BioLargo Inc. (OTCQB:BLGO) said it broke its own quarterly revenue record in the first quarter, posting a 60% jump year-over-year on the back of strong contributions from its subsidiary ONM Environmental and its engineering division.
For the period ended March 31, 2022, the Westminster, California-based group, which develops sustainable cleantech technologies and is a full-service environmental engineering company, reported company-wide revenue of $900,000.
The company said its subsidiary ONM Environmental contributed around $550,000, while BioLargo's engineering subsidiary pitched in with quarterly revenue of approximately $350,000 while continuing to support R&D on the company's patented technologies.
BioLargo said with their respective revenues, ONM Environmental and BioLargo Engineering have “moved closer to generating an operating profit”.
The company also pointed out that these preliminary revenue figures have not been reviewed and are subject to change pending a full review by its independently registered public accounting firm. BioLargo said it will include its full results in its quarterly report, which it intends to file with the U.S. Securities and Exchange Commission (SEC) on May 16, 2022.
Separately, the group said BioLargo Engineering has been retained to conduct a feasibility study by a southern California-based sustainable energy services company planning to build a waste-to-energy conversion plant in South America.
The site of the proposed conversion plant is around 296 acres, where the company plans to process over two million tons of municipal solid waste annually. BioLargo noted that a feasibility study is typically “the first step in the design process for a new project of this size,” and will address multiple fundamental factors that will influence the design and operation of the anticipated facility, including technology options, rough costs to construct and operate, environmental impacts, and rough equipment sizing.
The feasibility study will facilitate the development of a design-basis document, then conceptual design, and ultimately the front-end engineering design, noted BioLargo. So far, BioLargo's engineers have been contracted on the feasibility study only, but “expect to be involved in subsequent phases should the project move forward as planned,” noted the company.
BioLargo's air quality control division, ONM Environmental, which has a significant client base in the waste handling industry, helped bring the project to the group and will work with BioLargo's engineers to execute the project.
BioLargo noted that ONM Environmental brings to the table a team with “extensive expertise” on the design and operation of waste handling facilities, and BioLargo Engineering has veteran engineers with decades of experience designing and integrating complex projects as well as specific expertise in the area of waste-to-energy conversion.
In a statement, Randall Moore, president of BioLargo Engineering, Science & Technologies (BEST), said: "The development of this waste-to-energy conversion plant is directly in our wheelhouse of past experience and knowledge.”
He added: “To process two million tons of municipal solid waste per year, the total capital outlay by the developer for a processing plant of that size could exceed $500 million, with the potential to keep our team busy for the next four years."
In the meantime, BioLargo CEO Dennis P Calvert noted that the group is continuing its strategy of “employing strategic partnerships to develop new revenue channels” for its cleantech products and services.
“As we referenced in our recently published annual report, we have additional channel partnerships in various stages of negotiation for our per- and polyfluoroalkyl substances (PFAS) treatment system and are eager to provide more information soon,” added Calvert. “When combined with our other partnerships aimed at delivering cleantech solutions, including with Garratt-Callahan and Ikigai, we believe these record revenues are the beginning of what we believe will be accelerated growth for our company."
BioLargo invents, develops, and commercializes innovative platform technologies to solve challenging environmental problems like PFAS contamination, advanced water and wastewater treatment, industrial odor, air quality control, and infection control. BioLargo also has an engineering division.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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