Note 10 - Business Segment Information

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

10.

Business Segment Information

BioLargo currently has

four

operating business segments, plus its corporate entity which is responsible for general corporate operations, including administrative functions, finance, human resources, marketing, legal, etc. The

four

operational business segments are:

1. Odor- No -More (“ONM”) -- which is selling odor and volatile organic control products and services (located in Westminster, California);

2. Clyra Medical (“Clyra”) -- which is engaged in developing medical products and preparing launch into commercial activity with approval of its FDA 510 (K) application in process;  

3. BLEST -- which provides professional engineering services on a time and materials basis for outside clients and supports our internal operations as needed (located in Oak Ridge, Tennessee);

4. BioLargo Water  (“Water”) -- which historically focused entirely on R&D, and has now shifted its focus to commercializing the AOS technology (located in Edmonton, Alberta Canada); and

Historically,

none

of our operating business units operated at a profit and therefore each required additional cash to meet its monthly expenses. The additional sources of the cash to fund the shortfall from operations of Odor-

No

-More, BLEST and BioLargo Water have been provided by BioLargo’s sales of debt or equity, research grants, and tax credits. Clyra Medical has been funded by

third

party investors who invest directly in Clyra Medical in exchange for equity ownership in that entity. For example, during the year ended

December 31, 2018,

we provided Odor-

No

-More with approximately

$417,000

in cash to supplement its operations. As this subsidiary’s sales have increased (from approximately

$500,000

in calendar year

2017

to over

$1

million in calendar year

2018

), and its gross margins have improved, it has generated more cash for its operations and relied less on corporate to supplement its cash to pay its bills.

The segment information for the

three

months ended

March 31, 2018

and

2019,

is as follows (in thousands):

As of March 31, 2019	BioLargo			ONM			Clyra			BLEST			Water			Elimination			Total
Revenue	$	—		$	301		$	—		$	183		$	—		$	(120	)	$	364
Intersegment revenue		—			—			—			(120	)		—			—			—
Operating loss		(948	)		(90	)		(287	)		(110	)		(227	)		—			(1,662	)
Grant income		—			—			—			—			82			—			82
Interest expense		(632	)		—			(12	)		—			—			—			(985	)
Depreciation		—			(4	)		—			(12	)		—			—			(16	)
Research and development		(172	)		—			(49	)		(122	)		(209	)		126			(426	)
Loss on extinguishment		(184	)		—			—			—			—			—			(184	)
Net loss		(2,105	)		(90	)		(299	)		(110	)		(145	)		—			(2,749	)

As of March 31, 2018	BioLargo			ONM			Clyra			BLEST			Water			Elimination			Total
Revenue	$	—		$	224		$	—		$	189		$	—		$	(120	)	$	364
Intersegment revenue		—			—			—			(150	)		—			—			—
Operating loss		(1,093	)		(109	)		(199	)		(45	)		(156	)		—			(1,602	)
Grant income		—			—			—			—			5			—			5
Interest expense		(830	)		—			—			(2	)		—			—			(832	)
Depreciation		—			(4	)		—			(6	)		—			—			(10	)
Research and development		(343	)		—			(87	)		(100	)		(142	)		150			(522	)
Net loss		(1,924	)		(109	)		(199	)		(46	)		(151	)		—			(2,429	)

As of March 31, 2019	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	673	$	182	$	277	$	329	$	48	$	(6	)	$	1,503
Intangible assets		1,893		—		—		—		—		—			1,893

As of December 31, 2018	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	353	$	220	$	462	$	230	$	33	$	(6	)	$	1,292
Intangible assets		1,893		—		—		—		—		—			1,893