Good afternoon, everyone, and welcome to Sidoti's virtual Microcap Conference. My name is Michael Matheson. I'll be your moderator this afternoon. I'm an equity analyst here with the firm. Today, we're fortunate to have with us the president of BioLargo. Before I introduce him, let me just cover a couple of housekeeping details. We really encourage everybody to ask questions. So, to participate in the Q&A, look at the bottom of your Zoom screen. You'll see an icon that's a circle with three dots in it. Click on that, and that will open up some options, including access to the Q&A panel. Just type in your questions. Dennis will leave some time at the end, and I'll read off your questions, and he'll tell us what he thinks. So, with that, let me introduce CEO Dennis Calvert. Please, Dennis, take it away. Michael, thank you very much, and thank you, everyone, for joining us. BioLargo has been innovating now about 18 years. It's quite a journey. I'm predicting that when all is said and done, we'll be known as the company that did the work, stayed the course, and made impact for really a greater good. So, our slogan is, "We make life better." Once in a while, somebody will say, "Could you aim any higher?" We're aiming pretty high. The vision is significant. And as a result of sticking with it for a very long period of time, we've built an entire portfolio. We think of ourselves really as more of an investor. We're investing in technical assets for impact, and then we take them through an adoption cycle. So, innovation future, right? Innovation engine for a better future. It's kind of like an incubator, but a little different. Also, it has a flavor of being an almost private equity investment using public funding. It's also got this idea of co-investing. It also means that we do hard work. We go into a deep, deep dive to see technology, find a market, find adoption, de-risk it, and partner it out. Okay? Of course, forward-looking statements. We talk about risk all the time. These assets have extraordinary risk. Our job is to overcome the risk. We've demonstrated our ability to do that for an extraordinary period of time. We're now at the cycle for the company of witnessing the harvesting of investment. You know, we're not at the front end of a long cycle. We're at the tail end of a long cycle. It's a chance to really be part of the monetizing opportunities that are now on our desk. They're in motion. They're happening. Deals signed, executing, and it's unfolding, which is really a nice time for our company. The thesis is pretty basic: innovation and science. Innovators, science, and entrepreneurs, lots of engineers. I think we have something like 12 engineers, 12 PhDs, and maybe 27-30 engineers now, and growing. It's a very highly skilled group focused on science and engineering for a purpose. Sustainability and health, driven by a purpose, best in class. It's part of our cornerstone. If we don't think it's number one, we wouldn't do it. It's a debate. We understand it's a debate. So, I'm going to pose to you that we can defend the debate. That's a deeper dive. We're going to try and cover some of it. And we focus on a gap in the market, and then we monetize through a whole series of strategies, whether it's going deep into the market for cash flow, profit, joint venturing, IPO, selling. We have an entire portfolio that creates an extraordinary depth of monetizing opportunities, especially when you're willing to pay the price and, as we say, do the work. We did the work. That's going to be our legacy: important things, and we did the work to find the market. So, the innovation engine, right? So, we've got engineering, R&D, finance at the corporate office. Each of these companies has a CEO. At some level, we serve as interim while we incubate them and get them up. But by the time they go commercial, we've got extraordinary talent at these company levels executing business development strategies with a core competency of technology, science, and engineering with a game-changing opportunity. So, we've got a battery tech, which is a game changer, we think, we believe, for long duration. That's grid-scale batteries for things like AI and data centers. Big market, multi-trillion-dollar market coming. We're in it to win it. Clyra. Clyra Medical is infection control and wound care. Invested $25 million, 13 years, now in the cycle of adoption. It's awesome. ONM, odor and VOC, historically our most profitable asset. We had a bump. We're going to talk about the bump in this last year. We got a dispute. We got a $4 million lawsuit. It's got some grit to it. The technology will reposition. We believe that that bump has created an opportunity to acquire value in our company at a lower price, and we think it will reposition. We're talking about that. PFAS is forever chemicals. We're the cutting edge of eliminating, collecting, super concentrating, and destroying PFAS that's forever chemicals, and we are now in adoption cycle. Thank God. It's taken a long time. On side with the federal EPA, state EPA, first installation is in. It's just going live. We're going to press on that any second. Any second we're working on it, and it's functional. It's really great. We also have a pipeline of well over $200 million worth of projects. As a result of us de-risking that asset, we're