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COMPANY INTERVIEW By comparison, our CupriDyne technology can deliver calibrated doses of free iodine in very small doses even in the parts per billion (PPB), and in a highly concentrated doses, without all the extra chemistry, even all the way up to its water solubility limit at 337 parts per million (PPM). We achieve the dosing instantly, in a flash delivery of active free iodine, through the reaction of a mineral and a salt, both of which are Generally Recognized as Safe (GRAS) as provided by FDA regulations. And so the biggest comparison is that we are able to generate free iodine with a wide range of flexible dosing, through a wide range of flexible delivery systems and in any physical form — solid, liquid, gas — with all featuring GRAS components which are nutritional in their basic form. They are safe for the environment and safe for people when delivered in controlled doses, but deadly for microbes. Remember too that our chemistry remains in a non-chemically active state until reacted, which also increases safety.
In the case of the Isan system, its free iodine delivery system is distinguished primarily because of its automatic real-time flexible dosing mechanism to regulate the levels of free iodine and recapture most disinfection byproducts. Its commercial validations are significant and Ioteq’s field experience and knowledge base developed over time, as they successfully deployed the Isan system for customers, is also a significant advantage.
TWST: If your technology succeeds as well as it should, will that render competing technologies less attractive?Mr. Calvert: I certainly think so. Disinfection can be accomplished through a number of different methods. We believe that our CupriDyne technology is unique, and offers a whole set of features and benefits that distinguish it from all the rest. Our technology is green and environmentally neutral, is the most potent and has the broadest spectrum. Iodine is considered the gold standard for comparing disinfectant capability. It is simply the best there is. We discovered how to manage iodine in safe and effective delivery systems to harness and deliver it. That is why we call it Nature’s Best Solution. When you add to the equation our flexible delivery, cost effectiveness, various strategies for delivery systems that use GRAS components and all the other features we have talked about, I believe that one can really distinguish what we do as something unique compared with other technologies. I personally believe that we even have a chance to replace some or many of the competing disinfectant strategies over time.
I certainly think so. Disinfection can be accomplished through a number of different methods. We believe that our CupriDyne technology is unique, and offers a whole set of features and benefits that distinguish it from all the rest. Our technology is green and environmentally neutral, is the most potent and has the broadest spectrum. Iodine is considered the gold standard for comparing disinfectant capability. It is simply the best there is. We discovered how to manage iodine in safe and effective delivery systems to harness and deliver it. That is why we call it Nature’s Best Solution. When you add to the equation our flexible delivery, cost effectiveness, various strategies for delivery systems that use GRAS components and all the other features we have talked about, I believe that one can really distinguish what we do as something unique compared with other technologies. I personally believe that we even have a chance to replace some or many of the competing disinfectant strategies over time.In the case of the Isan water treatment system, one of the key features is the replacement of chlorine with iodine.
TWST: What are the negatives regarding chlorine?Mr. Calvert: Iodine has a number of qualities that make it a natural replacement for chlorine. Chlorine is highly corrosive, volatile, a dangerous gas, not good for the environment, highly pH dependant and it can create carcinogenic disinfection byproducts in the form of THMs (Tri Halo Methanes). By comparison, free Iodine in the form that we use and deliver, can compete effectively against chlorine in all of these areas. Also, it is important to note that, dose-for-dose, Iodine is more potent than chlorine, which means that we can often lower the inputs of chemicals needed to accomplish the same disinfection task and therefore lower input costs, again, without a harmful effect on the environment or the end-user.
Iodine has a number of qualities that make it a natural replacement for chlorine. Chlorine is highly corrosive, volatile, a dangerous gas, not good for the environment, highly pH dependant and it can create carcinogenic disinfection byproducts in the form of THMs (Tri Halo Methanes). By comparison, free Iodine in the form that we use and deliver, can compete effectively against chlorine in all of these areas. Also, it is important to note that, dose-for-dose, Iodine is more potent than chlorine, which means that we can often lower the inputs of chemicals needed to accomplish the same disinfection task and therefore lower input costs, again, without a harmful effect on the environment or the end-user.Interestingly, iodine is part of the halogen group family of elements in the periodic table, as is chlorine, so they have a lot of similarities. The biggest difference, however, is that iodine is the only halogen that has a natural cycle that processes through the environment and it is an essential nutrient. Iodine is a naturally occurring element, comes from the ocean, and is part of the water cycle, which chlorine is not. When iodine is deployed in its elemental form, it is part of a natural system that can be naturally processed and eventually ends up back in the ocean. And so that environmentally neutral, “green friendly” aspect is a key distinction between free iodine and chlorine. None of the other halogens has a natural cycle like the cycle of iodine.
