# EDGAR Filing Document

**Accession Number:** 0000880242
**File Stem:** 0001437749-26-017391
**Filing Date:** 2026-5
**Character Count:** 344225
**Document Hash:** 728534e062b0d88659f05f913667c207
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-017391.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001437749-26-017391

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 78

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BIOLARGO, INC.
- **CENTRAL INDEX KEY:** 0000880242
- **STANDARD INDUSTRIAL CLASSIFICATION:** CHEMICALS & ALLIED PRODUCTS [2800]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 650159115
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-19709
- **FILM NUMBER:** 26988341

**BUSINESS ADDRESS:**
- **STREET 1:** 14921 CHESTNUT ST.
- **CITY:** WESTMINSTER
- **STATE:** CA
- **ZIP:** 92683
- **BUSINESS PHONE:** 888 400-2863

**MAIL ADDRESS:**
- **STREET 1:** 14921 CHESTNUT ST.
- **CITY:** WESTMINSTER
- **STATE:** CA
- **ZIP:** 92683

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NUWAY MEDICAL INC
- **DATE OF NAME CHANGE:** 20030205

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NUWAY ENERGY INC
- **DATE OF NAME CHANGE:** 20010815

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LATIN AMERICAN CASINOS INC
- **DATE OF NAME CHANGE:** 19960520

?xml version='1.0' encoding='ASCII'? blgo20260331_10q.htm

[**Table of Contents**](#toc)

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

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**FORM 10-Q**

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☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended March 31, 2026.**

**or** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the transition period from to** 

**Commission File Number 000-19709** 

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**BIOLARGO, INC.**

***(Exact name of registrant as specified in its charter)*** 

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---

| | |
|:---|:---|
| **Delaware** | **65-0159115** |
| ***(State or other jurisdiction of***<br> ***incorporation or organization)*** | ***(I.R.S. Employer***<br> ***Identification No.)*** |

---

**14921 Chestnut St.**

**Westminster, CA 92683**

***(Address of principal executive offices)***

**(888) 400-2863**

***(Registrant***'***s telephone number, including area code)***

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Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Common stock | BLGO | OTC Markets (OTCQX) |

---

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer ☐ | Accelerated filer ☐ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer ☒ | Smaller reporting company ☒ |
|  | Emerging growth company ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

The number of shares of the Registrant's Common Stock outstanding as of May 14, 2026 was 320,883,262 shares.

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[**Table of Contents**](#toc)

**BIOLARGO, INC.** 

**FORM 10-Q** 

**INDEX**

[**<u>PART</u> <u>I</u>**](#p1)

---

| | | |
|:---|:---|:---|
| **Item 1** | [Financial Statements](#finstate) | [1](#finstate) |
| **Item 2** | [Management's Discussion and Analysis and Financial Condition and Results of Operations](#mda) | [24](#mda) |
| **Item 4** | [Controls and Procedures](#cp) | [31](#cp) |

---

[**<u>PART</u> <u>II</u>**](#p2)

---

| | | |
|:---|:---|:---|
| **Item 1** | [Legal Proceedings](#Item_1_Legal_Proceedings) | [32](#unreg) |
| **Item 2** | [Unregistered Sales of Equity Securities and Use of Proceeds](#unreg) | [32](#unreg) |
| **Item 5** | [Other Information](#other) | [32](#other) |
| **Item 6** | [Exhibits](#exs) | [33](#exs) |
|  | [Signatures](#sigs) | [34](#sigs) |

---

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[**Table of Contents**](#toc)

**PART I** – **FINANCIAL INFORMATION**

**Item 1. Financial Statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 1 -

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[**Table of Contents**](#toc)

**BIOLARGO, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(in thousands, except for share and per share data)

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31,*** |
|  | ***(unaudited)*** | ***2025*** |
| ***Assets*** | ***Assets*** | ***Assets*** |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $4122 | $3883 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net of allowances | 730 | 615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 292 | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 301 | 306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 5445 | 5114 |
| Equipment and leasehold improvements, net | 1641 | 1643 |
| Other non-current assets | 108 | 106 |
| Operating lease right-of-use assets, net | 979 | 1028 |
| Financing lease right-of-use asset, net | 310 | 338 |
| Clyra Medical note receivable | 82 | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $8565 | $8311 |
| ***Liabilities and stockholders' (deficit) equity*** | ***Liabilities and stockholders' (deficit) equity*** | ***Liabilities and stockholders' (deficit) equity*** |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | $1076 | $1211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clyra Medical accounts payable and accrued expenses | 1510 | 1592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clyra Medical debt obligations, net of discount $104 and $139 | 1430 | 1395 |
| Contract liabilities | 319 | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt obligations | 83 | 83 |
| Operating lease liabilities | 219 | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease liability | 107 | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 188 | 189 |
| Total current liabilities | 4932 | 5063 |
| Long-term liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt obligations, net of current | 174 | 182 |
| Clyra Medical debt obligations, net of current and discount $261 and $56 | 2609 | 419 |
| Operating lease liabilities, net of current | 808 | 864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease liability, net of current | 229 | 257 |
| Total long-term liabilities | 3820 | 1722 |
| Total liabilities | 8752 | 6785 |
| STOCKHOLDERS' (DEFICIT) EQUITY: |  |  |
| Preferred Series A, $0.00067 Par Value, 50,000,000 Shares Authorized, no Shares Issued and Outstanding, at March 31, 2026 and December 31, 2025 |  |  |
| Common stock, $0.00067 Par Value, 550,000,000 Shares Authorized, 319,699,928 and 317,377,777 Shares Issued, at March 31, 2026 and December 31, 2025 | 214 | 213 |
| Additional paid-in capital | 165347 | 165316 |
| Accumulated deficit | (163566) | (161280) |
| Accumulated other comprehensive loss | (209) | (207) |
| Total BioLargo Inc. and subsidiaries stockholders' equity | 1786 | 4042 |
| Non-controlling interest (Notes 8, 9, 10) | (1973) | (2516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' (deficit) equity | (187) | 1526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' (deficit) equity | $8565 | $8311 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 2 -

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[**Table of Contents**](#toc)

**BIOLARGO, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

(in thousands, except for share and per share data)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended March 31,*** | ***Three Months Ended March 31,*** |
|  | ***2026*** | ***2025*** |
| Revenue |  |  |
| Product revenue | $577 | $2803 |
| Service revenue | 538 | 466 |
| Total revenue | 1115 | 3269 |
| Cost of revenue |  |  |
| Cost of goods sold | (218) | (1511) |
| Cost of service | (439) | (270) |
| Total cost of revenue | (657) | (1781) |
| Gross profit | 458 | 1488 |
| Selling, general and administrative expenses | 2755 | 2522 |
| Research and development | 907 | 791 |
| Credit loss expense |  | 37 |
| Total operating expenses | 3662 | 3350 |
| Operating loss: | (3204) | (1862) |
| Other income (expense): |  |  |
| Interest expense | (188) | (93) |
| Interest income | 72 | 28 |
| Finance fee | (85) |  |
| Grant income |  | 6 |
| Total other expense | (201) | (59) |
| Net loss | (3405) | (1921) |
| Net loss attributable to noncontrolling interest | (1119) | (766) |
| Net loss attributable to common shareholders | $(2286) | $(1155) |
| Net loss per share attributable to common shareholders: |  |  |
| Loss per share attributable to shareholders – basic and diluted | $(0.01) | $(0.00) |
| Weighted average number of common shares outstanding: | 318698686 | 301274243 |
| Comprehensive loss: |  |  |
| Net loss | $(3405) | $(1921) |
| Foreign currency translation | (2) | (20) |
| Comprehensive loss | (3407) | (1941) |
| Comprehensive loss attributable to noncontrolling interest | (1119) | (766) |
| Comprehensive loss attributable to common stockholders | $(2288) | $(1175) |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 3 -

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[**Table of Contents**](#toc)

**BIOLARGO, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS**' **(DEFICIT) EQUITY**

(in thousands, except for share data)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Common stock*** | ***Common stock*** | ***Additional paid-in*** | ***Accumulated*** | ***Accumulated other comprehensive*** | ***Non-controlling*** | ***Total stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***capital*** | ***deficit*** | ***loss*** | ***interest*** | ***(deficit) equity*** |
| Balance, December 31, 2025 | 317377777 | $213 | $165316 | $(161280) | $(207) | $(2516) | $1526 |
| &nbsp;&nbsp;&nbsp; Sale of common stock for cash, net of offering costs of $15 (unaudited) | 1539744 | 1 | 255 |  |  |  | 256 |
| &nbsp;&nbsp;&nbsp; Issuance of common stock for services (unaudited) | 282407 |  | 46 |  |  |  | 46 |
| &nbsp;&nbsp;&nbsp; Stock option compensation expense (unaudited) | *—* |  | 286 |  |  |  | 286 |
| &nbsp;&nbsp;&nbsp; Common stock issued as a fee (unaudited) | 500000 |  | 85 |  |  |  | 85 |
| &nbsp;&nbsp;&nbsp; Clyra Medical stock option compensation expense (unaudited) | *—* |  |  |  |  | 413 | 413 |
| &nbsp;&nbsp;&nbsp; Clyra Medical dividend Series A Preferred stock (unaudited) | *—* |  |  |  |  | (86) | (86) |
| &nbsp;&nbsp;&nbsp; Clyra Medical fair value warrant issued with debt (unaudited) | *—* |  |  |  |  | 232 | 232 |
| &nbsp;&nbsp;&nbsp; BETI unit offering (unaudited) | *—* |  |  |  |  | 462 | 462 |
| &nbsp;&nbsp;&nbsp; Noncontrolling interest allocation (unaudited) | *—* |  | (641) |  |  | 641 |  |
| &nbsp;&nbsp;&nbsp; Net loss (unaudited) | *—* |  |  | (2286) |  | (1119) | (3405) |
| &nbsp;&nbsp;&nbsp; Foreign currency translation (unaudited) | *—* |  |  |  | (2) |  | (2) |
| Balance, March 31, 2026 (unaudited) | 319699928 | $214 | $165347 | $(163566) | $(209) | $(1973) | $(187) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Common stock*** | ***Common stock*** | ***Additional paid-in*** | ***Accumulated*** | ***Accumulated other comprehensive*** | ***Non-controlling*** | ***Total stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***capital*** | ***deficit*** | ***loss*** | ***interest*** | ***equity*** |
| Balance, December 31, 2024 | 301274243 | $202 | $158332 | $(149500) | $(183) | $(2795) | $6056 |
| &nbsp;&nbsp;&nbsp; Sale of common stock for cash, net of offering costs of $15 (unaudited) |  |  | (15) |  |  |  | (15) |
| &nbsp;&nbsp;&nbsp; Issuance of common stock for services (unaudited) | 220330 |  | 61 |  |  |  | 61 |
| &nbsp;&nbsp;&nbsp; Stock option compensation expense (unaudited) | *—* |  | 409 |  |  |  | 409 |
| Stock option exercise (unaudited) | 265800 |  |  |  |  |  |  |
| Clyra Medical stock option compensation expense (unaudited) | *—* |  |  |  |  | 206 | 206 |
| &nbsp;&nbsp;&nbsp; Clyra Medical stock issued for services (unaudited) | *—* |  |  |  |  | 36 | 36 |
| &nbsp;&nbsp;&nbsp; Clyra Medical stock unit offering (unaudited) | *—* |  |  |  |  | 295 | 295 |
| &nbsp;&nbsp;&nbsp; Clyra Medical dividend Series A Preferred stock (unaudited) | *—* |  |  |  |  | (86) | (86) |
| &nbsp;&nbsp;&nbsp; Clyra Medical fair value warrant issued with debt (unaudited) | *—* |  |  |  |  | 69 | 69 |
| &nbsp;&nbsp;&nbsp; Noncontrolling interest allocation (unaudited) | *—* |  | (522) |  |  | 522 |  |
| &nbsp;&nbsp;&nbsp; Net loss (unaudited) | *—* |  |  | (1155) |  | (766) | (1921) |
| &nbsp;&nbsp;&nbsp; Foreign currency translation (unaudited) | *—* |  |  |  | (20) |  | (20) |
| Balance, March 31, 2025 (unaudited) | 301760373 | $202 | $158265 | $(150655) | $(203) | $(2519) | $5090 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 4 -

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[**Table of Contents**](#toc)

**BIOLARGO, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

(in thousands, except for share and per share data)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended March 31,*** | ***Three Months Ended March 31,*** |
|  | ***2026*** | ***2025*** |
| Cash flows from operating activities |  |  |
| Net loss | $(3405) | $(1921) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Stock option compensation expense | 699 | 615 |
| Common stock issued for services | 46 | 97 |
| Credit loss expense |  | 37 |
| Amortization of debt discount | 62 | 28 |
| Amortization of right-of-use operating lease assets | 49 | 27 |
| Amortization of right-of-use finance lease asset | 28 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (47) | (25) |
| Finance lease liability | (24) | (21) |
| Gain on investment in South Korean joint venture |  | (2) |
| Depreciation expense | 34 | 42 |
| Changes in assets and liabilities: |  |  |
| Accounts receivable | (115) | (1077) |
| Inventories | 18 | (39) |
| Prepaid expenses and other assets | 3 | 14 |
| Accounts payable and accrued expenses | (135) | 290 |
| Deposits | (1) |  |
| Clyra Medical accounts payable and accrued expenses | (168) | 89 |
| Contract liabilities | 39 |  |
| Net cash used in operating activities | (2917) | (1830) |
| Cash flows from investing activities |  |  |
| Equipment purchases | (32) |  |
| Net cash used in investing activities | (32) |  |
| Cash flows from financing activities |  |  |
| Proceeds from sale of common stock, net of offering costs | 256 | (15) |
| Common stock issued for financing fee | 85 |  |
| Repayment of debt obligations | (8) | (4) |
| Proceeds from BETI unit offering | 462 |  |
| Proceeds from Clyra Medical debt obligations | 2395 | 590 |
| Proceeds from sales of Clyra Medical common stock |  | 295 |
| Net cash provided by financing activities | 3190 | 866 |
| Net effect of foreign currency translation | (2) | (20) |
| Net change in cash | 239 | (984) |
| Cash and cash equivalents at beginning of period | 3883 | 3548 |
| Cash and cash equivalents at end of period | $4122 | $2564 |
| Supplemental disclosures of cash flow information |  |  |
| Cash paid during the period for: |  |  |
| Interest | $126 | $37 |
| Income taxes | $— | $— |
| Short-term lease payments not included in lease liabilities | $13 | $12 |
| Non-cash investing and financing activities |  |  |
| Allocation of noncontrolling interest | $(641) | $(522) |
| Fair value of Clyra Medical warrants issued as debt discount | $232 | $69 |
| Clyra Medical dividend Series A Preferred stock | $86 | $86 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 5 -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

**Note *1.* Business and Organization** 

***<u>Description of Business</u>***

BioLargo, Inc. ("BioLargo", or the "Company") invents, develops, and commercializes innovative platform technologies to solve challenging environmental problems like PFAS contamination (per- and polyfluoroalkyl substances), advanced water and wastewater treatment, industrial odor control, air quality control, infection control, and myriad environmental remediation challenges. Our business strategy is straightforward: we invent or acquire technologies that we believe have the potential to be disruptive in large commercial markets; we develop and validate these technologies to advance and promote their commercial success as we leverage our considerable scientific, engineering, and entrepreneurial talent; we then monetize these technical assets through a variety of business structures that *may* include licensure, joint venture, sale, spin off, or by deploying direct to market strategies.

***<u>Organization</u>***

We are a Delaware corporation formed in *1991,* and have five wholly-owned subsidiaries: BioLargo Life Technologies, Inc., organized under the laws of the State of California in *2006;* ONM Environmental, Inc., organized under the laws of the State of California in *2009;* BioLargo Equipment Solutions & Technologies, Inc., organized under the laws of the State of California in *2022;* BioLargo Canada, Inc., organized under the laws of Canada in *2014;* and BioLargo Development Corp., organized under the laws of the State of California in *2016.* Additionally, we own 48% (see [Note *8*](#Note_8_Clyra)) of Clyra Medical Technologies, Inc. ("Clyra" or "Clyra Medical"), organized under the laws of the State of California in *2012* and redomiciled to Delaware in *2023;* 70% (see [Note *9*](#Note_9_BLEST)) of BioLargo Engineering Science and Technologies, LLC ("BLEST"), organized under the laws of the State of Tennessee in *2017;* and 93% (see [Note *10*](#Note_10_BETI)) of BioLargo Energy Technologies, Inc. ("BETI") organized under the laws of the State of California in *2019.* We consolidate the financial statements of our partially owned subsidiaries.

***<u>Liquidity / Going Concern</u>***

For the *three* months ended *March 31, 2026*, we generated revenues of $1,115,000, had a net loss of $3,405,000, used $2,917,000 net cash in operating activities, and received $3,190,000 net cash from financing activities. As of *March 31, 2026*, we had current assets of $5,445,000, including $4,122,000 cash and cash equivalents. As of *March 31, 2026*, we had current liabilities of $4,932,000, and working capital of $513,000. We do *not* believe gross profits in the year ending *December 31, 2026,* will be sufficient to fund our current level of operations for the reminder of the year, and therefore expect we will continue to be limited in terms of our capital resources, and therefore expect to continue to need further investment capital to fund our business plans and investments in our new technologies. The foregoing factors raise substantial doubt about our ability to continue as a going concern, unless we are able to increase revenues, generate cash from operations, and/or generate cash from financing activities. If we are unable to raise additional cash through gross profits or financing activities, management *may* choose to curtail portions of our operations. The condensed consolidated financial statements do *not* include any adjustments that might be necessary if we are unable to continue as a going concern.

**Note *2.* Summary of Significant Accounting Policies** 

*<u>**Principles of Consolidation**</u>*

The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and partially owned subsidiaries BETI, BLEST and Clyra Medical. All intercompany accounts and transactions have been eliminated.

The accounting and financial reporting policies of the Company conform, in all material respects, to accounting principles generally accepted in the United States of America ("GAAP") and to general practices within the industry. The condensed consolidated financial statements in the Quarterly Report on Form *10*-Q have *not* been audited by an independent registered public accounting firm, but in the opinion of management, reflect all necessary adjustments for a fair presentation of the Company's condensed consolidated financial position and condensed consolidated results of operations. All adjustments were of a normal and recurring nature. The condensed consolidated financial statements have been prepared in accordance with GAAP and with the instructions to Form *10*-Q adopted by the Securities and Exchange Commission (the "SEC"). Accordingly, the condensed consolidated financial statements do *not* include all information and footnotes required by GAAP for complete financial presentation and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended *December 31, 2025*, included in our Annual Report on Form *10*-K filed with the SEC on *March 4, 2026.* The results of operations for the *three* months ended *March 31, 2026*, are *not* necessarily indicative of the results to be expected for the full year or any future period.

***<u>Foreign Currency</u>***

The Company has designated the functional currency of BioLargo Canada, Inc., our Canadian subsidiary, to be the Canadian dollar. Therefore, translation gains and losses resulting from differences in exchange rates are recorded in accumulated other comprehensive loss.

***<u>Cash and Cash Equivalents</u>***

The Company considers all highly liquid investments with maturities of *three* months or less when acquired to be cash equivalents. Substantially all cash equivalents are held in short-term money market accounts at *one* of the largest financial institutions in the United States. From time to time, our cash account balances are greater than the Federal Deposit Insurance Corporation insurance limit of *$250,000* per owner per bank, and during such times, we are exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the financial institution. We do *not* anticipate non-performance by our financial institution.

As of *March 31, 2026*, and *December 31, 2025*, our cash balances were made up of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31, 2025*** |
| BioLargo, Inc. and subsidiaries | $2300 | $2826 |
| Clyra Medical Technologies, Inc. | 1822 | 1057 |
| Total | $4122 | $3883 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *6* -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***<u>Accounts Receivable</u>***

Accounts receivable are customer obligations that are unconditional. Accounts receivable are presented net of an allowance for expected credit losses, which represents an estimate of amounts that *may not* be collectible. The Company performs ongoing credit evaluations of its customers and, if necessary, provides an allowance for expected credit losses. A credit loss expense to the expected credit losses is recorded based on factors including the length of time the receivables are past due, the current business environment, and the Company's historical experience. Credit loss expense is recorded to general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive loss. The Company writes off accounts receivable against the expected credit loss when it determines a balance is uncollectible and *no* longer actively pursues collection of the receivable. The Company does *not* have any off-balance-sheet credit exposure related to customers. As of *March 31, 2026*, and *December 31, 2025*, the allowance for expected credit losses were $700,000.

<u>***Allowance for Credit Losses***</u>

The Company recognizes an expected allowance for credit losses with respect to its note and accounts receivable. In addition, also at each reporting date, this estimate is updated to reflect any changes in credit risk since the receivable was initially recorded. This estimate is calculated on a pooled basis where similar risk characteristics exist. Accounts receivable are evaluated individually when they do *not* share similar risk characteristics which could exist in circumstances where amounts are considered at risk or uncollectible This estimate is adjusted for management's assessment of current conditions, reasonable and supportable forecasts regarding future events, and any other factors deemed relevant by the Company. The Company believes historical loss information is a reasonable starting point in which to calculate the expected allowance for credit losses. The Company writes off receivables when there is information that indicates the customer is facing significant financial difficulty and there is *no* possibility of recovery. If any recoveries are made from any accounts previously written off, they will be recognized in operations or an offset to credit loss expense in the year of recovery, in accordance with the entity's accounting policy election.

On *June 6, 2025,* ONM Environmental entered into an amendment to the *June 2021* Preferred Master Manufacturing Agreement with Ikigai Holdings, LLC and Pooph Inc. to allow Pooph Inc. to pay past due amounts of $1,378,141 in royalties and $2,385,468 on product invoices through a weekly payment plan bearing 10% interest and maturing *July 3, 2026 (*the "PMMA Amendment"). This amount was recorded on our consolidated balance sheet at *June 30, 2025,* as a note receivable. The PMMA Amendment also modified payment and invoicing terms on existing and future product purchase orders, and allowed ONM Environmental to withhold product if the payment terms were *not* met. On *August 5, 2025,* Pooph Inc. delivered a royalty report due for the *second* quarter of *2025,* but did *not* pay the $463,520 in royalties due. On *August 15, 2025,* it failed to make the weekly payment required pursuant to the PMMA Amendment, and has *not* made a payment since. On *September 19, 2025,* Pooph Inc. disclosed that it had been working independently on developing a new formula for Pooph-branded products to replace BioLargo's formula, and that it was terminating the Preferred Master Manufacturing Agreement, citing ONM's refusal to deliver products. On *September 24, 2025,* BioLargo and ONM delivered notice to Pooph that its license grant was immediately revoked due to Pooph's failure to pay royalties, and that it was terminating the License Agreement in its entirety with *150* days' notice. The notice further advised that Pooph is *not* allowed to market or sell products that incorporate, use, or are based on, in whole or in part, BioLargo's patents and proprietary information, including but *not* limited to know-how, disclosed to Pooph, and that absent reinstatement of the grant of license, Pooph must immediately stop marketing and selling any such products in its possession, custody or control (or sold through market portals or platforms such as Amazon). On *November 11, 2025,* BioLargo Inc. and ONM Environmental filed a lawsuit against Pooph Inc. and Ikigai Marketing Works LLC (successor entity to Ikigai Holdings LLC) in the United States District Court for the Central District of California in part to recover the amounts due for product purchases and royalties. (See [Note *13*](#Note13_Legal_Proceedings), "Legal Proceedings".)

During the *three* months ended *September 30, 2025,* BioLargo management determined that the note receivable and accounts receivable owed by Pooph Inc. were fully impaired, resulting in a $3,886,000 credit loss expense recorded on our condensed consolidated statement of operations, which reduced operating income and current assets by that amount. There were *no* write-offs of accounts receivable or note receivable during the *three* months ended *March 31, 2026* and *2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *7* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***<u>Credit Concentration</u>***

We have a limited number of customers that account for significant portions of our revenue. During the *three* months ended *March 31, 2026* and *2025*, the following customers accounted for more than *10%* of consolidated revenues:

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended March 31,*** | ***Three Months Ended March 31,*** |
|  | ***2026*** | ***2025*** |
| Customer A | 21% | —% |
| Customer B | 17% | —% |
| Customer C | 14% | —% |
| Customer D | 11% | —% |
| Customer E | —% | 79% |

---

At *March 31, 2026* and *December 31, 2025*, the following customers accounted for more than *10%* of consolidated accounts receivable:

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31, 2025*** |
| Customer A | 22% | – % |
| Customer C | 14% | – % |
| Customer D | 17% | – % |

---

***<u>Inventory</u>***

Inventories are stated at the lower of cost or net realizable value using the average cost method. There was no allowance for obsolete inventory as of *March 31, 2026*, and *December 31, 2025* Inventories consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31, 2025*** |
| Raw material | $106 | $125 |
| Finished goods | 186 | 185 |
| Total | $292 | $310 |

---

***<u>Other Non-Current Assets</u>***

Other non-current assets consisted of (i) security deposits related to our business offices, (ii) three patents acquired on *October 22, 2021,* for $34,000, and (iii) interest receivable.

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31, 2025*** |
| Patents | $34 | $34 |
| Security deposits | 72 | 72 |
| Interest receivable | 2 |  |
| Total | $108 | $106 |

---

***<u>Impairment</u>***

Long-lived and definite lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset *may not* be recoverable. If the sum of the expected future undiscounted cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, then an impairment loss is recognized. The impairment loss is measured based on the fair value of the asset. Any resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operations.

***<u>Loss Per Share</u>***

We report basic and diluted loss per share ("LPS") for common and common share equivalents. Basic LPS is computed by dividing reported losses by the weighted average shares outstanding. Diluted LPS is computed by adding to the weighted average shares the dilutive effect if stock options and warrants were exercised into common stock. For the *three* months ended *March 31, 2026* and *2025*, the denominator in the diluted LPS computation is the same as the denominator for basic LPS due to the Company's net loss which creates an anti-dilutive effect of the warrants and stock options. As of *March 31, 2026* the vested stock options available to be exercised totaled 68,311,167 and the vested warrants available to be exercised totaled 32,217,910.

***<u>Use of Estimates</u>***

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and revenues and expenses during the period reported. Actual results could differ from those estimates. Estimates are used when accounting for stock-based transactions, debt transactions, expected credit losses, asset depreciation and amortization, impairment expense, among others.

The methods, estimates and judgments we use in applying these most critical accounting policies have a significant impact on the results of our condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *8* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***<u>Share-Based Compensation Expense</u>***

We recognize compensation expense for stock option awards on a straight-line basis over the applicable service period of the award, which is the vesting period. Fair value is determined on the grant date. Share-based compensation expense is based on the grant date fair value estimated using the Black-Scholes Option pricing model.

