BioLargo, Inc. (OTCQB:BLGO), a developer of sustainable technologies and a full-service environmental engineering company, has announced that its current fourth-quarter revenues of approximately $750,000 will result in new quarterly and annual records for the company.
In addition to setting revenue records, BioLargo also significantly reduced its debt obligations during the year. As of December 31, 2019, the group's balance sheet showed approximately $4.6 million in notes payable and lines of credit, not including solely owed obligations of its partially owned subsidiary Clyra Medical.
During this calendar year, BioLargo reduced the $4.6 million owed by over $2.8 million to approximately $1.7 million. Of that amount, $357,000 are SBA Paycheck Protection Act loans (which management expects will be forgiven in accordance with SBA's terms), $200,000 will be converted to equity at maturity, and the remaining approximately $1.1 million may be converted by the investors and if not, will mature in August 2021.
READ: BioLargo reports record 3Q revenue; says its water technologies are ready for commercialization
In a statement, BioLargo CEO Dennis P. Calvert commented, "I am proud of our team's accomplishments in 2020, and am optimistic that we can continue the momentum next year and further improve our financial condition with successful execution of projects and contracts already in hand, as well as new product launches.
"Of course, multiple factors may affect the timing and amount of our sales, including uncertainties and unusual challenges related to the pandemic, and the obvious challenges inherent in introducing new technologies to the market."
In a presentation recorded at the LD Micro virtual investor conference on December 14, 2020, Calvert explained that the company needs to reach approximately $1.25 million in quarterly revenues to get to cash-flow positive for operations supported by BioLargo (which excludes Clyra, which is independently financed). In the video, available below, he also explained the drivers behind the record revenues and detailed the company's plans to launch its long-anticipated water treatment technologies, the BioLargo AOS and BioLargo AEC, in 2021.
Investors can watch the video here: https://www.biolargo.com/ld-micro-conference-video
BioLargo is an innovator of technology-based products and environmental engineering solutions provider driven by a mission to "make life better", it features unique disruptive solutions to deliver clean air, clean water and a clean, safe environment.
Contact the author at jon.hopkins@proactiveinvestors.com