TWST: Would you tell us about one or two of the uses that your product will be put to by the companies with which you are working?Mr. Calvert: There are a number of product applications that we believe are more readily available to enter into the marketplace with lower barriers to entry. First, there are uses for odor control. When our chemistry is applied to either a super absorbent gel or a spray or a wash, or even an absorbent product like a bed pad, then, when the chemistry comes in contact with a liquid, the product will control volatile organic compounds, which are odor-causing compounds. So our superior odor control applications are significant, and could be used in absorbent products for incontinence and even some of the odor-causing compounds commonly found in agriculture or in the animal health industry. We also experience significant increases in the holding power of absorbent products when our technology is added to super-absorbent products.
There are a number of product applications that we believe are more readily available to enter into the marketplace with lower barriers to entry. First, there are uses for odor control. When our chemistry is applied to either a super absorbent gel or a spray or a wash, or even an absorbent product like a bed pad, then, when the chemistry comes in contact with a liquid, the product will control volatile organic compounds, which are odor-causing compounds. So our superior odor control applications are significant, and could be used in absorbent products for incontinence and even some of the odor-causing compounds commonly found in agriculture or in the animal health industry. We also experience significant increases in the holding power of absorbent products when our technology is added to super-absorbent products.Another possible use for our technology is in the field of wound care, featuring enhanced moisture control, embedded antimicrobial and promoted healing capabilities. These potential wound care applications have very high barriers to entry, but are significant in advancing the practice of wound care, so there is work to do in this area and we believe we can make a meaningful contribution to advance healing for patients.
In the water treatment industry, the Isan system has been successfully deployed in Australia and New Zealand as a post-harvest treatment of fruits and vegetables where the water is treated and then the water is used to wash and clean the produce. It has been successfully commercialized in water treatment for irrigation supply and hydroponics (growing plants in water). In these applications, the Isan system delivers clean iodinated water that can be sprayed or washed onto plants, produce and soil and delivered in the water for cleaner, safer and healthier produce. In the hydroponics applications, the Isan technology is added to the hydroponics system, creating an iodinated water system to supply a nutrient tank that actually feed the plants. The Isan system actually fortifies the plant, so that customers can enjoy more rapid growth, produce healthier plants and help them produce and sustain a longer shelf life. We believe that the Isan system represents a major advancement in the sanitization of food and food and plant safety.
TWST: There are many situations where, when a disinfec-tant is used, it replaces one bad odor with another. I’d gather from what you say that this won’t be the case with your technology.Mr. Calvert: That’s right. Free iodine acts through oxidation and thereby eliminates the odor-causing compounds. And then even more so, we can control odors when we use super-absorbent compounds in the applications, we fully capture them so that they are unable to escape. So we do not experience the same kind of negative results that some of those other technology solutions may experience.
That’s right. Free iodine acts through oxidation and thereby eliminates the odor-causing compounds. And then even more so, we can control odors when we use super-absorbent compounds in the applications, we fully capture them so that they are unable to escape. So we do not experience the same kind of negative results that some of those other technology solutions may experience. TWST: What are the key elements in your strategic plan as you look out over the next two to two and a half years?Mr. Calvert: Our company has continued to advance its intellectual property, designs and know-how, and those efforts are ongoing. We believe that we are alone in the practice of the art of our patent work. So a large part of our efforts is to position the technology with third-party validations, specific and enhanced product design, marketing to our potential strategic partners throughout the world and, depending on our financial resources, advancing the product development for certain applications so that we can really do all we can to prepare products for market.
