BIOLARGO, INC. - What You Need to Know

Thinking about investing in BioLargo? It is an interesting company with big ideas, but you should look under the hood. Here is the breakdown in plain English.

1. What does this company actually do?

Think of BioLargo as a problem-solving lab. They invent technologies to clean water, manage odors, and improve medical safety. Their "star" projects include the Aqueous Electrostatic Concentrator (AEC), designed to pull "forever chemicals" (PFAS) out of drinking water, and a liquid sodium battery called Cellinity™.

They operate through several subsidiaries:

• BioLargo Water, Inc.: Focuses on selling the AEC technology.
• BioLargo Engineering, Science & Services, LLC: Provides engineering and consulting to outside clients.
• Odor-No-More, Inc.: Sells odor control products, including the CupriDyne Clean line.
• BioLargo Life Technologies, Inc.: Manages medical and advanced technology projects.

2. How do they make money?

BioLargo is still in a growth phase. They earn money by selling odor control products and providing engineering services.

The reality check: They are not yet profitable. They have lost money every year since they started, with a total loss of about $107.6 million by the end of 2025. They have never paid a dividend. They plan to keep all future earnings to fund research and operations instead of paying investors.

3. The Financial "Big Picture"

To keep the lights on, BioLargo frequently sells new shares of stock to raise cash. They noted they may receive up to $8.3 million if certain stock options are exercised.

Why this matters: Every time they sell new shares, your "slice of the pie" gets smaller. This is called dilution. The company also pays employees with stock instead of cash to save money. As of late 2025, they had over 72 million shares reserved for these plans. Because they struggle to pay bills, auditors have warned there is "substantial doubt" about their ability to stay in business over the next year.

4. What are the main risks?

• The "Going Concern" Warning: Auditors flagged that the company might run out of cash. This means their current income cannot cover their planned costs without raising more money.
• The "Penny Stock" Trap: The stock trades on the OTCQX, not a major exchange like the Nasdaq. As of April 16, 2026, it traded at $0.15 per share. These markets are less liquid, making it hard to sell your shares, and prices can swing wildly.
• Legal & Cybersecurity Risks: A costly legal fight with a former customer drains resources. They also warn that a cyber-attack could destroy their data or ruin their reputation, which they might not survive.
• The "Copycat" Problem: They cannot afford to file for or maintain patents in most countries. Since their business relies on their inventions, they may lose the ability to stop competitors from copying them globally.

Final Thoughts for Investors

Investing in a company that struggles to pay bills, fights lawsuits, and lacks the resources to protect its own inventions is extremely risky. You could lose your entire investment.

Before you make a move:

• Check the SEC Filings: Always look at the company’s latest 10-K or 10-Q reports on the SEC’s EDGAR website. That is where the real, unfiltered truth lives.
• Ask yourself: Are you comfortable with the high probability that the company will need to sell more stock (diluting your value) just to keep operating?
• Consider the liquidity: Because this is an OTC stock, ensure you understand the risks of buying and selling shares that may not have high trading volume.

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.