For stock and stock options issued to consultants and other non-employees for services, the Company measures and records an expense as of the earlier of the date at which either: a commitment for performance by the non-employee has been reached or the non-employee's performance is complete. The equity instruments are measured at the current fair value, and for stock options, the instruments are measured at fair value using the Black Scholes Option pricing model.

The following methodology and assumptions were used to calculate share-based compensation for the *three* months ended *March 31, 2026* and *2025*:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2025** | **2025** |
|  | **Non Plan** | **2024 Plan** | **Non Plan** | **2024 Plan** |
| Risk free interest rate |  | 4.30% | 4.23% | 4.23 - 4.58% |
| Expected volatility |  | 84% | 91% | 91% |
| Expected dividend yield |  |  |  |  |
| Forfeiture rate |  |  |  |  |
| Life in years |  | 10 | 10 | 10 |

---

Expected price volatility is the measure by which our stock price is expected to fluctuate during the expected term of an option. The expected volatility is derived from the historical daily change in the market price of our common stock, as we believe that historical volatility is the best indicator of future volatility.

The risk-free interest rate used in the Black-Scholes calculation is based on the prevailing U.S. Treasury yield as determined by the U.S. Federal Reserve. We have never paid any cash dividends on our common stock and do *not* anticipate paying cash dividends on our common stock in the foreseeable future.

***<u>Warrants</u>***

Warrants issued with our convertible and non-convertible debt instruments are accounted for under the fair value and relative fair value method. The warrant is *first* analyzed per its terms as to whether it has derivative features or *not.* If the warrant is determined to be a derivative and *not* qualify for equity treatment, then it is measured at fair value using the Black Scholes Option pricing model and recorded as a liability on the condensed consolidated balance sheets. The warrant is re-measured at its then current fair value at each subsequent reporting date (it is "marked-to-market"). If the warrant is determined to *not* have derivative features, it is recorded into equity at its fair value using the Black Scholes Option pricing model, however, limited to a relative fair value based upon the percentage of its fair value to the total fair value including the fair value of the convertible note. Convertible debt instruments are recorded at fair value, limited to a relative fair value based upon the percentage of its fair value to the total fair value including the fair value of the warrant. The warrant relative fair values are also recorded as a discount to the convertible promissory notes.

***<u>Non-Cash Transactions</u>***

We determine the value assigned to each intangible we acquire, and/or services or products received for non-cash consideration of our common stock based on the market price of our common stock issued as consideration, at the date of the agreement of each transaction or when the service is rendered or product is received.

***<u>Revenue Recognition</u>***

We account for revenue in accordance with ASC *606,* "Revenue from Contracts with Customers". The guidance focuses on the core principle for revenue recognition, which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the guidance provides that an entity should apply the following steps:

Step *1:* Identify the contract(s) with a customer.

Step *2:* Identify the performance obligations in the contract.

Step *3:* Determine the transaction price.

Step *4:* Allocate the transaction price to the performance obligations in the contract.

Step *5:* Recognize revenue when (or as) the entity satisfies a performance obligation.

We have revenue from *two* subsidiaries, ONM and BLEST. ONM identifies its contract with the customer through a written purchase order, in which the details of the contract are defined including the transaction price and method of shipment. The only performance obligation is to create and ship the product and each product has separate pricing. ONM recognizes revenue at a point in time when the order for its goods are shipped if its agreement with the customer is FOB ONM's warehouse facility, and when goods are delivered to its customer if its agreement with the customer is FOB destination. Revenue is recognized with a reduction for sales discounts, as appropriate and negotiated in the customer's purchase order. ONM also installs misting systems for which it bills on a time and materials basis. It identifies its contract with the customer through a written purchase order in which the details of the time to be billed and materials purchased and an estimated completion date. The performance obligation is the completion of the installation. Revenue is recognized in arrears as the work is performed.

BLEST identifies services to be performed in a written contract, which specifies the performance obligations and the rate at which the services will be billed. Each service is separately negotiated and priced. Revenue is recognized as services are performed and completed. BLEST's contracts typically call for invoicing for time and materials incurred for that contract. A few contracts have called for milestone or fixed cost payments where BLEST bills an agreed-to amount per month for the life of the contract. In these instances, completed work, billed hourly, is recognized as revenue. If the billing amount is greater or lesser than the completed work, a contract asset or contract liability is created. These accounts are adjusted upon additional billings as the work is completed. To date, there have been *no* discounts or other financing terms for the contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *9* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

The Company has outstanding contract liability obligations of $319,000 and $280,000 as of *March 31, 2026,* and *December 31, 2025,* respectively. There was *no* revenue recorded in the *three* months ended *March 31, 2026,* from the change in contract liability obligations. The outstanding balance will be recognized per the terms of the contracts. Our Canadian subsidiary had a grant deposit outstanding at *March 31, 2026*, and *December 31, 2025*, totaling $79,000 and $80,000, respectfully. These were awarded as part of a grant for a particular project that has been delayed. ONM Environmental had a customer deposit outstanding at *March 31, 2026*, and *December 31, 2025*, totaling $109,000 related to customer purchase orders *not* yet fulfilled.

***<u>Government Grants</u>***

We have been awarded multiple research grants from the private and public Canadian research programs. The income we receive directly from grants is recorded as other income. We have been awarded over *90* grants since our *first* in *2015.* Some of the funds from these grants are given directly to *third* parties (such as the University of Alberta or a *third*-party research scientist) to support research on our technology. The grants have terms generally ranging between six and eighteen months and support a majority, but *not* all, of the related research budget costs. This cooperative research allows us to utilize (i) a depth of resources and talent to accomplish highly skilled work, (ii) financial aid to support research and development costs, (iii) independent and credible validation of our technical claims.

The grants typically provide for (i) recurring monthly amounts, (ii) reimbursement of costs for research talent for which we invoice to request payment, and (iii) ancillary cost reimbursement for research talent travel related costs. All awarded grants have specific requirements on how the money is spent, typically to employ researchers. *None* of the funds *may* be used for general administrative expenses or overhead in the United States. These grants have substantially increased our level of research and development activities in Canada. We continue to apply for Canadian government and agency grants to fund research and development activities. *Not* all of our grant applications have been awarded, and *no* assurance can be made that any pending grant application, or any future grant applications, will be awarded.

***<u>Income Taxes</u>***

The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of asset and liabilities. Deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect on deferred tax asset and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

We account for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation, and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. Under GAAP, the tax effects of a position are recognized only if it is "more-likely-than-*not"* to be sustained by the taxing authority as of the reporting date. If the tax position is *not* considered "more-likely-than-*not"* to be sustained, then *no* benefits of the position are recognized. Management believes there are no unrecognized tax benefits or uncertain tax positions as of *March 31, 2026* and *December 31, 2025*.

The Company assessed its earnings history, trends and estimates of future earnings and determined that the deferred tax asset could *not* be realized as of *March 31, 2026* and *December 31, 2025*. Accordingly, a *100%* valuation allowance was recorded against the net deferred tax asset.

The Company recognizes interest and penalties on income taxes as a component of income tax expense, should such an expense be realized.

***<u>Fair Value of Financial Instruments</u>***

Management believes the carrying amounts of the Company's financial instruments as of *March 31, 2026* and *December 31, 2025* approximate their respective fair values because of the short-term nature of these instruments. Such instruments consist of cash, accounts receivable, note receivable, accounts payable, and debt obligations. The carrying amount of debt instruments are believed to approximate fair value as the stated interest rates are reflective of the prevailing market rates.

***<u>Leases</u>***

At inception of a lease contract, we assess whether the contract is, or contains, a lease. Our assessment is based on: (*1*) whether the contract involves the use of a distinct identified asset, (*2*) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period of the contract, and (*3*) whether we have the right to direct the use of the asset during such time period. At inception of a lease, we allocate the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. Leases are classified as either finance leases or operating leases. A lease must be classified as a finance lease if any of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does *not* meet any of these criteria. We have *one* lease classified as a finance lease. For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, management estimates the incremental borrowing rate, which currently is estimated to be 18%. Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will *not* be terminated early. Lease components are included in the measurement of the initial lease liability. Additional payments based on a change in our portion of the operating expenses, including real estate taxes and insurance, are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability. Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term. We have elected *not* to recognize right-of-use assets and lease liabilities for short-term leases that have a term of *12* months or less. The effect of short-term leases on our right-of-use asset and lease liability was *not* material. As of *March 31, 2026* and *December 31, 2025*, the operating right-of-use assets totaled $979,000, and $1,028,000, respectively. As of *March 31, 2026* and *December 31, 2025*, the operating lease liability totaled $1,027,000 and $1,074,000, respectively, on our condensed consolidated balance sheets related to our operating leases. The finance lease is related to Clyra. As of *March 31, 2026* and *December 31, 2025*, the finance right-of-use asset for Clyra totaled $310,000 and $338,000 and the finance lease liability totaled $336,000 and $360,000, respectively, on our condensed consolidated balance sheets related to our finance lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *10* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***<u>Equipment and Leasehold Improvements</u>***

Equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from 3 - 10 years. Additions, renewals, and betterments that significantly extend the life of the asset are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts, and any related gain or loss is reflected in operations for the period.

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| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31, 2025*** |
| Equipment | $1756 | $1724 |
| Leasehold improvements | 526 | 526 |
| Total, at cost | 2282 | 2250 |
| Less: accumulated depreciation | (641) | (607) |
| Total equipment and leasehold improvements, net | $1641 | $1643 |

---

<u>***Noncontrolling Interest***</u>

A noncontrolling interest is defined as the portion of the equity in an entity *not* attributable, directly or indirectly, to the primary beneficiary. Noncontrolling interests are required to be presented as a separate component of equity on a condensed consolidated balance sheets. Accordingly, the presentation of net loss is modified to present the loss attributed to controlling and non-controlling interests. The noncontrolling interest on the Company's condensed consolidated balance sheets represents equity *not* held by the Company. In accordance with ASC *810*-*10*-*20,* "Noncontrolling Interests" BioLargo consolidates *three* non-wholly owned subsidiaries - Clyra, BLEST and BETI. Noncontrolling interest of Clyra represents 52% as of *March 31, 2026*, and *December 31, 2025*. Noncontrolling interest of BLEST represents 30% as of *March 31, 2026*, and *December 31, 2025*. Noncontrolling interest of BETI represents 7% and 5% as of *March 31, 2026*, and *December 31, 2025*.

***<u>Recent Accounting Pronouncements</u>***

In *November 2024,* the Financial Accounting Standards Board ("FASB") issued ASU *2024*-*03,* "Expense Disaggregation Disclosures." ASU *2024*-*03* requires disclosure to disaggregate prescribed expenses within relevant income statement captions. The standard is effective for fiscal years beginning after *December 15, 2026,* and for interim periods after *December 15, 2027.* Early adoption is permitted. The Company is evaluating the impact of the changes to its existing disclosures.

In *July 2025,* the FASB issued ASU *No. 2025*-*05,* Financial Instruments – Credit Losses (Topic *326*): Measurement of Credit Losses for Accounts Receivable and Contract Assets The ASU provides an optional practical expedient for estimating future credit losses based on current conditions as of the balance sheet date and assuming those conditions do *not* change over the remaining life of the accounts receivable. This standard is effective for the Company on *January 1, 2026.* The adoption of this ASU did *not* have a material impact on the consolidated results of operations and financial condition.

In *September 2025,* the FASB issued ASU *No. 2025*-*06,* Intangibles - Goodwill and Other - Internal-Use Software (Subtopic *350*-*40*): Targeted Improvements to the Accounting for Internal-Use Software. The ASU removes references to prescriptive software development stages and includes an updated framework for capitalizing internal software costs. This standard is effective for the Company on *January 1, 2028.* The Company is currently evaluating this ASU's impact on the condensed consolidated results of operations and financial condition.

In *December 2025,* the FASB issued ASU *2025*-*11,* Interim Reporting (Topic *270*): Narrow-Scope Improvements. ASU *2025*-*11* clarifies interim disclosure requirements and provides a comprehensive list of interim disclosures that are required by GAAP. The ASU also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The standard is effective for interim reporting periods within annual reporting periods beginning after *December 15, 2027.* Early adoption is permitted. The Company is evaluating the impact of the changes to its condensed consolidated financial statements and existing disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *11* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

**Note *3.* Sale of Stock for Cash**

***<u>Lincoln Park Financing</u>***

On *December 13, 2022,* we entered into a stock purchase agreement (the "LPC Purchase Agreement") with Lincoln Park Capital Fund, LLC ("Lincoln Park"), pursuant to which Lincoln Park agreed to purchase from us at our request up to an aggregate of $10,000,000 of our common stock (subject to certain limitations) from time to time over a period of *three* years. The agreement allows us, at our sole discretion, to direct Lincoln Park to purchase shares of our common stock, subject to limitations in both volume and dollar amount. The purchase price of the shares that *may* be sold to Lincoln Park under the agreement is the lower of (i) the lowest sale price on the date of purchase, or (ii) the average of the *three* lowest closing prices in the prior *12* business days. There are *no* restrictions on future financings, rights of *first* refusal, participation rights, penalties, or liquidated damages other than a prohibition on entering into a "Variable Rate Transaction," as defined in the agreement. Concurrently with the LPC Purchase Agreement, we entered into a Registration Rights Agreement, pursuant to which we filed a registration statement on Form S-*1* with the SEC on *December 23, 2022.* This registration statement was declared effective on *January 19, 2023.* This agreement expired *February 1, 2026.*

During the *three* months ended *March 31, 2026* we sold 984,188 shares of our common stock to Lincoln Park and received $171,000 in gross and net proceeds. We did not sell shares of our common stock to Lincoln Park during the *three* months ended *March 31, 2025.*

***<u>Clearthink Financing</u>***

On *March 20, 2026,* we entered into a purchase agreement (the "Purchase Agreement") with Clearthink Capital Partners, LLC ("Clearthink"), pursuant to which Clearthink committed to purchase up to $10.0 million of the Company's common stock. Under the Purchase Agreement, we have the right, but *not* the obligation, to sell to Clearthink, and Clearthink is obligated to purchase up to $10.0 million of our common stock. Sales of common stock are subject to certain limitations set forth in the Purchase Agreement, and *may* occur from time to time, at our sole discretion, over the *36*-month period commencing on the date that the conditions to Clearthink's purchase obligation set forth in the Purchase Agreement are satisfied, including that a registration statement covering the resale by Clearthink of shares of Common Stock that *may* be issued to Clearthink under the Purchase Agreement, which we filed with the Securities and Exchange Commission (the "SEC") on *April 9, 2026,* and which was declared effective by the SEC on *April 15, 2026 (*the date on which all of such conditions are satisfied, the "Commencement Date"). From and after the Commencement Date and until *May 1, 2029* unless we are in default of the Purchase Agreement, on any trading day we select, we *may,* by written notice delivered to Clearthink, direct Clearthink to purchase up to the lesser of (i) $500,000 of our common stock, and (ii) 300% of the daily average shares traded value for the *eight* trading days prior to the date of the purchase notice, with a minimum of *no* less than $25,000. At least *five* business days must elapse between each purchase notice unless the parties mutually agree otherwise. The purchase price per share of Common Stock sold in each such purchase, if any, will be based on prevailing market prices of the common stock immediately preceding the time of sale as computed under the Purchase Agreement, equal to the average of the *two* lowest daily closing prices of our common stock during the *eight* trading days preceding the purchase notice. Actual sales of shares of common stock to Clearthink will depend on a variety of factors we will take into consideration from time to time, including, among others, market conditions, the trading price of our common stock and determinations as to the appropriate sources of funding for the Company and its operations. The net proceeds under the Purchase Agreement to the Company will depend on the frequency and prices at which we sell shares of Common Stock to Clearthink. We expect that any proceeds we receive from such sales to Clearthink will be used for working capital and general corporate purposes.

During the *three* months ended *March 31, 2026*, we issued Clearthink 500,000 shares of our common stock at $0.17 per share as payment of a "committment fee" in accordance with the terms of the Purchase Agreement, and we recorded $85,000 as a financing fee. See [Note *14*](#Note_14_Sub_Events) "Subsequent Events".

<u>***Unit Offering***</u>

During the *three* months ended *March 31, 2026*, we sold 555,556 shares of our common stock and received $100,000 gross and net proceeds from *one* accredited investor. In addition to the shares, we issued each investor a six-month and a five-year warrant to purchase additional shares. (See [Note *6*](#Note_6_Warrants), "Warrants Issued in Unit Offering".) We did not sell shares of our common stock in Unit Offerings during the *three* months ended *March 31, 2025.*

In the *three* months ended *March 31, 2026* and *March 31, 2025*, we recorded a $15,000 financing fee.

**Note *4.* Debt Obligations**

The following table summarizes our debt obligations outstanding as of *March 31, 2026* and *December 31, 2025* (in thousands). The table does *not* include debt obligations of our partially owned subsidiary Clyra Medical (see [Note *8*](#Note_8_Clyra), "Debt Obligations of Clyra Medical").

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31, 2025*** |
| **Current portion of debt:** |  |  |
| &nbsp;&nbsp;&nbsp; SBA Paycheck Protection Program loan | $43 | $43 |
| &nbsp;&nbsp;&nbsp; Vehicle loan, current portion | 13 | 13 |
| Term loan, current portion | 17 | 17 |
| &nbsp;&nbsp;&nbsp; SBA EIDL Loan, matures July 2053, current portion | 10 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current portion of debt | $83 | $83 |
| **Long-term debt:** |  |  |
| &nbsp;&nbsp;&nbsp; Vehicle loan, matures March 2029 | $26 | $29 |
| Term loan, matures April 2028 | 18 | 22 |
| &nbsp;&nbsp;&nbsp; SBA EIDL Loan, matures July 2053 | 130 | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term debt, net of current | $174 | $182 |
| Total | $257 | $265 |

---

For the *three* months ended *March 31, 2026*, and *March 31, 2025*, we recorded $188,000 and $93,000 of interest expense related to the coupon interest from our debt obligations, inclusive of Clyra Medical debt obligations. (See [Note *8*](#Note_8_Clyra).)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *12* -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***<u>Vehicle loan</u>***

On *February 7, 2023,* we entered a loan agreement with Bank of America for the purchase of a commercial vehicle used in operations totaling $80,000, at 5.29% annual interest which matures *March 7, 2029.* The loan agreement requires monthly payments of $1,000. As of *March 31, 2026*, and *December 31, 2025*, the balance of this loan totals $39,000 and $42,000.

***<u>Term Loan</u>***

On *April 5, 2025,* we entered a term loan agreement with American Express for working capital in the principal amount of $50,000, at 7.98% annual interest, which matures *April 10, 2028,* and requires monthly payments of $2,000. As of *March 31, 2026*, and *December 31, 2025*, the balance of this loan totals $35,000 and $39,000.

***<u>SBA</u> <u>Program</u> <u>Loans</u>***

On *June 3, 2020,* ONM Environmental received a $217,000 CARES Act Paycheck Protection Program loan from the SBA. On *February 7, 2022,* it received notice that the SBA had forgiven $174,000 of the loan. ONM Environmental requested reconsideration of the partial-forgiveness determination. As of the date of this report, the SBA has *not* made a final determination on forgiveness, and *no* payments are required. As of *March 31, 2026*, and *December 31, 2025*, the outstanding balance on this loan totaled $43,000.

In *July 2020,* ONM Environmental received an Economic Injury Disaster Loan (EIDL) from the SBA in the amount of $150,000. The note has a 3.75% annual interest rate, requires monthly payments of $700, and matures *July 2053.* As of *March 31, 2026*, and *December 31, 2025*, the balance of this loan totaled $140,000 and $141,000.

**Note *5.* Share-Based Compensation**

***<u>Issuance of Common Stock in exchange for Services</u>***

***Payment of Officer Salaries***

On *March 31, 2026*, we issued 69,444 shares of our common at $0.16 per share in lieu of $11,000 of accrued and unpaid obligations to an officer.

On *March 31, 2025,* we issued 11,250 shares of our common at $0.28 per share in lieu of $3,000 of accrued and unpaid obligations to an officer.

***Payment of Consultant and Vendor Fees***

On *March 31, 2026*, we issued 212,963 shares of our common at $0.16 per share in lieu of $35,000 of accrued and unpaid obligations to consultants and vendors.

On *March 31, 2025,* we issued 209,080 shares of our common at $0.28 per share in lieu of $58,000 of accrued and unpaid obligations to consultants and vendors.

All of these offerings and sales were made in reliance on the exemption from registration contained in Section *4*(*2*) of the Securities Exchange Act and/or Regulation D promulgated thereunder as *not* involving a public offering of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *13* -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***<u>Stock Option Expense</u>***

During the *three* months ended *March 31, 2026*, and *2025,* we recorded an aggregate $699,000 and $615,000, in selling general and administrative expense related to the issuance of stock options. We issued options through our *2024* Equity Incentive Plan, and outside of these plans. Included in these totals is option expense related to issuances by our subsidiary, Clyra Medical, totaling $413,000 and $206,000 during the *three* months ended *March 31, 2026*, and *2025.* (See [Note *8*](#Note_8_Clyra).)

***2024* Equity Incentive Plan***

On *June 13, 2024,* our stockholders adopted the BioLargo *2024* Equity Incentive Plan (*"2024* Plan") as a means of providing our directors, key employees, and consultants additional incentive to provide services. Both stock options and stock grants *may* be made under this plan for a period of 10 years. It is set to expire on its terms on *June 13, 2034.* Our Board of Director's Compensation Committee administers this plan. As plan administrator, the Compensation Committee has sole discretion to set the price of the options. The plan authorizes the following types of awards: (i) incentive and non-qualified stock options, (ii) restricted stock awards, (iii) stock bonus awards, (iv) stock appreciation rights, (v) restricted stock units, and (vi) performance awards. The number of shares available to be issued under the *2024* Plan increases automatically on *January 1* of each year by the lesser of (a) 2 million shares, or (b) such number of shares determined by our Board. As of *March 31, 2026*, 44,000,000 shares are authorized under the plan, and 24,892,531 remain available for grant.

Activity for our stock options under the *2024* Plan during the *three* months ended *March 31, 2026*, and *2025,* is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Options outstanding*** | ***Weighted average price per share*** | ***Weighted average remaining life*** | ***Aggregate intrinsic Value(1)*** |
| Balance, December 31, 2024 | 5493920 | $0.23 |  |  |
| Granted | 2024538 | $0.28 |  |  |
| Balance, March 31, 2025 | 7518458 | $0.24 |  |  |
| Unvested | (2357787) | $0.24 |  |  |
| Vested Balance, March 31, 2025 | 5160671 | $0.24 |  |  |
| Balance, December 31, 2025 | 16793014 | $0.21 |  |  |
| Granted | 2314455 | $0.16 |  |  |
| Balance, March 31, 2026 | 19107469 | $0.20 | 9.0 | $— |
| Unvested | (4957864) | $0.20 |  |  |
| Vested balance, March 31, 2026 | 14149605 | $0.21 | 8.9 | $— |

---

(*1*) – Aggregate intrinsic value based on closing common stock price of $0.16 at *March 31, 2026*.

The options granted to purchase 2,314,455 shares during the *three* months ended *March 31, 2026* with an aggregate fair value of $325,000 were issued to board of directors, employees and consultants: (i) we issued options to purchase 439,816 shares of our common stock to members of our board of directors for services performed, in lieu of cash; the fair value of these options totaled $61,000; (ii) we issued options to purchase 879,169 shares of our common stock to employees as part of employee retention plans; the fair value of employee retention plan options totaled $121,000 and vest over time or based on performance metrics; (iii) we issued options to purchase 695,470 shares of our common stock to consultants in lieu of cash for expiring options and for services performed; the fair value of these options totaled $97,000 and (iv) we issued options to purchase 300,000 shares of our common stock to our Chief Financial Officer with a fair value of $46,000 for expiring options. All stock option expense is recorded on our condensed consolidated statement of operations as selling, general and administrative expense.

As of *March 31, 2026*, there remains $846,000 of stock option expense to be expensed over the next four years.

The options granted to purchase 2,024,538 shares during the *three* months ended *March 31, 2025,* with an aggregate fair value of $491,000 were issued to board of directors, employees and consultants: (i) we issued options to purchase 334,820 shares of our common stock to members of our board of directors for services performed, in lieu of cash; the fair value of these options totaled $82,000; (ii) we issued options to purchase 809,645 shares of our common stock to employees as part of employee retention plans; the fair value of employee retention plan options totaled $199,000 and vest over time or based on performance metrics; (iii) we issued options to purchase 580,073 shares of our common stock to consultants in lieu of cash for expiring options and for services performed; the fair value of these options totaled $143,000 and (iv) we issued options to purchase 300,000 shares of our common stock to our Chief Financial Officer with a fair value of $67,000 for expiring options. All stock option expense is recorded on our condensed consolidated statement of operations as selling, general and administrative expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *14* -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

**Extension of Agreement with Chief Financial Officer**

On *January 31, 2026,* the Engagement Agreement with our Chief Financial Officer Charles K. Dargan, II automatically extended for a one-year period to expire *January 31, 2027 (*the *"2026*-*27* Term"). As the sole compensation for the *2026*-*27* Term, and in accordance with his contract, Mr. Dargan was issued an option ("Option") to purchase 300,000 shares of the Company's common stock. The Option vests over the period of the extended term in monthly installments of 25,000 shares, so long as the agreement is in full force and effect. The Option is exercisable at $0.18 per share, the closing price of BioLargo's common stock on the last trading day of *January 2026,* expires ten years from the grant date, and was issued pursuant to the Company's *2024* Equity Incentive Plan.

On *January 31, 2025,* the Engagement Agreement with our Chief Financial Officer Charles K. Dargan, II automatically extended for a one-year period to expire *January 31, 2026 (*the *"2025*-*26* Term"). As the sole compensation for the *2025*-*26* Term, Mr. Dargan was issued an option ("Option") to purchase 300,000 shares of the Company's common stock. The Option vests over the period of the extended term in monthly installments of 25,000 shares, so long as the agreement is in full force and effect. The Option is exercisable at $0.25 per share, the closing price of BioLargo's common stock on the last trading day of *January 2025,* expires ten years from the grant date, and was issued pursuant to the Company's *2024* Equity Incentive Plan.

***2018* Equity Incentive Plan***

On *June 22, 2018,* our stockholders adopted the BioLargo *2018* Equity Incentive Plan (*"2018* Plan") as a means of providing our directors, key employees, and consultants additional incentive to provide services. Both stock options and stock grants *may* be made under this plan for a period of 10 years. It is set to expire on its terms on *June 22, 2028.* Our Board of Director's Compensation Committee administers this plan. As of *June 30, 2024,* the *2018* Plan closed to further stock option grants. The *2018* Plan closed with 9,343,614 shares unissued.

