6 Years Of Revenue Growth For Leading Clean Tech Company Now Combating Dangerous PFAS Chemicals

Benzinga

Dennis Calvert, President & CEO of BioLargo Inc., was recently a guest on Benzinga's All-Access.  BioLargo is a cleantech and life sciences innovator and engineering services solution provider. Its core products address Per- and Polyfluorinated Substances (PFAS) contamination, achieve advanced water and wastewater treatment, control odor and Volatile Organic Compounds (VOCs), improve air quality and control infections and infectious diseases.  The company has delivered six straight years of sustained revenue growth through continued innovation. Most recently, it has focused on removing PFAS chemicals, sometimes dubbed "forever chemicals," from the water supply.

Transcript

00:00 Dennis, what is going on?

00:06 Good morning to you.

00:07 Hey, it's good to see you.

00:09 I am happy you are back.

00:12 It's been a while since you and I have got a chance to chat it up.

00:15 But like I said, I've got something to show you, but before that, for the folks

00:19 at home that might not be familiar with your company, give us a quick overview

00:22 of what BioLargo is, well, we do a lot of science and engineering focused on

00:26 solutions for some of the biggest problems that face our planet.

00:29 It's a mission driven company.

00:30 We make life better.

00:31 We've been innovating for over 16 years.

00:34 We have a complete portfolio, five operating units.

00:37 And this last quarter, we had another record revenue.

00:40 We grew 108% last year.

00:42 We had a big quarter, first quarter record revenue and generated cash

00:46 flow, which is awesome.

00:47 And the company is really, really doing quite well.

00:50 Let's go ahead and start with the revenue side of things, because

00:53 you can correct me if I'm wrong.

00:54 But from the notes that I'm seeing here, you guys have been growing

00:57 revenue for the past six years, right?

00:59 And if that is kind of correct, what has been not just the reason behind it,

01:04 but also how can we continue seeing that revenue growth as well?

01:07 Yeah, well, that's a great question.

01:10 So, uh, 103% last year, 108% this year.

01:13 Pretty good.

01:14 Uh, we were watching the, the 88% of that revenue came from the product POOF.

01:18 P-O-O-P-H.

01:20 That's a product that we invented.

01:22 We manufacture it, we sell it into distribution with a partner.

01:26 And that product has taken off like wildfire.

01:28 I mean, it's incredible.

01:29 So just breaking records every quarter projected to grow about

01:33 20% quarter over quarter, uh, continuing.

01:36 I mean, it's, it's really taking the market by storm.

01:38 And so that's a full circle story for the company.

01:41 It's just one of our assets, but it's one that's really breaking out.

01:44 Finally, it took a long time to get that done.

01:46 Yeah.

01:47 But in the portfolio, as we look forward, we know that that

01:50 product has continued to expand.

01:52 But we also have other products that are coming to market.

01:55 They're early in the adoption cycle, but we're, but you know, our thesis

01:58 is to invent it, prove it and partner.

02:00 And so we kind of do the heavy lift to get those products seeded in the market

02:04 and then partner for big distribution.

02:06 So as they find their way, our revenues have the chance for extraordinarily

02:11 dramatic revenue expansion and of course, cashflow and ultimately profit.

02:16 Well, two things.

02:17 One, I know we've got a slide deck for you.

02:19 So if you want us to refer to that, let us know which one, and we'll get that up.

02:22 Um, but two, you know, I never want to think about work when

02:25 I'm watching a basketball game.

02:26 However, you did that for me because I was watching, uh, the playoffs and

02:33 there was a poof and I saw a commercial and I was like, I know exactly what

02:37 that product is, I know the man behind who leads the team, and so I thought

02:40 that was really cool because so many times you've talked about your product

02:43 on Amazon, I believe you also had, it's been a minute, but was it with

02:46 Walmart that you were looking to go?

02:49 Over 30,000 retail outlets now.

02:51 So full rollout at Walmart and chewy and Amazon and, uh, H true value hardware.

02:58 And now even home Depot and more.

03:00 And so it was awesome to see that.

03:02 I was like, I know what that is.

