships, which is really our business model. Remember, invent, prove, and partner. So through Q3, about $7.9 million, well on track to do over $10 million, which, of course, is another approximately 100% year-over-year growth. Maybe more. We don't really know until we get, you know, deep into the towards the end of the quarter, because a lot of the revenue is being produced through partnerships, right? So we get a lot of that information late. 134% over last year. Pretty remarkable. And as we see a steady growth curve. The revenue and net loss, right? So we have some... Of course, we want to point out that we have non-cash charges, which are common in a, in a public company like ours, plus we had some increased R&D, and that R&D was associated with the build-out of our battery manufacturing operation, as well as some additional R&D for Clyra. And what's happening is both of those are sort of racing to take advantage of the opportunities right before us, and so it's intense focus, spending some money. But the money, I wanna point out, was brought in through direct investment into the subsidiaries. Very important piece of the puzzle. We get a lot of leverage because the assets are so good and the commercial opportunity is so big, that direct investment sometimes can really make a lot of sense, and we certainly want to preserve the dilution impact at the parent company. So, it's a good situation. And notice that it's been relatively, static in terms of the amount of cash that we've used on a going-forward basis. I will point out some of these charges, like this R&D component, are non-recurring. They're one-time events to, build out some infrastructure to make sure that we're ready to start making batteries. Again, here, we see that the SG&A tipped up slightly. We have a lot of consultants who are involved now in the execution on commercial strategy, as well as, increased marketing. You know, just in the BLEST situation, which is BioLargo Engineering, Science & Technology, the PFAS and water, we're actively engaged now in the field, in the commercial market, with people, marketing material, marketing promotion, and trade show work. So a tip up in SG&A, again, you know, we think really important as we're heading into the landing customers and making money mode. And we've got an opportunity that's so significant, we're gonna capture it. Same thing with negative cash flow, right? How much cash used. So notice, this is the inverse, right? So as the blue line goes up towards the zero mark, that's less cash used, right? And as this flips and the revenue continues to climb, it'll be net cash generated in operating activities. It's very close. It's very close. If we take out non-cash charges on the operating income, and we take out the R&D expense, that number approximates about $100,000 a month, about $100,000 a month. And it's certainly manageable, and we're anxious for it to be a positive number. We believe that's on its way as revenues will continue to climb. Net stockholder equity is important. Remember, people don't remember, I do. We accumulated about $7.2 million in debt at one point. We paid all that off. We currently have a SBA loan. It's a 30-year, 3% interest, not really consequential. No other debt, a PPP loan that's in process to be forgiven. That's it. So no converts, certainly no toxic debt, and certainly no onerous debt whatsoever. We're in a good, a good position as of the end of the quarter, about $3.2 million in cash. $3.2 million in cash and no debt. It's a very nice situation. It's unusual, too, especially for a company that's doing so much. Part of that is we've been able to capitalize some of these ventures with direct investment, taking that burden away from the parent company. Note that we also, because of our control position, we do consolidate those operating entities. That means that when we're spending money through a subsidiary for R&D, while the parent didn't spend the money, it consolidates and still impacts our net operating income at this stage. So that's important to decipher. Okay? There's a few highlights. These are right out of the Q. We just want to highlight them because I think they tell a really important piece of the story, and 85% quarter-over-quarter is pretty dramatic. The POOPH sales, of course, are increasing. We talked about these non-cash and non-recurring expenses. R&D, of course, is one of those, and mostly tied to the equipment that was acquired to build the manufacturing facility. Approximately $800,000, $694,000 of that we expense R&D, primarily because it's a pre-revenue asset, pre-revenue asset, but the equipment has inherent value. We've gone ahead and taken the R&D expense and expensed all that out, but we'll have years of useful life for that. Then non-cash charges, of course, are important too. So when you look at that net loss number and you start reversing some of those, we're getting really close to the making money mode, okay? And then we do highlight the two direct investments. This is important, very, you know, critical. We brought in about $905,000 into the energy company at about a $25 million valuation. We own about 95% of that. I can't remember the exact number, 96%. And then the proceeds from Clyra over the last nine months, quarter ending, is about $1.5 million at about a $31 million valuation. And remember, we own about 53% of that company, plus 6% royalty. And we believe its valuation is going to climb dramatically. And we're anxious to prove that, by the way. We haven't proven that yet, but we're about to. Okay, so POOPH. Remember the business deal? This is a great full story, full circle story for the company. Years of work in the field with vertical, built data, developed safety profile, multiple manufacturing techniques, rounded out our patent portfolio, found the market, figured it out. Long, hard, difficult work. Okay? That's what we did. As a result of all that work, we were able to recruit a partner, who also recruited each other for good reason, and form an alliance where we supply a product to our partner, POOPH. They buy it wholesale, cost plus, we get a little royalty on their sales, and then we bargain for exclusivity equal to 20% of their exit. Remember, their mission, as stated when we started, was to get it to about $100 million in annual revenue, and they believe it can exit between 3.5x to 7x revenue. 