Our company has continued to advance its intellectual property, designs and know-how, and those efforts are ongoing. We believe that we are alone in the practice of the art of our patent work. So a large part of our efforts is to position the technology with third-party validations, specific and enhanced product design, marketing to our potential strategic partners throughout the world and, depending on our financial resources, advancing the product development for certain applications so that we can really do all we can to prepare products for market. TWST: Are you suggesting that there will be new ap-plications developed as time goes by?Mr. Calvert: We believe so. As a technology company with a suite of intellectual property, we are continually focused on R&D, new discovery, new product enhancements, new product developments and applications for our technologies. It is an ongoing effort that we intend to continually pursue, assuming proper resources are available to continue these efforts.
We believe so. As a technology company with a suite of intellectual property, we are continually focused on R&D, new discovery, new product enhancements, new product developments and applications for our technologies. It is an ongoing effort that we intend to continually pursue, assuming proper resources are available to continue these efforts.TWST: What about challenges, problems or obstacles? Mr. Calvert: There are a number of challenges and obstacles that create barriers to success. Obviously, in each one of these situations there are competing technologies for each application. And so the key for us is to differentiate the features and benefits of our free iodine technology against competing technologies. How do we do that? We highlight our all-natural, environmentally friendly solution, our “green technology,” our cost effectiveness, free iodine’s broad spectrum and highest potency, its efficacy for its disinfecting capability. We also highlight the “No Acquired Resistance Capability” of iodine as a critical part of the equation helping support its preference versus a competing technology.
So first we work to position our technology for acceptance and then we face competitive and supply chain barriers that are significant. To help offset those risks, we are seeking to establish licensing relationships with leading companies in each industry that can use our technology to make and distribute products that feature our technology to help overcome these barriers. We are also working to identify high value product propositions that can have the opportunity to make a significant difference in the marketplace, and in which there are higher margins to support the development costs and really, if you will, offer a “game changing” or disruptive business opportunity in big industries. As in any business like ours, we also have to manage a multitude of risks, which we detail in our public filings, which can be found at our Website, www.biolargo.com or at the SEC Website, www.sec.gov. So while the risks are inherent in any business like ours, we believe that our technology is important. We are working hard to make good strategy decisions, have a wide range of significant markets to participate in, and are steadfast in the pursuit of our business plan.
TWST: Do you foresee eventually large production of your products in developing countries?Mr. Calvert: We believe that our technology has a fundamental ability to help keep people safe from diseases and infection. Especially in developing countries where disinfectants are so difficult and expensive to access, we think we can offer a cost-effective, safe, practical and simple solution that can benefit the entire world, including developing countries, and so we do believe the economics can drive development eventually in those areas as well.
We believe that our technology has a fundamental ability to help keep people safe from diseases and infection. Especially in developing countries where disinfectants are so difficult and expensive to access, we think we can offer a cost-effective, safe, practical and simple solution that can benefit the entire world, including developing countries, and so we do believe the economics can drive development eventually in those areas as well.Mr. Calvert: I believe a key for any company, including ours, is to remain sharply focused on developing and executing on the fundamentals. We focus on capitalization, positioning in a global marketplace, carefully identifying and forming strategic alliances and generating meaningful long-term value for our shareholders, to name just a few key areas. I think a business that does these things well is more viable and can remain a growing enterprise that serves a real purpose and this focus best defines our business strategy. It is ance to exploit the use of free iodine in the agriculture field through our relationship with Ioteq. We have entered into product evaluation agreements with two of the leading corporations in the world in their respective industries. We have advanced third party independent studies with two leading universities, UCLA and University of Hawaii, as well as our contracted GLP Lab to add to our independent verifications of our scientific claims. And so we believe that the path that we are on will continue to show similar progress and commercial opportunities, with significant emphasis and focus on a commercial launch for our technology. We also believe that the applications in which our technology can be used will continue to expand as well. It is important to remember that continued advancement is also capital resource dependent and so our ability to accomplish these goals and the rate of advancement is directly tied to our capital formation efforts.
