Note 3 - Change in Derivative Liability Treatment

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Accounting Changes [Text Block]

Note

3.

Change in Derivative Liability Treatment

BioLargo adopted ASU

2017

-

11

as of

July 1, 2017.

With this adoption, we eliminated the derivative liability, and the changes in the fair value of the derivative liability, related to negative covenants in multiple warrants issued that required a reduction of warrant exercise price under certain circumstances. The Company made a cumulative effect adjustment to the consolidated balance sheet as of

January 1, 2017,

which adjusted the beginning balance in the accumulated deficit account by

$663,560.