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Note 9 - BioLargo Engineering, Science and Technologies, LLC
3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Wholly-Owned Subsidiary [Text Block]

Note 9. BioLargo Engineering, Science and Technologies, LLC

 

In  September 2017, we commenced a full-service environmental engineering firm and formed a Tennessee entity named BioLargo Engineering, Science & Technologies, LLC (“BLEST”). In conjunction with the start of this subsidiary, we entered into a three-year office lease in the Knoxville, Tennessee area, and entered into employment agreements with six scientists and engineers. BLEST was capitalized with two classes of membership units: Class A, 100% owned by BioLargo, and Class B, held by management of BLEST, and which initially had no “profit interest,” as that term is defined in Tennessee law. Class B members were also granted options to purchase up to an aggregate 1,750,000 shares of BioLargo common stock. The profit interest and option shares are subject to a five year vesting schedule tied to the performance of the subsidiary. As of December 31, 2023 and March 31, 2024, Class B members have earned 22.5% profit interest.