Note 1 - Business and Organization

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note

1.

Business and Organization

Outlook

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of our business. As reflected in the accompanying financial statements, for the

six

months ended

June 30, 2017

we had a net loss of

$4,577,870,

and used

$2,048,628

cash in operations, and at

June 30, 2017,

had negative working capital of

$3,175,349,

current assets of

$561,346,

and an accumulated stockholders’ deficit of

$96,256,129.

The foregoing factors raise substantial doubt about our ability to continue as a going concern. Ultimately, our ability to continue as a going concern is dependent upon our ability to attract significant new sources of capital, attain a reasonable threshold of operating efficiencies and achieve profitable operations by licensing or otherwise commercializing products incorporating our technologies. The financial statements do

not

include any adjustments that might be necessary if we are unable to continue as a going concern.

We have been, and anticipate that we will continue to be, limited in terms of our capital resources. Our total cash balance was

$433,539

at

June 30, 2017.

Our cash decreased over

$1,400,000

from

December 31, 2016

to

June 30, 2017.

Although our revenues in the

six

months ended

June 

30,

 

2017

increased almost

three

-fold from the same period in

2016,

they are

not

sufficient to fund our operations and our sales must increase substantially before they will be. At times in the past we have

not

had enough cash or sources of capital to pay our accounts payable and expenses as they arise, and have relied on the issuance of stock options and common stock, as well as extended payment terms with our vendors, to continue to operate. We will be required to raise substantial additional capital to expand our operations, including without limitation, hiring additional personnel, additional scientific and

third

-party testing, costs associated with obtaining regulatory approvals and filing additional patent applications to protect our intellectual property, and possible strategic acquisitions or alliances, as well as to meet our liabilities as they become due for the next

12

 months. We continue to raise money through private securities offerings for the foreseeable future. Subsequent to

June 30, 2017,

we have received over

$800,000

of investments (see Note

9.

)

As of

June 30, 2017,

we had

$5,805,668

in principal amounts due on various debt obligations (see Note

3

). Of that amount, $

4,830,097

are convertible at our option into common stock at maturity. Additionally, as of

June 30, 2017,

we had

$344,438

of accounts payable and accrued expenses (see Note

6

).

The unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to Rule

8

-

03

of Regulation S-

X

under the Securities Act of

1933,

as amended. Accordingly, they do

not

include all of the information and notes required by generally accepted accounting principles for annual financial statements.  In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. For some of our activities, we are still operating in the early stages of the sales and distribution process, and therefore our operating results for the

six

months ended

June 30, 2017

are

not

necessarily indicative of the results that

may

be expected for the year ending

December 

31,

 

2017,

or for any other period. These unaudited consolidated financial statements and notes should be read in conjunction with the Company’s audited financial statements and accompanying notes included in the Annual Report on

Form

10

-K for the year ended

December 31, 2016

filed with the Securities and Exchange Commission (the “SEC”) on

March 30, 2017.

We operate

six

wholly-owned subsidiaries: BioLargo Life Technologies, Inc., organized under the laws of the State of California in

2006,

Odor-

No

-More, Inc., organized under the laws of the State of California in

2009,

BioLargo Water USA, Inc., organized under the laws of the State of California in

2013,

BioLargo Water, Inc., organized under the laws of Canada in

2014,

BioLargo Maritime Solutions, Inc. organized under the laws of the State of California in

2016,

and BioLargo Development Corp., organized under the laws of the State of California in

2016.

Additionally, we own a controlling ownership interest in Clyra Medical Technologies, Inc., organized under the laws of the State of California in

2012.