3.5x to 7x revenue. The key in their business model is customer acquisition at extraordinarily fast rates, highly efficient marketing. They've done a great job, and they're so excellent at, at making that compelling story, that compelling argument for someone who watches that infomercial and sees the marketing, compelling reason to buy. They're really good at it, and they've done a great job. And of course, they have a pedigree to having done that for 20 y ears+ in their careers. Been a great partnership. We're so thankful to be there. It also validates our business model and it validates our technology. And while it took a long time, it is significant. It is, in fact, it's so significant that this one product has the ability to take the company to profitability and well beyond. So if you just run that number, they're currently pushing $4 million, approximately $4 million a month on a run rate. We believe over the next year or so, they can get to a $100 million run rate, and we believe that those, potential acquirers will be at the table. In the event they're able to do that, we would receive 20% of the exit. So on the low end, that would be somewhere around $70 million, upwards of plus, a $100+ million. And we believe that that is, something that can happen in the future, and we're optimistic and confident. Why so confident? The product's that good and the marketing is that good, and the way they're acquiring customers. Last count, there was over 6,000 customers a day buying this product through multiple selling channels. The CEO at POOPH, Jane, presented at our annual stockholders meeting just a few months ago, and we have a lot of intel there that we shared and we just want to update, and that is that revenues are growing. We're seeing the trend definitely, you know, move in a positive direction for all of us, and more large retailers are coming on board. They had stated they'd be at approximately 25,000 or plus 20,000 stores under contract by the end of 2023. At that time, it was just a few months ago, it's about a 10-fold increase in what was signed up sometime around the June time frame. So they appear on track for that, which is good. Now, we do have a caveat, and the only reason we caveat is because there's a lot of, lot of things that happen once you secure a contract with a retailer. There's still fulfillment and marketing. There's process to go through. So we, we want to just remind everyone to expect that the sales trail at some level, with it whether it's months or weeks and, and three months or six months, it's gonna take months to absorb the volume that's coming, but we're witnessing it, it already in increasing order flow and, and of course, excitement. It's just really awesome. So they'll continue selling, of course, to the big channels, Walmart, Amazon, Chewy. Chewy.com is a big channel. The other thing is more products are coming, more products that we're helping in the design work. We're doing product development with POOPH, find other products to add to the brand, to make an impact for increased sales and cachet in the market. Okay, that's POOPH. If you haven't seen it, go to Pooph.com and watch that video. Okay, the AEC, that's our device that removes PFAS. Remember, PFAS is forever chemicals that have essentially polluted our world. There's a recent lawsuit, 3M settled a multi-jurisdictional lawsuit for $10.2 billion, billion, the largest tort reform settlement in U.S. history. That's just a few months ago. PFAS is a top agenda item for the Biden administration, top target for contaminants of the decade, if not century. We've seen reports estimating the global problem could likely exceed $13 trillion, okay? Not there yet, but people are moving, regs are taking effect. And if you have PFAS in drinking water, you definitely have to make a move quickly. If you don't have PFAS in drinking water, but another type of water, the regulatory bodies are making them take action, and it's already. We're already witnessing it, okay? So our value proposition is really simple. We concentrate it. The thesis is really simple. If you could super concentrate, you can manage destruction. So the business model is critical. We sell equipment, we customize it, custom integrate it, we service it. We then do exchange membrane exchange throughout the project life, and we destroy the PFAS. So there's a sale, a service, and a replacement. It's a great business model. And by doing that, we can save our customers a ton of money, a ton of money, plus relieve them of some of the regulatory burdens that are so cumbersome. So our marketing claim, which has been proven through about 13 trials, where the test data was performed at the University of Tennessee, has shown that our membranes can last about a year. They're so effective at concentration, that when you compare the waste stream of post-collection versus carbon, it's 1/40,000th. 1/40,000th. That number is correct, 1/40,000th. So the example is, if you get 80,000 pounds of spent carbon, wet spent carbon, laden with PFAS, which is a hazmat, okay? We can do it with 2, somewhere around 2 pounds, and we say a range, 2-5 pounds. But it's a, it's an, it's an astonishing claim, okay? And we've proven it. So now we're in the process of commercializing that technology in just a massive market. Remember the thesis, invent proven partner. Invent proven partner. How do you change the world? You get really good partners. We're the innovator that brings these technical solutions to market, and over time, becomes the technical support team that make these happen with partners all around the world. So we've got over 100 reps now. I wanna say 11 or 12 agreements, 3 channel partners, an army of reps. We have a backlog of opportunity that's presented in our first couple of wins, where we're actually installing commercial systems for customers, and we have a project moving ahead in New Jersey, and we're hoping to have some significant detailed news about that soon, as it's moving forward, which we're excited about. The other is for our customers, we make PFAS managing this regulated contaminant easy. It's easy. And ultimately, it's no cost and no chemicals. There's no moving parts in the system. You know, once these things are installed, they run. We can also remotely monitor them. There's a lot, a lot of detail there. It's a great value proposition, and our response has been astonishing from the market. This is the actual unit on the right. It's a portable unit in a trailer. We can take it anywhere. This would primarily be for either a small project or for a demonstration pilot. Happy to do it. What's interesting about the technology is it's so obviously scalable that we're able to show small scale viability, and then by simply adding the panels, we can expand its functional use, its scale. And so that works really well because this equipment has been optimized for the electrolytic cell, okay? And the technology is awesome about how that works. We're also being invited for a national presentation. Now, this is WEFTEC on the right, and that's the Gabelli Funds Symposium for PFAS. Also, one of our lead engineers was just invited to an invitation-only meeting with the EPA about a week ago in Washington, D.C. Randy Moore headed out to represent us with, I don't know, probably 25 of the top engineering firms in the world and 6 or 7 innovators in the PFAS space. It was an honor for us to be there. We're on the radar. It's very good. And, you know, one of the details in moving forward with this New Jersey pilot, not a pilot, excuse me, the commercial project, was getting the state approval, which we readily were able to secure to allow us to go into the marketplace on a commercial basis, which is pretty awesome. So a lot of work. This has been 3.5, 4 years of work. One of the questions everybody asks is: You know, are you sure it's scalable? Yeah, we're sure. Stack up the units and move more water. And so