I believe a key for any company, including ours, is to remain sharply focused on developing and executing on the fundamentals. We focus on capitalization, positioning in a global marketplace, carefully identifying and forming strategic alliances and generating meaningful long-term value for our shareholders, to name just a few key areas. I think a business that does these things well is more viable and can remain a growing enterprise that serves a real purpose and this focus best defines our business strategy. It is ance to exploit the use of free iodine in the agriculture field through our relationship with Ioteq. We have entered into product evaluation agreements with two of the leading corporations in the world in their respective industries. We have advanced third party independent studies with two leading universities, UCLA and University of Hawaii, as well as our contracted GLP Lab to add to our independent verifications of our scientific claims. And so we believe that the path that we are on will continue to show similar progress and commercial opportunities, with significant emphasis and focus on a commercial launch for our technology. We also believe that the applications in which our technology can be used will continue to expand as well. It is important to remember that continued advancement is also capital resource dependent and so our ability to accomplish these goals and the rate of advancement is directly tied to our capital formation efforts.“Our technology is a platform technology that has application across multiple industries and multiple products. Therefore, we have the potential to be able to leverage our technology across a broad spectrum of industries and applications, benefiting from multiple commercial fits and strategic alliances. That expands the possibilities for our commercial success. We are focused on a licensing strategy with high margin potential, into multiple multi-billion dollar markets.” also important to realize that many of the market opportunities that may be before us are dominated by multibillion-dollar, multi-national corporations. At this stage of our business, our real focus is to continue to build the fundamentals and continue to position the technology, and we do not see that changing for some time. We want to stay focused on the fundamental points of our plan to maximize value and our chances for long-term success. TWST: What would you reasonably expect the com-pany to look like in about three years? Mr. Calvert: If you take a look at the last two years and you take a snapshot of where we were then versus where we are today, it shows a rather dramatic improvement and advancement from our core technology to our expanded position as it is today. So, for example, even in the last year and a half or so we have been able to advance our technology from its original two patents to an addition of nine patents pending; we have formed a strategic alli-
If you take a look at the last two years and you take a snapshot of where we were then versus where we are today, it shows a rather dramatic improvement and advancement from our core technology to our expanded position as it is today. So, for example, even in the last year and a half or so we have been able to advance our technology from its original two patents to an addition of nine patents pending; we have formed a strategic alli-TWST: Would you tell us about your own background and expertise and the same for one or two members of your man-agement team? Mr. Calvert: I am an entrepreneur who has spent the last 20 years in a number of merger and acquisition roles and corporate finance, taking new ideas into business formation, capital formation and execution of the market plan and the like. At this stage of our business, I think my skill sets are particularly well suited in providing vision for our company, strategizing the execution of our business plan, and pressing forward with the level of energy and drive that really helps us organize and motivate our entire team.
Our inventor and Chief Science Officer, Kenneth Code, made his first discovery associated with our technology over 10 years ago, organized and filed his first patents, and then sought out to find strategic alliances and people and resources to execute the plan. Ken and I met almost five years ago. And from a science knowledge perspective, I had the unique advantage of being trained in the details of the technology and its possibilities by the inventor himself. Ken and I are both passionate about putting our technology to work to make a difference in the world.
Surrounding the two of us, we have expertise and talent in marketing and corporate development, specialists in regulatory affairs, and specialists in patent work, engineering, third party testing and manufacturing. Ioteq adds to our team proven expertise in deploying free iodine for commercial uses in agriculture and a broad understanding of free iodine and its unique capabilities.
I believe another unique quality worth mentioning is that we are a very nimble company in that we are able to reach out to the best of the best talent in any area that is required, so that we can be more strategic in our thinking and on-point with all these very artful pieces of the puzzle that are required to execute our plan.
TWST: How many employees do you have? Mr. Calvert: We have five full-time people working with the company. We also have a group of independent consultants who provide support on a project-by-project and as-needed basis, which is part of our nimble business organization.
We have five full-time people working with the company. We also have a group of independent consultants who provide support on a project-by-project and as-needed basis, which is part of our nimble business organization. technology, we may be able to increase our corporate expenditures for additional personnel. However, our licensing strategy is a high margin proposition, so that we can leverage on the ability of these multi-billion dollar companies to deploy and better manage many of the barriers to entry.
TWST: Do you see any need to improve the company’s capital structure? Mr. Calvert: I think that’s a perpetual requirement for any public company, and we are no different. Certainly the availability of adequate capital allows us to progress faster, and advance product development faster and better. Adequate capital not only provides a greater sense of security for the foundation of our company, but also would give us the tools for expanding a go-to-market strategy much more efficiently and rapidly.
