Note 11 - Business Segment Information

3 Months Ended

Mar. 31, 2023

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

2. Clyra Medical Technologies (“Clyra Medical”) -- which develops and sells medical products based on our technologies;

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).

5. BioLargo Energy Technologies, Inc. (“BETI”) – formed to commercialize a sodium-sulfur battery technology.

Other than ONM Environmental during the last three quarterly periods, none of our operating business units have operated at a profit,  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. BETI and Clyra Medical have also been funded by third party investors who invest directly in exchange for equity ownership in that entity.  

The segment information for the three months ended March 31, 2023, and 2022, is as follows (in thousands):

March 31, 2023	BioLargo			ONM			Clyra			BLEST			Water			BETI			Elimination			Total
Revenue	$	—		$	3,543		$	6		$	363		$	—		$	—		$	(170	)	$	3,742
Intersegment revenue		—			—			—			(170	)		—			—			170			—
R&D expense		(189	)		—			(134	)		(245	)		(135	)		(32	)		170			(565	)
Operating income (loss)		(799	)		1,387			(426	)		(368	)		(184	)		(87	)		—			(477	)
Grant income		—			—			—			—			31			—			—			31
Interest expense		(36	)		(2	)		(10	)		—			—			—			—			(48	)
Net income (loss)		(835	)		1,385			(436	)		(368	)		(153	)		(87	)		—			(494	)

March 31, 2022	BioLargo			ONM			Clyra			BLEST			Water			Elimination			Total
Revenue	$	2		$	600		$	10		$	545		$	—		$	(188	)	$	965
Intersegment revenue		(2	)		(2	)		—			(188	)		—			192			—
Research and development		(265	)		—			(16	)		(108	)		(197	)		194			(392	)
Operating loss		(1,220	)		13			(240	)		(35	)		(228	)		—			(1,710	)
Grant income		—			—			—			—			5			—			5
Interest expense		(6	)		—			(7	)		—			—			—			(13	)
Net income (loss)		(1,226	)		187			(247	)		(35	)		(223	)		—			(1,544	)

As of March 31, 2023	BioLargo		ONM		Clyra		BLEST		Water		BETI		Elimination			Total
Tangible assets	$	530	$	3,392	$	578	$	505	$	223	$	628	$	(73	)	$	5,783
Right of use (leased assets)		114		—		—		723		—				—			837
Investment in South Korean joint venture		27		—		—		—		—				—			27
Total	$	671	$	3,392	$	578	$	1,228	$	223	$	628	$	(73	)	$	6,647

As of December 31, 2022	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	669	$	2,064	$	631	$	441	$	194	$	(41	)	$	3,958
Right of use (leased assets)		136		—		—		731		—		—			867
Investment in South Korean joint venture		33		—		—		—		—		—			33
Total	$	838	$	2,064	$	631	$	1,172	$	194	$	(41	)	$	4,858