this has begun. That's a 1,000-gallon-a-minute system on the right. Now, it says 360. I want to point out, that's 360 inches. Somebody said, "360 feet?" No, it's 360 inches. So call it 20 by 30. It's a small building, and a 1,000 gallons is a pretty big system. You know, some of the largest projects we've looked at, you might have 3,000 or 4,000 gallons a minute. So you would have three buildings, right, that size. All very doable. We're thankful that the first projects are smaller, because it allows us to get in the field, move, be more nimble, and really execute in a timely way. And so this is, this is a, this is a great start. Of course, we always want it faster, but we're thankful, and we know we've got a winner. So we're heading into commercially validating the science and the solution with a full service program, including equipment, service, maintenance, membrane exchange, and disposal of PFAS. And that is a full solution. Okay. PFAS is a big one. On the technology front, energy, right? So we acquired this technology. Remember, this is the group. It was eight years of R&D before we got there. We're in the battery-building business, and it's sodium sulfur. And there's a couple of key value propositions, extraordinary efficiency, zero to 100%, 100% back. No dendrite formation. No dendrite. Now, dendrites are these deposits that form across the surface of electrodes that impede conductivity over time and make batteries use, lose their useful life. None of that. No rare earth elements, no, no lithium, no cobalt, no nickel. Long lasting. These are, these are meant to be stationary. They go in an array. So that's a cell that you see, and you stack up the cells, you connect them, and you have a battery. So you optimize the technology on the building of cells, very much like a Tesla would. The difference between ours and Tesla is, we don't have lithium.... lithium is definitely a rare earth with geopolitical concern, extraordinary rising costs. And also lithium is prone to runaway fire risk, very combustible. If damaged, if overheated, a big problem. I would urge you to do a search on the internet. Look up runaway fire risk, lithium batteries. It's gonna shock you, how prevalent, how common, and we believe there's a gap in the market for a fixed-site battery that can have performance, a better battery for a fixed site, not for a car, for a fixed site, long duration, without that exposure to the, runaway fire risk. Okay, so we raised about $900-something thousand. Here's where it went. This is pretty quick. I'm gonna point out that this is, I don't know, three or four months worth of work, maybe five, and we have assembled the components to be able to start making batteries. This is located in our operation at Oak Ridge, Tennessee. It's the first time we've shown these pictures. We're gonna have some additional posting on our blog that tells the story of these, because we're already doing sample runs, right? So as all this equipment comes in, we have to test it and work with it and make sure we understand and have it running exactly as required, and then it becomes an assembly line, taking a battery through this process. We're very excited because we'll be making batteries very, very soon, and it's really cool. It's really cool. Okay. Why, why, why buy BioLargo? You know, we would argue, these are arguments, right? And we, and we can debate them. We'll debate a little bit together. The business model is a powerful business model. It's kind of a hybrid. You know, we're not just licensing. We're licensing and supplying across multiple markets with a lot of talent in-house. Part of that talent we had to build, it was expensive, costly, took a long time, but we did so, so that we had the ability to go into a, a service provider role and sell our technology into the market so that it could find adoption. And as we do that, it becomes incredibly powerful as a, as a tool in the hands of partners. We can help them make more money and do something great, right? And revenues are, are of course, are growing like, you know, consistently and, and increasing numbers, which is, we think that's gonna continue. We're in a good cash position. No debt, of course. SG&A is not rising dramatically with rising revenues. There's some, and on the engineering services side, we'll see more of that, but we're not increasing overhead until we have the revenue. That puts a lot of pressure on management, but, but, you know, that's what we signed up for, and so we're doing it that way. And as a result, you know, we survive when others don't. We don't take exorbitant risk. It's a well, managed capital, resource and puts a good work. Net operating for, as we said, for ONM, can carry the whole company, and we believe we're actually gonna witness that. It's not just a theory anymore. It's happening. And so we believe as the numbers continue to rise, we're gonna see that happen. The PFAS technology, it's a, some consider it the most strategic in the portfolio. Why? Well, because, because $10.2 billion just went out the hands of 3M, it's a big deal. And every drinking water supplier in the country... There was an article in Bloomberg just the other day entitled, you ready? The Poison Inside Us All. The Poison Inside Us, okay? So this is a problem. It's not gonna go away. There's a lot of work to do. We have a great solution for a really critical problem that can save our customers a lot of money and help our partners make a lot of money and do something great. And then we have diversity. Sometimes we get criticism. From my viewpoint, it's been the saving grace of this company. The ability to diversify, continue innovating for an extraordinary long period of time, means that we have a base of assets that we can deploy, especially with the strategy, through invent, prove, and partner, then we have a diversity that can carry, growth and revenue for decades to come. And then our commercial strategy leans heavily on these, on these partners, right? With higher margin distribution, lower capital risk. I mean, it's really pretty simple. It's so, it's so easy to say. It's hard to do, by the way. It's hard to find great partners. Hard to find, and sometimes you have to grow with them into it, right? So that, we're doing that as well. But without the partners, you know, it would take us decades to achieve what some of our partners have achieved. You know, we talk about Garratt-Callahan, we'll talk about it in a second. You know, it's a hundred-year history. You know, you just don't do it in a few years. But if you can support them and their mission to serve by increasing revenue and margin, and supply something great for those customers, that's a win-win. And so it helps us, and it helps them. There's a lot of reasons to be confident in BioLargo. So a lot of analysts, there's a consensus that we're undervalued, of course. I think that's part of the OTC listing, as well as our need to uplist, and it has taken us a long time. You know, I always say, the only thing I'm really sorry for is how long it has taken. It took a long time to get here. The thesis, though, is really pretty basic, and that is, the