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

Dennis Calvert: Yes. So the hiring plan — so let’s make sure that we’re in sync on what the hiring plan is. So first of all, you don’t go to hire 100 people until you have the business, because to do that would mean a significant capital outlay, right, a significant kind of outlay burning money, cash, waiting for customers. So, we’re not doing that. That’s not part of our profile. What happens for us is we have just enough staff to do what we’re doing plus a little more, we land customers and we grow into it, and we land customers and grow into it. That’s just the way it is. We’re not sitting on $50 million to be able to take that kind of risk and exploit it. And we also would argue that the risk of taking that approach is extraordinary risk.

It essentially puts the franchise at risk. In our business and our business model, I would argue, there’s not a single initiative that we’ve executed on and are contemplating and executing that puts the franchise at risk. We’re going to survive when most companies don’t, and we’re going to thrive, because we’ve got great innovation and we’ve got a go-to-market plan, that’s compelling. So, yes. So could we go to 100 employees? Sure. What does it take to get the demand to require that kind of growth? Well, we’re watching it unfold as we speak, right? We’ve got our first PFAS customer. It took a long time. We’re now in the development phase of a full plan going to take a reference site. We’ve got others coming on. And so one becomes two and as we say two becomes four and the next thing you know it’s 12 and then it’s 40%.

And if we look at the backlog of business that’s now in process for new contracts, it’s a significant backlog. I mean conservatively in the five, and we said we’ve looked at $100 million worth of projects. You’re not going to lend $100 million worth of projects. We don’t have enough bandwidth, right? And you want to go to early adopters, okay? Could you find your way into that moment where you’d say, yes, unleash it. Well, sure. That’s why you need to outsource manufacturing. You need more infrastructure. You need more engineers. You need more capital. You need all those things to really accelerate at that kind of level. So at this stage, right, we’re going to grow as the customers are signed up and the demand stretch ourselves so that we have customers paying us as we hire and hire as we hire and grow this down.

That’s the plan. So when you look at all of the opportunities that are in the pipeline, and if half the came in, yes, we’re going to need a lot more staff. And so the way the pure phrase it is — when we look at the opportunities that are now before us, that convert to proposal, the adoption of the proposal Phase I, Phase II, Phase III it is an astronomical growth rate that will demand that we stamp up. And so until those are locked and loaded, I think that it’s — it would be unwise for us to ramp up the kind of infrastructure necessary to fully meet that need until we go through those phases. So that’s what we’re doing. I hope that answers the question.

Brian Loper: Great. Yes. And then you also added a couple new folks to the Board?