Activity for our stock options under the *2018* Plan during the *three* months ended *March 31, 2026*, and *2025*, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Options outstanding*** | ***Weighted average price per share*** | ***Weighted average remaining life*** | ***Aggregate intrinsic Value(1)*** |
| Balance, December 31, 2024 | 42171386 | $0.19 |  |  |
| Exercised | (566951) | $0.16 |  |  |
| Balance, March 31, 2025 | 41604435 | $0.19 |  |  |
| Unvested | (2942091) | $0.22 |  |  |
| Vested Balance, March 31, 2025 | 38662344 | $0.19 |  |  |
| Balance, December 31, 2025 | 41604435 | $0.19 |  |  |
| Exercised |  | $— |  |  |
| Balance, March 31, 2026 | 41604435 | $0.19 | 5.6 | $189000 |
| Unvested | (1643252) | $0.22 |  |  |
| Vested balance, March 31, 2026 | 39961183 | $0.19 | 5.5 | $189000 |

---

(*1*) – Aggregate intrinsic value based on closing common stock price of $0.16 at *March 31, 2026*

During the *three* months ended *March 31, 2025,* an option holder elected to exercise 566,951 options using the cashless exercise option in exchange for 265,800 shares of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *15* -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

As of *March 31, 2026*, there remains $280,000 of stock option expense to be expensed over the next two years.

***2007* Equity Incentive Plan***

On *September 7, 2007,* and as amended *April 29, 2011,* the BioLargo, Inc. *2007* Equity Incentive Plan (*"2007* Plan") was adopted as a means of providing our directors, key employees and consultants additional incentive to provide services. Both stock options and stock grants *may* be made under this plan for a period of 10 years, which expired on *September 7, 2017.* The Board's Compensation Committee administers this plan. As plan administrator, the Compensation Committee has sole discretion to set the price of the options. As of *September 2017,* the Plan was closed to further stock option grants.

Activity for our stock options under the *2007* Plan for the *three* months ended *March 31, 2026* and *2025* is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Options Outstanding*** | ***Weighted average price per share*** | ***Weighted average remaining life*** | ***Aggregate intrinsic Value(1)*** |
| Balance, December 31, 2024 | 1157500 | $0.53 |  |  |
| Expired |  |  |  |  |
| Balance, March 31, 2025 | 1157500 | $0.53 |  |  |
| Balance, December 31, 2025 | 380000 | $0.63 |  |  |
| Expired |  | $— |  |  |
| Balance, March 31, 2026 | 380000 | $0.63 | 0.8 | $— |

---

<sup>(*1*)</sup> – Aggregate intrinsic value based on closing common stock price of $0.16 at *March 31, 2026*.

***Non-Plan Options***

Activity of our non-plan stock options issued for the *three* months ended *March 31, 2026* and *2025* is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Non-plan Options outstanding*** | ***Weighted average price per share*** | ***Weighted average remaining life*** | **Aggregate intrinsic Value<sup>(1)</sup>** |
| Balance, December 31, 2024 | 15687642 | $0.40 |  |  |
| Granted | 32143 | $0.28 |  |  |
| Balance, March 31, 2025 | 15719785 | $0.39 |  |  |
| Unvested | (218750) | $0.44 |  |  |
| Vested Balance, March 31, 2025 | 15501035 | $0.39 |  |  |
| Balance, December 31, 2025 | 14039129 | $0.39 |  |  |
| Expired |  | $— |  |  |
| Balance, March 31, 2026 | 14039129 | $0.39 | 1.6 | $12000 |
| Unvested | (218750) | $0.18 |  |  |
| Vested balance, March 31, 2026 | 13820379 | $0.39 | 1.5 | $12000 |

---

(*1*) – Aggregate intrinsic value based on closing common stock price of $0.16 at *March 31, 2026*.

There were no options issued during the *three* months ended *March 31, 2026*.

During the *three* months ended *March 31, 2025,* we issued options to purchase an aggregate 32,143 shares of our common stock at $0.28 per share to vendors for fees for services. The fair value of the options issued totaled an aggregate $8,000 and is recorded in our selling, general and administrative expense.

As of *March 31, 2026*, there remains $39,000 of stock option expense to be expensed over the next two years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *16* -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

**Note *6.* Warrants**

We have certain warrants outstanding to purchase our common stock, at various prices, for the *three* months ended *March 31, 2026* and *2025* is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Warrants outstanding*** | ***Weighted average price per share*** | ***Weighted average remaining life*** | **Aggregate intrinsic value<sup>(1)</sup>** |
| Balance, December 31, 2024 | 31615616 | $0.29 |  |  |
| Expired | (316304) | $0.12 |  |  |
| Vested Balance, March 31, 2025 | 31299312 | $0.29 |  |  |
| Balance, December 31, 2025 | 31244078 | $0.29 |  |  |
| Issued | 1198832 | $0.24 |  |  |
| Expired | (225000) | $0.16 |  |  |
| Vested Balance, March 31, 2026 | 32217910 | $0.29 | 1.5 | $— |

---

(*1*) – Aggregate intrinsic value based on closing common stock price of $0.16 at *March 31, 2026*.

***<u>Warrants issued in Unit Offerings</u>***

During the *three* months ended *March 31, 2026*, we issued six-month stock purchase warrants to purchase an aggregate 599,416 shares of our common stock at $0.22 per share, and five-year stock purchase warrants to purchase an aggregate 599,416 shares of our common stock at $0.27 per share, in conjunction with the sale of stock to investors in our Unit Offerings (see [Note *3*](#Note_3_Sale_of_Stock_for_Cash)). The relative fair value of the warrant component of the units sold to investors totaled $58,000. The Black-Scholes model was used to calculate relative fair value, further discounted by the beneficial conversion feature and the value of the common stock component.

We did not issue any warrants in conjunction with unit offerings in the *three* months ended *March 31, 2025.*

***<u>Warrant Fair Value</u>***

We use the Black-Scholes option pricing model to determine the relative fair value of warrants issued in conjunction with debt instruments, common stock, and for services. With respect to debt instruments, relative fair value is amortized over the life of the warrant. The principal assumptions we used in applying the Black-Scholes model were as follows:

---

| | | |
|:---|:---|:---|
|  | ***2026*** | ***2025*** |
| Risk free interest rate | 3.64 - 3.77% | – % |
| Expected volatility | 62 - 66% | – % |
| Expected dividend yield |  | – |
| Forfeiture rate |  | – |
| Expected life in years | *.5 - 5* | – |

---

The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant. Expected volatilities are based on historical volatility of our common stock. The expected life in years is based on the contract term of the warrant.

**Note *7.* Accounts Payable and Accrued Expenses** 

As of *March 31, 2026*, accounts payable and accrued expenses included the following (in thousands):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | *BioLargo* | *ONM* | *BLEST* | *BioLargo Canada* | *BETI* | *BEST* | *Intercompany amounts* | *Totals* |
| Accounts payable | $428 | $274 | $15 | $119 | $5 | $— | $(3) | $838 |
| Accrued payroll | 10 | 103 | 94 | 21 |  | 10 |  | 238 |
| Total |  |  |  |  |  |  |  | $1076 |

---

As of *December 31, 2025*, accounts payable and accrued expenses included the following (in thousands):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | *BioLargo* | *ONM* | *BLEST* | *BioLargo Canada* | *BETI* | *BEST* | *Intercompany amounts* | *Totals* |
| Accounts payable | $588 | $305 | $— | $100 | 43 | $— | $(24) | $1012 |
| Accrued payroll | 10 | 85 | 73 | 22 |  | 9 |  | 199 |
| Total |  |  |  |  |  |  |  | $1211 |

---

See [Note *8*](#Note_8_Clyra), "Accounts Payable and Accrued Expenses", for the accounts payable and accrued expenses of Clyra Medical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *17* -

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

**Note *8.* Noncontrolling Interest** – **Clyra Medical**

As discussed in Note *2* above, we consolidate the operations of our partially owned subsidiary Clyra Medical.

***<u>Debt Obligations of Clyra Medical</u>***

***Secured Promissory Notes***

During the year ended *December 31, 2024,* Clyra issued promissory notes in the aggregate amount of $1,064,000, the funds of which were used to purchase and secured by equipment for at-scale production of its wound irrigation solution products. Of this total, $200,000 was issued to BioLargo and this eliminates during consolidation of intercompany transactions. The notes bear interest at the rate of 15% per annum, mature in *two* years, and require interest-only payments until maturity. During *2025,* Clyra issued secured promissory notes in the aggregate amount of $436,000, the funds of which were used to purchase equipment for at-scale manufacture of its products. The notes bear interest at the rate of 15% per annum, mature on *October 31, 2026,* require interest-only payments until maturity, and *may* be pre-paid at any time. Each investor received a warrant to purchase the number of Clyra common shares equal to the face amount of the note divided by six, at an exercise price of $6.00 per share, expiring *October 31, 2029.* Warrant to purchase 72,667 shares of Clyra common stock were issued. The fair value of the warrants totaled $99,000 and is recorded as a debt discount, which is amortized as interest expense over the term of the secured promissory note. As of *March 31, 2026,* and *December 31, 2025,* the balance outstanding totaled $1,300,000.

***Guaranteed Note Offering***

During the *three* months ended *March 31, 2026*, Clyra issued the guaranteed promissory notes in the aggregate amount of $2,395,000. The notes bear interest at the rate of 15% per annum, matures *February 28, 2029,* and is guaranteed by the Company's largest stockholder, BioLargo Inc. Each investor received a warrant to purchase an aggregate of number of Clyra common shares equal to the face amount of the note divided by *7.5,* divided by two, at an exercise price of $7.50 per share, expiring *February 28, 2031.* Warrants to purchase 159,668 shares of Clyra common stock were issued. The fair value of these warrants issued totaled $232,000 and is recorded as a debt discount and will be amortized to interest expense over the term of the guaranteed note offering.

During *2025,* Clyra issued guaranteed promissory notes in the aggregate amount of $575,000. The notes bear interest at the rate of 15% per annum, matures *July 15, 2027,* and is guaranteed by the Company's largest stockholder, BioLargo Inc. Each investor received a warrant to purchase an aggregate of number of Clyra common shares equal to the face amount of the note divided by six, at an exercise price of $6.50 per share, expiring *July 15, 2028.* Warrants to purchase 88,462 shares of Clyra common stock were issued. The fair value of these warrants issued totaled $80,000 and is recorded as a debt discount and will be amortized to interest expense over the term of the guaranteed promissory notes.

As of *March 31, 2026* and *December 31, 2025,* the balance outstanding totals $2,970,000 and $575,000, respectively.

The Black-Scholes model is used to calculate the initial fair value of the warrants issued as part of the Clyra Medical debt obligations, we used a stock price on the date of grant of $6.00 per share, volatility ranging between 35 - 43%. Because Clyra is a private company with *no* secondary market for its common stock, the resulting fair value was discounted by 30%.

***Line of Credit***

On *June 30, 2020,* Clyra Medical entered into a Revolving Line of Credit Agreement whereby Vernal Bay Capital Group, LLC ("Vernal") committed to provide a $1,000,000 inventory line of credit. Since inception, Clyra Medical received $260,000 in draws and made repayments totaling $126,000. The interest rate on this line of credit is 15%. On *December 13, 2022,* Clyra and Vernal amended the Revolving Line of Credit Agreement extending the maturity date of the line of credit to *September 30, 2024* and modifying the payment terms such that amounts of principal due in each month are capped at a maximum of 15% of the principal amount then due under the note. The maturity date has *not* been further extended, and Clyra continues to provide monthly reporting and make interest payments to Vernal as required. As of *March 31, 2026* and *December 31, 2025* the balance outstanding on this line of credit totaled $134,000. Subsequent to *March 31, 2026,* this line of credit was paid in full.

***<u>Equity Transactions</u>***

As of *March 31, 2026*, and *December 31, 2025*, Clyra had 11,375,860 shares issued and outstanding, of which 746,418 and 330,000 were Series A and Series B Preferred shares, respectively. As of *March 31, 2026*, and *December 31, 2025*, of the total outstanding Clyra shares, BioLargo owned 5,305,156, common shares and 165,765 Series A Preferred shares.

***Sales of Series A Preferred Stock***

In an offering that closed in *October 2023,* Clyra sold 746,418 shares of its Series A Preferred Stock, and in exchange received $1,800,000 in gross and net proceeds. Purchasers of the Series A Preferred Stock also received a 3-year warrant to purchase the same number of additional shares of common stock for $3.72 per share. The fair value of the warrants issued totaled $524,000. Shares of Series A Preferred Stock earn a dividend of 15% each year, compounding annually; the company is under *no* obligation to pay such dividends in cash, and such dividends automatically convert to common stock upon conversion of the Series A Preferred Stock to common stock. Each share of Series A Preferred stock can be converted by the holder at any time for *one* share of common stock and automatically convert upon the completion of a public offering of shares in which at least $5,000,000 of gross proceeds is received by the company. Accrued dividends *may* be converted to common stock at a conversion rate of $3.10 per share. As of *March 31, 2026* and *December 31, 2025*, the Preferred Series A accrued and unpaid dividend totaled $1,023,000 and $937,000, respectively. Each investor also entered into an agreement with BioLargo whereby the investor *may* exchange some or all of its Series A Preferred stock, plus accrued dividends, into shares of BioLargo common stock, at a price equal to a *20%* discount of the volume weighted average price over the *30* prior trading days. Elections *may* be made during the period beginning *January 1, 2025,* and ending on *June 30, 2026.* As of *March 31, 2026, no* investors have elected to convert.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *18* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***Sales of Series B Preferred Stock***

In an offering that closed in *October 2025,* Clyra sold 330,000 shares of its Series B Preferred Stock, and in exchange received $2,145,000 in gross and net proceeds. Purchasers of the Series B Preferred Stock also received warrants to purchase an aggregate 165,000 shares of common stock for $7.50 per share, expiring three years from the grant date. The fair value of the warrants issued totaled $94,000.

***Sales of Common Stock***

There were no sales of common stock during the *three* months ended *March 31, 2026.* 

During the *three* months ended *March 31, 2025,* Clyra sold 49,167 shares of its common stock, and issued 24,584 warrants to purchase shares of its common stock at $7.50 per share, expiring *February 28, 2027,* from five accredited investors. In exchange, it received $295,000 in gross proceeds. The relative fair value of these warrants totaled $38,000.

***Common Stock issued for services***

There were no shares issued for services during the *three* months ended *March 31, 2026.* 

On *March 31, 2025,* Clyra issued 6,000 shares in lieu of cash totaling $36,000, to a vendor for services performed and issued a warrant to purchase 3,000 shares of its common stock at $6.00 per share, expiring 5 years from the grant date. The relative fair value of these warrants totaled $5,000.

***Clyra Stock Options***

---

| | | | |
|:---|:---|:---|:---|
|  | ***Clyra Options Outstanding*** | ***Weighted average price per share*** | ***Weighted average remaining life*** |
| Balance, December 31, 2024 | 1976863 | $1.00 |  |
| Granted | 25332 | $4.50 |  |
| Balance, March 31, 2025 | 2002195 | $1.04 |  |
| Unvested | (250000) | $0.01 |  |
| Vested Balance, March 31, 2025 | 1752195 | $1.19 |  |
| Balance, December 31, 2025 | 3013692 | $2.17 |  |
| Granted | 164242 | $4.44 |  |
| Balance, March 31, 2026 | 3177934 | $2.29 | 7.2 |
| Unvested | (760678) | $4.06 |  |
| Vested Balance, March 31, 2026 | 2417256 | $1.74 | 8.1 |

---

Clyra issues options to its employees and consultants in lieu of compensation owed on a regular basis. The fair value of the options issued totaled $297,000 in the *three* months ended *March 31, 2026*, and $49,000 in the *three* months ended *March 31, 2025*. The Black-Scholes model is used to calculate the initial fair value, during the *three* months ended *March 31, 2026* and *2025*, we used a stock price on the date of grant of $4.50 per share. Because Clyra is a private company with *no* secondary market for its common stock, the resulting fair value was discounted by 30%.

As of *March 31, 2026*, there remains $1,384,000 of stock option expense to be expensed over the next three years.

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***March 31, 2025*** |
| Risk free interest rate | 4.20 - 4.36% | 4.45% |
| Expected volatility | 35 - 39% | 43% |
| Expected dividend yield |  |  |
| Forfeiture rate |  |  |
| Expected life in years | 10 | 10 |

---

***Clyra Warrants***

---

| | | | |
|:---|:---|:---|:---|
|  | ***Clyra Warrants Outstanding*** | ***Weighted average price per share*** | ***Weighted average remaining life*** |
| Balance, December 31, 2024 | 1183182 | $4.84 |  |
| Granted | 125917 | $6.40 |  |
| Vested Balance, March 31, 2025 | 1309099 | $4.99 |  |
| Balance, December 31, 2025 | 1702496 | $5.39 |  |
| Granted | 159668 | $7.50 |  |
| Expired | (40323) | $3.72 |  |
| Vested Balance, March 31, 2026 | 1821841 | $5.61 | 1.7 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *19* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

***Accounts Payable and Accrued Expenses***

At *March 31, 2026*, and *December 31, 2025*, Clyra had the following accounts payable and accrued expenses (in thousands):

---

| | | |
|:---|:---|:---|
| Category | ***2026*** | ***2025*** |
| Accounts payable | $454 | $634 |
| Accrued dividend | 1023 | 937 |
| Accrued payroll | 33 | 21 |
| Total | $1510 | $1592 |

---

***Sale and leaseback of equipment***

On *December 4, 2024,* Clyra entered into an agreement whereby it sold and leased back certain equipment to be used in the manufacturing of its wound irrigation solution. Clyra received $350,000 cash and a secured promissory note in the principal amount of $82,000 which bears interest at 15%, requires interest be paid monthly, and the principal balance due on *December 4, 2028.* The obligations of the Note are secured by the equipment pursuant to a security agreement. At the end of the lease term, Clyra has the option to purchase the equipment for $82,000. Concurrently, Clyra leased the equipment for a 49-month term. The remaining lease payments total $412,000.

---

| | |
|:---|:---|
| Year ending |  |
| December 31, 2026 | $112 |
| December 31, 2027 | 150 |
| December 31, 2028 | 150 |
| Total minimum lease payments | $412 |
| Less imputed interest | (76) |
| Total finance lease liabilities | $336 |

---

**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 an 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 *March 31, 2026* and *December 31, 2025,* Class B members have earned 30% profit interest.

**Note *10.* BioLargo Energy Technologies, Inc.**

BioLargo Energy Technologies, Inc. ("BETI") was formed for the purpose of commercializing a proprietary liquid sodium battery technology. BioLargo purchased 9,000,000 shares of its common stock upon its formation and was initially its sole stockholder.

During the *three* months ended *March 31, 2026*, BETI sold 124,867 shares of its common stock at $3.70 per share to *seven* accredited investors and received $462,000 in gross and net proceeds. No shares of common stock of BETI were sold during the *three* months ended *March 31, 2025.* 

As of *March 31, 2026*, BETI had 9,730,691 issued and outstanding shares, of which BioLargo holds 9,095,000 (93%).

**Note *11.* Business Segment Information**

BioLargo has six operating business segments, plus its corporate entity which is responsible for general corporate operations, including administrative functions, finance, human resources, marketing, legal, etc. The operational business segments are:

*1.* ONM Environmental -- which sells odor and volatile organic control products and services, located in Westminster, California;

*2.* Clyra Medical Technologies ("Clyra Medical") -- which develops and sells medical products based on our technologies, located in Tampa, Florida;

*3.* BioLargo Engineering (BLEST) -- which provides professional engineering services on a time and materials basis for outside clients and supports our internal operations as needed, located in Oak Ridge, Tennessee;

*4.* BioLargo Canada, Inc. ("BioLargo Canada") – the main hub of our scientists researching and developing our technologies, operating out of the University of Alberta, Edmonton, Canada;

*5.* BioLargo Energy Technologies, Inc. ("BETI") – which is developing our proprietary battery technology; and

*6.* BioLargo Equipment Solutions & Technologies, Inc. ("BEST") – which manages the sales and distribution of our water treatment products and related services.

Other than ONM Environmental, *none* of our operating business units have operated at a profit, and therefore have required additional cash to meet its monthly expenses, funded through sales of debt or equity, research grants, and tax credits. BETI and Clyra Medical have also been funded by *third* party investors who invest directly in exchange for equity ownership in that entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *20* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

The segment information for the *three* months ended *March 31, 2026*, and *2025*, is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended March 31,*** | ***Three Months Ended March 31,*** |
|  | ***2026*** | ***2025*** |
| **Revenue** |  |  |
| ONM Environmental | $423 | $2803 |
| BLEST | 797 | 690 |
| Clyra Medical | 154 |  |
| BioLargo Canada | 58 | 8 |
| Intersegment revenue | (317) | (232) |
| Total | $1115 | $3269 |
| **Stock option expense** |  |  |
| BioLargo corporate | $286 | $409 |
| Clyra Medical | 413 | 206 |
| Total | $699 | $615 |
| **Depreciation expense** |  |  |
| BioLargo corporate | $(9) | $(11) |
| ONM Environmental | (10) | (10) |
| BLEST | (11) | (17) |
| Clyra Medical | (2) | (4) |
| BETI | (2) |  |
| Total | $(34) | $(42) |
| **Research and development expense** |  |  |
| BioLargo corporate | $(261) | $(248) |
| BLEST | (208) | (244) |
| BETI | (142) | (60) |
| BioLargo Canada | (92) | (136) |
| Clyra Medical | (521) | (335) |
| Intersegment R&D | 317 | 232 |
| Total | $(907) | $(791) |
| **Operating income (loss)** |  |  |
| BioLargo corporate | $(459) | $(817) |
| ONM Environmental | (95) | 956 |
| BLEST | (380) | (378) |
| BETI | (355) | (94) |
| BEST | (90) | (58) |
| BioLargo Canada | (113) | (156) |
| Clyra Medical | (1712) | (1315) |
| Total | $(3204) | $(1862) |
| **Interest income (expense)** |  |  |
| BioLargo corporate | $63 | $3 |
| ONM Environmental |  | 15 |
| Clyra Medical | (179) | (83) |
| Total | $(116) | $(65) |
| **Net income (loss)** |  |  |
| BioLargo corporate | $(481) | $(815) |
| ONM Environmental | (95) | 971 |
| BLEST | (380) | (377) |
| BETI | (355) | (94) |
| BEST | (90) | (58) |
| BioLargo Canada | (113) | (150) |
| Clyra Medical | (1891) | (1398) |
| Total | $(3405) | $(1921) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *21* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| As of March 31, 2026 | *BioLargo* | *ONM* | *CLYRA* | *BLEST* | *BETI* | *BioLargo Canada* | *Elimination* | *Total* |
| Tangible assets | $674 | $2016 | $3520 | $1022 | $235 | $12 | $(203) | $7276 |
| Operating lease right-of use | 206 |  | 169 | 604 |  |  |  | 979 |
| Finance lease right-of-use |  |  | 310 |  |  |  |  | 310 |
| Total | $880 | $2016 | $3999 | $1626 | $235 | $12 | $(203) | $8565 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| As of December 31, 2025 | *BioLargo* | *ONM* | *CLYRA* | *BLEST* | *BETI* | *BioLargo Canada* | *Elimination* | *Total* |
| Tangible assets | $694 | $2331 | $2650 | $1169 | $4 | $321 | $(224) | $6945 |
| Operating lease right-of use | 238 |  | 175 | 615 |  |  |  | 1028 |
| Finance lease right-of-use |  |  | 338 |  |  |  |  | 338 |
| Total | $932 | $2331 | $3163 | $1784 | $4 | $321 | $(224) | $8311 |

---

**Note *12.* Leases**

***<u>Office Leases</u>***

We have long-term operating leases for office, industrial and laboratory space in Westminster, California, Oak Ridge, Tennessee, and Alberta, Canada. Payments made under operating leases are charged to the condensed consolidated statement of operations and comprehensive loss on a straight-line basis over the term of the operating lease agreement. Short-term leases less than *one*-year are *not* included in our analysis. For the *three* months ended *March 31, 2026*, rental expense totaled $108,000 and $100,000 for the *three* months ended *March 31, 2026,* and *2025.* The lease of our Westminster facility expires *August 2027.* The lease for Clyra Medical expires *August 2030.* The lease of our Canadian facility is less than *one* year. *None* of our leases have additional terms related to the payments or mechanics of the lease. The leases have no additional payment terms such as common area maintenance payments, tax sharing payments or other allocable expenses. Likewise, the leases do *not* contain other terms and conditions of use, such as variable lease payments, residual value guaranties or other restrictive financial terms. Since there is *no* explicit interest rate in our leases, management used its incremental borrowing rate, which is estimated to be 18% to determine lease liability. As of *March 31, 2026*, the weighted average remaining lease term for our operating leases was *six* years and the total remaining operating lease payments is $1,591,000.

Future minimum lease payments under noncancelable leases, reconciled to the Company's discounted operating lease liabilities are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | *BioLargo* |  |  |  |
| Year ending | *Corp / ONM* | *CLYRA* | *BLEST* | *Total* |
| December 31, 2026 | $125 | $43 | $120 | $288 |
| December 31, 2027 | 113 | 59 | 163 | 335 |
| December 31, 2028 |  | 60 | 166 | 226 |
| December 31, 2029 |  | 61 | 170 | 231 |
| December 31, 2030 |  | 26 | 173 | 199 |
| Thereafter |  |  | 312 | 312 |
| Total minimum lease payments | $238 | $249 | $1104 | $1591 |
| Less imputed interest | (29) | (71) | (464) | (564) |
| Total operating lease liabilities | $209 | $178 | $640 | $1027 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *22* -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BIOLARGO, INC. AND SUBSIDIARIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (UNAUDITED)

**Note *13.* Legal Proceedings**

ONM Environmental, Inc. is the defendant in a lawsuit filed by Pooph Inc. in the Orange County, California Superior Court on *September 11, 2025.* The lawsuit alleges *three* causes of action, for Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, and Declaratory judgment, and seeks an unspecified amount of damages, allegedly arising from ONM's manufacture of pet odor-control products sold by Pooph Inc.

BioLargo, Inc., BioLargo Life Technologies, Inc., and ONM Environmental, Inc., filed a lawsuit against Pooph, Inc. and Ikigai Marketing Works, LLC in the United States District Court, Central District of California, on *November 11, 2025,* for patent infringement, false advertising, breach of contract, false promise, unfair and fraudulent business practices and constructive fraud, seeking to recover, amongst other damages, the defendants' failure to pay for product purchases and license royalties in the aggregate amount of $3,821,401. See [Note 2](#Note_2_Accounting_Policies), [Allowance for Credit Losses](#Allowance_Credit_Losses_in_Note_2), above.

