BioLargo continues to make progress in its goal to establish its various subsidiaries as independent businesses. Odor-No-More recorded revenue of $301,000 for Q119 (of $364,000 total), down 10.7% from Q419. It cited lumpiness in its sales pattern caused by the timing of orders, weather and manufacturing, and the fact that approximately 20% ($68,000) of orders were in process at the end of the quarter. This business is expanding with new distribution agreements in the waste handling and cannabis industries. BioLargo Water has placed it first Advanced Oxidation System (AOS) treatment train, and Clyra Medical will run a 30-day animal study to support a 510(k) application for its wound treatment product.
Odor-No-More signed its fourth national distribution agreement with a major waste handling company and was included on the partner’s purchasing portal. Inclusion in the purchasing portal will make the product available to all operators in the company’s network. The company also announced additional details regarding its initiative to market its CupriDyne Clean products to the cannabis industry: it has signed a five-year distribution agreement with Cannabusters, Inc. to provide CupriDyne Clean as a white-label product. We expect the cannabis industry to grow to over $35bn in 2024, and for it to be a major odor control market. Cannabis cultivation results in the release of large amounts of volatile organic terpenes into the air, which are potent odorants and a potential environmental or health risk.
Following FDA feedback that was received shortly before the company’s Q119 report, management is confident that the last piece of data needed to complete the 510(k) application for its wound care product will be a 30-day animal safety study. The company recently completed a preliminary animal study confirming the study protocol, which showed no adverse effects. Once the data from the 30-day animal study is submitted to the FDA, a response is expected in less than 30 days.
BioLargo announced that the first all-in-one AOS water treatment train was placed at a commercial facility as part of its pilot program, a poultry and livestock farm based in Alberta, Canada (Sunworks Farm). This is the second AOS unit placed (the first was its brewery pilot), but the first in which a complete water treatment solution was placed. We expect this program to provide useful feedback on the system and to help establish its utility in a real-world setting.