Investors are Reminded of BioLargo, Inc. (OTCMKTS:BLGO)

After flying deep under the radar for an excruciatingly long period of time, BioLargo, Inc. (OTCMKTS:BLGO) finally registered an interesting session yesterday. More than 210 thousand shares changed hands which is about 10 times the 30-day average. The ticker shot up and, after reaching a 52-week high of $0.75, it settled down to a close over $0.60 for the first time since August 28, 2014.

The reason for the sudden surge in activity is a technical symposium which took place a couple of weeks ago. Plenty of people from a variety of backgrounds attended it and they saw a presentation of BLGO‘s AOS filter. Some test results were also displayed. They showed that the AOS filter is 100 times more efficient, 10 times faster, and a whole lot cheaper than the nearest competitor.

A press release about the symposium in question was published last week, but for some reason, nobody paid attention to it. On Monday, however, Emerging Growth LLC, who, according to the disclaimer, received $100 thousand in stock and $24 thousand in cash from BLGO a few years ago, took the press release, spruced it up with some more optimism and claims that are mostly based on guesswork, and they published it once again. This time, the market reacted.

The question is: Is the massive surge really justified?

Even a child can see that the results are good and even a toddler will notice the virtually countless real-world applications that the AOS filter could have. Unfortunately, it’s still not commercially available and BLGO‘s management team prefer not to give us any deadlines for its launch.

Considering the company’s history of broken promises, by the way, this might not be such a bad thing. Previously, BLGO was called NuWay Medical Inc and it was traded under the NMED symbol (it has nothing to do with New Media Insight Group Inc (OTCMKTS:NMED)). It was briefly traded on NASDAQ, but it failed to stay compliant with the listing regulations and it was de-listed.

In 2007, Dennis Calvert, the company CEO (who, by the way, has been at the helm since the very beginning), decided to give up on the previous business plan and head in a new direction. That’s how BLGO was born.

More than eight years later, however, we can say that the company hasn’t achieved much. A fact that is made painfully clear by the latest 10-Q:

  • cash: $154,460
  • current assets: $230,591
  • current liabilities: $652,938
  • quarterly revenues: $39,843
  • quarterly net loss: $1,299,968

All in all, things are not looking good. Still, as we mentioned already, the AOS filter certainly has potential and the recent test results suggest that the science is solid. We’re pretty sure that there are people out there who are ready to put their money on the line simply because of this fact.

They will probably do good to keep a close eye on the share structure, though. They should also be aware of the fact that on March 26, 2014, when the market price was hovering around the $0.50 mark, BLGO issued 1.36 million shares as a conversion of debt at $0.25 apiece.

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