OTC:BLGO
BIOLARGO, INC.
A clinical-stage biotech firm investing heavily in R&D with recent equity financing but facing substantial operating losses.
Key Metrics
Investment Thesis
Bull Case
Potential investors may view BLGO as a high-risk turnaround play given its substantial paid-in capital and positive net change in cash position despite losses. The company's ability to secure $8.2M in financing recently suggests confidence from the capital markets or private backers in the long-term viability of its pipeline. If new products succeed, the current low asset base could result in a disproportionate upside upon approval or commercialization milestones.
Bear Case
The deepening losses and shrinking revenue trend present a critical threat to the company's survival without immediate major capital injections. Operating expenses ballooned to $18.3M while generating only $7.8M in revenue, indicating severe inefficiency that has not yet been corrected. The massive retained earnings deficit and negative non-operating income suggest fundamental structural issues that are unlikely to resolve without a complete business model overhaul.
About BIOLARGO, INC.
BIOLARGO, INC. (BLGO) is a biotechnology company focused on developing advanced therapeutic solutions and medical technologies. The firm operates primarily in the healthcare sector, leveraging significant research and development expenditures to create innovative products for specialized markets.
Analysis
Management Discussion
The company's financial performance has deteriorated significantly, with net profit plunging to -$15.2M in 2025 compared to a more manageable loss of -$4.3M the prior year. Despite generating positive cash flow from financing activities and investing, the core operations consumed $8.3M in cash, highlighting an inability to achieve operational self-sufficiency. The sharp decline in revenue suggests potential product cycle issues or market headwinds that require strategic adjustment.
Industry Overview
The biotechnology industry is characterized by high capital intensity, long development cycles, and significant regulatory hurdles before products reach market. Companies in this sector often operate at a loss during clinical trials and R&D phases while awaiting breakthrough moments that can generate substantial returns. Market consolidation is common, and firms must continuously innovate to stay relevant against large pharmaceutical incumbents.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.9M | $12.2M | $17.8M | $7.8M |
| Cost of Revenue | $3.0M | $6.1M | $9.9M | $4.4M |
| Gross Profit | $2.9M | $6.2M | $7.9M | $3.4M |
| Operating Expenses | $8.2M | $10.7M | $12.2M | $18.3M |
| Operating Income | $-5.4M | $-4.6M | $-4.3M | $-14.9M |
| R&D | $1.3M | $2.3M | $2.9M | $2.6M |
| G&A | $6.7M | $8.1M | $9.3M | $11.8M |
| Stock-Based Comp | $2.1M | $2.1M | $2.1M | $3.0M |
| D&A | $45.0K | $103.0K | — | — |
| Depreciation | — | $103.0K | $155.0K | $145.0K |
| Other OpEx | $197.0K | $394.0K | $0 | $3.9M |
| Non-Operating Income | $0 | $0 | $0 | $-334.0K |
| Interest Expense | $53.0K | $91.0K | — | — |
| Interest Income | — | — | $33.0K | $200.0K |
| Pre-Tax Income | $-5.4M | $-4.6M | $-4.3M | $-15.2M |
| Income Tax | $-258.0K | $68.0K | $0 | $0 |
| Continuing Ops | $-5.1M | $-4.6M | $-4.3M | $-15.2M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-5.1M | $-4.6M | $-4.3M | $-15.2M |
| Minority Interest | $-659.0K | $-1.1M | $-1.9M | $-3.4M |
| Net to Common | $-4.5M | $-3.5M | $-2.4M | $-11.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.2M | $6.4M | $7.1M | $5.1M |
| Cash & Equivalents | $1.9M | $3.5M | $3.5M | $3.9M |
| Accounts Receivable | $1.1M | $2.6M | $3.2M | $615.0K |
| Inventory | $120.0K | $153.0K | $330.0K | $310.0K |
| Prepaid Expenses | $118.0K | $58.0K | $91.0K | $306.0K |
| Other Current Assets | $0 | $0 | $0 | $0 |
| Long-Term Assets | $1.7M | $1.8M | $3.4M | $3.2M |
| PP&E (Net) | $287.0K | $662.0K | $1.7M | $1.6M |
| Operating Leases | $867.0K | $1.1M | $992.0K | $1.0M |
| Other LT Assets | $518.0K | $70.0K | $628.0K | $526.0K |
| Total Assets | $4.9M | $8.2M | $10.5M | $8.3M |
| Current Liabilities | $1.6M | $2.7M | $2.6M | $5.1M |
| Accounts Payable | $717.0K | $1.2M | $826.0K | $1.0M |
| Current Debt | $100.0K | — | $552.0K | — |
| Current Leases | $97.0K | $105.0K | $105.0K | $210.0K |
| Deferred Revenue | $17.0K | $303.0K | $0 | $280.0K |
| Other Current Liab | $645.0K | $1.1M | $1.2M | $3.6M |
| Long-Term Liabilities | $1.3M | $1.3M | $1.8M | $1.7M |
| Long-Term Debt | $237.0K | $289.0K | — | — |
| LT Operating Leases | $773.0K | $1.0M | $922.0K | $864.0K |
| Other LT Liab | $261.0K | $0 | $887.0K | $858.0K |
| Total Liabilities | $2.8M | $4.0M | $4.5M | $6.8M |
| Shareholders' Equity | $2.0M | $4.2M | $6.1M | $1.5M |
| Paid-In Capital | $148.4M | $154.0M | $158.3M | $165.3M |
| Retained Earnings | $-143.6M | $-147.1M | $-149.5M | $-161.3M |
| AOCI | $-149.0K | $-277.0K | $-183.0K | $-207.0K |
| Total L&E | $4.9M | $8.2M | $10.5M | $8.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-5.1M | $-4.6M | $-4.3M | $-15.2M |
| Non-Cash Adjustments | $1.9M | $324.0K | $722.0K | $4.7M |
| Working Capital Changes | $499.0K | $2.0M | $419.0K | $2.2M |
| Cash from Operations | $-2.8M | $-2.4M | $-3.2M | $-8.3M |
| Cash from Investing | $-271.0K | $-478.0K | $-1.3M | $435.0K |
| Cash from Financing | $4.0M | $4.7M | $4.4M | $8.2M |
| FX Effect | $-34.0K | $-128.0K | $94.0K | $-24.0K |
| Net Change in Cash | $889.0K | $1.7M | $9.0K | $335.0K |
| Beginning Cash | $962.0K | $1.9M | $3.5M | $3.5M |
| Ending Cash | $1.9M | $3.5M | $3.5M | $3.9M |
Frequently Asked Questions
How does BIOLARGO, INC. make money?
Primary revenue generation from product sales or licensing agreements in the pharmaceutical and medical device sectors; Secondary income derived from strategic partnerships or joint ventures within the healthcare ecosystem; Tertiary streams potentially including government grants for early-stage research and development initiatives.
What are the main risks for BLGO?
Severe financial distress with a net loss of $15.2M in 2025 and a retained earnings deficit exceeding $161M; Highly volatile revenue trajectory showing a sharp contraction from $17.8M in 2024 to $7.8M in 2025; Reliance on external financing evidenced by $8.2M cash flow from financing activities to offset negative operating cash flows of $8.3M.
What is BLGO's competitive advantage?
Substantial cash reserves of $3.9M providing a runway to fund high-risk, high-reward R&D projects without immediate dilution; Significant accumulated paid-in capital of $165.3M indicating strong historical investor support or convertible debt structures; Dedicated investment in research and development totaling $2.6M annually targeting proprietary therapeutic advancements.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.