I think that’s a perpetual requirement for any public company, and we are no different. Certainly the availability of adequate capital allows us to progress faster, and advance product development faster and better. Adequate capital not only provides a greater sense of security for the foundation of our company, but also would give us the tools for expanding a go-to-market strategy much more efficiently and rapidly. TWST: How do you think that the current economic situation will affect? Mr. Calvert: I think that there is certainly some real effect, no question, especially in the capital formation aspects of our business. But we all believe that at some level, the current psychology of fear will shift and investors will be looking for companies like ours that
“We are focused on a licensing strategy with high margin potential, into multiple multi-billion dollar markets. We will continue to position ourselves and proceed forward in launching our technology through those distribution channels.”
TWST: Can you accomplish a lot without having to in-crease the headcount too much? Mr. Calvert: Yes. Our focus is to seek licensing partnerships. So often, much of the heavy lifting can be performed by our strategic partners. That could include field development, field trials and field formulations, regulatory approvals where they are required, marketing, supply and manufacturing. And so our company is designed to create, patent, refine and develop the systems and knowledge base to allow for products incorporating our technology to get to the market faster. Some of our product designs can be taken to market directly with proper capital resources. Having said that, we believe that we can continue to operate efficiently and cost-effectively with a lean staff, and sustain ourselves as we work through the development cycle with global multi-nationals. Longer-term, as we are able to show continual progress and commercial viability for our have such significant opportunities to increase shareholder value. From a technology perspective and a commercial opportunity perspective, I think we are more insulated from the current economic conditions in many ways. Companies that offer improvements in safety, promote health and offer green solutions appear to be less sensitive to the general economic conditions in that they represent what seems to be the next wave of business domestically and globally.
Yes. Our focus is to seek licensing partnerships. So often, much of the heavy lifting can be performed by our strategic partners. That could include field development, field trials and field formulations, regulatory approvals where they are required, marketing, supply and manufacturing. And so our company is designed to create, patent, refine and develop the systems and knowledge base to allow for products incorporating our technology to get to the market faster. Some of our product designs can be taken to market directly with proper capital resources. Having said that, we believe that we can continue to operate efficiently and cost-effectively with a lean staff, and sustain ourselves as we work through the development cycle with global multi-nationals. Longer-term, as we are able to show continual progress and commercial viability for our have such significant opportunities to increase shareholder value. From a technology perspective and a commercial opportunity perspective, I think we are more insulated from the current economic conditions in many ways. Companies that offer improvements in safety, promote health and offer green solutions appear to be less sensitive to the general economic conditions in that they represent what seems to be the next wave of business domestically and globally. Now, if you look at the way we operate from a licensing model perspective, we offer a significant competitive advantage, value and a technology advancement that solve serious problems in a very cost-effective way. So, therefore, those commercial propositions are very attractive and I think the attraction will become even more clearly apparent as other companies are looking for ways to enhance their own margins, market share and product offerings in the marketplace.
TWST: Would you describe your current investor base? Mr. Calvert: We financed the business primary through private placements of convertible debt over the course of a number of years with primarily retail investors and one institutional investor. We have approximately 1,600 shareholders. The total invested capital, from approximately 2003 to now, is approximately $5.6 million. Of note, all of our debt is mandatorily convertible into common stock. We believe that most of our investors are long-term investors who invested in us because of our mission to make a difference in the world with our technology, while making a profit and increasing shareholder value. Our investors and our management have established a level of trust in each other and our investors have remained steadfast and focused, which we honor.
TWST: What would be the two or three best reasons for the long-term investor to look closely at BioLargo? Mr. Calvert: Number one, we believe that we are alone in what our technology does and will continue to be able to do as a result of further R&D. Our technology is covered by two issued patents and nine patents pending, and we anticipate continued filings for additional patents on a go-forward basis.
Number one, we believe that we are alone in what our technology does and will continue to be able to do as a result of further R&D. Our technology is covered by two issued patents and nine patents pending, and we anticipate continued filings for additional patents on a go-forward basis. Number two, our technology is a platform technology that has application across multiple industries and multiple products. Therefore, we have the potential to be able to leverage our technology across a broad spectrum of industries and applications, benefiting from multiple commercial fits and strategic alliances. That expands the possibilities for our commercial success.
Number three, we are focused on a licensing strategy with high margin potential, into multiple multi-billion dollar markets. We will continue to position ourselves and proceed forward in launching our technology through those distribution channels.