pain of our journey is pretty much behind us. You know, we have very little that threatens our company. It's now all about exploiting this commercial opportunity and, of course, harvesting the fruit from planting seeds for so long. Now, before we do Q&A, I wanna... We wrote a couple down because they're obvious questions that we get on just about every conference call. I'm gonna try and address them real quick. I don't mind additional questions either, by the way. You know, you can ask whatever you want. What's up with Garratt-Callahan? Okay. The reason people are asking so much, which is a good thing, is we had projected success long ago. Gosh, probably a year ago, and we're still here, right? Working with our first customer acquisition, first landing our first accounts, and there's a number of them. Great company. We're so thankful to be working with them. The prospect list is not just a couple, it's expanding. Recall that Garratt-Callahan also rapidly came to appreciate the diversity of our portfolio, and therefore, they're actually advancing commercial activity in that regard as well. We're predicting a big win with Garratt-Callahan. It's again taking a lot of work, and we're anxious to settle it once and for all with success. But we're confident, have no reservation about anticipation of success with Garratt-Callahan. Okay, that's number one. What happened to the first industrial client? Remember we did phase one, waiting for phase two? We're still waiting for phase two. That's the answer. And so you'd say, "Well, why?" Right? Why? Why aren't they just plowing ahead? We don't actually know the answer. In this situation, we have a guess, and the guess is they're waiting until the government makes them do it. I think it's that simple. Until the government says, "Do it," they're not gonna do it. They're gonna wait, because why spend money today when I could just as soon spend it next quarter or the quarter after? I think it's that simple, but it's very much alive. We have ongoing communication, and when they say, "Go," we'll be ready to go. Okay. What's the project timing on the mineral extraction? You know, once in a while I hear some really, really harsh criticism, and I get it. You know, I do get it. This is a project we took on years ago, and we worked with the client to develop a mineral extraction technique for some waste, a very, very large waste stream. And we figured out how to turn it into, you know, well over $1 billion worth of product. Multiple billion, actually almost $2 billion, with a capital investment somewhere in the $30 million range. So we also filed patents, by the way. I don't know if anybody's noticed, but we've actually received awarded patents in that area, and it's focused on. Anyway, it's great. It's great. As soon as we got all that done, the partners, the business team that owns it decided they had some business they needed to get in order. So they're working that out. And as soon as that's in order, we believe we'll move ahead, and we're waiting for our customer. And you gotta remember, this is that stuff's been there 70 years, and if it's worth over $1 billion, waiting a year or two to make sure you get it right, that's just fine. So hard to predict the timing, very much alive, not going anywhere, still in communication with our customers, anxious to move forward, patented in the area, believe it's gonna be a winner. Absolutely no way to predict its timing, just so we're clear. No way. I wish there was. What about the large waste-to-energy projects? One went on hold in South America. We've been notified just recently, like two weeks ago, that it's back on. I don't- I'm not sure what back on means, actually, and I say that with all grace to our customer. There's a lot of money at stake here. We've also been presented four other projects in Southeast Asia, which are very large waste-to-energy projects, endorsed, with concessions assigned by governments. And we've been asked to do the preliminary feasibility study, environmental impact, excuse me, the environmental impact study, preliminary feasibility, which is all about technology choice, and budget, and then ultimately do the design work. These are very, very large projects. They're right in our wheelhouse of talent. And we've been informed that, from our client, that as their capital is released, secured and released, and executed upon, we're the choice. So stand by. Again, hard to predict timing, but very much still engaged and active. One of the other questions is, sometimes we have some things that we start and we stop, and we get a little criticism for it. And I think it's interesting because, give you an example. One of those examples is, of course, the ballast water. You know, we spent about three years analyzing that market and investing heavily in knowledge. We were troubled through that journey because we had ideas about how it, quote, "should be done." While we investigated the market and negotiated with potential partners and contract manufacturers, and remember, this is back early before we had the engineering group, too. They were early in our journey. Basically, as we got into the execution mode, with deadlines looming on regulatory enforcement, the International Maritime Organization and the United States Coast Guard came in and pushed out the compliance for ballast water exchange by 25 years. 25 years. You know, and so the way we think about that is, what, what everyone in the entire industry, water industry, was expecting to be the highest growth, highest margin proposition that the water industry had seen in the last 20 [inaudible] Uh-oh, did we lose Dennis? Dennis is still connected. Sounds like. Let me see if I can get him reconnected. One moment. We do have some great questions. If you do have a question, please type it into the chat. Dennis, are you there? Yeah, there you go. Yeah, no problem. Can you hear me okay? Yes, now we can hear you. I must have lost everybody. It's probably because I'm talking too much. Let's do this. Let's wind it down. There's a bunch of questions you may have. I'm happy to field them. And again, I want to let everybody know this is the best time in the history of the company. And we believe that as hard as it was to get here, we believe success will be that much sweeter for everyone, not just the company, but the stockholders and the performance going forward. You know, the question of the moment is: Our market going to reflect our underlying true value? Well, we certainly believe it can and it should. I think getting this we're witnessing some of the difficulty in being on the inefficient market. OTC market's inefficient. That means at any given moment, the buyers and sellers may not match up with a high volume, high flow. We don't have institutional support. 