While the outcomes of the lawsuits are uncertain, management believes that the resolutions of these proceedings will *not* have a material adverse effect on the Company's financial position, results of operations, or cash flows. However, adverse outcomes could materially impact future financial results.

 **Note *14.* Subsequent Events**

The Company has evaluated subsequent events through the date of the filing of this Quarterly Report and report the following.

*<u>**Stock Issuances**</u>*

Subsequent to *March 31, 2026,* we have sold 1,050,000 shares of our common stock to Clearthink (see [Note *3*](#Note_3_Sale_of_Stock_for_Cash)) and received $147,033 in gross proceeds.

<u>***Clyra Medical Financing Activities***</u>

Subsequent to *March 31, 2026,* Clyra issued guaranteed promissory notes in the aggregate amount of *$775,125* to seven accredited investors. The notes bear interest at the rate of 15% per annum, mature *February 28, 2029,* and are guaranteed by the Company's largest stockholder, BioLargo Inc. Each investor received a warrant to purchase an aggregate of number of Clyra common shares equal to the face amount of the note divided by *7.5,* divided by two, at an exercise price of $7.50 per share, expiring *February 28, 2031.* Warrants to purchase 51,675 shares of Clyra common stock were issued to the investors.

<u>***BioLargo Energy (BETI) Financing Activities***</u>

Subsequent to *March 31, 2026,* BETI sold 6,757 shares of its common stock at $3.70 per share to *one* accredited investor and received $25,000 in gross and net proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *23* -

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**Item 2. Management**'**s Discussion and Analysis of Financial Condition and Results of Operations** 

This quarterly report on Form 10-Q contains forward-looking statements. These forward-looking statements involve risks and uncertainties, including statements regarding BioLargo's capital needs, business plans and expectations. Such forward-looking statements involve risks and uncertainties regarding BioLargo's ability to carry out its planned development and production of products. Forward-looking statements are made, without limitation, in relation to BioLargo's operating plans, BioLargo's liquidity and financial condition, availability of funds, operating and exploration costs and the market in which BioLargo competes. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks outlined in our Form most recent annual report on Form 10-K, and, from time to time, in other reports BioLargo files with the SEC. These factors may cause BioLargo's actual results to differ materially from any forward-looking statement. BioLargo disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Unless otherwise expressly stated herein, all statements, including forward-looking statements, set forth in this Form 10-Q are as of March 31, 2026, unless expressly stated otherwise, and we undertake no duty to update this information.

When we refer in this report to "BioLargo," the "Company," "our Company," "we," "us" and "our," we mean BioLargo, Inc., and our subsidiaries, including BioLargo Life Technologies, Inc., which holds our intellectual property; ONM Environmental, Inc., which manufactures, markets, sells and distributes our odor and volatile organic compound ("VOC") control products; BioLargo Energy Technologies, Inc. ("BETI"), formed to commercialize our proprietary battery technology; BioLargo Canada, Inc., our primary research and development team operating in Edmonton, Alberta Canada; BioLargo Engineering, Science & Technologies, LLC ("BLEST"), a professional engineering services division in Oak Ridge Tennessee; BioLargo Equipment Solutions & Technologies, Inc., which sells our water treatment products; BioLargo Development Corp., which employs and provides benefits to our employees; and Clyra Medical Technologies, Inc. ("Clyra Medical"), which commercializes our technologies in the medical and dental fields. All subsidiaries are wholly owned, except for BETI, BLEST and Clyra Medical.

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 24 -

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**DESCRIPTION OF BUSINESS**

**Our Business - Innovator and Solution Provider**

BioLargo is in the business of creating new cleantech technologies to solve tough, globally relevant problems. We invent, develop, then commercialize technologies that tackle difficult challenges in air quality, water, environmental engineering, battery energy storage, and advanced antimicrobial medical device platforms. Our model is to invent new technologies that solve specific problems, develop them and prove they work, and then commercialize them with purpose-suited subsidiaries, identify and secure the right partnerships to increase their commercial reach, or potentially sell the intellectual property.

Why do we do this work? Every member of our team – including PhD scientists, engineers, and entrepreneurs – has a passion for seeking new, never-before-seen innovations that can make life better around the world. We care about safeguarding the environment and human health for future generations. We care about making technologies that are affordable and flexible enough to be accessed around the world. And we care about being the best at what we do – creating best-in-class technologies to solve meaningful cleantech challenges.

Some of our areas of focus include environmental problems like PFAS contamination, water pollution by pharmaceuticals and micropollutants, air pollution by VOCs, hard-to-treat odors from landfills and sewage plants, infection and wound healing and the creation of energy storage systems that are more affordable, efficient, safer and environmentally friendly.

Below you'll read about the cleantech ventures and projects we are focused on commercialization today. Behind those, however, is a pipeline of other cleantech innovations in various stages of development associated with our expansive array of issued and pending patents, and that have been funded in part by over 90 government grants.

We operate our business in distinct business segments:

● Odor and VOC control products, including consumer pet and household products and CupriDyne Clean Industrial Odor Eliminator, sold by our subsidiary ONM Environmental, Inc.;

● Water treatment equipment and solutions, including our PFAS remediation system the Aqueous Electrostatic Concentrator (AEC), our water reuse and recycling technology co-developed with Garratt-Callahan called AROS, and sold by our subsidiary BioLargo Equipment Solutions & Technologies, Inc.;

● Battery energy storage systems designed for grid-scale energy storage and other industrial uses under the brand name Cellinity<sup>TM</sup> being developed by our partially owned (93%) subsidiary BioLargo Energy Technologies, Inc.;

● Medical products based on our technologies sold by our partially owned (48%) subsidiary Clyra Medical Technologies, Inc.;

● Our professional engineering services division, which, in addition to serving outside clients on a fee for service basis, supports our internal business units, through our partially owned (70%) subsidiary BioLargo Engineering, Science & Technologies, LLC ("BLEST");

● Our research and support personnel, through our wholly-owned subsidiary BioLargo Canada, Inc., located on campus at the University of Alberta, Edmonton, Canada.

***<u>Odor Control (Consumer and Industrial)</u>***

ONM Environmental, Inc. ("ONM") is BioLargo's wholly-owned subsidiary that delivers robust and comprehensive products and services to control and mitigate odor and VOCs for both consumer and industrial applications. Its flagship product – CupriDyne® Clean – is applied to odor-emitting masses such as landfills and composting facilities by misting systems, sprayers, water trucks and similar water delivery systems designed, manufactured and installed by ONM. It is also sold to third parties under private label brands.

***Consumer Private-Label Products***

We sell privately labeled odor-control products based on our technologies to third parties who market and sell the products under their own brand names. The most successful thus far has been pet odor control products sold under the brand name "Pooph" by Pooph Inc. In addition to purchasing product from us at an agreed-upon manufacturing margin, Pooph Inc. agreed to pay us a six percent royalty on their sales in exchange for exclusive rights to our technology for pet odors, and agreed that if they sold their brand to a third party, we would receive 20% of the exit value. Pooph defaulted on their payments, we revoked their license to sell pet products with our technology, and sued Pooph for patent infringement and other claims in order to protect our intellectual property. (See Part II, Item 1, [Legal Proceedings](#Item_1_Legal_Proceedings) below.)

We are focused on redeploying its technology with new partners that share our commitment to quality, transparency, and integrity, and expand the reach of our proven odor-control technology into new markets, providing consumers with safe, effective, and environmentally friendly products. We do not expect the Pooph litigation to affect our other business units or growth strategy. The success of the pet-odor consumer products is an example of our goal to develop distribution channels that do not rely on our in-house sales and distribution infrastructure. While Pooph is by far the company's most successful private label product thus far, we sell other private label odor-control products and continue to pursue related business opportunities as a means of tapping into new markets.

***Industrial Odor and VOC Solutions***

We believe CupriDyne® Clean is the number-one performing industrial odor-control product in the market, and that it offers substantial savings to our customers compared with competing products. We have been and expect to continue selling product to municipalities and some of the largest solid waste handling companies in the country to help control odors emitted from waste handling and sanitation sites. ONM Environmental offers a menu of services to landfills, transfer stations, wastewater treatment facilities as well as facilities in non-waste related industries. These services include engineering design, construction, installation, ongoing maintenance and on-site support services to assist our clients in the implementation and continued use of the various systems that deliver our liquid products in the field (such as misting systems). A significant portion of industrial odor control product and service revenue comes from ongoing contracts with cities and counties in Southern California, where ONM has installed comprehensive odor control systems to mitigate nuisance odors emitted from municipal waste handling and sanitation sites.

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***<u>BioLargo Equipment Solutions & Technologies</u>*** <u>–</u>***<u>Innovative Water Treatment Solutions</u>***

Over the years, we have developed multiple innovative technologies and equipment platforms that focus on challenging issues in the water treatment industry, including the AEC (developed to remove per- and polyfluoroalkyl substances, aka "PFAS"), and the AROS water reuse technology (for industrial cooling tower water recycling such as in data centers, co-developed with Garratt-Callahan). We sell these products through our wholly-owned subsidiary BioLargo Equipment Solutions & Technologies, Inc. ("BEST"), which manages the sales and distribution of our water treatment products and related services.

BLEST's board of directors includes Jeffrey Kightlinger, former CEO of the Metropolitan Water District of Southern California, Sally Gutierrez, retired career senior executive from the US Environmental Protection Agency (EPA), and Larry Dick, former Vice Chairman of the Metropolitan Water District of Southern California and board member of the Municipal Water District of Orange County. Each brings their significant and distinctive experience from decades in the water industry to BEST's board to help the company create the necessary regulatory and industry connections that will be critical for its efforts to secure larger and more high-profile projects for its PFAS treatment and other water treatment technologies. These board members have been instrumental in efforts to raise awareness of our innovative treatment solutions within the water industry and EPA.

Securing sales in the water and wastewater industry is a very technically intensive process and can be long and arduous. The entirety of the sales cycle can be lengthy, in some cases even taking many months or, in the case of very large projects, multiple years. A typical sales timeline for a municipal drinking water or wastewater customer, from introduction to signing the contract for a full-scale install, usually requires feasibility studies, on-site pilot projects, budget approvals, State regulatory approvals, and more. Industrial clients may have a shorter sales cycles but are under pressure to ensure that the Return on Investment (ROI) fits into company standards, so their reviews can also be lengthy. For any water treatment project, the process is also very engineering-intensive, and therefore the staff required to secure contracts for water treatment projects need to be engineers, in most cases. In our company, BLEST's engineers fill this role.

***AEC, a solution for the PFAS*** "***forever-chemicals***" ***crisis***

One of the most significant and timely innovations in our portfolio is our per- and polyfluoroalkyl substance (PFAS) water remediation system the Aqueous Electrostatic Concentrator (AEC), a novel water treatment system that removes PFAS from water at a lower operating cost while generating only a fraction of the PFAS-laden waste of the most common currently used solutions (carbon filtration, ion exchange, and reverse osmosis). PFAS are a group of man-made chemicals used for decades in the manufacture of both household and industrial goods, which have been detected in drinking water around the world. PFAS are a concern because they do not break down in the environment, can move through soil and contaminate drinking water sources, and build up (bioaccumulate) in fish, wildlife and humans. PFAS chemicals have been linked to cancer, immune disorders, liver dysfunction, and many other human health problems. Detection of unsafe levels of PFAS around the world has given rise to a number of market opportunities for treatment and remediation technologies, including in drinking water, industrial wastewater, municipal wastewater, solid waste, organic foods and more.

We have successfully validated the AEC as an effective system to selectively extract and collect PFAS chemicals from contaminated water, including performance testing that shows "non-detect" levels of removal, which meets new EPA standards. We have demonstrated more than 10,000 hours of continuous operation showing no materially significant degradation of the AEC system's components or performance over time, and believe the costs to operate our system will be far less than that of the two primary incumbent technologies.

As a modular system, we believe the AEC is scalable to small commercial units used in smaller remediation projects for groundwater, wastewater, or landfill leachate, as well as large commercial installations of drinking water treatment facilities, and we believe that our engineering team has the experience to deliver systems to meet the needs of any sized commercial installation. In order to provide a full turn-key solution for our customers, we have developed an expanded offering whereby we can bundle a service package with each customer project that includes a membrane exchange program, the collection of PFAS, and transport and destruction of the PFAS using a novel "electrooxidation" process which our studies have shown is capable of reaching non-detect levels of PFAS after treating AEC-concentrated PFAS containing water, wastewater, or even landfill leachate (the contaminant-laden water that drains from landfills).

Our AEC unit has been installed and is up and running in Lake Stockholm, New Jersey, removing PFAS from drinking water for local residents. The AEC's performance is undergoing regular testing by both the U.S. EPA and the New Jersey Department of Environmental Protection. This project may represent a key milestone for the commercialization of the AEC, as we believe industry validation of the technology in a first municipal drinking water treatment project will play an important role in showcasing the AEC's distinct advantages over incumbent technologies like carbon filtration and ion exchange. As we progress through the commercial rollout of our AEC technology, we continue to invest in innovation aimed at enhancing its commercial viability. These efforts are focused on improving system performance, reducing lifecycle costs, and strengthening the AEC's competitive position within the PFAS treatment market. We remain committed to delivering scalable, cost-effective solutions that align with evolving regulatory requirements and market demand.

We believe we are well-positioned in the PFAS-removal market for multiple reasons. We have successfully completed over a dozen pilot studies with prospective customers' PFAS contaminated water from a variety of source waters including groundwater, wastewater and leachate; we have successfully maintained operation of our AEC PFAS treatment system for over 10,000 hours continuously, thus demonstrating its resilience to long-term use; we have submitted bids and proposals and have received indications of interest from a wide range of customer types; we have added several high-profile experts from the industry to our team who are assisting in opening doors to potential clients and collaborators; we have entered into discussions about partnership and opportunities for collaboration with industry-leading firms who have a gap in their PFAS treatment technology portfolio. While these opportunities do not convert into commercial sales overnight, but they represent strong avenues for accelerating adoption of our PFAS treatment solution.

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***AROS Minimal Liquid Discharge Water Treatment***

In partnership with Garratt-Callahan, one of the country's oldest and largest privately held water treatment companies, our engineers developed a "minimal liquid discharge" wastewater treatment system called the Aqueous Reuse Optimization System (AROS) that is designed to minimize industrial wastewater discharges and thus the associated regulatory fees. The system is particularly well-suited for cooling towers at data centers and other high-water-use facilities. Garratt-Callahan, who invented and patented the technology, is actively marketing the AROS system to its existing customer base and to new prospective customers. BLEST will serve as the manufacturing partner and Garratt-Callahan will serve as the selling distributor to leverage their national sales force and over one hundred years of providing services and products to customers.

***Advanced Oxidation System (AOS)***

The Advanced Oxidation water treatment system (AOS) is our patented water treatment device that generates highly oxidative and energetic species of iodine and other molecules which allow it to eliminate pathogenic organisms and organic contaminants rapidly and effectively as water passes through the device. The key value proposition of the AOS is its ability to reduce or eliminate a wide variety of waterborne contaminants with high performance, including the normally hard-to-treat class of recalcitrant water contaminants called "micropollutants", while using very little electricity and input chemicals. The AOS has been proven capable of removing hard-to-treat organic micropollutants such as pharmaceuticals from water more quickly and energy-efficiently than other technologies. While the AOS has demonstrated exceptional performance in both laboratory and pilot-scale testing, current U.S. regulatory frameworks have not yet matured to support broad adoption of advanced oxidation technologies for micropollutant removal. Additionally, the domestic market remains dominated by low-cost chemical disinfection solutions. In light of these market conditions, we have elected to pause daily development activities on the AOS in the near term. However, we continue to monitor evolving regulatory trends in the U.S. and are exploring the possibility of international commercialization opportunities, particularly in Europe where regulatory mandates for micropollutant removal are more advanced.

***<u>BioLargo Energy Technologies, Inc.</u>***

Our subsidiary BioLargo Energy Technologies, Inc. ("BETI") was founded to commercialize a novel battery technology with the potential to help facilitate the ongoing shift toward renewable energy production by providing a safer, longer lasting, more eco-friendly, and more affordable alternative to lithium-ion batteries. Designed for long duration energy storage, also known as "battery energy storage solutions" (BESS), our battery, called Cellinity™, uses a novel "liquid sodium" chemistry that uses common domestically sourced materials, and which has significant advantages over other battery chemistries for use in stationary, long-duration energy storage.

BETI operates out of a pilot-scale battery production facility in our Oak Ridge Tennessee engineering headquarters, and is currently manufacturing and testing prototype battery cells. A third party has confirmed many of the technology's exceptional performance claims that we believe will make it an attractive battery technology for long duration energy storage and other industrial uses such as artificial intelligence data centers, electric vehicle charging stations, and renewal energy, including the stability of the chemistry of the battery cell and the reliability of the component construction as a sealed, non-venting cell design with no self-discharging, and the battery's ability to quickly charge and discharge at a high voltage. It has also been proven that the battery can withstand catastrophic physical insults without causing fire or explosion, one of the battery's key features. With this data confirmed by a third party, our engineers have begun work advancing Cellinity's development, including the design of a larger sized battery cell that would then be incorporated into battery packs, modules and batteries meant for industrial facilities. Simultaneously, our engineers are working to develop manufacturing processes that would allow scale production and a supply chain necessary to ensure costs of goods in line with market demand and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We believe our Cellinity batteries will have features that far surpass comparable lithium-ion batteries, the dominant incumbent technology in the market, including:

● Increased safety, no runaway fire risks, and a more sustainable design – with no rare-earth elements – that is capable of being manufactured completely from a domestic supply chain;

● Ability to charge and discharge completely, with no degradation of performance, ensuring virtually unlimited charge/discharge cycles, and without self-discharge and no out-gassing; and

● Increased energy efficiency and energy density, and expected useful life expectancy of up to 20 years or more.

We are exploring multiple opportunities to commercialize our Cellinity batteries through joint ventures with third parties. The third parties would finance the construction of independent battery manufacturing facilities designed and built under the direction of our engineers, and the joint venture would market, manufacture and distribute batteries. BioLargo would (i) receive a minority equity position in each joint venture, (ii) separately manufacture and sell at a profit to the joint venture certain proprietary battery components, and (iii) receive a royalty on the revenues of the joint venture.

Given the global growing demand for better batteries, and, while we are witnessing a number of current examples in which battery manufacturers have secured forward-contracts to supply batteries to its customers with backlogs of orders that amount to multiple years of production capacity, we believe our offer to partner with customers to secure needed inventory provides for a clear potential pathway to access capital, and more readily scale up production to meet demand around the world. At this point, we do not intend to finance and build our own manufacturing facilities, nor would we develop in-house sales channels, although that possibility remains an option to explore if needed.

***<u>Clyra Medical Technologies, Inc.</u>***

Our partially owned subsidiary Clyra Medical Technologies, Inc. is a healthcare company that is developing and commercializing products based on our technologies designed to safely treat wound and skin infections and promote wound healing, while reducing the need for antibiotics. Clyra's first products are based on its patented Clyrasept™ technology, which utilizes a Copper-Iodine Complex Solution (CICS) and received premarket clearance from the FDA under Section 510(k). Its first product is ViaCLYR™, a pH-balanced wound management solution indicated for wound management, cleansing, irrigation, moisturization, and debridement of acute and chronic wounds and burns, sold through wholesale distributors and sales agents. Clyra received a first purchase order for the ViaCLYR™ product from a U.S. based distributor in February 2026, and in May 2026 signed a distribution agreement with Al- Hikma FZCO, a healthcare distribution and marketing group headquartered in Dubai, United Arab Emirates, to exclusively distribute ViaCLYR™ across 18 countries spanning the Gulf Cooperation Council, the Levant, North Africa, and select adjacent markets.

Clyra has 12 full time employees, and has increased staff and raised capital to ready the company to launch additional products. Clyra's management team includes Medical Director Dr. Jeffrey Marcus, who is Chief of Plastic, Maxillofacial, and Oral Surgery at Duke University, Nicholas Valeriani, chairman of the board of directors of Edwards Lifesciences and who had a 34-year career with Johnson and Johnson where he held numerous leadership positions in engineering, manufacturing, sales and marketing, and Linda Park of Edwards Lifesciences, where she serves as Corporate Secretary, Senior Vice President and Associate General Counsel, and as a board member of the Edwards Lifesciences Foundation.

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***<u>Full Service Environmental Engineering</u>***

BioLargo Engineering, Science & Technologies, LLC ("BLEST") offers full service environmental engineering to third parties and provides engineering support services to our internal teams to accelerate the commercialization of our technologies.

BLEST focuses its efforts in three areas:

● providing engineering services to third-party clients as well as affiliated BioLargo entities;

● supporting internal product development; and&nbsp;&nbsp;&nbsp;&nbsp; 

● advancing their own technical innovations such as the AEC PFAS treatment technology and the Cellinity battery energy storage system.

BLEST operates out of an engineering facility in Oak Ridge, Tennessee (a suburb of Knoxville), and employs a group of scientists and engineers, many of whom are owners of the entity (BioLargo owns 70% as of March 31, 2026 and December 31, 2025). The team is led by Randall Moore, who served as Manager of Operations for Consulting and Engineering for the Knoxville office of CB&I Environmental & Infrastructure and was formerly a leader at The Shaw Group, Inc., a Fortune 500 global engineering firm. Many of the other team members are also former employees of CB&I and Shaw, with the exception of more recent staff hires. The team is highly experienced across multiple industries and we believe they are considered experts in their respective fields, including: chemical engineering, wastewater treatment (including design, operations, data gathering and data evaluation), process safety, energy efficiency, air pollution, design and control, technology evaluation, technology integration, air quality management and testing, engineering management, permitting, industrial hygiene, applied research and development, air testing, environmental permitting, HAZOP review, chemical processing, thermal design, computational fluid dynamics, mechanical engineering, mechanical design, NEPDES permitting, RCRA/TSCA compliance and permitting, project management, storm water design and permitting, computer assisted design (CAD), bench chemistry, continuous emission monitoring system operator, data handling and evaluation and decommissioning and decontamination of radiological and chemical contaminated facilities. The team has decades of high-level experience in the energy industry. The engineering team has also developed an extended network of trusted engineering subcontractors that assist in serving specific client projects as needed.

BLEST engineers generate revenue through services to third party clients, as well as for internal BioLargo projects such as the AEC and battery (revenues from internal projects are eliminated in the consolidation of our financial statements and are designated "intersegment revenue"). Third party contracts include ongoing work at U.S. Air Force bases for air quality control which generate ongoing contract-based revenue of approximately $100,000 per month. Efforts to expand this work as well as with other clients are consistently ongoing. In April 2026 BLEST was engaged to design a pilot-scale minerals processing facility that will remediate and, utilizing a patented BioLargo process, will create a beneficial reuse of a legacy mineral waste deposit associated with a historically impacted site in the western United States. Work on the $1.2 million contract has begun and is expected conclude by the end of the year, and is expected to lead to the design and construction of a larger processing facility.

The staff time devoted to supporting the AEC (PFAS) and battery related work is demanding, and BLEST needs to hire more qualified staff to meet an expanding demand for our growing list of customers. When we combine the demands of current revenue generating projects and expected growth, we are presented with an obvious challenge to manage quality, timely performance as well as access to qualified staff. We are working carefully to find balance to help ensure we meet the demands of both in a practical customer centric and capital conserving way. It may be, for example, that we will eventually need to secure contract manufacturers to meet the customer demands in the near term as we scale up our infrastructure and work force capabilities.

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**RESULTS OF OPERATIONS**

Our revenues decreased 66% in the three months ended March 31, 2026, as compared with the same period in 2025, primarily due to a decreased volume of sales of our pet odor control product private labeled to a third party under the brand name "Pooph". During the three months ended March 31, 2025, sales to Pooph had comprised 79% of our consolidated revenue; in August 2025 Pooph Inc. stopped purchasing Pooph-branded products from us, and thus revenues from sale of Pooph-branded products during the three months ended March 31, 2026 were zero. We are in litigation with Pooph Inc. and do not expect product sales to Pooph Inc. to resume. Our financial statements separate revenue based on products and services. Revenues from the sale of products for the three months ended March 31, 2026, decreased 79% (from $2,803,000 to $577,000) over the same period in 2025. Revenues from services for the three months ended March 31, 2026, increased 15% (from $466,000 to $538,000) over the same period in 2025.

***<u>ONM Environmental</u>***

Our wholly-owned subsidiary ONM Environmental generates revenues through sales of our flagship product CupriDyne Clean to industry, including related design, installation, and maintenance services on the systems that deliver CupriDyne Clean at its clients' facilities.

***Revenue (ONM Environmental)***

ONM Environmental's revenues decreased 85% in the three months ended March 31, 2026, compared with the same period in 2025. The decrease in revenues was due to a decrease in the volume of sales of our pet odor product private labeled to a third party under the brand name "Pooph", offset by an increase in sales of industrial odor control products (which increased 90% (from $223,000 to $423,000)).

***Cost of Goods Sold (ONM Environmental)***

ONM Environmental's cost of goods sold includes costs of raw materials, contract manufacturing, and portions of depreciation, salaries and expenses related to the manufacturing and installation of its products. As a percentage of revenue, ONM Environmental's costs of goods for the three months ended March 31, 2026, were 35%, a decrease of 19% compared to the same period in 2025. The decrease in cost of goods is due to the change in revenue concentration across product lines.

***Selling, General and Administrative Expense (ONM Environmental)***

ONM Environmental's selling, general and administrative expenses ("SG&A") totaled $371,000 and increased 24% during the three months ended March 31, 2026, as compared with the same period in 2025. The increase is due to increases in salaries, professional fees and insurance expense.

***Operating Income (ONM Environmental)***

ONM Environmental generated an operating loss of $95,000 in the three months ended March 31, 2026, compared to operating income of $956,000 for the three months ended March 31, 2025. The operating loss is primarily due to the decrease in revenues.

***<u>BLEST (engineering)</u>***

***Revenue (BLEST)***

BLEST generated $538,000 in third-party service revenues in the three months ended March 31, 2026, a 15% increase over the $466,000 in third-party service revenues in the same period in 2025. This increase was due to an increase in fixed fee contracts at U.S. Air Force bases.

In addition to providing services to third party clients, BLEST provides services for internal BioLargo projects. These services are billed internally, are considered intersegment revenue, and are eliminated in the consolidation of our financial statements. In the three months ended March 31, 2026, intersegment revenue for BLEST totaled $259,000 and for the three months ended March 31, 2025, intersegment revenue for BLEST totaled $224,000.