Let me add a Number four, which has to be our people. If any investor takes a look at the history of our company and our management team, we believe that they will not only see seasoned quality people but they will recognize our commitment to remain steadfast and focused on delivering value for our investors on the commercial side and at the same time adding a lasting benefit to the world in the areas of disinfection and disease control
TWST: Thank you. 
Safe Harbor Statement
Safe Harbor Statement The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the company’s filings and future filings with the Securities and Exchange Commission, including those set forth in the company’s Annual Report on Form 10-K for the year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the period ended September 30, 2008.
© 2008 The Wall Street Transcript, 48 West 37th Street, NYC 10018 Tel: (212) 952-7400 • Fax:(212) 668-9842 • Website:www.twst.com
Mr. Calvert: If you take a look at the last two years and you take a snapshot of where we were then versus where we are today, it shows a rather dramatic improvement and advancement from our core technology to our expanded position as it is today. So, for example, even in the last year and a half or so we have been able to advance our technology from its original two patents to an addition of nine patents pending; we have formed a strategic alli-
If you take a look at the last two years and you take a snapshot of where we were then versus where we are today, it shows a rather dramatic improvement and advancement from our core technology to our expanded position as it is today. So, for example, even in the last year and a half or so we have been able to advance our technology from its original two patents to an addition of nine patents pending; we have formed a strategic alli-TWST: Would you tell us about your own background and expertise and the same for one or two members of your man-agement team? Mr. Calvert: I am an entrepreneur who has spent the last 20 years in a number of merger and acquisition roles and corporate finance, taking new ideas into business formation, capital formation and execution of the market plan and the like. At this stage of our business, I think my skill sets are particularly well suited in providing vision for our company, strategizing the execution of our business plan, and pressing forward with the level of energy and drive that really helps us organize and motivate our entire team.
Our inventor and Chief Science Officer, Kenneth Code, made his first discovery associated with our technology over 10 years ago, organized and filed his first patents, and then sought out to find strategic alliances and people and resources to execute the plan. Ken and I met almost five years ago. And from a science knowledge perspective, I had the unique advantage of being trained in the details of the technology and its possibilities by the inventor himself. Ken and I are both passionate about putting our technology to work to make a difference in the world.
Surrounding the two of us, we have expertise and talent in marketing and corporate development, specialists in regulatory affairs, and specialists in patent work, engineering, third party testing and manufacturing. Ioteq adds to our team proven expertise in deploying free iodine for commercial uses in agriculture and a broad understanding of free iodine and its unique capabilities.
I believe another unique quality worth mentioning is that we are a very nimble company in that we are able to reach out to the best of the best talent in any area that is required, so that we can be more strategic in our thinking and on-point with all these very artful pieces of the puzzle that are required to execute our plan.
TWST: How many employees do you have?Mr. Calvert: We have five full-time people working with the company. We also have a group of independent consultants who provide support on a project-by-project and as-needed basis, which is part of our nimble business organization.
We have five full-time people working with the company. We also have a group of independent consultants who provide support on a project-by-project and as-needed basis, which is part of our nimble business organization.technology, we may be able to increase our corporate expenditures for additional personnel. However, our licensing strategy is a high margin proposition, so that we can leverage on the ability of these multi-billion dollar companies to deploy and better manage many of the barriers to entry.
TWST: Do you see any need to improve the company’s capital structure?Mr. Calvert: I think that’s a perpetual requirement for any public company, and we are no different. Certainly the availability of adequate capital allows us to progress faster, and advance product development faster and better. Adequate capital not only provides a greater sense of security for the foundation of our company, but also would give us the tools for expanding a go-to-market strategy much more efficiently and rapidly.
I think that’s a perpetual requirement for any public company, and we are no different. Certainly the availability of adequate capital allows us to progress faster, and advance product development faster and better. Adequate capital not only provides a greater sense of security for the foundation of our company, but also would give us the tools for expanding a go-to-market strategy much more efficiently and rapidly.TWST: How do you think that the current economic situation will affect? Mr. Calvert: I think that there is certainly some real effect, no question, especially in the capital formation aspects of our business. But we all believe that at some level, the current psychology of fear will shift and investors will be looking for companies like ours that
those distribution channels.”
