Beneath the surface of BioLargo's recent earnings call, a quiet revolution is brewing. While analysts have focused on the promising PFAS remediation technology and the intriguing sodium-sulfur battery, a far less glamorous product may hold the key to BioLargo's immediate financial future: Pooph, a pet odor control solution.

Yes, you read that right. Pooph.

This unassuming product, born from a partnership with Ikigai Marketing, is quietly racking up impressive numbers. While Q2 revenue dipped due to a strategic inventory buildup for a major Walmart rollout, the real story lies in the future. Pooph has informed BioLargo that they expect to have contracts with over 20,000 retail stores by the end of 2023 – a tenfold increase from their current footprint.

This projected explosion in retail presence could be the tipping point for BioLargo, catapulting the company into profitability and beyond. To understand the potential impact, let's delve into the numbers.

Pooph is currently on a run rate of approximately $4 million in monthly revenue. Assuming a conservative average of $1,000 in monthly sales per store (a figure easily achievable for a popular pet product in a major retailer), the 20,000-store expansion could add a staggering $20 million to Pooph's monthly revenue.

This translates to a potential annual revenue of $240 million for Pooph alone, dwarfing BioLargo's current total annual revenue of around $10 million.

Remember, BioLargo has a 20% stake in Pooph's eventual exit. Ikigai's stated goal is to reach $100 million in annual revenue and secure an exit at a multiple of 3.5x to 7x revenue. Even at the conservative end of that spectrum, BioLargo's 20% share would be worth a jaw-dropping $70 million.

While these numbers are based on projections, the trajectory of Pooph's growth and the aggressive expansion plans suggest they are within reach.

But the implications go far beyond a single product. Pooph's success is a powerful validation of BioLargo's unique 'invent, prove, partner' strategy. This strategy allows the company to leverage its deep scientific and engineering expertise to develop disruptive technologies, then partner with commercially savvy entities to bring those technologies to market.

Pooph's success story demonstrates that this model can create significant value for BioLargo even in unexpected sectors. While the world grapples with the urgent need for PFAS remediation and sustainable energy storage, a humble pet odor control solution may be the catalyst that unlocks BioLargo's true potential and sets the stage for an even more impactful future.

Beyond Pooph: A Glimpse into BioLargo's Ambitious Future

Beyond the Pooph phenomenon, there are intriguing nuggets buried within the transcript that hint at the breadth of BioLargo's ambition. Dennis Calvert, BioLargo's CEO, reveals active discussions with a 'leading supplier of equipment for emergency fire situations in airports' regarding PFAS remediation. This potential partnership, encompassing 50,000+ locations worldwide, underlines the vast, untapped market for BioLargo's technology.

Furthermore, Calvert's anecdote about a major hospital system seeking 1.6 megawatts of battery storage – and expressing a willingness to wait two years for BioLargo's sodium-sulfur battery – speaks volumes about the demand for a safer, domestically sourced alternative to lithium-ion batteries.

BioLargo's Revenue Growth

BioLargo has seen consistent revenue growth over the past year, driven largely by the success of Pooph. The chart below shows BioLargo's revenue for the past four quarters, along with projections for the next four quarters.

As BioLargo prepares to unveil its prototype production line for the sodium-sulfur battery, the company finds itself in a remarkable position. With Pooph poised for explosive growth and promising technologies on the cusp of commercialization, the narrative is shifting from potential to tangible results.

While navigating the complexities of securing long-term contracts and navigating regulatory hurdles, BioLargo appears to be on the verge of a breakout moment. The quiet revolution within BioLargo is gathering momentum, fueled by a unique blend of scientific innovation, strategic partnerships, and, yes, even a little bit of Pooph.

Key Highlights from BioLargo's Q3 2023 Earnings Call

Fun Facts and Interesting Insights

"The PFAS Problem: PFAS, or 'forever chemicals,' are a class of man-made chemicals that are resistant to degradation and can persist in the environment for thousands of years. They have been linked to various health problems, including cancer, immune deficiency, and developmental issues."

"The Battery Revolution: The global demand for batteries is skyrocketing, driven by the growth of electric vehicles, renewable energy, and portable electronics. BioLargo's sodium-sulfur battery offers a potentially safer and more sustainable alternative to traditional lithium-ion batteries."