03:04 Well, the marketing team deserves that credit.

03:07 I mean, they've done an incredible job and, and poof is leading that charge.

03:11 You know, they're, they're professional brand builders.

03:13 Yeah.

03:14 And so they make content that's so compelling.

03:16 And of course the great price starts with a great product.

03:18 That would be us.

03:19 And then it takes right messaging and the penetration they do.

03:23 What's called omni-channel marketing, right?

03:25 So all channels have a cost and a reward and they just click them off

03:29 and they're professionals at it.

03:30 And, uh, they've been a great partner for BioLargo.

03:33 I mean, it's, it's just awesome.

03:34 And the, you mentioned a couple of products in the pipeline.

03:37 Now, obviously you're publicly traded companies.

03:38 There are certain things you can and cannot speak to, but I've got to ask,

03:42 are you able to tell us what is in that pipeline and provide a little bit

03:44 more insight that might already be public or you're able to share

03:47 for the folks that are watching?

03:48 Yeah, we talk about a lot of that all the time.

03:50 I mean, you know, the, the thing to remember about the company is it's got

03:54 this, this acumen, if you will, of finding a spot where there's something

03:59 in the market that's missing.

04:00 There's a problem that needs a solution.

04:01 Okay.

04:02 And that's where we, that's where we live and we use science and engineering

04:05 to figure out that solution.

04:07 And then we figure out how to get to the market.

04:09 So we've got a medical products company, for example, that's focused

04:13 on infection control, uh, and wound care.

04:16 And we believe, we believe, and we have the evidence to support the belief

04:20 that it's a technical breakthrough, breakthrough, a leap forward for the

04:24 way you manage, uh, surgery for infection control and post-surgical

04:29 infections and wound care like that.

04:30 Yeah.

04:31 So, so that's a product then we've, you're ready for this.

04:33 We spent almost 10 years, 10 years of work.

04:35 We invested $15 million.

04:37 Uh, we got it through the FDA and just about killed us.

04:41 Uh, as we look back, we think they really sharpened our, our, uh, our

04:46 blade, they made us, they made us do the work necessary because, because

04:51 the breakthrough is so really significant that it seems too good to be true.

04:56 So we had to prove, prove, prove, prove, prove.

04:58 And that took about four years when we got through COVID hit.

05:02 And now we're sort of in that spot where we're negotiating

05:04 with major distribution.

05:06 We've got a number of parties at the table.

05:08 We've been in that process for about a year.

05:09 We're anxious to bring them into success.

05:11 And we believe that those products, for example, as compared to the

05:15 significance of poof, they're going to be even bigger, right?

05:20 So that's, that's in the pipeline.

05:22 It's in process.

05:23 It's coming.

05:23 Everybody's waiting and anxious.

05:25 We also have a solution for PFAS PFAS.

05:28 That's forever.

05:28 We take them out of the, out of the environment.

05:31 We've got our first account that took four years of R and D that products now

05:36 being the first installations in New Jersey scheduled for October.

05:40 Awesome.

05:41 Got a huge pipeline.

05:43 I mean, we've got a hundred reps now and eight channel partners and that

05:47 technology is bubbling up because the government EPA and the white house.

05:51 Has really sharpened its focus on these forever chemicals as a,

05:56 you know, as a hazardous material.

05:58 I mean, they just, they just passed CERCLA.

06:00 They limited the testing them as down to four parts per trillion,

06:03 which is extraordinarily difficult.

06:04 And this is an environmental sort of outrage and it's, it's

06:08 begging for an efficient fix.

06:11 And that would be us.

06:12 We're the efficient fix.

06:13 It's quite dangerous as well.

06:15 Right.

06:15 With the PFAS chemicals.

06:17 So that's something that you're trying to solve there.

06:19 Well, yeah, it's funny.

06:20 It's not, it's really, you know, you don't want to scare everybody,

06:23 but it is in the water.

06:24 It's estimated about 48% of drinking water in the United States has PFAS in it,

06:27 which is unbelievable.

06:28 Uh, it's also in cosmetics and food products and food packaging.

06:32 And you know, it permeates the world.