now in a position to partner with scaled deployment companies that have infrastructure with 50 and 70 years of history who want to put technology to work as a solution provider all over the world. Okay. Now, remember, if you're doing number one, right? This is the thesis. Unmatched technology. Unmatched. It's an argument. I got it. It's hard to hear a presentation like this and really buy it. In fact, you have to do the deep dive. Start with that. Do the deep dive. We'll help you. Okay? As an unmatched technology, it means it has a chance to be one of a kind all over the world. That's what we're talking about. That's all we do. In fact, we always say, "If it's not number one, let's not do it." We don't have time. It's too difficult. It takes so much energy and time and passion to get through all those barriers to entry. If you can't be number one, it's not worth it. Incremental innovation is nowhere to invest. Now, we've refined that model. It's one of the reasons it takes so much time. We've become very good at selecting transformative tech that has a chance to transform a market and the skills and the tools to do so. Capital conserving. Try not to be the bank. Do what you got to do. Once you get adoption, leverage it. Take your core competency and leverage it. Highly qualified people. You already know that. We covered that. Driven for impact. This is a forward-looking statement of saying, "Hey, we think that this is like exit value." We're not always there. It's a process to get there. But if we didn't believe that these terminal values were achievable on an exit, don't do it. It's too hard. Okay? We do have mark-to-market. We call this the sum of the parts bull case debate. Analysts love to go through this with me. And we go back and forth quite a bit. But we have events that have unfolded already that give good reason to believe this valuation is justified. So, our market cap is somewhere around $50 million right now. We would argue, it's an argument, that it should be somewhere around $200 million. Okay. Mark-to-market, OTCQX, not a big market, not fully funded, not great. You know, we're in good shape. We're not in great shape. We got about $4 million in the bank, no toxic debt. We've spent a lot of money to get these assets to market. In fact, if you think about it, we're investing around the portfolio to advance these into adoption cycles. Our corporate overhead is extraordinarily low. I mean, we do so much with so little. And that's the thesis. In fact, think of it. We're an investor in the assets that find commercial markets, and we can monetize them in a full menu of opportunities. So, in each of these, there's a mark-to-market. Battery tech, $44 million. Why? Well, because we've raised money there. A lot of, well, a lot of money. About $4 million. Okay. And we're early. It's a younger asset. There's work to do. We have a thesis. I'll tell you the punchline. Don't sell batteries. Sell battery factories. Think about it. Don't sell batteries. Sell battery factories. Okay. Why? Well, because there's massive public funding. This is like the next investment thesis of a $1 trillion-dollar industry. We're in the sweet spot with transformative tech and know-how. It's our ideas, partner, distribute, build manufacturing, be a partner in it, and leverage all that financing, including partners' financing, to go build those. Don't burn your balance sheet. The day you start, you make money. So, make sure you get it. Okay? Medtech. We've invested $5 million. Our partners have invested $20 million. $25 million invested capital. Current valuation, $100 million. What's the ROI? Think about it. We're $5 million in. It's worth $50 million. It's going to be worth $500 million on exit. Maybe $1 billion. So, we're now in the launch pad. Global partner. Two partners. A regional, domestic U.S. organic, plus a huge branded company with one of the leading market caps and reputations in the world. Unfortunately, we're under NDA. That's going to become public over the next three to six months as the product actually goes into the market. We're in the final stages of filing with the FDA on the paperwork. The regulatory approvals are already in place. Very important. We de-risk the technology. We de-risk the claims. We then had to scale manufacturing. In the last year and a half, we've invested about $7.5 million. BioLargo, as an investor, has put about $1.7 million, co-investing with investors. As a result, we own 49% and a 6% royalty. Why is this important? Clyra Medical justifies the entire portfolio. That's what it means. It means that that single asset will create so much value that it justifies the entire investment thesis for our career and our company. And it de-risked the portfolio for investment. It's the reason you want to buy and hold. You want to own a piece of BioLargo because the ability to capture and generate ROI with these assets in our model is extraordinary. And as we say, we've paid the price to own what we own. We've done the work to prove they're valid. And now we're in the monetizing phase. PFAS, that's forever chemicals. Notice we own 100%. This is a game changer. We're now in first installation. News any minute. Systems are operating. Okay? Live. They're live. It's about a five-year cycle. We've invested about $5 million. Okay? Our asset right