Note 9 - Business Segment Information

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 9.   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:

ONM Environmental   (“ONM”) -- which sells odor and volatile organic control products and services (located in Westminster, California);

1. ONM Environmental (“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 BioClynse wound irrigation solution;

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  (located in Edmonton, Alberta Canada).

Historically, none of our operating business units have operated at a profit (other than ONM this last quarter) and therefore each required additional cash to meet its monthly expenses, funded through BioLargo’s sales of debt or equity, research grants, and tax credits. Clyra Medical has also 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 nine months ended September 30, 2022 and 2021, is as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2022			2021			2022			2021
Revenue
BioLargo corporate	$	2		$	—		$	4		$	7
ONM		1,199			420			2,499			1,058
BLEST		401			416			1,613			1,070
Water		1			2			1			9
Clyra Medical		17			9			34			114
Intersegment revenue		(120	)		(135	)		(365	)		(522	)
Total	$	1,500		$	712		$	3,786		$	1,743
Operating income (loss)
BioLargo corporate	$	(783	)	$	(868	)	$	(2,925	)	$	(2,726	)
ONM		400			(72	)		418			(355	)
Clyra Medical		(240	)		(219	)		(736	)		(958	)
BLEST		(179	)		(140	)		(158	)		(513	)
Water		(141	)		(156	)		(572	)		(461	)
Total	$	(943	)	$	(1,455	)	$	(3,973	)	$	(5,013	)
Interest expense
BioLargo corporate	$	(6	)	$	(6	)	$	(18	)	$	(106	)
Clyra Medical		(8	)		(20	)		(24	)		(96	)
Total	$	(14	)	$	(26	)	$	(42	)	$	(208	)
Research and development expense
BioLargo corporate	$	(140	)	$	(220	)	$	(570	)	$	(765	)
Clyra Medical		(31	)		(20	)		(73	)		(53	)
BLEST		(100	)		(123	)		(288	)		(358	)
Water		(119	)		(109	)		(446	)		(366	)
Intersegment R&D		119			135			359			515
Total	$	(271	)	$	(344	)	$	(1,018	)	$	(1,027	)

The segment asset information for September 30, 2022 and December 31, 2021, is as follows (in thousands):

As September 30, 2022	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	785	$	1,079	$	814	$	590	$	194	$	(20	)	$	3,442
Right of use		157		—		—		739		—		—			896
Investment in South Korean joint venture		33		—		—		—		—		—			33
Total		975		1,079		814		1,329		194		(20	)		4,371

As of December 31, 2021	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	690	$	451	$	832	$	445	$	152	$	(47	)	$	2,522
Right of use		222		—		—		231		—		—			453
Investment in South Korean joint venture		48		—		—		—		—		—			48
Total		960		451		832		676		152		(47	)		3,023