***Cost of Revenues (BLEST)***

BLEST's cost of revenues includes employee labor, subcontracted costs and material costs. In the three months ended March 31, 2026, costs were 56% of revenues, versus 39% in the same period in 2025. The increase is related to our fixed fee contracts, compared to product sales, which had more direct costs.

***Selling, General and Administrative Expense (BLEST)***

BLEST's SG&A expenses were $266,000 in the three months ended March 31, 2026, compared to $330,000 in the three months ended March 31, 2025. The decrease is due to the timing of expenses in the prior period and does not reflect a decrease in SG&A activity or employees.

***Operating Loss (BLEST)***

BLEST generated an operating loss of $380,000 in the three months ended March 31, 2026, compared to an operating loss of $378,000 in the three months ended March 31, 2025. The operating losses are reflective of the focus at BLEST on advancing internal BioLargo projects such as the Cellinity battery and AEC water treatment system.

<u>***Clyra Medical***</u>

Clyra Medical generated revenues of $154,000 in the three months ended March 31, 2026 and margin of 57%, compared with no revenue in the same period in 2025. The increase in revenue is due to the sale of ViaCLYR® wound irrigation solution to a newly engaged distributor. In the three months ended March 31, 2026, Clyra incurred total costs of $1,712,000, which included $521,000 in research and development expenses. In the same period in 2025, total costs and expenses were $1,315,000, which included $335,000 in research and development expenses. The increases in costs and expenses are primarily related to an increased number of employees, increased product development work, and stock option expense.

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*<u>**BETI**</u>*

BioLargo Energy Technologies, Inc. (BETI) is developing our Cellinity battery, and has not generated generate revenue. For the three months ended March 31, 2026, it incurred total costs and expenses of $355,000, which included $142,000 in research and development expenses. In the same period in 2025, total costs and expenses were $96,000, which included $60,000 in research and development expenses. We are focused on recruiting business and financial partners to facilitate additional capital investment and move the product to commercialization.

*<u>**BEST**</u>*

BioLargo Equipment, Sciences and Technologies, Inc. (BEST) was formed in fiscah year 2024 to commercialize BioLargo's proprietary water treatment equipment, including its PFAS removal device the AEC. As the first AEC sale occurred prior to the Company's formation, and the sales cycle for advanced water treatment systems is long, BEST has not yet generated revenues. We intend future water treatment projects to be contracted through BEST. During the three months ended March 31, 2026, it incurred $90,000 of total expenses. In the same period in 2025, it incurred $58,000 in total expenses primarily related to administrative activities.

*<u>**Selling, General and Administrative Expense – consolidated**</u>*

Our SG&A expenses include both cash (for example, salaries to employees) and non-cash expenses (for example, stock option compensation expense). For the three months ended March 31, 2026 consolidated SG&A increased 9% (to $2,755,000) as compared with the three months ended March 31, 2025. The largest components of our SG&A expenses included (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31, 2026** | **March 31, 2025** |
| Salaries and payroll related | $862 | $1054 |
| Professional fees | 439 | 202 |
| Consulting | 275 | 402 |
| Office expense | 616 | 403 |
| Rent expense | 149 | 120 |
| Depreciation expense | 32 | 41 |
| Sales and marketing | 148 | 176 |
| Investor relations | 112 | 42 |
| Board of director expense | 122 | 82 |
| Total Selling, General & Administrative | $2755 | $2522 |

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In the three months ended March 31, 2026, our non-cash expenses from the issuance of stock and stock options increased to $699,000 compared to $615,000 for the three months ended March 31, 2025. The majority of this stock option expense is recorded in employee salaries and consulting expense. The reduction in salaries and payroll related expenses is due to an Employee Retention Tax Credit recognized in the first quarter ended March 31, 2026 offset by an increase related to an increased number of employees. Professional fees increased in the three months ended March 31, 2026, due to increased corporate activity related to new private securities offerings for BioLargo and Clyra, legal proceedings related to ONM Environmental, and other organizational needs that required professionals. Office expense increased due to an increase in insurance premiums.

***<u>Research and Development</u>***

In the three months ended March 31, 2026, we spent $907,000 in the research and development of our technologies and products. This was a increase of 15% as compared to the three months ended March 31, 2025. The increase is primarily due to the timing of project work and available working capital.

***<u>Interest Income and Expense</u>***

Our interest income for the three months ended March 31, 2026, was $72,000 compared to $28,000 in the three months ended March 31, 2025. Our interest expense for the three months ended March 31, 2026, was $188,000 compared to $93,000 in the three months ended March 31, 2025. The increase is related to the increase of Clyra Medical debt obligations.

***<u>Other Income and Expense</u>***

For the three months ended March 31, 2026, we did not receive any grant income, compared to $6,000 of grant income for the same period in 2025. Grant income is primarily generated through our wholly owned Canadian subsidiary. The research grants received are considered reimbursement grants related to costs we incur and therefore are included as Other Income. Grant funds paid directly to third parties are not included as income in our condensed consolidated financial statements.

***<u>Net Loss</u>***

Net loss for the three months ended March 31, 2026, was $3,405,000 a loss of $(0.01) per share, compared to a net loss for the three months ended March 31, 2025, of $1,921,000 a loss of $(0.00) per share. Our net loss for the three months ended March 31, 2026, increased because of the decrease in revenue.

The net income (loss) per business segment is as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31, 2026** | **March 31, 2025** |
| BioLargo corporate | $(481) | (815) |
| ONM | (95) | 971 |
| Clyra Medical | (1891) | (1398) |
| BLEST | (380) | (377) |
| BETI | (355) | (94) |
| BEST | (90) | (58) |
| BioLargo Canada | (113) | (150) |
| Net loss | $(3405) | (1921) |

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***<u>Liquidity and Capital Resources</u>***

For the three months ended March 31, 2026, we generated revenues of $1,115,000, had a net loss of $3,405,000, used $2,917,000 net cash in operating activities, and received $3,190,000 net cash from financing activities. As of March 31, 2026, we had current assets of $5,445,000, including $4,122,000 cash and cash equivalents. As of March 31, 2026, we had current liabilities of $4,932,000, and working capital of $513,000. We do not believe gross profits in the year ending December 31, 2026, will be sufficient to fund our current level of operations for the reminder of the year, and therefore expect we will continue to be limited in terms of our capital resources, and therefore expect to continue to need further investment capital to fund our business plans and investments in our new technologies. The foregoing factors raise substantial doubt about our ability to continue as a going concern, unless we are able to increase revenues, generate cash from operations, and/or generate cash from financing activities. If we are unable to raise additional cash through gross profits or financing activities, management may choose to curtail portions of our operations. The condensed consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

**Critical Accounting Policies**

Our discussion and analysis of our results of operations and liquidity and capital resources are based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of our condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, valuation of offerings of debt with equity or derivative features which include the valuation of the warrant component, any beneficial conversion feature and potential derivative treatment, and share-based payments. We base our estimates on anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results that differ from our estimates could have a significant adverse effect on our operating results and financial position.

Our significant accounting policies and methods used in the preparation of the Company's condensed consolidated financial statements are described in (i) in Part I, Item 1 of this Form 10-Q, [Note 2](#Note_2_Accounting_Policies), "Summary of Significant Accounting Policies" and (ii) in the Form 10-K for the year ended December 31, 2025, filed with the SEC on March 31, 2025, in the Notes to Consolidated Financial Statements in Part II, Item 8, and "Critical Accounting Policies and Estimates" in Part II, Item 7. There have been no material changes to the Company's critical accounting policies and estimates since the filing of its Form 10-K.

**Item 4.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Controls and Procedures** 

We conducted an evaluation, under the supervision and with the participation of management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended – the "Exchange Act") as of the end of the period covered by this Report. There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026, which were identified in connection with management's evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

Our procedures have been designed to ensure that the information relating to our company, including our consolidated subsidiaries, required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow for timely decisions regarding required disclosure. However, our Company is continuing to grow and evolve, as our product and services sales continues to grow, and as we diversify our clients to include municipalities, increasing strain on our accounting systems. These activities put stress on our overall controls and procedures. We do not yet have the resources to implement the more sophisticated control systems used by larger companies. Although we have made some improvements, our chief executive officer and chief financial officer have concluded that, as of the evaluation date, our disclosure controls and procedures were not effective, due to the material weakness identified below.

It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Under the supervision and with the participation of our management, including our chief executive officer and the chief financial officer, we have established internal control procedures in accordance with the guidelines established in the 2013 Framework —Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Management evaluated the effectiveness of our internal controls, and concluded that due to our limited financial and personnel resources, the fact that we operate our business in three distinct locations in the U.S. and Canada, and the lack of sophisticated reporting systems, we continue to have a material weakness in our internal controls with respect to the closing our financial statements. Until the Company has the financial resources to implement more robust automated systems, or to hire additional dedicated accounting personnel, we expect this material weakness to continue.

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls or our internal control over financial reporting, or any system we design or implement in the future, will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 31 -

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**PART II** 

**OTHER INFORMATION**

**Item 1. Legal Proceedings**

ONM Environmental, Inc. is the defendant in a lawsuit filed by Pooph Inc. in the Orange County, California Superior Court on September 11, 2025. The lawsuit alleges three causes of action, for Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, and Declaratory judgment, and seeks an unspecified amount of damages, allegedly arising from ONM's manufacture of pet odor-control products sold by Pooph Inc. BioLargo, Inc., BioLargo Life Technologies, Inc. and ONM Environmental, Inc. filed a lawsuit against Pooph, Inc. and Ikigai Marketing Works, LLC in the United States District Court, Central District of California, on November 11, 2025, for patent infringement, false advertising, breach of contract, false promise, unfair and fraudulent business practices and constructive fraud, seeking to recover, amongst other damages, the defendants' failure to pay for product purchases and license royalties in the aggregate amount of $3,821,401. See [Note 2](#Note_2_Accounting_Policies), [Allowance for Credit Losses](#Allowance_Credit_Losses_in_Note_2), in Part I above.

**Item 2.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Unregistered Sales of Equity Securities and Use of Proceeds**

During the three months ended March 31, 2026, we received $100,000 gross proceeds from an accredited investor, and issued 555,556 shares of our common stock, a warrant to purchase 555,556 shares of our common stock for $0.22 per share, expiring six months from the grant date, and a warrant to purchase 555,556 shares of our common stock for $0.27 per share, expiring five years from the grant date. See also [Item 5, Other Information](#other).

**Item 5.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Other Information**

On *March 20, 2026,* we entered into a purchase agreement (the "Purchase Agreement") and a registration rights agreement (the "Registration Rights Agreement"), with Clearthink Capital Partners, LLC ("Clearthink"), pursuant to which Clearthink has committed to purchase up to *$10.0* million of our common stock, par value *$0.00067* per share (the "Common Stock"), subject to certain limitations and the satisfaction of the conditions set forth in the Purchase Agreement.

Under the Purchase Agreement, we have the right, but *not* the obligation, to sell to Clearthink, and Clearthink is obligated to purchase up to *$10.0* million of our Common Stock. Such sales of Common Stock, if any, will be subject to certain limitations set forth in the Purchase Agreement, and *may* occur from time to time, at our sole discretion, over the *36*-month period commencing on the date that the conditions to Clearthink's purchase obligation set forth in the Purchase Agreement are satisfied, including that a registration statement covering the resale by Clearthink of shares of Common Stock that *may* be issued to Clearthink under the Purchase Agreement, which we agreed to file with the Securities and Exchange Commission (the "SEC") pursuant to the Registration Rights Agreement, is declared effective by the SEC and a final prospectus relating thereto is filed with the SEC (the date on which all of such conditions are satisfied, the "Commencement Date").

From and after the Commencement Date, on any trading day we select, we *may,* by written notice delivered to Clearthink, direct Clearthink to purchase up to the lesser of (i) *$500,000* of our common stock, and (ii) *300%* of the daily average shares traded value for the *eight* trading days prior to the date of the purchase notice, with a minimum of *no* less than *$25,000.* At least *five* business days must elapse between each purchase notice unless the parties mutually agree otherwise. Subject to the foregoing, and pursuant to the terms of the Purchase Agreement, we will control the timing and amount of any sales of our common stock to Clearthink. Clearthink has *no* right to require us to sell any shares of Common Stock to Clearthink, but Clearthink is obligated to make purchases as we direct, subject to certain conditions.

The purchase price per share of Common Stock sold in each such Regular Purchase, if any, will be based on prevailing market prices of the Common Stock immediately preceding the time of sale as computed under the Purchase Agreement, equal to the average of the *two* lowest daily closing prices of our Common Stock during the *eight* trading days preceding the purchase notice.

Actual sales of shares of Common Stock to Clearthink will depend on a variety of factors we will take into consideration from time to time, including, among others, market conditions, the trading price of our Common Stock and determinations as to the appropriate sources of funding for the Company and its operations. The net proceeds under the Purchase Agreement to the Company will depend on the frequency and prices at which we sell shares of Common Stock to Clearthink. We expect that any proceeds we receive from such sales to Clearthink will be used for working capital and general corporate purposes.

The Purchase Agreement prohibits us from directing Clearthink to purchase any shares of Common Stock if those shares, when aggregated with all other shares of Common Stock then beneficially owned by Clearthink (as calculated pursuant to Section *13*(d) of the Securities Exchange Act of *1934,* as amended, and Rule *13d*-*3* thereunder), would result in Clearthink beneficially owning more than *9.99%* of the then issued and outstanding shares of Common Stock.

There are *no* restrictions on future financings, rights of *first* refusal, participation rights, penalties or liquidated damages in the Purchase Agreement or Registration Rights Agreement. Clearthink has agreed *not* to engage in or effect, directly or indirectly, for its own principal account or for the principal account of any of its affiliates, any short sales of the Common Stock or hedging transaction that establishes a net short position in the Common Stock during the term of the Purchase Agreement.

As consideration for Clearthink's commitment to purchase shares of our Common Stock from time to time at our direction upon the terms of and subject to satisfaction of the conditions set forth in the Purchase Agreement, we agreed to issue Clearthink *500,000* shares of our Common Stock (the "Commitment Shares") upon the execution of the Purchase Agreement. The Company will *not* receive any cash proceeds from the issuance of the Commitment Shares to Clearthink pursuant to the Purchase Agreement.

The Purchase Agreement and the Registration Rights Agreement contain customary representations, warranties, conditions and indemnification obligations of the parties. The Company has the right to terminate the Purchase Agreement at any time with *one* business days' notice, at *no* cost or penalty. During any "event of default" under the Purchase Agreement, Clearthink does *not* have the right to terminate the Purchase Agreement; however, the Company *may not* initiate any regular or other purchase of shares by Clearthink, until such event of default is cured.

The foregoing descriptions of the Registration Rights Agreement and the Purchase Agreement are qualified in their entirety by reference to the full text of such agreements, copies of which are attached hereto as Exhibits *4.1* and *10.1,* respectively, and each of which is incorporated herein in its entirety by reference. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and *may* be subject to limitations agreed upon by the contracting parties.

On *April 9, 2026,* we filed with the SEC a registration statement on Form S-*1* registering Clearthink's sale of the shares to be issued to Clearthink under the Purchase Agreement, which was declared effective by the SEC on *April 15, 2026.* On *April 23, 2026,* we initiated our *first* sale of shares to Clearthink, selling *350,000* shares and receiving *$50,725* in gross proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - *32* -

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**Item 6.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Exhibits** 

See the Exhibit Index for a list of exhibits filed as part of this report and incorporated herein by reference.

**<u>Exhibit Index</u>**

---

| | |
|:---|:---|
| **<u>Exhibit</u>** <br> **<u>Number</u>** | **<u>Exhibit Description</u>** |
| 3.1 | [<u>Amended and Restated Bylaws</u>](http://www.sec.gov/Archives/edgar/data/880242/000114420403002812/doc14.txt) (incorporated by reference to Exhibit 3.5 to the Company's annual report on Form 10-KSB filed on May 23, 2003) |
| 3.2 | [<u>Amended and Restated Certificate of Incorporation for BioLargo, Inc. filed March</u> <u>16, 2007</u>](http://www.sec.gov/Archives/edgar/data/880242/000119312507102934/dex31.htm) (incorporated by reference to Exhibit 3.1 to the Company's annual report on Form 10-KSB filed on May 4, 2007) |
| 3.3 | [<u>Certificate of Amendment to Certificate of Incorporation, filed May 25, 2018</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774918012304/ex_116664.htm) (incorporated by reference to Exhibit 3.4 to the Company's Post Effective Amendment on Form Pos Am filed on June 22, 2018) |
| 3.4 | [<u>Certificate of Amendment to Certificate of Incorporation, filed August 30, 2022</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774922027358/ex_446700.htm) (incorporated by reference to Exhibit 3.4 to the Company's quarterly report on Form 10-Q filed on November 14, 2022) |
| 4.1 | [<u>Form of Stock Options issued in exchange for reduction in accounts payable.</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774915006503/ex4-12.htm) (incorporated by reference to Exhibit 4.12 to the Company's annual report on Form 10-K filed on March 31, 2015) |
| 4.2 | [<u>2018 Equity Incentive Plan</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774918012288/ex_116745.htm) (incorporated by reference to Exhibit 4.1 to the Company's annual report on Form S-8 filed on June 22, 2018) |
| 4.3\* | [2024 Equity Incentive Plan](ex_960044.htm) |

---

---

| | |
|:---|:---|
| 4.4 | [<u>Revolving Line of Credit Agreement dated June 30, 2020, between Clyra Medical and Vernal Bay</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774920014798/ex_193295.htm) (incorporated by reference to Exhibit 10.6 to the Company's annual report on Form 8-K filed on July 7, 2020) |
| 4.5 | [<u>Security Agreement dated June 30, 2020, between Clyra Medical and Vernal Bay</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774920014798/ex_193296.htm) (incorporated by reference to Exhibit 10.7 to the Company's annual report on Form 8-K filed on July 7, 2020) |
| 4.6 | [<u>Revolving Line of Credit Note issued by Clyra Medical to Vernal Bay on June 30, 2020</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774920014798/ex_193297.htm) (incorporated by reference to Exhibit 10.8 to the Company's annual report on Form 8-K filed on July 7, 2020) |
| 4.7 | [<u>Warrant issued in BioLargo Unit Offerings (through January 16, 2024)</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774920018050/ex_199467.htm) (incorporated by reference to Exhibit 4.22 to the Company's quarterly report on Form 10-Q filed on August 14, 2020) |
| 4.8 | [Registration Rights Agreement between BioLargo Inc. and Clearthink Capital Partners LLC dated March 20, 2026](http://www.sec.gov/Archives/edgar/data/880242/000143774926009813/ex_935295.htm) (incorporated by reference to Exbhiti 4.1 to the Company's current report on Form 8-K filed on March 25, 2026) |
| 10.1 | [BioLargo license to Clyra Medical Technologies, Inc., dated March 1, 2024](http://www.sec.gov/Archives/edgar/data/880242/000143774924010394/ex_648185.htm) (incorporated by reference to Exhibit 10.1 to the Company's annual report on Form 10-K filed on April 1, 2024) |
| 10.2 | [Clyra Medical Technologies, Inc. license to BioLargo dated March 1, 2024](http://www.sec.gov/Archives/edgar/data/880242/000143774924010394/ex_648186.htm) (incorporated by reference to Exhibit 10.2 to the Company's annual report on Form 10-K filed on April 1, 2024) |
| 10.3 | [<u>Form of indemnity agreement between the Company at its officers and directors</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774923008876/ex_495029.htm) (incorporated by reference to Exhibit 10.23 to the Company's annual report on Form 10-K filed on March 31, 2023) |
| 10.4 | [<u>Commercial Office Lease Agreement for 14921 Chestnut St., Westminster, CA 92683</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774916038004/ex10-1.htm) (incorporated by reference to Exhibit 10.1 to the Company's annual report on Form 8-K filed on August 24, 2016) |
| 10.5† | [<u>Employment Agreement with Dennis P. Calvert dated May 2, 2017.</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774917008016/ex10-1.htm) (incorporated by reference to Exhibit 10.1 to the Company's annual report on Form 8-K filed on May 4, 2017) |
| 10.6 | [<u>Commercial Office Lease Agreement for Oak Ridge Tennessee</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774917015808/ex10-1.htm) (incorporated by reference to Exhibit 10.1 to the Company's annual report on Form 8-K filed on September 8, 2017) |
| 10.7† | [<u>Employment Agreement with Joseph L. Provenzano dated May 28, 2019</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774919012571/ex_148427.htm) (incorporated by reference to Exhibit 10.1 to the Company's annual report on Form 8-K filed on June 24, 2019) |
| 10.8 | [<u>Form of Share Exchange Agreement between BioLargo, Inc., and purchasers of Clyra Medical Series A Preferred Stock</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774923014881/ex_521371.htm) (incorporated by reference to Exhibit 10.20 to the Company's quarterly report on Form 10-Q filed on May 17, 2023) |

---

---

| | |
|:---|:---|
| 10.9 | [<u>Form of Share Exchange Agreement between BioLargo, Inc., and purchasers of BioLargo Energy Technologies, Inc. common stock</u>](http://www.sec.gov/Archives/edgar/data/880242/000143774923014881/ex_521372.htm) (incorporated by reference to Exhibit 10.21 to the Company's quarterly report on Form 10-Q filed on May 17, 2023) |
| 10.10 | [License Agreement between BioLargo, Inc., and Ikigai Holdings, LLC, dated May 17, 2021](http://www.sec.gov/Archives/edgar/data/880242/000143774925027021/ex_850596.htm) (incorporated by reference to Exhibit 10.17 to the Company's quarterly report on Form 10-Q filed on August 14, 2025) |
| 10.11 | [First amendment to License Agreement between BioLargo, Inc., and Ikigai Holdings, LLC, dated August 16, 2021](http://www.sec.gov/Archives/edgar/data/880242/000143774925027021/ex_850597.htm) (incorporated by reference to Exhibit 10.18 to the Company's quarterly report on Form 10-Q filed on August 14, 2025) |
| 10.12 | [Preferred Master Manufacturing Agreement between ONM Environmental, Inc., and Ikigai Holdings, LLC, dated July 9, 2021](http://www.sec.gov/Archives/edgar/data/880242/000143774925027021/ex_850598.htm) (incorporated by reference to Exhibit 10.19 to the Company's quarterly report on Form 10-Q filed on August 14, 2025) |
| 10.13 | [First amendment to Preferred Master Manufacturing Agreement between ONM Environmental, Inc., and Ikigai Holdings, LLC, dated June 6, 2025](http://www.sec.gov/Archives/edgar/data/880242/000143774925027021/ex_850599.htm) (incorporated by reference to Exhibit 10.20 to the Company's quarterly report on Form 10-Q filed on August 14, 2025) |
| 10.14 | [Purchase Agreement between BioLargo Inc. and Clearthink Capital Partners LLC dated March 20, 2026](http://www.sec.gov/Archives/edgar/data/880242/000143774926009813/ex_935296.htm) (incorporated by reference to Exbhiti 10.1 to the Company's current report on Form 8-K filed on March 25, 2026) |
| 31.1\* | [Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934](ex_908202.htm)  |
| 31.2\* | [Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934](ex_908203.htm)  |
| 32\* | [Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350](ex_908204.htm)  |
| 101.INS\*\* | Inline XBRL Instance |
| 101.SCH\*\* | Inline XBRL Taxonomy Extension Schema |
| 101.CAL\*\* | Inline XBRL Taxonomy Extension Calculation |
| 101.DEF\*\* | Inline XBRL Taxonomy Extension Definition |
| 101.LAB\*\* | Inline XBRL Taxonomy Extension Labels |
| 101.PRE\*\* | Inline XBRL Taxonomy Extension Presentation |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) |

---

\* Filed herewith

\*\* Furnished herewith

† Management contract or compensatory plan, contract or arrangement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 33 -

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| Date: May 15, 2026 | BIOLARGO, INC.<br>By: /s/ DENNIS P. CALVERT |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dennis P. Calvert<br> Chief Executive Officer |
| Date: May 15, 2026 | By: /s/ CHARLES K. DARGAN, II |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 34 -

## Exhibit 31.1

**EXHIBIT 31.1** 

**Certification of Chief Executive Officer** 

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002** 

I, Dennis P. Calvert, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of BioLargo, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 15, 2026 | By: | /s/ DENNIS P. CALVERT |
|  |  | Dennis P. Calvert |
|  |  | Chief Executive Officer |

---

## Exhibit 31.2

**EXHIBIT 31.2** 

**Certification of Chief Financial Officer** 

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002** 

I, Charles K. Dargan II, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of BioLargo, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 15, 2026 | By: | /s/ CHARLES K. DARGAN II |
|  |  | Charles K. Dargan II |
|  |  | Chief Financial Officer |

---

## Ex-32

**EXHIBIT 32** 

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER** 

**AND CHIEF FINANCIAL OFFICER** 

**PURSUANT TO 18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Dennis P. Calvert, Chief Executive Officer of BioLargo, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that the Quarterly Report of BioLargo, Inc. on Form 10-Q for the quarter ended March 31, 2026, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of BioLargo, Inc.

---

| | | |
|:---|:---|:---|
| Dated: May 15, 2026 | By: | /s/ DENNIS P. CALVERT |
|  |  | Dennis P. Calvert |
|  |  | President and Chief Executive Officer |

---

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to BioLargo, Inc. and will be retained by BioLargo, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

I, Charles K. Dargan II, Chief Financial Officer of BioLargo, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that the Quarterly Report of BioLargo, Inc. on Form 10-Q for the quarter ended March 31, 2026, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of BioLargo, Inc.

---

| | | |
|:---|:---|:---|
| Dated: May 15, 2026 | By: | /s/ CHARLES K. DARGAN II |
|  |  | Charles K. Dargan II |
|  |  | Chief Financial Officer |

---

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to BioLargo, Inc. and will be retained by BioLargo, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 4.3

<u>**EXHIBIT 4.3**</u>

**BIOLARGO, INC.**

**2024 EQUITY INCENTIVE PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>PURPOSE</u>**. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the success of BioLargo and Parents, Subsidiaries and Affiliates that exist now or in the future by offering them an opportunity to participate in BioLargo's future performance through the grant of Awards. Capitalized terms not defined elsewhere in the text are defined in **Section 28**.

&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>SHARES SUBJECT TO THIS PLAN</u>**.

**2.1.** <u>Number of Shares Available</u>. Subject to **Sections 2.6** and **21** and other applicable provisions hereof, the total number of Shares reserved and available for grant and issuance pursuant to this Plan as of the date of adoption of this Plan by the Board is Forty Million (40,000,000) Shares.