90, 95, 98% of the world's money is not gonna invest in our company, right? You got to get that to a national listing. And we wanna do that when we're strong and powerful and not needy, and that time is coming. That time is coming. As we turn to profitability and start accumulating cash from operations, those opportunities expand exponentially. And, again, just when we go back to that thesis of, where are we at in all the commercial development, the most difficult, painful work is behind us. Now we get to, now we get to reap the fruit of those investments. So let's open it up to questions. All right. Thank you very much, Dennis. Certainly an exciting time, BioLargo. It's great to see those financial charts moving up and to the right. The pictures of Oak Ridge, too, look really cool. I'd like to go check out your facility sometime. Thank you for sharing that. All right. Yeah, let's bang out the hard question first. So an investor writes here: So many of our projects, AEC, MLD, W2E, and now maybe Clyra, to name a few, have not met revenue timelines that we originally thought for various reasons. Is there anything we might do differently to make this the exception rather than the norm? Yeah, that's a good question. Well, we've done some of that. I mean, you know, that is like a million-dollar question. So, yeah, here's the answer. What we did with ONM was we went vertical, and we became a solution provider in an industrial market, and we found success, right? It was hard-won, I will point out. I mean, incredibly difficult, but we did it. And when we started, we said, "We'll never be in the misting system business," and now we can make a misting systems 20 different ways and do just about anything. And we had to do it. And then we said, you know, we had built out manufacturing infrastructure and service infrastructure and tech and all this vertical work to be able to provide a solution. Okay, that's what companies do when they don't want to depend on a partner, okay? So the choice is expensive. If you said, "Look, we're just gonna go do it all ourselves for Clyra," then the amount of capital that's required is gonna go up so dramatically, and the risk of execution is dramatic, and the time is dramatic. And so, right. So what we... In fact, we're facing that right now with Clyra. What happens is, do we wanna go out and build a $200 million sales force? We can. Not rocket science. Or do we wanna launch with a global multinational? And the answer is, the answer is you want to launch with a global multinational, if you can get that done. Now, getting that done is not easy, but let me tell you, when it happens, the yield is multiples of what it would be if we did it ourselves, and the capital requirement is a fraction. So I think it's the right strategy. Unfortunately, it also means that you become dependent on partners. Some of these partners move faster, some are quicker, but when you get it right, like at POOPH, it's dramatic. And I think that's what's gonna happen with Clyra. I also think that's what's gonna happen with PFAS. You know, we're the food chain of potential partners for us in these companies, including the battery, is at the highest level because the innovations that we now have, the full support of internally, knowledge, talent, engineering, science, is so high that we can compete at the highest level. And so I think it's getting easier, and I wish it was faster. So there you go. I hope that answers the question. Yeah. Yeah. Well, as a follow-up to that, what product do you see as the next revenue stream, and what is the approximate realistic timing? Well, yeah, I mean, yeah, that's a good question. So of course, we have the odor and VOC products. That's a whole family of products that's going, that's already in the market, already generating, you know, cash flow and, and really heading, taking the company to profitability. Clyra is commercial. Doesn't have dramatic sales yet, but we have a major partnership. So let's assume that could happen Q1. If it happens in Q1, you're probably looking another six months before you're really gonna see the financial implication. But it's so big, it didn't matter. I just want to be clear: It doesn't matter. It's so big, it doesn't matter. It'll, it'll eclipse everything that we've done, and so we think it's worthy to play the game at that level, and we believe we'll be successful. So equipment, the PFAS projects, you know, we've been talking about that for over a year, and we finally got our first one. The first project's probably in around the $500,000 range, just so we're clear. And we've got a number of projects that are on our table in final pricing and scoping with customers saying they want to do it. Not in formal execution mode yet, but close. All in, that's probably $7 to 10 million worth of business. That $7 to 10 million worth of business probably spreads out over the course of about a year. When you get an engagement, you're probably six to nine months minimum before you actually get an installation. And we generally price ourselves with payment terms that are a third, a third, and a third. So if you get big projects, they're gonna take you a year, you're probably a year and a quarter spread out over the revenue, but you've got multiple of them going at any given time. Battery is pretty basic. You make batteries, you sell them, or you take your batteries that you make, and you go in the business of providing storage. And providing storage is a very interesting opportunity for us because we have such a significant value and price advantage for fixed-site storage. It's also highly subsidized. There's a 30% tax credit for batteries. In California, if you're gonna install a solar panel, it's required to have a battery now. Okay, so do you want an expensive battery that has a runaway fire risk, or would you like one that's domestic supplied, lasts longer, lower cost, and more energy? Well, that would be us. So it's a better battery for fixed site, better battery. So again, all of that's so much, you know, I think the way to judge this company is, are we finding early market commercial adoption? And then the question is: How rapidly can we secure partnerships to really see these things expand? And I think what we're witnessing in PFAS is good testimony to that. Also, while Clyra is taking a long time, the stakes are so high. And I wanna remind everybody that Clyra, on its board, if you go to the Clyra website, clyramedical.com, you'll see that we have Linda Park, head of licensing at Edwards Lifesciences, and Nick Valeriani, former CEO of Johnson & Johnson Wound Care. You know, when we sit with folks like this and look at our exact position, you know, they point out to us that we are competing at the highest level in the industry with the top players in the world, who will adopt, co-brand, and launch product with us. And what we should do is we should do whatever they ask us to do. Okay? And that's what we're doing. We're gonna give them a tool that will allow them to capture the market and be number one. And if we're doing number one, that's how you do it. And then everyone we've talked about here is a potential number one. So let's get it positioned with the right partner and then let it go. I know time is our enemy, but, you know, we're in a, we're in a business now that requires extraordinary excellence in science and claims and data and regulatory, and so we've, we've de-risked them so far that now we're seeking partners that can move faster, and, and we're