now, we believe is worth $60 million. So, just run the number. $5 million turns into $60 million. Really? Yeah. That's our business. Okay. What's it going to be worth? Well, we're saying it's going to be worth $750 million. Really? Sure. In order to get there, you need to partner it out. You need distribution at scale. And we're facing that scale. It's a real issue. We talk about risk factors and how we mitigate. You know, what happens in all these adoption cycles is you get to the point where all of a sudden the demand is there. That's what you're doing. You're working to reach the point where there's a pull into the market. When you get that pull, you have to respond to the pull. What does that mean? It means scaled manufacturing, scaled design, scaled deployment, all the scale that's required to go transform a market. That's where we need help. That's the moment we bring in the partner. Not before. We do it when the demand is so great that everyone can see the cash flow and the yield that can happen when the big boy comes in and joins us in a journey to monetize and solve a real problem for the world. That's what we do. Okay? The odor and VOC, we talked about that briefly. Last year, that generated about $15 million, threw off a cash flow of about $6 million to us. And then there's a bump and a derail. So, now we have a lawsuit. Okay? And it knocked our valuation down. The beauty in our business is even as hard as that was, because it was not pretty, is we didn't miss a beat. We did not miss a beat. Okay? First of all, it's our technology. Nobody's going to get our technology. Second, it generated 66,000 positive reviews on Amazon. That's a brand called Pooph, P-O-O-P-H. We terminated a license. There's a lawsuit. It will reposition. We believe that fully. You know why? Because our technology enabled a brand to go out and do over $120 million over the course of two years and establish a national brand. Great marketing. Don't want to take anything away from that. But fundamentally, it will reposition because the technology is that good, and we're already in the deal-making phase. I'm not going to go into a deep dive on all the tech. Let's see. How much time do we have, Michael? PPardon me. You've got about eight more minutes. So, yeah. So, I don't want. I've got so much on the technology side. Okay? But I'll just give you highlights real quick. Clyra is just the most wonderful full circle story. Clyra Medical. Look at the website. We've got the leading physicians in the world now presenting clinical data. The first one starts in about two weeks, 10 days in Maui at Boswick Conference. It's awesome, and these clinicians are the key opinion leaders. They are the opinion leaders in their space. That's a generic term used by the industry, and it refers to the way products are sold in med device. Physicians promote their clinical experience to other physicians. That's how it works, and that's happening for us now. Okay? Scaled manufacturing in place. The deals are already signed. We've got distribution starting on an organic strategy. That'll be slower, but really meaningful. That's hard work, and the second is with a global partner that's already been executed. Our global partner came to us and said, "Really simple. If you'll show me you can scale manufacturing, a million units each times two, and you'll give us first option on the company, we will take your product to the market and position it for global adoption." We said, "Okay." All right. From that time to now, it's about two years. It's a lot of work just to get to scale, but we've done it. It's done, so we're now finishing the paperwork with the FDA, make sure the sales team is ready, start producing, and let's get on with seeing product go to market, and that's happening as we speak. The value proposition is pretty amazing, and that is the discovery is we can deliver antimicrobials without harm. So, just hear what I said. Antimicrobial by definition is an oxidizing reaction. And so, if you can oxidize contaminants like viruses and fungi and bacteria without damage to a human body, then that's a game changer. If you can add two or three days antimicrobial resiliency, continued activity, maybe some efficacy for biofilm, you're number one in the world. So, we'll make sure you got it. What we're saying is we're number one in the world. And now we're going to market with one of the leading players in the world, with one of the leading brands in the world, with one of the leading sales forces in the world, with a very high value proposition, with a decent margin that's going to transform infection control in the surgical suite. People are now referring to this technology as the new standard of care. It has that potential. We're not there yet. What they're saying is scientifically, right? Scientifically, it has that chance. Okay? This is a full circle story. You know, I just want to be clear. The idea for this is over 20 years old. The investment's 13 years, $25 million. Now, if you know about med tech and med device, $25 million is about half price. That's pretty remarkable. The fact that we could do it, that's efficiency. That's efficiency. The fact is that it's happening. It's happening. Okay? It's not a maybe. We're here. We're now going to market. Okay? So, surviving, getting through the adoption cycle, finding the channel, finding the high value, scale manufacturing, do the de-risking. That's what we've done. Now the harvest. So, how do we monetize that? Well, we said to our partner, "We'll give you first option. Can we do an IPO?" They said, "Sure. We'd love to buy a public company." We're like, "Okay, great." So, now we can monetize this for our investors. We can create a market for the securities, distribution, right? Awesome strategy. And ultimately, in the end, our partner's probably going to buy it because it's so good. It's a platform. We have two products. By the time we're done, there'll be 50 products. 