Clean tech company BioLargo Inc. (BLGO:OTCQB) announced its engineering subsidiary has been awarded a contract to provide air quality services at three New Mexico U.S. Air Force bases for up to five years.
The new contract with BioLargo Engineering, Science & Technologies has a potential annual revenue of US$650,000 and is in addition to ongoing environmental support the company is doing at six Air Forces.
"Our team has served Air Force bases with fence-to-fence air quality compliance services for years, but this is the largest such contract we've secured to-date," said BioLargo Engineering President Randall Moore. "Larger, long-term contracts such as this one are crucial to our strategy of securing steady, reliable income from external clients. This empowers us to focus on commercializing BioLargo's innovative cleantech technologies, including advancements in water treatment, energy storage, and air quality solutions."
The contracts provide regularly monthly flat-fee revenue to the company over the life of the contract, which the Air Force may renew each year. BioLargo’s work at the New Mexico bases includes air quality regulatory compliance. Bhate Environmental Associates is the prime contractor with the Air Force under the Fence-to-Fence (F2F) support contract.
The Catalysts: Smelly Pets and Chemicals in Our Water
BioLargo is made up of several subsidiaries that work in different sectors, a "family of products," including ONM Environmental, BioLargo Engineering, BioLargo Water, BioLargo Energy Technologies, Clyra Medical Technologies, and the new BioLargo Equipment Solutions & Technologies Inc. (BEST) subsidiary.
Two standout products have been ONM Environmental with its pet odor control product, Pooph (which the company said is responsible for 85% to 90% of revenues); and BEST's solution to treat water contaminated with the so-called "forever chemicals" that have been getting more attention from local and national environmental regulators.
On Monday, Maund told Streetwise Reports that the "timing couldn't be better" for the stock now in June. He said it is a "great buy spot here after a long correction from the February high."
Pooph reported a 64% increase in revenues from the third quarter of 2023 to US$4.37 million in the fourth quarter. The safe and eco-friendly products are being sold through retailers like Amazon, Walmart, and Chewy. Calvert said this week that the company continues to see 20% quarter-over-quarter growth, which is roughly 100% year-over-year. "So far, they've consistently hit that mark," Calvert said.
Last month, BioLargo announced record quarterly revenues of US$4.76 million for the three months ending March 31, a 9% increase over the fourth quarter of 2023 and a 28% increase over the first quarter of that year. The company also generated a positive cash flow of US$481,000 for the first quarter of 2024, compared with a negative US$2,000 in the fourth quarter of 2023.
"We've had a great quarter and a great year," President and Chief Executive Officer Dennis Calvert said during a webcast on the results. "We still feel we're just getting started in so many ways, but it is a significant milestone."
Technical Analyst Clive Maund had recommended a good entry point in February as it went on to nearly double in price.
On Monday, Maund told Streetwise Reports that the "timing couldn't be better" for the stock now in June.
He said it is a "great buy spot here after a long correction from the February high."
CEO: 'We're Looking Smarter and Smarter'
Oak Ridge Financial analyst Richard Ryan in an updated note on May 16 noted that BEST's solution for Per- and polyfluoroalkyl substances, or PFAS, will be important to the company going forward.
"The large emerging market for PFAS removal and BLGO’s growing validation in this opportunity should not be overlooked," wrote Ryan, who maintained his "Buy" and a bull case price target of US$0.50 per share.
PFAS are a group of thousands of synthetic chemicals used in everything from the linings of fast-food boxes and non-stick cookware to fire-fighting foams and other purposes. High concentrations of some PFAS may lead to adverse health risks such as cancer, hormonal disruption, and reduced immune system effectiveness, although research is still being conducted. They are called "forever chemicals" because they break down very slowly.
BioLargo's Aqueous Electrostatic Concentrator (AEC) technology removes more than 99% of PFAS chemicals from water, the company said.
Streetwise Ownership Overview*"We're looking smarter and smarter" for developing the technology, Calvert said. "This has been almost four years of work."
The EPA has noted about 70 million people are exposed to PFAS in U.S. drinking water, but that testing has only checked about one-third of the nation's public water systems. As many as 200 million Americans could be exposed. Check this map of PFAS detections across the U.S.
Ownership and Share Structure
About 14.6% of BioLargo is owned by insiders and management, according to Yahoo Finance. They include Chief Science Officer Kenneth Code with 8.44%, CEO Calvert with 3.32%, and Director Jack Strommen with 1.64%, Reuters reported.
About 0.04% is held by the institution First American Trust, Reuters said.
The rest, about 85%, is retail.
Its market cap is US$76.41 million, with about 295.97 million shares outstanding and about 253.84 million free-floating. It trades in a 52-week range of US$0.45 and US$0.15.
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- BioLargo Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of BioLargo Inc.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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