06:35 These were chemicals used to create nonstick coatings.

06:37 It's also the, the cause of some of the largest tort reforms, litigation

06:42 cases in the history of the United States, um, you know, uh, 3M just

06:46 generated a settlement for about 10.5 billion, the United States just set

06:51 aside, uh, through the white house, 10 billion to support the, the, the

06:56 cleanup, if you will, out of the drinking water focus, but it's more

06:59 than drinking water it's in landfills, it's in the ground, it's in food.

07:02 I mean, it's in your animals, in your body.

07:04 And so there's this.

07:05 People estimate the global problem to be about a $17 trillion problem.

07:11 I mean, this is, and you know, it's took 50 years to get there

07:15 and take 50 years to get it out.

07:16 It's, it's unbelievable.

07:18 And so we're at the cutting edge of developing solutions for it to

07:21 be the most excellent collector.

07:23 That's basically the most efficient collector.

07:25 Cause if you super concentrate destruction's easy, we've got

07:28 about, again, four years of R and D.

07:30 We got a grant from the, uh, an SBIR grant for innovation grant to start.

07:35 And then we carried the ball from there and now we're going to the market.

07:37 So it's, it's a really great asset.

07:40 And it's also, um, it's purposeful, right?

07:42 You're going to do something great for the world.

07:44 Yeah.

07:44 And I remember one thing that you had mentioned before we wrap up here, last

07:48 time we spoke was when your clients, your customers, they ask you, Hey,

07:52 I need to solve this problem.

07:53 If you don't have something already in your tool belt to solve that problem,

07:56 you will go ahead and invest money to spend it.

07:58 If of course it makes sense from a business standpoint.

08:01 So I love the schedule as a kind of pivot and adjust is something great.

08:04 Now we've covered quite a bit of things here, right?

08:07 We've talked about your earnings call.

08:08 We've talked about the revenue growth and how that's been increasing for the

08:10 past six years, obviously talked about POOF and also PFAS.

08:14 Is there anything else on your mind that you wanted to talk to your viewers

08:17 about any topics that I didn't bring up the floor is kind of yours for us to wrap up here?

08:20 Well, you know, uh, we just hope people take a look at the company.

08:24 It's a portfolio and the portfolio is ever expanding.

08:27 I mean, so we, we think this will continue and continue and continue.

08:30 And the other thing that's important in all these assets, people sometimes forget

08:34 that we're building equity value on an exit.

08:37 You know, these are all built to ultimately sell or spin out or take public.

08:41 And so with a portfolio approach like that, we always say we're

08:44 leveraging our core competency, a little bit of entrepreneurship, some finance,

08:49 uh, engineering, science, innovation, a strategy, right?

08:54 And then of course we won't spend any time on it.

08:56 We have a battery tech for long duration energy storage and that's early.

09:00 And so we're going to be showing up with a working battery, any minute,

09:03 literally days away, hopefully.

09:06 And, uh, that, that we've got a plan for that.

09:09 That's that's a earth shaker.

09:10 It's pretty cool.

09:11 Well, you said days away, that's kind of the key word, right?

09:15 So we will definitely keep an eye and see if that announcement

09:18 comes in the next week, a week or two, you're going to give me some grace.

09:21 I will.

09:22 I'll tell you what, how about end of Q2, right?

09:24 End of Q2.

09:25 So end of June, that's 45 days.

09:27 If that works for you, it works for me.

09:28 It's a pretty technical thing.

09:29 So we're working through a little technical bumps, but it's coming and

09:32 we know, we know we're going to land.

09:33 So we're not worried, but it does take quite a bit of, uh, technology

09:37 to make it all only imagine.

09:39 I only have to deal with the tech side, the discovery, the R and D, but also

09:42 having the government give you the green light, but dude, what a great

09:45 pleasure it always is to talk to you.

09:46 I love what you guys are doing.

09:47 I was genuinely happy to see poof on my TV.

09:50 Um, thank you for the conversation and we look forward to talking to you more.

09:53 Awesome.

09:54 Thank you.

09:55 [MUSIC PLAYING]

09:58 (upbeat music)

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