50. Right now, it's not a reimbursed product. Eventually, it will come reimbursed. We believe that fully. There's a whole bunch of technical reasons why we think that. But we're on that mission as well. So, find adoption, find high value, de-risk it, scale manufacturing, find the partner, and go do it. That's Clyra Medical. It's a great story. Now, there's others. And I want to see. Let me check our time here real quick. I got a couple of minutes. Let me tell you one more. They're all so good. Okay? PFAS, we got first installation in New Jersey. We'll have some press out any minute. It's functioning. It's running. It's awesome. Okay? We got a number of partnerships. You know, the head of 32 years, 22 years head of R&D for the United States of America, Department of EPA's on our board. Got these key opinion leaders people from industry. We're now in the adoption cycle. The technology is pretty de-risked. Pretty, pretty de-risked. Meaning it works. What's risky now? We got to build the infrastructure for scale. We talked about that earlier. So, what happens is the customers are coming. And it's not a customer. It's a lot of them. And they're big. And the big projects. Okay? So, we look at that and we say, "Look, what we need to do now that we have the demand coming from the market is bring in partners who can help us monetize that with their infrastructure that probably took them 70 years to build." We're not going to go spend 70 years. We're going to go do it now. And we're going to share. And we're going to exploit that because we have the customer. We have the regulatory pathway. We have the technology and the transformative. In this one, we migrate the PFAS. And when we migrate PFAS, we can super collect it. And here's the net result. The waste stream that we create is 2 pounds versus 40,000 pounds of carbon. The early adoption side, when the first regulatory events took place, the market went to carbon and ion exchange because that's all they knew. They had to get the contaminant, that's forever chemicals, out of drinking water. So, they spent money. A lot of federal money, by the way. That federal money allowed them to deploy and create safe drinking water. Okay. You know what the problem is? It's 40,000 pounds of carbon. What are you going to do with it? Oh, well, we'll burn it. PFAS goes in the air. That's not a good answer. Oh, we'll landfill it. Not really. That's not going to work. That just recycles the contaminant. You know, there's two lessons in this kind of field, environmental field. One is don't screw with Mother Nature. The second is don't trade one problem for another problem. PFAS messes with Mother Nature. Carbon spreads the problem around to other places. That's not the answer. The answer is to super concentrate and destroy, break the molecular bonds. We use oxidation, by the way. But by super shrinking the contaminant, it all becomes very manageable. Managing waste is easy. Managing hazmat's easy. So, this is a thesis that we've now proven. And now it's finding adoption. Again, we're at the end of the investment cycle, not the beginning. And the way we're partnering will allow us to partner as opposed to capitalize the kind of infrastructure necessary to change the entire industry. So, I want to make sure you get it. Okay? We're not messing around with, can you get a customer? We're talking about transforming the entire industry with a technology change that can become number one on a global scale. There's a whole bunch more. The battery tech is awesome. Okay? I'm going to give you a punchline there. It's a freaking $2.5-$3 trillion industry opportunity. You know, lithium's got all kinds of issues. And I think we're at the end. But China's a problem. Okay? Domestic supply, fully recyclable, long duration, high energy density, high voltage. Okay? We have the technology. We're de-risking it as we speak. Science is done, really. Now it's about scale and manufacturing. So, what do you do? You don't sell batteries. You sell factories. We have four MOUs for 13 factories. Each one's $170 million. We're not ready for 170 million times 13. So, what do you do? Well, you find one. You bring in a partner. That's what you do. That's what we're doing. So, we're in the process now of de-risking by virtue of its scale and partnering to preserve our balance sheet so that the day we start, we make money. That's a business plan. Okay? So, there you go. I'm going to stop for now. And we're going to open it up for questions, Michael. Very good, Dennis. Well, a lot to cover there. Why don't we start with Clyra? Could you talk about how Clyra is actually used in a hospital setting? What does it do? Yeah. So, the first product designs are