getting, and we're getting it. So again, we hate the delay, but I can testify that it's worth it, so. Great. Thank you for that. On to the batteries. So the batteries you guys are creating, is it already accepted in the market as an alternative to lithium, or is it viewed as, like, a concept? Will there be some type of. Oh, no, no, no Acceptance hurdle? Oh, well, again, there's always hurdles, so yeah. I mean, innovation's, the nature of innovation is who are you? Where'd you come from? And why should I buy your stuff? I mean, it's always there. Sure. The technology of sodium sulfur is not new. It's over 80 years old, and we point out that CATL, one of the leading suppliers of batteries out of China, has a sodium sulfur battery. And people that are in the industry, technologists that are in the industry, recognize sodium sulfur as having advantages over lithium, namely exactly what we said, higher energy density, no runaway fire risk. So that's, that's a safer, it's a safer battery. Okay. A lot of people do sodium sulfur, but they add other ingredients that are rare earth elements. We don't, we don't need to do that. That's unique. And I asked, when we started this, this whole thing with our engineers, I said to Randy, I asked him, "You know, why is it this group could make this happen? What is it? What is it that made the special sauce?" And this is really important, because here's the answer. Randy, Randy Moore, you ready? They did the work. They did the work. Eight years of work. They did eight years of work, okay? They experimented with all the different chemistries and the designs, optimized the design to make it functional for a fixed-site battery. And so we got to piggyback that eight years of R&D and, and come into, you know, building manufacturing. I mean, it's crazy, and it's really good. And so, so yeah, will we face some, you know, objections? Sure. Everybody's selling competing wares, so yeah. I can tell you from my personal experience in the field, talking, looking at projects, talking with partners, the general response we get is: When will you be ready? So when? That's the first. And how many can you make, and how much are they? That's it. They don't say: I don't believe you. What they say is: I'll take them. When are you gonna be ready? And so, right, so our challenge is to, you know, first make batteries. And, and what we found ourselves doing is talking about, you know, ideas and not batteries. Well, it's this battery. Well, show me one. Well, okay, so we're making batteries. Once we get... Right? So then we test them, and we go through a process of vetting, and we bid on projects. Listen, I would just, you know, just to give you an order of magnitude, the batteries that are incorporated into battery farms, for example, so let's say you have a solar offtake, that solar needs a backup to optimize the solar, right? You don't want to be loading it all into the grid. You may be able to provide grid-scale storage for the public utility. That's for the power company. They can move their electrons into your batteries. That's a good business. The order of magnitude, you know, when you talk about a 500 megawatt plant, 500 megawatt or a gigawatt, when you look at these batteries, you know, that's about, you know, $200+ million worth of batteries. I mean, you, you gotta, you gotta sort of get your head around that this is large-scale, long-duration energy storage in the most prolific expansion of the electrification of the world, in the history of the world. That's what we're talking about. So just the other day I was with a project, and they said, you know, they've got a massive 1,700-acre solar farm they're, they're installing. And they said, "You know, there's a 3.5-year backup at Tesla. 3.5 years to get a battery, a megawatt." Okay? There is. And, and again, we talk, you hear about it, until you actually want to go out and buy one, and you can't get it. Okay, so there's a gap, and the gap is domestic supply, no rare earth, safety, long duration, and we, we believe we can play a role there. Now, how do we change the world? We get great partners. Well, that'll include contract manufacturing to start for sure. A lot of money in this space, too. It's also a technology we could sell. So how, how can we make money with batteries? We can sell batteries, we can sell designs, we can partner, we can exit, we can build battery farms. We can do all of it. We have the internal knowledge with this company to do every component that's required in that chain. That's what's unusual, and it's also why we said, "Yes, we're gonna do this deal." And so we brought a little direct money. We'll go through that build-out stage, and we'll start making commerce. I'd like to see us in the commerce making business in Q2, Q3. Don't hold me to it exactly, but we think that we'll be knocking on that door, so we'll see how that unfolds. All right. To follow up on that, can you give us a timeline of validating efficacy, meeting demand, fulfilling orders, and when we'd be able to produce enough batteries to make- I don't even know how to answer it. Enough of. Yeah, enough is funny, right? If you, so that's an interesting question. If you said, we're gonna have to build our own factory, so let me just reiterate, you know, we're not a company that builds and hopes they come. We're gonna have them come, then we're gonna build it. Really important. So our key to the battery tech, at the inception, is to find good contract manufacturing. And we've already had two conversations with potential partners. There is excess capacity because they can't get their lithium. I mean, it's crazy, okay? So there's battery manufacturing capacity in the marketplace. So that's one. We need to secure that, tighten it up. You can't tighten that up until we finish our production line design, because you'll take that design to a partner and say, "Here it is, make it go," until that starts, right? Okay, so once we have the. Now, the batteries that we're making out of Oak Ridge, we can sell, but it's a small production facility, so we can't go sell millions of batteries. We can sell thousands of batteries, maybe, right? But and that's a battery pack. So a small pack in our prior presentation, 25 kWh, is about the size of a small air conditioner. We can produce that. We can make that out of Oak Ridge, Tennessee, if we want. Start selling batteries. Our, our vision is bigger than that. Bigger than that, right? I mean, we're talking about, you know, long-duration grid scale. So if you're gonna put in 1,000 acres of solar panels, you're gonna want our batteries there. That's what we're talking about, the order of magnitude, you know, the $100 million account. Okay? And just think about supply chain, you know, POOPH, POOPH has taught us a number of things. You know, in the early days, you go out to the supply chain, and they say: How much sell-through you got? Well, now we got a lot. So now when we go, we say, "Here's what's happened, and here's what's gonna be." And guess what? Everybody wants your business. The same thing's gonna happen with batteries. Once we find some selling through channel and the