**2.2.** <u>Lapsed, Returned Awards</u>. Shares subject to Awards, and Shares issued under this Plan under any Award, will again be available for grant and issuance in connection with subsequent Awards under this Plan to the extent that such Shares: (a) are subject to issuance upon exercise of an Option or SAR granted under this Plan but that cease to be subject to the Option or SAR for any reason other than exercise of the Option or SAR; (b) are subject to Awards granted under this Plan that are forfeited or are repurchased by BioLargo at the original issue price; (c) are subject to Awards granted under this Plan that otherwise terminate without such Shares being issued; or (d) are surrendered pursuant to an Exchange Program. To the extent that an Award under this Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under this Plan. Shares used to pay the exercise price of an Award or withheld to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under this Plan. For the avoidance of doubt, Shares that otherwise become available for grant and issuance because of the provisions of this **Section 2.2** will not include Shares subject to Awards that initially became available because of the substitution clause in **Section 21.2** hereof.

**2.3.** <u>Minimum Share Reserve</u>. At all times, BioLargo will reserve and keep available a sufficient number of Shares as will be required to satisfy the requirements of all outstanding Awards granted under this Plan.

**2.4.** <u>Automatic Share Reserve Increase</u>. The number of Shares available for grant and issuance under this Plan will be increased on January 1st of each of the first ten (10) calendar years during the term of this Plan, beginning January 1, 2025, by 2,000,000 Shares unless otherwise directed by the Board.

**2.5.** <u>Limitations</u>. No more than thirty million (30,000,000) Shares will be issued pursuant to the exercise of ISOs.

**2.6.** <u>Adjustment of Shares</u>. If the number of outstanding Shares is changed by a stock dividend, extraordinary dividends or distributions (whether in cash, shares or other property, other than a regular cash dividend) recapitalization, stock split, reverse stock split, subdivision, combination, consolidation, reclassification, spin-off or similar change in the capital structure of BioLargo, without consideration, then (a) the number and class of Shares reserved for issuance and future grant under this Plan set forth in **Section 2.1**, (b) the Exercise Prices of and number and class of Shares subject to outstanding Options and SARs, (c) the number and class of Shares subject to other outstanding Awards, (d) the maximum number and class of Shares that may be issued as ISOs set forth in **Section 2.5**, (e) the maximum number and class of Shares that may be issued to an individual or to a new Employee in any one calendar year set forth in **Section 3** and (f) the number and class of Shares that may be granted as Awards to Non-Employee Directors as set forth in **Section 12** will be proportionately adjusted, subject to any required action by the Board or the stockholders of BioLargo and in compliance with applicable securities laws; provided that fractions of a Share will not be issued.

If, by reason of an adjustment pursuant to this **Section 2.6**, a Participant's Award Agreement or other agreement related to any Award or the Shares subject to such Award covers additional or different shares of stock or securities, then such additional or different shares, and the Award Agreement or such other agreement in respect thereof, will be subject to all of the terms, conditions and restrictions that were applicable to the Award or the Shares subject to such Award before such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>ELIGIBILITY</u>**. ISOs may be granted only to Employees. All other Awards may be granted to Employees, Consultants, Directors and Non-Employee Directors; provided that such Consultants, Directors and Non-Employee Directors render *bona fide* services not in connection with the offer and sale of securities in a capital-raising transaction. No Participant will be eligible to receive an Award or Awards for more than Three Million (3,000,000) Shares in any calendar year under this Plan except that new Employees of BioLargo or of a Parent or Subsidiary of BioLargo are eligible to be granted up to a maximum of an Award or Awards for Six Million (6,000,000) Shares in the calendar year in which they commence their employment.

&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>ADMINISTRATION</u>**.

**4.1.** <u>Committee Composition; Authority</u>. This Plan will be administered by the Committee or by the Board acting as the Committee. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan; *provided, however,* that the Board will establish the terms for the grant of an Award to Non-Employee Directors. The Committee will have the authority to:

(a) construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

(b) prescribe, amend and rescind rules and regulations relating to this Plan or any Award;

(c) select persons to receive Awards;

(d) determine the form and terms and conditions, not inconsistent with the terms of this Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the Exercise Price, the time or times when Awards may vest and be exercised (which may be based on performance criteria) or settled, any vesting acceleration or waiver of forfeiture restrictions, the method to satisfy tax withholding obligations or any other tax liability legally due and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Committee will determine;

(e) determine the number of Shares or other consideration subject to Awards;

(f) determine the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of Fair Market Value in connection with circumstances that impact the Fair Market Value, if necessary;

(g) determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of or as alternatives to other Awards under this Plan or any other incentive or compensation plan of BioLargo or any Parent, Subsidiary or Affiliate;

(h) grant waivers of Plan or Award conditions;

(i) determine the vesting, exercisability and payment of Awards;

(j) correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement;

(k) determine whether an Award has been vested and/or earned;

(l) determine the terms and conditions of, and institute, any Exchange Program;

(m) reduce or waive any criteria with respect to Performance Factors;

(n) adjust Performance Factors to take into account changes in law and accounting or tax rules as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships, provided that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code with respect to persons whose compensation is subject to Section 162(m) of the Code;

(o) adopt rules and/or procedures (including the adoption of any subplan under this Plan) relating to the operation and administration of this Plan to accommodate requirements of local law and procedures outside of the United States;

(p) exercise negative discretion on Performance Awards, reducing or eliminating the amount to be paid to Participants;

(q) make all other determinations necessary or advisable for the administration of this Plan; and

(r) delegate any of the foregoing to one or more executive officers pursuant to a specific delegation as permitted by applicable law, including Section 157(c) of the Delaware General Corporation Law.

**4.2.** <u>Committee Interpretation and Discretion</u>. Any determination made by the Committee with respect to any Award will be made in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of this Plan or the Award, at any later time, and such determination will be final and binding on BioLargo and all persons having an interest in any Award under this Plan. Any dispute regarding the interpretation of this Plan or any Award Agreement will be submitted by the Participant or BioLargo to the Committee for review. The resolution of such a dispute by the Committee will be final and binding on BioLargo and the Participant. The Committee may delegate to one or more executive officers the authority to review and resolve disputes with respect to Awards held by Participants who are not Insiders, and such resolution will be final and binding on BioLargo and the Participant.

**4.3.** <u>Section 162(m) of the Code and Section 16 of the Exchange Act</u>. When necessary or desirable for an Award to qualify as "performance-based compensation" under Section 162(m) of the Code, the Committee administering this Plan in accordance with the requirements of Rule 16b-3 and Section 162(m) of the Code will consist of at least two (2) individuals, each of whom qualifies as (a) a Non-Employee Director under Rule 16b-3 and (b) an "outside director" pursuant to Code Section 162(m) and the regulations issued thereunder. At least two (2) (or a majority if more than two (2) then serve on the Committee) of such "outside directors" will approve the grant of such Award and timely determine (as applicable) the Performance Period and any and all Performance Factors upon which vesting or settlement of any portion of such Award is to be subject. When required by Section 162(m) of the Code, before settlement of any such Award at least two (2) (or a majority if more than two (2) then serve on the Committee) of such "outside directors" then serving on the Committee will determine and certify in writing the extent to which such Performance Factors have been timely achieved and the extent to which the Shares subject to such Award have thereby been earned. Awards granted to Participants who are subject to Section 16 of the Exchange Act must be approved by two or more "non-employee directors" (as defined in the regulations promulgated under Section 16 of the Exchange Act). With respect to Participants whose compensation is subject to Section 162(m) of the Code, and provided that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code, the Committee may adjust the performance goals to account for changes in law and accounting and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships, including, without limitation, (a) restructurings, discontinued operations, extraordinary items and other unusual or non-recurring charges, (b) an event either not directly related to the operations of BioLargo or not within the reasonable control of BioLargo's management or (c) a change in accounting standards required by generally accepted accounting principles.

**4.4.** <u>Documentation</u>. The Award Agreement for a given Award, this Plan and any and all other documents may be delivered to, and accepted by, a Participant or any other person in any manner (including electronic distribution or posting) that satisfies applicable legal requirements.

**4.5.** <u>Foreign Award Recipients</u>. Notwithstanding any provision of this Plan to the contrary, in order to comply with the laws and practices in other countries in which BioLargo, its Subsidiaries and its Affiliates operate or have Employees or other individuals eligible for Awards, the Committee, in its sole discretion, will have the power and authority to: (a) determine which Subsidiaries and Affiliates will be covered by this Plan; (b) determine which individuals outside the United States are eligible to participate in this Plan, which may include individuals who provide services to BioLargo, Subsidiary or Affiliate under an agreement with a foreign nation or agency; (c) modify the terms and conditions of any Award granted to individuals outside the United States or foreign nationals to comply with applicable foreign laws, policies, customs and practices; (d) establish subplans and modify exercise procedures and other terms and procedures, to the extent that the Committee determines such actions to be necessary or advisable (and such subplans and/or modifications will be attached to this Plan as appendices); *provided, however,* that no such subplans and/or modifications will increase the share limitations contained in **Section 2.1** hereof; and (e) take any action, before or after an Award is made, that the Committee determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemption or approval. Notwithstanding the foregoing, the Committee may not take any action hereunder, and no Award will be granted, that would violate the Exchange Act or any other applicable United States securities law, the Code or any other applicable United States governing statute or law.

&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>OPTIONS</u>**. An Option is the right but not the obligation to purchase a Share, subject to certain conditions, if applicable. The Committee may grant Options to eligible Employees, Consultants and Directors and will determine whether such Options will be Incentive Stock Options within the meaning of the Code ("**ISOs**") or Nonqualified Stock Options ("**NSOs**"), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may vest and be exercised and all other terms and conditions of the Option, subject to the following terms of this section.

**5.1.** <u>Option Grant</u>. Each Option granted under this Plan will identify the Option as an ISO or an NSO. An Option may be, but need not be, awarded upon satisfaction of such Performance Factors during any Performance Period as are set out in advance in the Participant's individual Award Agreement. If the Option is being earned upon the satisfaction of Performance Factors, then the Committee will: (a) determine the nature, length and starting date of any Performance Period for each Option and (b) select from among the Performance Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate simultaneously with respect to Options that are subject to different performance goals and other criteria.

**5.2.** <u>Date of Grant</u>. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option or a specified future date. The Award Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the Option.

**5.3.** <u>Exercise Period</u>. Options may be vested and exercisable within the times or upon the conditions as set forth in the Award Agreements governing such Options; *provided, however,* that no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and *provided further* that no ISO granted to a person who, at the time the ISO is granted, directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of BioLargo or of any Parent or Subsidiary ("**Ten Percent Stockholder**") will be exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee determines.

**5.4.** <u>Exercise Price</u>. The Exercise Price of an Option will be determined by the Committee when the Option is granted, provided that: (a) the Exercise Price of an Option will be not less than one hundred percent (100%) of the Fair Market Value of the Shares on the date of grant, and (b) the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with **Section 11** and the Award Agreement and in accordance with procedures established by BioLargo.

**5.5.** <u>Method of Exercise</u>. Any Option granted hereunder will be vested and exercisable according to the terms of this Plan and at such times and under such conditions as determined by the Committee and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. An Option will be deemed exercised when BioLargo receives: (a) notice of exercise (in such form as the Committee may specify from time to time) from the person entitled to exercise the Option (and/or via electronic execution through the authorized third party administrator) and either (b) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes), or (c) instructions to conduct a cashless exercise through which a portion of the Shares are issued, calculated based on the Fair Market Value of the Shares on the exercise date. Full payment may consist of any consideration and method of payment authorized by the Committee and permitted by the Award Agreement and this Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant. Until the Shares are issued (as evidenced by the appropriate entry on the books of BioLargo or of a duly authorized transfer agent of BioLargo), no right to vote or receive dividends or any other right as a stockholder will exist with respect to the Shares, notwithstanding the exercise of the Option. BioLargo will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is before the date the Shares are issued, except as provided in **Section 2.6** of this Plan. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of this Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

**5.6.** <u>Termination of Service</u>. If the Participant's Service terminates for any reason except for Cause or the Participant's death or Disability, then the Participant may exercise such Participant's Options only to the extent that such Options would have been exercisable by the Participant on the date the Participant's Service terminates no later than three (3) months after the date the Participant's Service terminates (or such shorter time period not less than thirty (30) days or longer time period as may be determined by the Committee, with any exercise beyond three (3) months after the date the Participant's Service terminates deemed to be the exercise of an NSO), but in any event no later than the expiration date of the Options.

(a) <u>Death</u>. If the Participant's Service terminates because of the Participant's death (or the Participant dies within three (3) months after the Participant's Service terminates other than for Cause or because of the Participant's Disability), then the Participant's Options may be exercised only to the extent that such Options would have been exercisable by the Participant on the date the Participant's Service terminates and must be exercised by the Participant's legal representative, or authorized assignee, no later than eighteen (18) months after the date the Participant's Service terminates (or such shorter time period not less than six (6) months or longer time period as may be determined by the Committee), but in any event no later than the expiration date of the Options.

(b) <u>Disability</u>. If the Participant's Service terminates because of the Participant's Disability, then the Participant's Options may be exercised only to the extent that such Options would have been exercisable by the Participant on the date the Participant's Service terminates and must be exercised by the Participant (or the Participant's legal representative or authorized assignee) no later than twelve (12) months after the date the Participant's Service terminates (or such shorter time period not less than six (6) months or longer time period as may be determined by the Committee, with any exercise beyond (a) three (3) months after the date the Participant's Service terminates when the termination of Service is for a Disability that is not a "permanent and total disability" as defined in Section 22(e)(3) of the Code or (b) twelve (12) months after the date the Participant's Service terminates when the termination of Service is for a Disability that is a "permanent and total disability" as defined in Section 22(e)(3) of the Code, deemed to be exercise of an NSO), but in any event no later than the expiration date of the Options.

(c) <u>Cause</u>. If the Participant's Service terminates for Cause, then the Participant's Options will expire on the Participant's date of termination of Service or at such later time and on such conditions as are determined by the Committee, but in any event no later than the expiration date of the Options. Unless otherwise provided in an employment agreement or Award Agreement, Cause will have the meaning set forth in this Plan.

**5.7.** <u>Limitations on Exercise</u>. The Committee may specify a minimum number of Shares that may be purchased on any exercise of an Option, provided that such minimum number will not prevent any Participant from exercising the Option for the full number of Shares for which it is then exercisable.

**5.8.** <u>Limitations on ISOs</u>. With respect to Awards granted as ISOs, to the extent that the aggregate Fair Market Value of the Shares with respect to which such ISOs are exercisable for the first time by the Participant during any calendar year (under all plans of BioLargo and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as NSOs. For purposes of this **Section 5.8**, ISOs will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISOs, such different limit will be automatically incorporated herein and will apply to all Options granted after the effective date of such amendment.

**5.9.** <u>Modification, Extension or Renewal</u>. The Committee may modify, extend or renew outstanding Options and authorize the grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant's rights under any Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to **Section 18** of this Plan, by written notice to affected Participants, the Committee may reduce the Exercise Price of outstanding Options without the consent of such Participants; *provided, however,* that the Exercise Price may not be reduced below the Fair Market Value on the date the action is taken to reduce the Exercise Price.

**5.10.** <u>No Disqualification</u>. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant affected, to disqualify any ISO under Section 422 of the Code.

**5.11.** <u>Salary and AP Conversion</u>. Notwithstanding the foregoing, in the Committee's discretion, a Participant may elect to receive an Option as payment of amounts owed by BioLargo for past services rendered, for goods, or pursuant to a contract. The Committee may from time to time adopt a plan to offer such conversions, at a factor of up to two times of the quotient of the dollar amount converted and the Fair Market Value on the date the Participant delivers an Award Agreement to BioLargo.

&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>RESTRICTED STOCK AWARDS</u>**. A Restricted Stock Award is an offer by BioLargo to sell to an eligible Employee, Consultant or Director Shares that are subject to restrictions ("**Restricted Stock**"). The Committee will determine to whom an offer will be made, the number of Shares the Participant may purchase, the Purchase Price, the restrictions under which the Shares will be subject and all other terms and conditions of the Restricted Stock Award, subject to this Plan.

**6.1.** <u>Restricted</u><u> </u><u>Stock</u><u> </u><u>Purchase Agreement</u>. All purchases under a Restricted Stock Award will be evidenced by an Award Agreement. Except as may otherwise be provided in an Award Agreement, a Participant accepts a Restricted Stock Award by signing and delivering to BioLargo an Award Agreement with full payment of the Purchase Price, within thirty (30) days from the date the Award Agreement was delivered to the Participant. If the Participant does not accept such Award within thirty (30) days, then the offer of such Restricted Stock Award will terminate, unless the Committee determines otherwise.

**6.2.** <u>Purchase</u><u> </u><u>Price</u>. The Purchase Price for a Restricted Stock Award will be determined by the Committee and may be less than Fair Market Value on the date the Restricted Stock Award is granted. Payment of the Purchase Price must be made in accordance with **Section 11** of this Plan and the Award Agreement and in accordance with procedures established by BioLargo.

**6.3.** <u>Terms of Restricted Stock Awards</u>. Restricted Stock Awards will be subject to such restrictions as the Committee may impose or are required by law. These restrictions may be based on completion of a specified number of years of service with BioLargo or upon completion of Performance Factors, if any, during any Performance Period as set out in advance in the Participant's Award Agreement. Before the grant of a Restricted Stock Award, the Committee will: (a) determine the nature, length and starting date of any Performance Period for the Restricted Stock Award; (b) select from among the Performance Factors to be used to measure performance goals, if any; and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods may overlap and a Participant may participate simultaneously with respect to Restricted Stock Awards that are subject to different Performance Periods and having different performance goals and other criteria.

**6.4.** <u>Termination of Service</u>. Except as may be set forth in the Participant's Award Agreement, vesting ceases on such date that the Participant's Service terminates (unless determined otherwise by the Committee).

&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>STOCK BONUS AWARDS</u>**. A Stock Bonus Award is an award to an eligible Employee, Consultant or Director of Shares for Services to be rendered or for past Services already rendered to BioLargo or any Parent, Subsidiary or Affiliate. All Stock Bonus Awards will be made pursuant to an Award Agreement. No payment from the Participant will be required for Shares awarded pursuant to a Stock Bonus Award.

**7.1.** <u>Terms of Stock Bonus Awards</u>. The Committee will determine the number of Shares to be awarded to the Participant under a Stock Bonus Award and any restrictions thereon. These restrictions may be based on completion of a specified number of years of service with BioLargo or upon satisfaction of performance goals based on Performance Factors during any Performance Period as set out in advance in the Participant's Stock Bonus Agreement. Before the grant of any Stock Bonus Award the Committee will: (a) determine the nature, length and starting date of any Performance Period for the Stock Bonus Award; (b) select from among the Performance Factors to be used to measure performance goals; and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods may overlap and a Participant may participate simultaneously with respect to Stock Bonus Awards that are subject to different Performance Periods and different performance goals and other criteria.

**7.2.** <u>Form of Payment to Participant</u>. Payment may be made in the form of cash, whole Shares or a combination thereof, based on the Fair Market Value of the Shares earned under a Stock Bonus Award on the date of payment, as determined in the sole discretion of the Committee.

**7.3.** <u>Termination of Service</u>. Except as may be set forth in the Participant's Award Agreement, vesting ceases on such date that the Participant's Service terminates (unless determined otherwise by the Committee).

**7.4.** <u>Salary and AP Conversion</u>. Notwithstanding the foregoing, in the Committee's discretion, a Participant may elect to receive Shares as payment of amounts owed by BioLargo for past services rendered, for goods, or pursuant to a contract. The Committee may from time to time adopt a plan to offer such conversions, at a factor of up to two times of the quotient of the dollar amount converted and the Fair Market Value on the date the Participant delivers an Award Agreement to BioLargo.

&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>STOCK APPRECIATION RIGHTS</u>**. A Stock Appreciation Right ("**SAR**") is an award to an eligible Employee, Consultant or Director that may be settled in cash or Shares (which may consist of Restricted Stock), having a value equal to (a) the difference between the Fair Market Value on the date of exercise over the Exercise Price multiplied by (b) the number of Shares with respect to which the SAR is being settled (subject to any maximum number of Shares that may be issuable as specified in an Award Agreement). All SARs will be made pursuant to an Award Agreement.

**8.1.** <u>Terms of SARs</u>. The Committee will determine the terms of each SAR, including, without limitation: (a) the number of Shares subject to the SAR; (b) the Exercise Price and the time or times during which the SAR may be settled; (c) the consideration to be distributed upon settlement of the SAR; and (d) the effect of the Participant's termination of Service on each SAR. The Exercise Price of the SAR will be determined by the Committee when the SAR is granted and may not be less than Fair Market Value of the Shares on the date of grant. A SAR may be awarded upon satisfaction of Performance Factors, if any, during any Performance Period as are set out in advance in the Participant's individual Award Agreement. If the SAR is being earned upon the satisfaction of Performance Factors, then the Committee will: (x) determine the nature, length and starting date of any Performance Period for each SAR and (y) select from among the Performance Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate simultaneously with respect to SARs that are subject to different Performance Factors and other criteria.

**8.2.** <u>Exercise Period and Expiration Date</u>. A SAR will be exercisable within the times or upon the occurrence of events determined by the Committee and set forth in the Award Agreement governing such SAR. The SAR Agreement will set forth the expiration date; provided that no SAR will be exercisable after the expiration of ten (10) years from the date the SAR is granted. The Committee also may provide for SARs to become exercisable at one time or from time to time, periodically or otherwise (including, without limitation, upon the attainment during a Performance Period of performance goals based on Performance Factors), in such number of Shares or percentage of the Shares subject to the SAR as the Committee determines. Except as may be set forth in the Participant's Award Agreement, vesting ceases on the date that the Participant's Service terminates (unless determined otherwise by the Committee). Notwithstanding the foregoing, the rules of **Section 5.6** also will apply to SARs.

**8.3.** <u>Form of Settlement</u>. Upon exercise of a SAR, a Participant will be entitled to receive payment from BioLargo in an amount determined by multiplying (a) the difference between the Fair Market Value of a Share on the date of exercise over the Exercise Price times (b) the number of Shares with respect to which the SAR is exercised. At the discretion of the Committee, the payment from BioLargo for the SAR exercise may be in cash, in Shares of equivalent value or in some combination thereof. The portion of a SAR being settled may be paid currently or on a deferred basis with such interest or Dividend Equivalent Right, if any, as the Committee determines, provided that the terms of the SAR and any deferral satisfy the requirements of Section 409A of the Code.

**8.4.** <u>Termination of Service</u>. Except as may be set forth in the Participant's Award Agreement, vesting ceases on such date that the Participant's Service terminates (unless determined otherwise by the Committee).

&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>RESTRICTED STOCK UNITS</u>**. A Restricted Stock Unit ("**RSU**") is an award to an eligible Employee, Consultant or Director covering a number of Shares that may be settled in cash or by issuance of those Shares (which may consist of Restricted Stock). All RSUs will be made pursuant to an Award Agreement.

**9.1.** <u>Terms of RSUs</u>. The Committee will determine the terms of an RSU, including, without limitation: (a) the number of Shares subject to the RSU; (b) the time or times during which the RSU may be settled; (c) the consideration to be distributed upon settlement; and (d) the effect of the Participant's termination of Service on each RSU; provided that no RSU will have a term longer than ten (10) years. An RSU may be awarded upon satisfaction of such performance goals based on Performance Factors during any Performance Period as are set out in advance in the Participant's Award Agreement. If the RSU is being earned upon satisfaction of Performance Factors, then the Committee will: (x) determine the nature, length and starting date of any Performance Period for the RSU; (y) select from among the Performance Factors to be used to measure the performance, if any; and (z) determine the number of Shares deemed subject to the RSU. Performance Periods may overlap and participants may participate simultaneously with respect to RSUs that are subject to different Performance Periods and different performance goals and other criteria.

**9.2.** <u>Form and Timing of Settlement</u>. Payment of earned RSUs will be made as soon as practicable after the date(s) determined by the Committee and set forth in the Award Agreement. The Committee, in its sole discretion, may settle earned RSUs in cash, Shares or a combination of both. The Committee also may permit a Participant to defer payment under a RSU to a date or dates after the RSU is earned, provided that the terms of the RSU and any deferral satisfy the requirements of Section 409A of the Code.

**9.3.** <u>Termination of Service</u>. Except as may be set forth in the Participant's Award Agreement, vesting ceases on such date that the Participant's Service terminates (unless determined otherwise by the Committee).

&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>PERFORMANCE AWARDS</u>**. A Performance Award is an award to an eligible Employee, Consultant or Director of a cash bonus or an award of Performance Shares or Performance Units denominated in Shares that may be settled in cash or by issuance of those Shares (which may consist of Restricted Stock). Grants of Performance Awards will be made pursuant to an Award Agreement.

**10.1.** <u>Types of Performance Awards</u>. Performance Awards will include Performance Shares, Performance Units and cash-based Awards as set forth in **Sections 10.1(a)**, **10.1(b)** and **10.1(c)** below.

(a) <u>Performance Shares</u>. The Committee may grant Awards of Performance Shares, designate the Participants to whom Performance Shares are to be awarded and determine the number of Performance Shares and the terms and conditions of each such Award. Performance Shares will consist of a unit valued by reference to a designated number of Shares, the value of which may be paid to the Participant by delivery of Shares or, if set forth in the instrument evidencing the Award, of such property as the Committee will determine, including, without limitation, cash, Shares, other property or any combination thereof, upon the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee. The amount to be paid under an Award of Performance Shares may be adjusted on the basis of such further consideration as the Committee will determine in its sole discretion.

(b) <u>Performance Units</u>. The Committee may grant Awards of Performance Units, designate the Participants to whom Performance Units are to be awarded and determine the number of Performance Units and the terms and conditions of each such Award. Performance Units will consist of a unit valued by reference to a designated amount of property other than Shares, which value may be paid to the Participant by delivery of such property as the Committee will determine, including, without limitation, cash, Shares, other property or any combination thereof, upon the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee.

(c) <u>Cash Performance Awards</u>. The Committee also may grant cash-based Performance Awards to Participants under the terms of this Plan. Such awards will be based on the attainment of performance goals using the Performance Factors within this Plan that are established by the Committee for the relevant performance period.

**10.2.** <u>Terms of Performance Awards</u>. The Committee will determine, and each Award Agreement will set forth, the terms of each Performance Award, including, without limitation: (a) the amount of any cash bonus; (b) the number of Shares deemed subject to an award of Performance Shares; (c) the Performance Factors and Performance Period that will determine the time and extent to which each award of Performance Shares will be settled; (d) the consideration to be distributed upon settlement; and (e) the effect of the Participant's termination of Service on each Performance Award. In establishing Performance Factors and the Performance Period the Committee will: (x) determine the nature, length and starting date of any Performance Period; (y) select from among the Performance Factors to be used; and (z) determine the number of Shares deemed subject to the award of Performance Shares. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant. Before settlement, the Committee will determine the extent to which Performance Awards have been earned. Performance Periods may overlap and Participants may participate simultaneously with respect to Performance Awards that are subject to different Performance Periods and different performance goals and other criteria. No Participant will be eligible to receive more than Five Million Dollars ($5,000,000) in Performance Awards in any calendar year under this Plan.