TWST: Can you accomplish a lot without having to in-crease the headcount too much?Mr. Calvert: Yes. Our focus is to seek licensing partnerships. So often, much of the heavy lifting can be performed by our strategic partners. That could include field development, field trials and field formulations, regulatory approvals where they are required, marketing, supply and manufacturing. And so our company is designed to create, patent, refine and develop the systems and knowledge base to allow for products incorporating our technology to get to the market faster. Some of our product designs can be taken to market directly with proper capital resources. Having said that, we believe that we can continue to operate efficiently and cost-effectively with a lean staff, and sustain ourselves as we work through the development cycle with global multi-nationals. Longer-term, as we are able to show continual progress and commercial viability for our have such significant opportunities to increase shareholder value. From a technology perspective and a commercial opportunity perspective, I think we are more insulated from the current economic conditions in many ways. Companies that offer improvements in safety, promote health and offer green solutions appear to be less sensitive to the general economic conditions in that they represent what seems to be the next wave of business domestically and globally.
Yes. Our focus is to seek licensing partnerships. So often, much of the heavy lifting can be performed by our strategic partners. That could include field development, field trials and field formulations, regulatory approvals where they are required, marketing, supply and manufacturing. And so our company is designed to create, patent, refine and develop the systems and knowledge base to allow for products incorporating our technology to get to the market faster. Some of our product designs can be taken to market directly with proper capital resources. Having said that, we believe that we can continue to operate efficiently and cost-effectively with a lean staff, and sustain ourselves as we work through the development cycle with global multi-nationals. Longer-term, as we are able to show continual progress and commercial viability for our have such significant opportunities to increase shareholder value. From a technology perspective and a commercial opportunity perspective, I think we are more insulated from the current economic conditions in many ways. Companies that offer improvements in safety, promote health and offer green solutions appear to be less sensitive to the general economic conditions in that they represent what seems to be the next wave of business domestically and globally.Now, if you look at the way we operate from a licensing model perspective, we offer a significant competitive advantage, value and a technology advancement that solve serious problems in a very cost-effective way. So, therefore, those commercial propositions are very attractive and I think the attraction will become even more clearly apparent as other companies are looking for ways to enhance their own margins, market share and product offerings in the marketplace.
TWST: Would you describe your current investor base? Mr. Calvert: We financed the business primary through private placements of convertible debt over the course of a number of years with primarily retail investors and one institutional investor. We have approximately 1,600 shareholders. The total invested capital, from approximately 2003 to now, is approximately $5.6 million. Of note, all of our debt is mandatorily convertible into common stock. We believe that most of our investors are long-term investors who invested in us because of our mission to make a difference in the world with our technology, while making a profit and increasing shareholder value. Our investors and our management have established a level of trust in each other and our investors have remained steadfast and focused, which we honor.
TWST: What would be the two or three best reasons for the long-term investor to look closely at BioLargo? Mr. Calvert: Number one, we believe that we are alone in what our technology does and will continue to be able to do as a result of further R&D. Our technology is covered by two issued patents and nine patents pending, and we anticipate continued filings for additional patents on a go-forward basis.
Number one, we believe that we are alone in what our technology does and will continue to be able to do as a result of further R&D. Our technology is covered by two issued patents and nine patents pending, and we anticipate continued filings for additional patents on a go-forward basis.Number two, our technology is a platform technology that has application across multiple industries and multiple products. Therefore, we have the potential to be able to leverage our technology across a broad spectrum of industries and applications, benefiting from multiple commercial fits and strategic alliances. That expands the possibilities for our commercial success.
Number three, we are focused on a licensing strategy with high margin potential, into multiple multi-billion dollar markets. We will continue to position ourselves and proceed forward in launching our technology through those distribution channels.
Let me add a Number four, which has to be our people. If any investor takes a look at the history of our company and our management team, we believe that they will not only see seasoned quality people but they will recognize our commitment to remain steadfast and focused on delivering value for our investors on the commercial side and at the same time adding a lasting benefit to the world in the areas of disinfection and disease control
TWST: Thank you. Safe Harbor Statement
Safe Harbor StatementThe statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the company’s filings and future filings with the Securities and Exchange Commission, including those set forth in the company’s Annual Report on Form 10-K for the year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the period ended September 30, 2008.