liquid chemistry approved as a wound irrigant solution, wound irrigation. So, that's liquid. It's in a bottle, and you can apply it. So, think about a surgical site where someone's going to open up the body, like a knee, even abdominal, any part of the body. They use irrigation solutions to rinse. So, that's moving tissue. It's cleaning. It's allowing for a surgical site to occur. And then post-surgery, there's a prep and a close. Our product you use throughout the procedure as a leave-in product. And at the closing, you coat it again, and you close it in the body because we have evidence to support a three-day antimicrobial efficacy. It's going to perform its antimicrobial job, preventing the formation of microbes that create potential infection. That's what we're talking about. So, that's a prevention technique. And it does so with no harm. With no harm being the operative word. Okay? No local sensitivity, no systemic toxicity. The other thing that's happening is it's shown in evidence to support its ability to help control biofilm. Biofilm is a creation of a bug growing a mucosal membrane to protect itself from external effect to try and break the cell. Okay? And so, the residual activity and the biofilm efficacy really enhance its performance. And then, of course, we believe the products are actually assisting the body in healing itself. Okay? So, in that application, that's a really no-brainer. It's a no-brainer. The trick is to get adoption. And you do that with KOLs and regulatory and then scaled manufacturing. And essentially, that's the work that's been done. So, that's how it would go. The other is wound and burn. So, that would be like diabetic ulcers, maybe a burn where you're highly concerned about the sensitivity of tissue. The tissue is extraordinarily fragile. You're trying to heal it. So, you need an antimicrobial to keep it from getting infected, but you need an antimicrobial that's gentle enough to kill the bugs but not inhibit the body's ability to heal itself. Therein lies the art. And the art is do that antimicrobial work and let the body heal so it doesn't interfere with healing. For us to make that claim, that required what's called live animal studies for med device. And we did all that work. Everything that we're saying here is proven through regulatory and now qualified on its label claim as an antimicrobial, as its sterility, as its stability, and its ability to perform these functions. Terrific. You had mentioned that Clyra wouldn't be eligible for reimbursement yet. Would you describe what that means and how you'll be looking to become eligible? Yeah. So, that's right. So, the way to think about it is the product now is technically called a physician preference item. And so, that means it's being used as a tool in the toolkit of performing procedures in a facility or on a wound. And so, in order to get it to a reimbursed stage, there's another number of technical requirements. For example, one might be as a gel, which becomes a device that has residual antimicrobial support in a gel form for residue. And so, that's a reimbursable product. That's one way. The other is to enhance its claim set through additional regulatory filings. And so, that means that you go from making an FDA 510(k) non-therapeutic claim to a potential therapeutic claim. And that requires clinical evidence and regulatory filings. So, the idea behind, and by the way, I want to just point out, the claims that we're making are normal and expected and traditional in the field with a well-established regulatory pathway. And that's why we're doing what we're doing. We believe the technology, through its enhancements, can expand that. And that's going to require investment and time. Okay. So, thank you for all of that. You have such a range of technologies. The questions do the same thing. They're covering the waterfront here. Here's one on the battery factory. You mentioned you've got all these, a number of MOUs. Do you have a sense of when you'll be breaking ground for the first factory? Well, sort of. It's a good question. You know, I think the way that from a risk management perspective, people should understand where we're at, okay, in the risk cycle. We have a proposition. For example, we've talked about this in New Jersey. We have a partner that's doing development work. They've developed a plan that includes solar, workforce development, employment training, a whole menu of project-oriented investment. In that, that's about a $600 million project. Of the $600 million, a battery factory and what we call microfactories are part and parcel to the plan. We're about $340 million of the $600 million plan. Okay? Our partner is securing project finance. What is that? That's impact finance. It's tax credit equity. It's a combination of bonds supported by local economic development agencies. We're working in a place called Cumberland County, which is very exciting. It's taking formative shape. Okay? The truth is that it will launch when the pieces fall in place on the capital stack. The unique thing is that we have de-risked the technology to the point where people can be very comfortable that it is as represented. And of course, there's some execution risk, but we have extraordinary talent. So, we can say, "Hey, we're going to show up and do our part." And then