**10.3.** <u>Termination of Service</u>. Except as may be set forth in the Participant's Award Agreement, vesting ceases on the date that the Participant's Service terminates (unless determined otherwise by the Committee).

&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>PAYMENT FOR SHARE PURCHASES</u>**. Payment from a Participant for Shares purchased pursuant to this Plan may be made in cash or by check or, where expressly approved for the Participant by the Committee and where permitted by law (and to the extent not otherwise set forth in the applicable Award Agreement):

(a) by cancellation of indebtedness of BioLargo to the Participant;

(b) by surrender of shares of BioLargo held by the Participant that have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Award will be exercised or settled;

(c) by waiver of compensation due or accrued to the Participant for services rendered or to be rendered to BioLargo or a Parent or Subsidiary;

(d) by consideration received by BioLargo pursuant to a broker-assisted or other form of cashless exercise program implemented by BioLargo in connection with this Plan;

(e) by any combination of the foregoing; or

(f) by any other method of payment as is permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>GRANTS TO NON-EMPLOYEE DIRECTORS</u>**. Non-Employee Directors are eligible to receive any type of Award offered under this Plan except ISOs. Awards pursuant to this **Section 12** may be automatically made pursuant to policy adopted by the Board or made from time to time as determined in the discretion of the Board. The aggregate number of Shares subject to Awards granted to a Non-Employee Director pursuant to this **Section 12** in any calendar year will not exceed such number of Shares with an aggregate grant date value of Three Hundred Thousand Dollars ($200,000); *provided, however,* that with respect to a Non-Employee Director's first year of Service, Awards granted pursuant to this **Section 12** will not exceed such number of Shares with an aggregate grant date value of Six Hundred Thousand Dollars ($400,000).

**12.1.** <u>Eligibility</u>. Awards pursuant to this **Section 12** will be granted only to Non-Employee Directors. A Non-Employee Director who is elected or re-elected as a member of the Board will be eligible to receive an Award under this **Section 12**.

**12.2.** <u>Vesting, Exercisability and Settlement</u>. Except as set forth in **Section 21**, Awards will vest, become exercisable and be settled as determined by the Board. With respect to Options and SARs, the exercise price granted to Non-Employee Directors will not be less than the Fair Market Value of the Shares at the time that such Option or SAR is granted.

**12.3.** <u>Election to receive Awards in Lieu of Cash</u>. A Non-Employee Director may elect to receive his or her annual retainer payments and/or meeting fees from BioLargo in the form of cash or Awards or a combination thereof, as determined by the Committee. Such Awards will be issued under this Plan. An election under this **Section 12.3** will be filed with BioLargo on the form prescribed by BioLargo.

&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>WITHHOLDING TAXES</u>**.

**13.1.** <u>Withholding Generally</u>. Whenever Shares are to be issued in satisfaction of Awards granted under this Plan or a tax event occurs, BioLargo may require the Participant to remit to BioLargo, or to the Parent, Subsidiary or Affiliate, as applicable, employing the Participant, an amount sufficient to satisfy applicable U.S. federal, state, local and international tax or any other tax or social insurance liability (the "**Tax-Related Items**") legally due from the Participant before the delivery of Shares pursuant to exercise or settlement of any Award. Whenever payments in satisfaction of Awards granted under this Plan are to be made in cash, such payment will be net of an amount sufficient to satisfy applicable withholding obligations for Tax-Related Items. Unless otherwise determined by the Committee, the Fair Market Value of the Shares will be determined as of the date that the taxes are required to be withheld, and such Shares will be valued based on the value of the actual trade or, if there is none, the Fair Market Value of the Shares as of the previous trading day.

**13.2.** <u>Stock Withholding</u>. The Committee or its delegate(s), as permitted by applicable law, in its sole discretion and pursuant to such procedures as it may specify from time to time and to limitations of local law, may require or permit a Participant to satisfy such Tax Related Items legally due from the Participant, in whole or in part by (without limitation) (a) paying cash, (b) having BioLargo withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the Tax-Related Items to be withheld, (c) delivering to BioLargo already-owned shares having a Fair Market Value equal to the Tax-Related Items to be withheld or (d) withholding from the proceeds of the sale of otherwise deliverable Shares acquired pursuant to an Award either through a voluntary sale or through a mandatory sale arranged by BioLargo. BioLargo may withhold or account for these Tax-Related Items by considering applicable statutory withholding rates or other applicable withholding rates, including up to the maximum permissible statutory tax rate for the applicable tax jurisdiction, to the extent consistent with applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>TRANSFERABILITY</u>**.

**14.1.** <u>Transfer Generally</u>. Unless determined otherwise by the Committee or pursuant to **Section 14.2**, an Award may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution. If the Committee makes an Award transferable, including, without limitation, by instrument to an *inter vivos* or testamentary trust in which the Awards are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift or by domestic relations order to a Permitted Transferee, such Award will contain such additional terms and conditions as the Committee deems appropriate. All Awards will be exercisable: (a) during the Participant's lifetime only by (i) the Participant or (ii) the Participant's guardian or legal representative; (b) after the Participant's death, by the legal representative of the Participant's heirs or legatees; and (c) in the case of all awards except ISOs, by a Permitted Transferee.

**14.2.** <u>Award Transfer Program</u>. Notwithstanding any contrary provision of this Plan, the Committee will have all discretion and authority to determine and implement the terms and conditions of any Award Transfer Program instituted pursuant to this **Section 14.2** and will have the authority to amend the terms of any Award participating, or otherwise eligible to participate in, the Award Transfer Program, including (but not limited to) the authority to (a) amend (including to extend) the expiration date, post-termination exercise period and/or forfeiture conditions of any such Award, (b) amend or remove any provisions of the Award relating to the Award holder's continued Service to BioLargo or any Parent, Subsidiary or Affiliate, (c) amend the permissible payment methods with respect to the exercise or purchase of any such Award, (d) amend the adjustments to be implemented in the event of changes in the capitalization and other similar events with respect to such Award and (e) make such other changes to the terms of such Award as the Committee deems necessary or appropriate in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES</u>**.

**15.1.** <u>Voting and Dividends</u>. No Participant will have any of the rights of a stockholder with respect to any Shares until the Shares are issued to the Participant, except for any Dividend Equivalent Rights permitted by an applicable Award Agreement. Any Dividend Equivalent Rights will be subject to the same vesting or performance conditions as the underlying Award. In addition, the Committee may provide that any Dividend Equivalent Rights permitted by an applicable Award Agreement will be deemed to have been reinvested in additional Shares or otherwise reinvested. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; *provided, however,* that, if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of BioLargo will be subject to the same restrictions as the Restricted Stock; *provided further* that the Participant will have no right to such stock dividends or stock distributions with respect to Unvested Shares, and such dividends or stock distributions will be accrued and paid only at such time, if any, as such Unvested Shares become vested Shares. The Committee, in its discretion, may provide in the Award Agreement evidencing any Award that the Participant will be entitled to Dividend Equivalent Rights with respect to the payment of cash dividends on Shares underlying an Award during the period beginning on the date the Award is granted and ending, with respect to each Share subject to the Award, on the earlier of the date on which the Award is exercised or settled or the date on which it is forfeited, provided that no Dividend Equivalent Right will be paid with respect to the Unvested Shares, and such dividends or stock distributions will be accrued and paid only at such time, if any, as such Unvested Shares become vested Shares. Such Dividend Equivalent Rights, if any, will be credited to the Participant in the form of additional whole Shares as of the date of payment of such cash dividends on Shares.

**15.2.** <u>Restrictions on Shares</u>. At the discretion of the Committee, BioLargo may reserve to itself and/or its assignee(s) a right to repurchase (a "**Right of Repurchase**") a portion of any or all Unvested Shares held by a Participant following such Participant's termination of Service at any time within ninety (90) days (or such longer or shorter time determined by the Committee) after the later of the date the Participant's Service terminates and the date the Participant purchases Shares under this Plan, for cash and/or cancellation of purchase money indebtedness, at the Participant's Purchase Price or Exercise Price, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>CERTIFICATES</u>**. All Shares or other securities, whether or not certificated, delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable U.S. federal, state or foreign securities law, or rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system on which the Shares may be listed or quoted and non-U.S. exchange controls or securities law restrictions to which the Shares are subject.

&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>ESCROW; PLEDGE OF SHARES</u>**. To enforce any restrictions on a Participant's Shares, the Committee may require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with BioLargo or an agent designated by BioLargo to hold in escrow until such restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. Any Participant who is permitted to execute a promissory note as partial or full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with BioLargo all or part of the Shares so purchased as collateral to secure the payment of the Participant's obligation to BioLargo under the promissory note; *provided, however,* that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation, and in any event BioLargo will have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant's Shares or other collateral. In connection with any pledge of the Shares, the Participant will be required to execute and deliver a written pledge agreement in such form as the Committee will from time to time approve. The Shares purchased with the promissory note may be released from the pledge on a *pro rata* basis as the promissory note is paid.

&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>REPRICING; EXCHANGE AND BUYOUT OF AWARDS</u>**. Without prior stockholder approval the Committee may (a) reprice Options or SARs (and where such repricing is a reduction in the Exercise Price of outstanding Options or SARs, the consent of the affected Participants is not required provided written notice is provided to them, notwithstanding any adverse tax consequences to them arising from the repricing), and (b) with the consent of the respective Participants (unless not required pursuant to **Section 5.9** of this Plan), pay cash or issue new Awards in exchange for the surrender and cancellation of any, or all, outstanding Awards.

&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>SECURITIES LAW AND OTHER REGULATORY COMPLIANCE</u>**. An Award will not be effective unless such Award is in compliance with all applicable U.S. and foreign federal and state securities, exchange control or other laws, rules and regulations of any governmental body and the requirements of any stock exchange or automated quotation system on which the Shares may then be listed or quoted, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, BioLargo will have no obligation to issue or deliver certificates for Shares under this Plan before (a) obtaining any approvals from governmental agencies that BioLargo determines are necessary or advisable and/or (b) completion of any registration or other qualification of such Shares under any state or federal or foreign law or ruling of any governmental body that BioLargo determines to be necessary or advisable. BioLargo will be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any foreign or state securities laws, exchange control laws, stock exchange or automated quotation system, and BioLargo will have no liability for any inability or failure to do so.

&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>NO OBLIGATION TO EMPLOY</u>**. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, BioLargo or any Parent, Subsidiary or Affiliate or limit in any way the right of BioLargo or any Parent, Subsidiary or Affiliate to terminate the Participant's employment or other relationship at any time.

&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>CORPORATE TRANSACTIONS</u>**.

**21.1.** <u>Assumption or Replacement of Awards by Successor</u>. In the event of a Corporate Transaction, any or all outstanding Awards may be assumed or replaced by the successor corporation, which assumption or replacement will be binding on all Participants. In the alternative, the successor corporation may substitute equivalent Awards or provide substantially similar consideration to Participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor corporation also may issue, in place of outstanding Shares of BioLargo held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant. In the event that such successor or acquiring corporation (if any) refuses to assume, convert, replace or substitute Awards, as provided above, pursuant to a Corporate Transaction, then, notwithstanding any other provision in this Plan to the contrary, such Awards will have their vesting accelerate as to all shares subject to such Award (and any applicable right of repurchase fully lapse) immediately before the Corporate Transaction. In addition, in the event that such successor or acquiring corporation (if any) refuses to assume, convert, replace or substitute Awards, as provided above, pursuant to a Corporate Transaction, the Committee will notify the Participant in writing or electronically that such Award will be exercisable for a period of time determined by the Committee in its sole discretion, and such Award will terminate upon the expiration of such period. Awards need not be treated similarly in a Corporate Transaction.

**21.2.** <u>Assumption of Awards by BioLargo</u>. BioLargo, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either (a) granting an Award under this Plan in substitution of such other company's award or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event that BioLargo assumes an award granted by another company, the terms and conditions of such award will remain unchanged (except that the Purchase Price or the Exercise Price, as the case may be, and the number and nature of Shares issuable upon exercise or settlement of any such Award will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event that BioLargo elects to grant a new Option in substitution rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. Substitute Awards will not reduce the number of Shares authorized for grant under this Plan or authorized for grant to a Participant in a calendar year.

**21.3.** <u>Non-Employee Directors</u><u>'</u><u> </u><u>Awards</u>. Notwithstanding any provision to the contrary herein, in the event of a Corporate Transaction, the vesting of all Awards granted to Non-Employee Directors will accelerate and such Awards will become exercisable (as applicable) in full before the consummation of such event at such times and on such conditions as the Committee determines.

&nbsp;&nbsp;&nbsp;&nbsp;**22. <u>ADOPTION AND STOCKHOLDER APPROVAL</u>**. This Plan will be submitted for the approval of BioLargo's stockholders, consistent with applicable laws, within twelve (12) months before or after the date this Plan is adopted by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;**23. <u>TERM OF PLAN/GOVERNING LAW</u>**. Unless earlier terminated as provided herein, this Plan will become effective on the Effective Date and will terminate ten (10) years from the date this Plan is adopted by the Board. This Plan and all Awards granted hereunder will be governed by and construed in accordance with the laws of the State of Delaware (excluding its conflict of laws rules).

&nbsp;&nbsp;&nbsp;&nbsp;**24. <u>AMENDMENT OR TERMINATION OF PLAN</u>**. The Board may at any time terminate or amend this Plan in any respect, including, without limitation, amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; *provided, however,* that the Board will not, without the approval of the stockholders of BioLargo, amend this Plan in any manner that requires such stockholder approval; *provided further* that a Participant's Award will be governed by the version of this Plan then in effect at the time such Award was granted. No termination or amendment of this Plan will affect any then-outstanding Award unless expressly provided by the Committee. In any event, no termination or amendment of this Plan or any outstanding Award may adversely affect any then outstanding Award without the consent of the Participant, unless such termination or amendment is necessary to comply with applicable law, regulation or rule.

&nbsp;&nbsp;&nbsp;&nbsp;**25. <u>NONEXCLUSIVITY OF THIS PLAN</u>**. Neither the adoption of this Plan by the Board, nor the submission of this Plan to the stockholders of BioLargo for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock awards and bonuses otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;**26. <u>INSIDER TRADING POLICY</u>**. Each Participant who receives an Award will comply with any policy adopted by BioLargo from time to time covering transactions in BioLargo's securities by Employees, officers and/or directors of BioLargo, as well as with any applicable insider trading or market abuse laws to which the Participant may be subject.

&nbsp;&nbsp;&nbsp;&nbsp;**27. <u>ALL AWARDS SUBJECT TO COMPANY CLAWBACK OR RECOUPMENT POLICY</u>**. All Awards, subject to applicable law, will be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of a Participant's employment or other service with BioLargo that is applicable to executive officers, employees, directors or other service providers of BioLargo and, in addition to other remedies available under such policy and applicable law, may require the cancellation of outstanding Awards and the recoupment of any gains realized with respect to Awards.

&nbsp;&nbsp;&nbsp;&nbsp;**28. <u>DEFINITIONS</u>**. As used in this Plan, and except as elsewhere defined herein, the following terms will have the following meanings:

**28.1.** "**Affiliate**" means (i) any entity that, directly or indirectly, is controlled by, controls or is under common control with BioLargo and (ii) any entity in which BioLargo has a significant equity interest, in either case as determined by the Committee, whether now or hereafter existing.

**28.2.** "**Award**" means any award under this Plan, including any Option, Restricted Stock, Stock Bonus, Stock Appreciation Right, Restricted Stock Unit or award of Performance Shares.

**28.3.** "**Award Agreement**" means, with respect to each Award, the written or electronic agreement between BioLargo and the Participant setting forth the terms and conditions of the Award and country-specific appendix thereto for grants to non-U.S. Participants, which will be in substantially a form (which need not be the same for each Participant) that the Committee (or in the case of Award agreements that are not used for Insiders, the Committee's delegate(s)) has from time to time approved, and will comply with and be subject to the terms and conditions of this Plan.

**28.4.** "**Award Transfer Program**" means any program instituted by the Committee which would permit Participants the opportunity to transfer any outstanding Awards to a financial institution or other person or entity approved by the Committee.

**28.5.** "**BioLargo**" means BioLargo, Inc., a Delaware corporation, or any successor corporation.

**28.6.** "**Board**" means the Board of Directors of BioLargo.

**28.7.** "**Cause**" means a determination by BioLargo that the Participant has committed an act or acts constituting any of the following: (i) dishonesty, fraud, misconduct or negligence in connection with BioLargo duties, (ii) unauthorized disclosure or use of BioLargo's confidential or proprietary information, (iii) misappropriation of a business opportunity of BioLargo, (iv) materially aiding a BioLargo competitor, (v) a felony conviction or (vi) failure or refusal to attend to the duties or obligations of the Participant's position or to comply with BioLargo's rules, policies or procedures. The determination as to whether a Participant is being terminated for Cause will be made in good faith by BioLargo and will be final and binding on the Participant. The foregoing definition does not in any way limit BioLargo's ability to terminate a Participant's employment or consulting relationship at any time as provided in **Section 20** above, and the term "**BioLargo**" will be interpreted to include any Subsidiary or Parent, as appropriate. Notwithstanding the foregoing, the foregoing definition of "**Cause**" may, in part or in whole, be modified or replaced in each individual employment agreement, Award Agreement or other applicable agreement with any Participant, provided that such document supersedes the definition provided in this **Section 28.7**.

**28.8.** "**Code**" means the United States Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

**28.9.** "**Committee**" means the Compensation Committee of the Board or those persons to whom administration of this Plan, or part of this Plan, has been delegated as permitted by law.

**28.10.** "**Common Stock**" means the common stock of BioLargo.

**28.11.** "**Consultant**" means any natural person, including an advisor or independent contractor, engaged by BioLargo or a Parent, Subsidiary or Affiliate to render services to such entity.

**28.12.** "**Corporate Transaction**" means the occurrence of any of the following events: (a) any "Person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of BioLargo representing more than fifty percent (50%) of the total voting power represented by BioLargo's then-outstanding voting securities; *provided, however,* that for purposes of this subclause (a) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of the total voting power of the securities of BioLargo will not be considered a Corporate Transaction; (b) the consummation of the sale or disposition by BioLargo of all or substantially all of BioLargo's assets; (c) the consummation of a merger or consolidation of BioLargo with any other corporation, other than a merger or consolidation that would result in the voting securities of BioLargo outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of BioLargo or such surviving entity or its parent outstanding immediately after such merger or consolidation; (d) any other transaction that qualifies as a "corporate transaction" under Section 424(a) of the Code wherein the stockholders of BioLargo give up all of their equity interest in BioLargo (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of capital stock of BioLargo) or (e) a change in the effective control of BioLargo that occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by members of the Board whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election. For purposes of the preceding subclause (e), if any Person is considered to be in effective control of BioLargo, the acquisition of additional control of BioLargo by the same Person will not be considered a Corporate Transaction. For purposes of this definition, Persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock or similar business transaction with BioLargo. Notwithstanding the foregoing, to the extent that any amount constituting deferred compensation (as defined in Section 409A of the Code) would become payable under this Plan by reason of a Corporate Transaction, such amount will become payable only if the event constituting a Corporate Transaction would also qualify as a change in ownership or effective control of BioLargo or a change in the ownership of a substantial portion of the assets of BioLargo, each as defined within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and IRS guidance that has been promulgated or may be promulgated thereunder from time to time.

**28.13.** "**Director**" means a member of the Board.

**28.14.** "**Disability**" means, in the case of incentive stock options, total and permanent disability as defined in Section 22(e)(3) of the Code and, in the case of other Awards, that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

**28.15.** "**Dividend Equivalent Right**" means the right of a Participant, granted at the discretion of the Committee or as otherwise provided by this Plan, to receive a credit for the account of such Participant in an amount equal to the cash, stock or other property dividends in amounts equivalent to cash, stock or other property dividends for each Share represented by an Award held by such Participant.

**28.16.** "**Effective Date**" means the day immediately before the date of the underwritten initial public offering of BioLargo's Common Stock pursuant to a registration statement that is declared effective by the SEC.

**28.17.** "**Employee**" means any person, including Officers and Directors, providing services as an employee to BioLargo or any Parent, Subsidiary or Affiliate. Neither service as a Director nor payment of a director's fee by BioLargo will be sufficient to constitute "employment" by BioLargo.

**28.18.** "**Exchange Act**" means the United States Securities Exchange Act of 1934, as amended.

**28.19.** "**Exchange Program**" means a program pursuant to which (a) outstanding Awards are surrendered, cancelled or exchanged for cash, the same type of Award or a different Award (or combination thereof) or (b) the exercise price of an outstanding Award is increased or reduced.

**28.20.** "**Exercise Price**" means, with respect to an Option, the price at which a holder may purchase the Shares issuable upon exercise of an Option and, with respect to a SAR, the price at which the SAR is granted to the holder thereof.

**28.21.** "**Fair Market Value**" means, as of any date, the value of a share of BioLargo's Common Stock determined as follows:

(a) if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in *The Wall Street* Journal or such other source as the Committee deems reliable;

(b) if such Common Stock is publicly traded but is neither listed nor admitted to trading on a national securities exchange, but traded on the OTCQB or OTCQX, its closing price on the date of determination on the OTCQB or OTCQX, as applicable, as reported by the OTC Markets or such other source as the Committee deems reliable;

(c) if such Common Stock is publicly traded but is neither listed nor admitted to trading on a national securities exchange, its closing price on the date of determination the average of the closing bid and asked prices on the date of determination as reported in *The Wall Street Journal* or such other source as the Committee deems reliable;

(d) in the case of an Option or SAR grant made on the Effective Date, the price per share at which Shares are initially offered for sale to the public by BioLargo's underwriters in the initial public offering of BioLargo's Common Stock pursuant to a registration statement filed with the SEC under the Securities Act; or

(e) if none of the foregoing is applicable, by the Board or the Committee in good faith.

**28.22.** "**Insider**" means an officer or director of BioLargo or any other person whose transactions in BioLargo's Common Stock are subject to Section 16 of the Exchange Act.

**28.23.** "**IRS**" means the United States Internal Revenue Service.

**28.24.** "**Non-Employee Director**" means a Director who is not an Employee of BioLargo or any Parent, Subsidiary or Affiliate.

**28.25.** "**Option**" means an award of an option to purchase Shares pursuant to **Section 5**.

**28.26.** "**Parent**" means any corporation (other than BioLargo) in an unbroken chain of corporations ending with BioLargo if each of such corporations other than BioLargo owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

**28.27.** "**Participant**" means a person who holds an Award under this Plan, including corporate entities.

**28.28.** "**Performance Award**" means cash or Shares granted pursuant to **Section 10** or **Section 12** of this Plan.

**28.29.** "**Performance Factors**" means any of the factors selected by the Committee and specified in an Award Agreement, from among the following objective measures, either individually, alternatively or in any combination, applied to BioLargo as a whole or any business unit or Subsidiary, either individually, alternatively or in any combination, on a GAAP or non-GAAP basis, and measured, to the extent applicable on an absolute basis or relative to a pre-established target, to determine whether the performance goals established by the Committee with respect to applicable Awards have been satisfied:

(a) Profit Before Tax;

(b) Billings;

(c) Revenue;

(d) Net revenue;

(e) Earnings (which may include earnings before interest and taxes, earnings before taxes, net earnings, stock-based compensation expenses, depreciation and amortization);

(f) Operating income;

(g) Operating margin;

(h) Operating profit;

(i) Controllable operating profit or net operating profit;

(j) Net Profit;

(k) Gross margin;

(l) Operating expenses or operating expenses as a percentage of revenue;

(m) Net income;

(n) Earnings per share;

(o) Total stockholder return;

(p) Market share;

(q) Return on assets or net assets;

(r) BioLargo's stock price;

(s) Growth in stockholder value relative to a pre-determined index;

(t) Return on equity;

(u) Return on invested capital;

(v) Cash Flow (including free cash flow or operating cash flows);

(w) Cash conversion cycle;

(x) Economic value added;

(y) Individual confidential business objectives;

(z) Contract awards or backlog;

(aa) Overhead or other expense reduction;

(bb) Credit rating;

(cc) Strategic plan development and implementation;

(dd) Succession plan development and implementation;

(ee) Improvement in workforce diversity;

(ff) Customer indicators and/or satisfaction;

(gg) New product invention or innovation;

(hh) Attainment of research and development milestones;

(ii) Improvements in productivity;

(jj) Bookings;

(kk) Attainment of objective operating goals and employee metrics;

(ll) Sales;

(mm) Expenses;

(nn) Balance of cash, cash equivalents and marketable securities;

(oo) Completion of an identified special project;

(pp) Completion of a joint venture or other corporate transaction;

(qq) Employee satisfaction and/or retention;

(rr) Traffic to BioLargo's website and/or mobile application;

(ss) Measures of agent efficiency and/or productivity;

(tt) Brokerage transaction costs;

(uu) Customer satisfaction;

(vv) Research and development expenses;

(ww) Working capital targets and changes in working capital; and

(xx) Any other metric that is capable of measurement as determined by the Committee.

The Committee may, in recognition of unusual or non-recurring items such as acquisition-related activities or changes in applicable accounting rules, provide for one or more equitable adjustments (based on objective standards) to the Performance Factors to preserve the Committee's original intent regarding the Performance Factors at the time of the initial Award grant. It is within the sole discretion of the Committee to make or not make any such equitable adjustments.

**28.30.** "**Performance Period**" means one or more periods of time, which may be of varying and overlapping durations, as the Committee may select, over which the attainment of one or more Performance Factors will be measured for the purpose of determining a Participant's right to, and the payment of, a Performance Award.

**28.31.** "**Performance Share**" means an Award granted pursuant to **Section 10** or **Section 12** of this Plan, the payment of which is contingent upon achieving certain performance goals established by the Committee.

**28.32.** "**Performance Unit**" means a right granted to a Participant, pursuant to **Section 10** or **Section 12**, to receive Shares, the payment of which is contingent upon achieving certain performance goals established by the Committee.

**28.33.** "**Permitted Transferee**" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law (including adoptive relationships) of the Employee, any person sharing the Employee's household (other than a tenant or employee), a trust in which these persons (or the Employee) have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Employee) control the management of assets and any other entity in which these persons (or the Employee) own more than fifty percent (50%) of the voting interests.

**28.34.** "**Plan**" means this BioLargo, Inc. 2024 Equity Incentive Plan.

**28.35.** "**Purchase Price**" means the price to be paid for Shares acquired under this Plan, other than Shares acquired upon exercise of an Option or SAR.