projects that we can secure, we have the knowledge, we just need the infrastructure. So I think there's gonna be a good, you know, six months, a year of development work. But I suspect that we'll be in the business making mode well before then. You know, I presented just a couple days ago, it was with a major hospital system. And hospitals are really key customers for batteries because they need a backup power generation capable of withstanding the brownouts at the grid. And there are gonna be lots of brownouts. I don't know if you even know what that means. That means the grid can't handle the volume coming at it. So when the brownouts happen, hospitals are down. So hospitals, with any kind of resource, say, "I need a battery in every building." So sat with a client, they put in 1.6 MW, 1.2 MW, in the commercial market. It's about $1.2 million worth of batteries through Tesla. That's the market leader. And you would say, "Okay, so I can compete on price, I can compete on duration, my battery's gonna be longer, and I can compete on safety." So the guy looks at me and says: "When are you gonna be ready? And can you get me 1.6 MW of energy battery storage backup in four modular systems, and when are you gonna be ready?" I said, "Well, we got a little work to do on supply chain." He says, "If we signed a contract today, you won't install for two years. So you tell me when you're ready to make a contract." That's the business. So I got to backfill that and make sure that we can make business. So I hope that answers the question, but it's pretty exciting actually. Yeah. Do you have any estimates on capital needs for the battery? Well, it depends on how. Scale. Yeah. Yeah, sure. I mean, I think that business, the way to say it is, whatever capital is available, you can spend it all, okay? And make the requisite income to justify the capital. It's a scale question. So if somebody said, "I'm willing to back it," right? "And I'm willing to back it in a big way," that business, you could spend $350 million so fast, it would not even... You wouldn't even flinch. Our thesis is simple: We're not gonna do that until we have the sell-through. We're gonna find the channel and make sure the partners are in place, so that when we have capital requirement or outsourcing through manufacturing, that we have the volume to justify it, okay? So how much is needed if you, you know, if you do it that way? Oh, a fraction, fraction. A fraction of the capital. This is the way we've run our company. Think about, think about, odor control, you know. We, we spent years in validating it down the market, went vertical, got customers cash flow, and then when the right partner shows up, we outsource manufacturing, cost plus, cost plus, critical licensing, royalty on sales, gave them the territory, and bargained for an equity position. Why can't we do the same thing with batteries? Of course, we can. That's the whole point. We have a technical asset that we own the intellectual property on and know-how, that's special in the market, potentially a disruptor, and it empowers our partners to make a boatload of money and do something great. That's the thesis of the company. So that needs to unfold. It needs to unfold. I'm not ready to, to say, "Yeah, we can do it with $5 million or $3 million," or I'm not ready for that. You know, the way we looked at it is, I know one thing, when I have a battery that's viable with the spec that we believe it is to- it, it is, we're gonna find a market. And the minute we find a market, we can make choices about whether we're gonna go vertical, whether we're gonna out-license or partner or supply chain it. All of those options are available to us, just like they are with every other asset in the portfolio. We're gonna make the one that preserves our dilution, maximizes our replication and our margin to make money and do something great. And we, and we need to get there. We're not there yet. I've modeled both. I've modeled both, and I've had some pretty significant money come to us and say, "Write the blank check. How much do you need?" And I think, uh-huh. Yeah, we're not quite there, but we're gonna be there soon. So anyway, we're still figuring that one out. Got it. Let's change gears here. So the New Jersey project is significant, a real-world installation on, drinking water, PFAS r emediation. But from a revenue perspective, It's about $500,000. That's it. Yeah. Yeah, so can you give some insight into the size of the project, like flow rate, population size, and sector that BioLargo partners have actively submitted project bids using AEC, as a technology? I don't really want to do the detail, but I tell you what, I will commit to. I'll give you just a snapshot. We're gonna have some press out soon with the location and quotes from the partner and from the customer, and it's really awesome, but it's a small site. And from a technical innovator's perspective, it's a great start. I mean, if you ask an engineer, you know what he'd say? "Yippee!" Because it allows us to get in the field, right? Get in the field and do the work. And when it's smaller, you know, less chance of error and things happening that you can't control. So this is good. It's a perfect start. I wish it had happened 6 months or 1 year ago, but it is a perfect start. So, anybody that thinks its value is limited to the size or its revenue, they have no idea what they're talking about. The fact is, it's drinking water in a community, it's a small one, and it's a small community, which is good, and there's many more coming. You know, the average – and we've talked about the average sizes, so this will be on the smaller, $500,000. Generally, the projects are gonna go from about $500,000. I think one of the largest that we're involved in is about $5.5 million. Now, I've seen them go up to $17 million and $20 million, okay? But those clients are not gonna take us on as an early adopter until we've positioned successful execution in the market. And once we have that, then we're a contender, probably with a partner, to go after those $10+ million projects. But not yet. You have to work your way up. So that's what we're doing. So small is good, and there's many more coming, so that's how we make our money. The big boys, the big boys wouldn't even touch it. Perfect. We're your Huckleberry. We know how to do it. We know how to do it well. It's a great start for us. And the bottom line is it still has the same regulatory compliance as the big boy deal? I'd like. More details soon. Follow up. Won't be long. Yeah, go ahead. Yeah. So folks are wondering why more AEC projects have not begun. Is it early adoption problem? You know, I think it's. Well, sure, it's both. It's that and also regulatory. You know, what happens is most, yeah, people don't want to be first. That's a big part of it. They want reference size, so that's part of it. And then, there's a lot of people that are just now coming into budget, got money for it, or they've got regulatory pressures for it. And, the people that jumped early have spent a lot of money on carbon. They're gonna regret it, if they don't already. It's not gonna meet