BioLargo, Inc. (OTC:BLGO) Q3 2022 Earnings Call Transcript

By the time they’re done, they come to realize that we’re an innovator across multiple industries with the whole portfolio. And that’s what happens with people like Garratt-Callahan. And so they take a journey. And when they journey with us, you get to know us, they get to who we are, why we do, what we do, what motivates us, how we make money. They see us as fair-minded and committed to serving, right? And so that naturally leads to the question, why aren’t we selling an AOS or why aren’t we selling other control product? And so here’s what I would say. We’ve been at this a long time. And these companies that have established, let’s call it, franchise status, franchise status like area, and they have a franchise. It’s well established. When the franchise is established, the mantra typically is whatever you do, you don’t mess up the franchise.

And the profile shifts, right? It shifts from low-risk incremental improvements, marginal to pick up additional dollar streams for easy pickups with low risk, right? So that’s the nature of the beast. It’s the nature of the beast with also the global multinationals. These — the people that run those companies are rewarded for not taking risk and blowing the franchise. And so what it shows an innovator like us, and this is the challenge that we have overcome and are continuing to, is to do €“ as we say, all the work. You have to do all the work, not 80%, not 90%. 100% of the work, — you got to do it all. You’ve got to deliver this in such a way that your partner and pick it up in a blink and execute with precision and make marginal cash flow of significance.

And you have to catch them at a time when the organizations are ready to do that as well. So time is everything. COVID kind of knocks everybody around, right? The financial marks knock everybody around. They unsettle people. So it doesn’t create hazard chaos. It creates pause. So that’s what happens. So, relative to Garratt-Callahan, there’s nothing bad going on. It’s actually great. And everybody is really busy. And so the way we think about it is, let’s get our — let’s do the main thing, which is the main thing. And what’s the main thing . What’s that? It’s that minimum liquid discharge system. That’s where everybody’s bread is butter at the moment. Can we do odor? Of course. But how many products are we going to pitch? So the answer is, let’s go knock-off number one, then we’ll do number two and then we’ll do number three.

And so this is a long journey. You got to also remember, this company with 100 years of history. They don’t think like we do. They don’t have a quarterly pressure. They have an existing sales force. They got to feed the machine. It’s a big company. They got a lot of customers, and they’re in a sweet spot of how they make money, right? So everything else is incremental. So, good news, bad news. Well, the good news is we’re there. We’re there with a significant force, a great company. I predict over the long haul, they’ll have a chance to adopt all our technologies. So we love it. Timing, hard to predict. Right now, let’s get the first hit on this main thing, which is the minimum liquid discharge, and then we’ll tiptoe around the others, and we’ll find our wins.

When those wins knock into runs and the money to bring in the cash register, then we’ll do it again, then we’ll do it again. The next thing you know we’ll have an adoption. So here you go.

Brian Loper: Right. All right. So, it’s the two-part question. I’m going to paraphrase a couple that have been coming into the portal here. But last year, at this time, you had mentioned that we had a hiring plan to go from 30 employees to 100, haven’t quite seen that. So can you talk about the hiring plan as well as the new additions to the Board?