the financing can look at this. And there's all sorts of financing available for these kinds of projects. Workforce development being number one. If you say, "I'm going to come to your town and hire 1,000 people and do $2 billion worth of revenue," what do you think they'll do? Well, they'll roll out the red carpet is what they'll do. And so, the idea is really powerful. And that is because of our business model, which shares the wealth, leverages the technology and our core competency of engineering and science for building and supplying. People can see the pathway to generate significant economic yield and economic impact. Therefore, they put up money, so that's those MOUs are taking that shape. There's also this. There's another market, and that market is focused on people that just want a lot of batteries, so there's one is impact. That's all workforce, employment, the whole ecosystem, very powerful. The second is who wants a lot of batteries. I had a technical expert in the field said to me when we first started, he said, "Once the hyperscalers figure out what you got, they're going to beat a path to your door," and we're coming up on that, not fully because you still have de-risking to do, which is to prove it's scalable and do the data on the interaction with the grid. That's the work we talk about all the time. You got to do that work. Is it real? Very. Is it financeable? We think it's financeable. We believe it's financeable. You know, caveat, caveat, careful. Be careful. You got to do it. So, having MOUs is wonderful. And that means people are really interested in doing business with us. We need to get it to go. So, what's the timing? I don't really know. I can see things heading towards successful financing over the next three and six months. Say a prayer. You got to do it. Right? And if we do that, here's the beauty in the business model. The day it's financed is the day we make money. See, that's the thing. Okay? And so, there's so much going on. So, I believe it's a combination of that. It's strategics. It's potential, you know, off-takers. Off-taker would be something like a hyperscaler. Okay? So, all that's playing out real time. Every day, we continue to capitalize and advance the science and the de-risking. The way to think of it is what we have today is what it is. Science is pretty much de-risked. The scale now has to be de-risked. The proof of claim for a third-party critic has to be de-risked. You got to find adoption. We're early, but this is what we do. We have time to squeeze in one more question. Sure. You have this diverse product line and a lot going on. What advice would you give someone interested in your company of just milestones and catalysts to look for? I think there's a lot. Clyra has a chance to transform our economic profile on our valuation, I believe, as that becomes visible near term. At these price ranges, because of the Pooph knockdown, it's really a bargain. I think that's an argument. We believe it's a bargain. The beauty in the business is that we're so stable. We're so stable with such a low burn rate and the ability to diversify revenue-based to support our infrastructure that we can go a long time and be steady. You know, one of the investment theses that we believe is very powerful for BioLargo is there's not a single asset in the portfolio that bets the farm. You know, that's entrepreneur lingo. We just don't bet the farm. You say, "Well, how can that be?" It's like, "Well, we've got 20 different ways to make money. I've got a diverse portfolio. We survive when others fail." And so, we're investing on a daily basis, incrementally, for billion-dollar futures while we meet our cash flow requirements with basic advancement of science and service and fill the gap. Okay? And that powerful strategy allows us to survive when others don't. And it also allows us to really position ourselves with such credibility in the marketplace. You know, and I got to give a lot of credit to the science and engineers. You know, we get to borrow their career. Right? They had a career before us. Now they're owner-operators exploiting their extraordinary talent. They've been all over. Listen, they have been all over the world at the highest level of industry and government. The highest level. And now they're where? OTCQX, BioLargo. Why? Because it's worth it. Go make an impact. Leverage this extraordinary talent. And then don't be the bank. Monetize through our strategy of monetizing the asset is the reason you want to own a piece of the company. If you're thinking about a big investment, be sure to reach out. Some of the subsidiaries have investment opportunities. Once in a while, we'll raise some money at the parent company. We just don't need much. You know, we really are a very low-risk profile as a company. And so, the question is, when are we going to break out? Okay. I think the whole argument. Thanks, Dennis. We've come to the end of the time. Thank you very much. Fascinating presentation. Everyone in the audience, thank you for joining as well. I didn't get to all of the questions. There were quite a few. So, if I missed you, sorry for that. Please contact your Sidoti representative, and we'll run down an answer for you. Again, Dennis, thank you for presenting. Michael, thank you. Thank you, everyone. See you later. Bye.