Note 11 - Business Segment Information

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11. 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. ONM Environmental (formerly Odor-No-More) (“ONM”) -- which sells odor and volatile organic control products and services (located in Westminster, California);

2. Clyra Medical Technologies (“Clyra”) -- which develops and sells medical products based on our technologies, including Clyraguard Personal Protective Spray;

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); and

4. BioLargo Water (“Water”) -- which historically focused entirely on R&D, and has now shifted its focus to commercializing the AOS technology, developing manufacturing operations for hand sanitizers and supporting the development of iodine based disinfecting products for the company (located in Edmonton, Alberta Canada).

Historically, none of our operating business units have 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 ONM, 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.

The segment information for the three and six months ended June 30, 2021 and 2020, is as follows (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
Revenue
BioLargo corporate	$	—		$	—		$	7		$	—
ONM		318			299			638			596
BLEST		266			160			654			444
Water		—			—			9			—
Clyra Medical		—			21			114			21
Intersegment revenue		(120	)		(62	)		(387	)		(205	)
Total	$	464		$	418		$	1,035		$	856
Operating loss
BioLargo corporate	$	(937	)	$	(1,129	)	$	(1,860	)	$	(1,936	)
ONM		(107	)		(134	)		(283	)		(287	)
Clyra Medical		(300	)		(422	)		(739	)		(728	)
BLEST		(190	)		(124	)		(373	)		(331	)
Water		(168	)		(196	)		(305	)		(424	)
Total	$	(1,702	)	$	(2,005	)	$	(3,560	)	$	(3,706	)
Interest expense
BioLargo corporate	$	(51	)	$	(735	)	$	(106	)	$	(1,479	)
Clyra Medical		(38	)		(12	)		(76	)		(25	)
Total	$	(89	)	$	(747	)	$	(182	)	$	(1,504	)
Research and development expense
BioLargo corporate	$	(209	)	$	(119	)	$	(545	)	$	(321	)
Clyra Medical		(6	)		(47	)		(33	)		(61	)
BLEST		(123	)		(85	)		(228	)		(166	)
Water		(138	)		(137	)		(257	)		(317	)
Intersegment R&D		120			38			380			181
Total	$	(356	)	$	(350	)	$	(683	)	$	(684	)

The segment asset information for June 30, 2021 and December 31, 2020, is as follows (in thousands):

As June 30, 2021	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	1,072	$	431	$	1,016	$	321	$	151	$	(47	)	$	2,944
Right of use		185		—		—		126		—		—			311
Investment in South Korean joint venture		40		—		—		—		—		—			40
Intangible assets		2,150		—		—		—		—		—			2,150

As of December 31, 2020	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	603	$	624	$	1,125	$	314	$	105	$	(42	)	$	2,388
Right of use		215		—		—		126		—		—			341
Investment in South Korean joint venture		63		—		—		—		—		—			63
Intangible assets		2,150		—		—		—		—		—			2,150