spec. They jumped too early, and they're gonna now, here's in many of those systems that have been installed, we can actually help them make it work, because we, some of our tools can come alongside those systems and really optimize them, including, you know, after RO, we can, we can treat, treat the concentrate, comes out on an RO system in a very effective way. So, you know, it's all meant to be what it is. You know, we are here, ready, commercially viable with our first accounts. The regulatory enforcement is coming aggressively. The largest tort litigation in the history of the United States just happened. Money is flowing. The public awareness of this problem is at an all-time high. Still, you know, everywhere we go, we ask people in the audience, "Who knows what PFAS is?" It's about maybe half the room, maybe at 40%. "Oh, what is that? I've heard of that." Okay? It's the most significant contaminant in the history of the industrial world. That's what we're talking about. So this is a big market, gonna go on for decades, actually. Look, from our perspective, you know, we're here, we're in it to win it. I think that we have a technology. You know, we watch very carefully, very, very carefully, all the technical innovation and any of the innovators with any sort of cred, credibility, street credibility who were at the showcase at the EPA with us. We know their systems. We know what they do and how they work and how they don't work, and how they fall short of scalability and have extraordinary high pressures and heat, you know, heat issues. And I mean, it's crazy. We see it all. Now, we keep looking for someone that actually can compete head on with our claim, and we haven't seen it. We have not seen it. So show me a technology, now, again, that. And by the way, we wanna. If there are, we wanna know it. Show me a technology that claims to be able to achieve non-detect. Show me a technology that can do 1/40,000th the waste stream of the conventional incumbent. Show me technology that's modular and scalable the way we are, right? I don't know what that is. We think we stand alone. So, you know, and now we've got highly skilled people in this company who are executing on the front line and doing the hard work to establish, of course, market penetration and marketing. And we have a pipeline of potential. You know, people that have expressed interest is scoping and pricing is already in process. That's probably $7 to 10 million. There's probably another $15 million, where the customer is saying they wanna do it. And now that process is a lot of work. And then there's, you know, as we said, there's over 100 in the pipeline of people that have expressed interest. That's all it is. A lot of work to do, okay? And then partners coming on as well. You know, when you form a partnership with some of these companies, it's a long journey. It's not, "Oh, you're great, and here's my customers." It's, "You're great, and now let's get to know each other and let's go..." And in fact, I'll give you an example. This is a great story. We've been approached by one of the leading suppliers of equipment for fire, emergency fire situations in airports. And they have PFAS. They supply the firefighting foam, firefighting foam. So a big company, very large, came to us and said, "We'd like to talk about working together to go do the changeouts on all these locations all over the world." They're one of the leading companies in the field. Okay, so now, think about what we just said. That's 5,000+ locations. That is number one. That is firefighting foam. There's a changeout, and there's a cleanup required. It's probably two or three work weeks worth of work at each location. Small systems, portable, right? Portable, modular. You can control everything. You talk about a great business opportunity. So here's the thing, in that situation, you know what we say? "Let's do one. Let's do one and see how it goes." That's what we're doing. That's how it works. One turns into two, and then two turns into five. Same thing with Garratt-Callahan. One, then there's three, then there's 10, then there's 40. That's what we're doing. We're earning our position. Okay? Yeah. Again, I hope it is. It's not easy, but it's good. Yeah, go ahead. Yeah. Last question is on that topic. So on the AEC customer not moving forward on phase two- Yes. If they were waiting or being told they needed to do it, why did they wanna go away from the GAC system they had been using and bring us in in the first place? Right. No, that's. Yeah, your question is intuitive, which is, they know they're gonna have to make a change, so when is that? That's basically the question. The answer is, we don't know all the details, but eventually they're gonna have to make a change. So we'll sit here and wait until they're ready. That's all I got. There's no discussion of, you know, the inner workings of how they make decisions. That's their business. They're a big company, too, by the way. They're gonna make the decision that their science, engineering, and legal tells them they can make. And if they can wait, wouldn't surprise me if they wait. So unfortunately, it's just the reality of these very large capital projects, you know. And we've had it, you know, we've had this happen over and over. We've got a big project out near Sacramento, and the clients promised us, oh, you know, three different occasions, "We're going, we're going, we're going." And then stuff happens, and capital budgets get pushed off, and they say, "You know, we're thinking we can wait about nine months." Okay, we'll be here when you're ready. It's the nature of the business. And so what you do is you just have a lot more pending. You know, I know it's hard on the front end, but on the back end, it's not gonna matter. You know, that's just the nature of the process. So yeah, so this is a customer that we believe will come full circle, and it'll be a big one. And when they're ready to say uncle and get started, we're ready to go. And so far, that's what they tell us they're gonna do. They've not said anything to the contrary. So I don't know how else to answer it any more clearly. Yeah, no, that was great. Thank you very much, Dennis. Okay. Those are all the questions for today. Okay, then let's just wrap here real quick. Again, let's see, we're now—how much longer did this take? Yep, a little over an hour. A little long. I'm gonna try and keep it a little more pithy. Please reach out and email us. We're happy to talk to you, alex@BioLargo.com. Get you on our email list. Q4 is gonna be a great quarter. I mean, we're really excited. Some of these big partnerships are really coming to bear, which we're very excited about. So we stay steadfast and sure, okay? I know it's been a long time for some of you. It's in my heart of hearts, I believe it's worthy, that we're gonna go out and execute and make it worth a fortune, and also do something very special for the world. So thank you for your support, and let me know how I can help you. All right? Great. Thanks, Dennis. Thanks, everybody. Take care. Bye-bye. Have a good night. Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.