**28.36.** "**Restricted Stock Award**" means an award of Shares pursuant to **Section 6** or **Section 12** of this Plan or issued pursuant to the early exercise of an Option.

**28.37.** "**Restricted Stock Unit**" means an Award granted pursuant to **Section 9** or **Section 12** of this Plan.

**28.38.** "**SEC**" means the United States Securities and Exchange Commission.

**28.39.** "**Securities Act**" means the United States Securities Act of 1933, as amended.

**28.40.** "**Service**" means service, as an Employee, Consultant, Director or Non-Employee Director, to BioLargo or a Parent, Subsidiary or Affiliate, subject to such further limitations as may be set forth in this Plan or the applicable Award Agreement. An Employee will not be deemed to have ceased to provide Service in the case of (a) sick leave, (b) military leave or (c) any other leave of absence approved by BioLargo; *provided* that such leave is for a period of not more than ninety (90) days unless reemployment upon the expiration of such leave is guaranteed by contract or statute. Notwithstanding anything to the contrary, an Employee will not be deemed to have ceased to provide Service if a formal policy adopted from time to time by BioLargo and issued and promulgated to employees in writing provides otherwise. In the case of any Employee on an approved leave of absence or a reduction in hours worked (for illustrative purposes only, a change in schedule from that of full-time to part-time), the Committee may make such provisions respecting suspension or modification of vesting of the Award while on leave from the employ of BioLargo or a Parent, Subsidiary or Affiliate or during such change in working hours as it may deem appropriate, except that in no event may an Award be exercised after the expiration of the term set forth in the applicable Award Agreement. In the event of military or other protected leave, if required by applicable laws, vesting will continue for the longest period that vesting continues under any other statutory or BioLargo-approved leave of absence and, upon a Participant's returning from military leave, he or she will be given vesting credit with respect to Awards to the same extent as would have applied had the Participant continued to provide Service to BioLargo throughout the leave on the same terms as he or she was providing Service immediately before such leave. An Employee will have terminated employment as of the date he or she ceases to provide Service (regardless of whether the termination is in breach of local employment laws or is later found to be invalid) and employment will not be extended by any notice period or garden leave mandated by local law; *provided, however*, that a change in status from an Employee to a Consultant or a Non-Employee Director (or *vice versa*) will not terminate a Participant's Service, unless determined by the Committee, in its discretion. The Committee will have sole discretion to determine whether a Participant has ceased to provide Service and the effective date on which the Participant ceased to provide Service.

**28.41.** "**Shares**" means shares of BioLargo's Common Stock and the common stock of any successor entity.

**28.42.** "**Stock Appreciation Right**" means an Award granted pursuant to **Section 8** or **Section 12** of this Plan.

**28.43.** "**Stock Bonus**" means an Award granted pursuant to **Section 7** or **Section 12** of this Plan.

**28.44.** "**Subsidiary**" means any corporation (other than BioLargo) in an unbroken chain of corporations beginning with BioLargo if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

**28.45.** "**Treasury Regulations**" means regulations promulgated by the United States Treasury Department.

**28.46.** "**Unvested Shares**" means Shares that have not yet vested or are subject to a right of repurchase in favor of BioLargo (or any successor thereto).

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**BIOLARGO, INC.**

**2024 EQUITY INCENTIVE PLAN**

**NOTICE OF RESTRICTED STOCK UNIT AWARD**

Unless otherwise defined herein, the terms defined in the BioLargo, Inc. ("**BioLargo**"**)** 2024 Equity Incentive Plan (the "**Plan**") will have the same meanings in this Notice of Restricted Stock Unit Award and the electronic representation of this Notice of Restricted Stock Unit Award established and maintained by BioLargo or a third party designated by BioLargo (this "**Notice**").

**Name:**

**Address:**

You (the "**Participant**") have been granted an award of Restricted Stock Units ("**RSUs**") to acquire Shares of BioLargo's Common Stock under the Plan subject to the terms and conditions of the Plan, this Notice and the attached Restricted Stock Unit Award Agreement (the "**Agreement**"), including any applicable country-specific provisions in any appendix attached hereto (the "**Appendix**"), which constitutes part of the Agreement.

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| | |
|:---|:---|
| **Grant Number:** |  |
| **Number of RSUs:** |  |
| **Date of Grant:** |  |
| **Vesting Commencement Date:** |  |
| **Expiration Date:** | The earlier to occur of: (a) the date on which settlement of all RSUs granted hereunder occurs and (b) the tenth (10<sup>th</sup>) anniversary of the Date of Grant. This RSU expires earlier if Participant's Service terminates earlier, as described in the Agreement. |
| **Vesting Schedule:** | [Insert applicable vesting schedule] |

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By accepting (whether in writing, electronically or otherwise) the RSUs, Participant acknowledges and agrees to the following:

Participant understands that Participant's employment or consulting relationship or Service with BioLargo or a Parent or Subsidiary or Affiliate is for an unspecified duration, can be terminated at any time (*i.e.*, is "at-will"), except where otherwise prohibited by applicable law and that nothing in this Notice, the Agreement or the Plan changes the nature of that relationship. Participant acknowledges that the vesting of the RSUs pursuant to this Notice is subject to Participant's continuing Service as an Employee, Director or Consultant. Participant acknowledges that the Vesting Schedule may change prospectively in the event that Participant's service status changes between full- and part-time status and/or in the event that Participant is on a leave of absence, in accordance with BioLargo's policies relating to work schedules and vesting or as determined by the Committee. Participant also understands that this Notice is subject to the terms and conditions of both the Agreement and the Plan, both of which are incorporated herein by reference. Participant has read both the Agreement and the Plan. By accepting the RSUs, Participant consents to electronic delivery as set forth in the Agreement.

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| | |
|:---|:---|
| **PARTICIPANT** | **BIOLARGO, INC.** |

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| | |
|:---|:---|
| Signature: | By: |
| Print Name: | Its: |

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**BIOLARGO, INC.**

**2024 EQUITY INCENTIVE PLAN**

**RESTRICTED STOCK UNIT AWARD AGREEMENT**

Unless otherwise defined in this Restricted Stock Unit Award Agreement (this "**Agreement**"), any capitalized terms used herein will have the meaning ascribed to them in the BioLargo, Inc. 2024 Equity Incentive Plan (the "**Plan**").

Participant has been granted Restricted Stock Units ("**RSUs**") to acquire Shares of Common Stock of BioLargo, Inc. ("**BioLargo**"), subject to the terms and conditions of the Plan, the Notice of Restricted Stock Unit Award (the "**Notice**") and this Agreement, including any applicable country-specific provisions in any appendix attached hereto (the "**Appendix**"), which constitutes part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Settlement</u>.** Settlement of RSUs will be made within thirty (30) days following the applicable date of vesting under the Vesting Schedule set forth in the Notice. Settlement of RSUs will be in Shares. No fractional RSUs or rights for fractional Shares will be created pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>No Stockholder Rights</u>.** Unless and until such time as Shares are issued in settlement of vested RSUs, Participant will have no ownership of the Shares allocated to the RSUs and will have no rights to dividends or to vote such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Dividend Equivalents</u>.** Dividends, if any (whether in cash or Shares), will not be credited to Participant.

&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Non-Transferability of RSUs</u>.** The RSUs and any interest therein will not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of in any manner other than by will or by the laws of descent or distribution or court order or unless otherwise permitted by the Committee on a case-by-case basis.

&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Termination; Leave of Absence; Change in Status</u>.** If Participant's Service terminates for any reason, all unvested RSUs will be forfeited to BioLargo immediately, and all rights of Participant to such RSUs automatically terminate without payment of any consideration to Participant. Participant's Service will be considered terminated as of the date Participant is no longer providing services (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant's employment agreement, if any) and will not, subject to the laws applicable to Participant's Award, be extended by any notice period mandated under local laws (e.g., Service would not include a period of "garden leave" or similar period). Participant acknowledges and agrees that the Vesting Schedule may change prospectively in the event that Participant's service status changes between full- and part-time status and/or in the event that Participant is on an approved leave of absence in accordance BioLargo's policies relating to work schedules and vesting of awards or as determined by the Committee. Participant acknowledges that the vesting of the Shares pursuant to the Notice and this Agreement is subject to Participant's continued Service. In case of any dispute as to whether termination of Service has occurred, the Committee will have sole discretion to determine whether such termination of Service has occurred and the effective date of such termination (including whether Participant may still be considered to be providing services while on an approved leave of absence).

&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Withholding Taxes</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Responsibility for Taxes</u>. Participant acknowledges that, regardless of any action taken by BioLargo or, if different, a Parent, Subsidiary or Affiliate employing or retaining Participant (the "**Employer**"), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Participant's participation in the Plan and legally applicable to Participant ("**Tax-Related Items**"), is and remains Participant's responsibility and may exceed the amount actually withheld by BioLargo or the Employer. Participant further acknowledges that BioLargo and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including, but not limited to, the grant, vesting or settlement of the RSUs and the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction, Participant acknowledges that BioLargo and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. *PARTICIPANT SHOULD CONSULT A TAX ADVISER APPROPRIATELY QUALIFIED IN THE COUNTRY OR COUNTRIES IN WHICH PARTICIPANT RESIDES OR IS SUBJECT TO TAXATION BEFORE DISPOSING OF THE SHARES.*

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding</u>. Before any relevant taxable or tax withholding event, as applicable, Participant agrees to make adequate arrangements satisfactory to BioLargo and/or the Employer to satisfy all Tax-Related Items. In this regard, Participant authorizes BioLargo and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:

(i) withholding from Participant's wages or other cash compensation paid to Participant by BioLargo and/or the Employer; or

(ii) withholding from proceeds of the sale of Shares acquired upon settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by BioLargo (on Participant's behalf pursuant to this authorization); or

(iii) withholding in Shares to be issued upon settlement of the RSUs, provided that BioLargo only withholds the number of Shares necessary to satisfy no more than the maximum applicable statutory withholding amounts; or

(iv) Participant's payment of a cash amount (including by check representing readily available funds or a wire transfer); or

(v) any other arrangement approved by the Committee and permitted by applicable law;

all under such rules as may be established by the Committee and in compliance with BioLargo's Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; *provided, however,* that, if Participant is a Section 16 officer of BioLargo under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) will establish the method of withholding from alternatives (i)-(v) above, and the Committee will establish the method before the Tax-Related Items withholding event.

Depending on the withholding method, BioLargo may withhold or account for Tax-Related Items by considering applicable statutory withholding rates or other applicable withholding rates, including up to

maximum applicable rates, in which case Participant will receive a refund of any over-withheld amount in cash and will have no entitlement to the Common Stock equivalent. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items. The Fair Market Value of these Shares, determined as of the effective date when taxes otherwise would have been withheld in cash, will be applied as a credit against the Tax-Related Items withholding.

Finally, Participant agrees to pay to BioLargo or the Employer any amount of Tax-Related Items that BioLargo or the Employer may be required to withhold or account for as a result of Participant's participation in the Plan that cannot be satisfied by the means previously described. BioLargo may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if Participant fails to comply with his or her obligations in connection with the Tax-Related Items.

&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Nature of Grant</u>.** By accepting the RSUs, Participant acknowledges, understands and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the Plan is established voluntarily by BioLargo, it is discretionary in nature, and it may be modified, amended, suspended or terminated by BioLargo at any time, to the extent permitted by the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;(b) the grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted in the past;

&nbsp;&nbsp;&nbsp;&nbsp;(c) all decisions with respect to future RSU or other grants, if any, will be at BioLargo's sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;(d) the RSU grant and Participant's participation in the Plan will not create a right to employment or be interpreted as forming an employment or services contract with BioLargo, the Employer or any Parent or Subsidiary or Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;(e) Participant is voluntarily participating in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;(f) the RSUs and the Shares subject to the RSUs are not intended to replace any pension rights or compensation;

&nbsp;&nbsp;&nbsp;&nbsp;(g) the RSUs and the Shares subject to the RSUs, and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

&nbsp;&nbsp;&nbsp;&nbsp;(h) the future value of the Shares underlying the RSUs is unknown, indeterminable and cannot be predicted with certainty;

&nbsp;&nbsp;&nbsp;&nbsp;(i) no claim or entitlement to compensation or damages will arise from forfeiture of the RSUs resulting from Participant's termination of Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant's employment agreement, if any), and in consideration of the grant of the RSUs to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against BioLargo, or any Parent or Subsidiary or Affiliate or the Employer, waives his or her ability, if any, to bring any such claim, and releases BioLargo, any Parent or Subsidiary or Affiliate and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant will be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim;

&nbsp;&nbsp;&nbsp;&nbsp;(j) unless otherwise provided in the Plan or by BioLargo in its discretion, the RSUs and the benefits evidenced by this Agreement do not create any entitlement to have the RSUs or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any Corporate Transaction affecting the Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;(k) the following provisions apply only if Participant is providing services outside the United States:

(i) the RSUs and the Shares subject to the RSUs are not part of normal or expected compensation or salary for any purpose;

(ii) Participant acknowledges and agrees that neither BioLargo, the Employer nor any Parent or Subsidiary or Affiliate will be liable for any foreign exchange rate fluctuation between Participant's local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to Participant pursuant to the settlement of the RSUs or the subsequent sale of any Shares acquired upon settlement.

&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>No Advice Regarding Grant</u>.** BioLargo is not providing any tax, legal or financial advice, nor is BioLargo making any recommendations regarding Participant's participation in the Plan or Participant's acquisition or sale of the underlying Shares. Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Data Privacy</u>.** Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant's personal data as described in this Agreement and any other RSU grant materials by and among, as applicable, the Employer, BioLargo and any Parent, Subsidiary or Affiliate for the exclusive purpose of implementing, administering and managing Participant's participation in the Plan.

Participant understands that BioLargo and the Employer may hold certain personal information about Participant, including, but not limited to, Participant's name, home address, email address and telephone number, date of birth, social insurance number, passport number or other identification number, salary, nationality, job title, any shares of stock or directorships held in BioLargo, details of all RSUs or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in Participant's favor ("Data"), for the exclusive purpose of implementing, administering and managing the Plan.

Participant understands that Data will be transferred to the stock plan service provider as may be designated by BioLargo from time to time or its affiliates or such other stock plan service provider as may be selected by BioLargo in the future, which is assisting BioLargo with the implementation, administration and management of the Plan. Participant understands that the recipients of the Data may be located in the United States or elsewhere and that the recipients' country (e.g., the United States) may have different data privacy laws and protections than Participant's country. Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. Participant authorizes BioLargo, the stock plan service provider as may be designated by BioLargo from time to time, and its affiliates, and any other possible recipients that may assist BioLargo (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant's participation in the Plan. Participant understands that if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis. If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing Participant's consent is that BioLargo would not be able to grant Participant RSUs or other equity awards or administer or maintain such awards. Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant's ability to participate in the Plan. For more information on the consequences of Participant's refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative.

&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Language</u>.** If Participant has received this Agreement or any other document related to the RSU and/or the Plan translated into a language other than English and if the meaning of the translated version is different from the English version, the English version will control.

&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Appendix</u>.** Notwithstanding any provisions in this Agreement, the RSU grant will be subject to any special terms and conditions set forth in any Appendix to this Agreement for Participant's country. Moreover, if Participant relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to Participant, to the extent BioLargo determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Imposition of Other Requirements</u>.** BioLargo reserves the right to impose other requirements on Participant's participation in the Plan, on the RSUs and on any Shares acquired under the Plan, to the extent BioLargo determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Acknowledgement</u>.** BioLargo and Participant agree that the RSUs are granted under and governed by the Notice, this Agreement and by the provisions of the Plan (incorporated herein by reference). Participant: (a) acknowledges receipt of a copy of the Plan and the Plan prospectus, (b) represents that Participant has carefully read and is familiar with their provisions and (c) hereby accepts the RSUs subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>Entire Agreement; Enforcement of Rights</u>.** This Agreement, the Plan and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are superseded. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement will not be construed as a waiver of any rights of such party.

&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>Compliance</u>**<u> </u>**<u>with</u>**<u> </u>**<u>Laws</u>**<u> </u>**<u>and</u>**<u> </u>**<u>Regulations</u>.** The issuance of Shares and any restriction on the sale of Shares will be subject to and conditioned upon compliance by BioLargo and Participant with all applicable state, federal and local laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which BioLargo's Common Stock may be listed or quoted at the time of such issuance or transfer. Participant understands that BioLargo is under no obligation to register or qualify the Common Stock with any state, federal or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. Further, Participant agrees that BioLargo will have unilateral authority to amend the Plan and this RSU Agreement without Participant's consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares. Finally, the Shares issued pursuant to this RSU Agreement will be endorsed with appropriate legends, if any, determined by BioLargo.

&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>Severability</u>.** If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision will be excluded from this Agreement, (b) the balance of this Agreement will be interpreted as if such provision were so excluded, and (c) the balance of this Agreement will be enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Governing Law and Venue</u>.** This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto will be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. Any and all disputes relating to, concerning or arising from this Agreement, or relating to, concerning or arising from the relationship between the parties evidenced by the Plan or this Agreement, will be brought and heard exclusively in the United States District Court, Central District of California (Southern Division) or the Superior Court of the State of California, Orange County. Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to the fullest extent permitted by law, any objection that such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>No Rights as Employee, Director or Consultant</u>.** Nothing in this Agreement will affect in any manner whatsoever the right or power of BioLargo, or a Parent or Subsidiary or Affiliate, to terminate Participant's Service, for any reason, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Consent to Electronic Delivery of All Plan Documents and Disclosures</u>.** By Participant's acceptance (whether in writing, electronically or otherwise) of the Notice, Participant and BioLargo agree that the RSUs are granted under and governed by the terms and conditions of the Plan, the Notice and this Agreement. Participant has reviewed the Plan, the Notice and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel before executing this Agreement and fully understands all provisions of the Plan, the Notice and this Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice and this Agreement. Participant further agrees to notify BioLargo upon any change in Participant's residence address indicated on the Notice. By acceptance of the RSUs, Participant agrees to participate in the Plan through an on-line or electronic system established and maintained by BioLargo or a third party designated by BioLargo and consents to the electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses required by the U.S. Securities and Exchange Commission, U.S. financial reports of BioLargo and all other documents that BioLargo is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the RSUs and current or future participation in the Plan. Electronic delivery may include the delivery of a link to BioLargo intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via email or such other delivery determined at BioLargo's discretion. Participant acknowledges that Participant may receive from BioLargo a paper copy of any documents delivered electronically at no cost if Participant contacts BioLargo by telephone, through a postal service or electronic mail to Stock Administration. Participant further acknowledges that Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide upon request to BioLargo or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, Participant understands that Participant's consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if Participant has provided an electronic mail address), at any time by notifying BioLargo of such revised or revoked consent by telephone, postal service or electronic mail to Stock Administration. Finally, Participant understands that Participant is not required to consent to electronic delivery if local laws prohibit such consent.

&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>Insider Trading Restrictions/Market Abuse Laws</u>.** Participant acknowledges that, depending on Participant's country, Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect Participant's ability to acquire or sell the Shares or rights to Shares under the Plan during such times as Participant is considered to have "inside information" regarding BioLargo (as defined by the laws in Participant's country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable BioLargo insider trading policy. Participant acknowledges that it is Participant's responsibility to comply with any applicable restrictions, and Participant is advised to speak to Participant's personal advisor on this matter.

&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>Code Section 409A</u>.** For purposes of this Agreement, a termination of employment will be determined consistent with the rules relating to a "separation from service" as defined in Section 409A of the Internal Revenue Code and the regulations thereunder ("**Section 409A**"). Notwithstanding anything else provided herein, to the extent any payments provided under this RSU Agreement in connection with Participant's termination of employment constitute deferred compensation subject to Section 409A, and Participant is deemed at the time of such termination of employment to be a "specified employee" under Section 409A, then such payment will not be made or commence until the earlier of (i) the expiration of the six-month period measured from Participant's separation from service from BioLargo or (ii) the date of Participant's death following such a separation from service; *provided, however,* that such deferral will only be effected to the extent required to avoid adverse tax treatment to Participant, including, without limitation, the additional tax for which Participant otherwise would be liable under Section 409A(a)(1)(B) in the absence of such a deferral. To the extent any payment under this RSU Agreement may be classified as a "short-term deferral" within the meaning of Section 409A, such payment will be deemed a short-term deferral, even if it also may qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant to this section are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;**22. <u>Award Subject to BioLargo Clawback or Recoupment</u>.** To the extent permitted by applicable law, the RSUs will be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Participant's employment or other Service that is applicable to Participant. In addition to any other remedies available under such policy and applicable law, BioLargo may require the cancellation of Participant's RSUs (whether vested or unvested) and the recoupment of any gains realized with respect to Participant's RSUs.

**BY ACCEPTING THIS AWARD OF RSUS, PARTICIPANT AGREES TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.**

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**APPENDIX**

**None**

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**BIOLARGO, INC.**

**2024 EQUITY INCENTIVE PLAN**

**NOTICE OF STOCK OPTION GRANT**

Unless otherwise defined herein, the terms defined in the BioLargo, Inc. ("**BioLargo**") 2024 Equity Incentive Plan (the "**Plan**") will have the same meanings in this Notice of Stock Option Grant and the electronic representation of this Notice of Stock Option Grant established and maintained by BioLargo or a third party designated by BioLargo (this "**Notice**").

**Name**:

**Address**:

You (the "**Participant**") have been granted an option to purchase shares of Common Stock of BioLargo under the Plan subject to the terms and conditions of the Plan, this Notice and the Stock Option Award Agreement (the "**Option Agreement**"), including any applicable country-specific provisions in any appendix attached hereto (the "**Appendix**"), which constitutes part of the Option Agreement.

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| | |
|:---|:---|
| **Grant Number**: |  |
| **Date of Grant**: |  |
| **Vesting Commencement Date**: |  |
| **Exercise Price per Share**: |  |
| **Total Number of Shares**: |  |
| **Type of Option**: | Non-Qualified Stock Option |
|  | Incentive Stock Option |
| **Expiration Date**: | , 20<u> </u><u> </u><u> </u><u> </u>; This Option expires earlier if Participant's Service terminates earlier, as described in the Option Agreement. |
| **Vesting Schedule**: | [Insert applicable vesting schedule] |

---

By accepting (whether in writing, electronically or otherwise) the Option, Participant acknowledges and agrees to the following:

Participant understands that Participant's employment or consulting relationship or Service with BioLargo or a Parent or Subsidiary or Affiliate is for an unspecified duration, can be terminated at any time (*i.e.*, is "at-will"), except where otherwise prohibited by applicable law and that nothing in this Notice, the Option Agreement or the Plan changes the nature of that relationship. Participant acknowledges that the vesting of the Options pursuant to this Notice is subject to Participant's continuing Service as an Employee, Director or Consultant. Participant acknowledges that the Vesting Schedule may change prospectively in the event that Participant's service status changes between full- and part-time status and/or in the event that Participant is on a leave of absence, in accordance with BioLargo's policies relating to work schedules and vesting or as determined by the Committee. Furthermore, the period during which Participant may exercise the Option after a termination of Service will commence on the Termination Date (as defined in the Option Agreement). Participant also understands that this Notice is subject to the terms and conditions of both the Option Agreement and the Plan, both of which are incorporated herein by reference. Participant has read both the Option Agreement and the Plan. By accepting the Option, Participant consents to electronic delivery as set forth in the Option Agreement.

---

| | |
|:---|:---|
| **PARTICIPANT** | **BIOLARGO, INC.** |

---

---

| | |
|:---|:---|
| Signature: | By: |
| Print Name: | Its: |

---

**BIOLARGO, INC.**

**2024 EQUITY INCENTIVE PLAN**

**STOCK OPTION AWARD AGREEMENT**

Unless otherwise defined in this Stock Option Award Agreement (this "**Option Agreement**"), any capitalized terms used herein will have the meaning ascribed to them in the BioLargo, Inc. 2024 Equity Incentive Plan (the "**Plan**").

Participant has been granted an option to purchase Shares (the "**Option**") of BioLargo, Inc. ("**BioLargo**"), subject to the terms and conditions of the Plan, the Notice of Stock Option Grant (the "**Notice**") and this Option Agreement, including any applicable country-specific provisions in any appendix attached hereto (the "**Appendix**"), which constitutes part of this Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Vesting Rights</u>.** Subject to the applicable provisions of the Plan and this Option Agreement, this Option may be exercised, in whole or in part, in accordance with the Vesting Schedule set forth in the Notice. Participant acknowledges and agrees that the Vesting Schedule may change prospectively in the event that Participant's service status changes between full- and part-time status and/or in the event that Participant is on an approved leave of absence in accordance with BioLargo policies relating to work schedules and vesting of awards or as determined by the Committee. Participant acknowledges that the vesting of the Options pursuant to the Notice and this Option Agreement is subject to Participant's continuing Service.

&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Grant of Option</u>.** Participant has been granted an Option for the number of Shares set forth in the Notice at the exercise price per Share in U.S. Dollars set forth in the Notice (the "**Exercise Price**"). In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan will prevail. If designated in the Notice as an Incentive Stock Option ("**ISO**"), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code. However, if this Option is intended to be an ISO, to the extent that it exceeds the U.S. $100,000 rule of Code Section 422(d) it will be treated as a Nonqualified Stock Option ("**NSO**").

&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Termination Period</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Rule</u>. If Participant's Service terminates for any reason except death or Disability, and other than for Cause (as defined in the Plan), then this Option will expire at the close of business at BioLargo headquarters on the date three (3) months after Participant's Termination Date (as defined below) (or such shorter time period not less than thirty (30) days or longer time period as may be determined by the Committee, with any exercise beyond three (3) months after the date Participant's Service terminates deemed to be the exercise of an NSO). If Participant's Service is terminated for Cause, this Option will expire upon the date of such termination. BioLargo determines when Participant's Service terminates for all purposes under this Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Death; Disability</u>. If Participant dies before Participant's Service terminates (or Participant dies within three (3) months of Participant's termination of Service other than for Cause, then this Option will expire at the close of business at BioLargo headquarters on the date eighteen (18) months after the date of death (or such shorter time period not less than six (6) months or longer time period as may be determined by the Committee, subject to the expiration details in **Section 7**). If Participant's Service terminates because of Participant's Disability, then this Option will expire at the close of business at BioLargo headquarters on the date twelve (12) months after Participant's Termination Date (or such shorter time period not less than six (6) months or longer time period as may be determined by the Committee, subject to the expiration details in **Section 7**).

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Notice</u>. Participant is responsible for keeping track of these exercise periods following Participant's termination of Service for any reason. BioLargo will not provide further notice of such periods. In no event will this Option be exercised later than the Expiration Date set forth in the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination</u>. For purposes of this Option, Participant's Service will be considered terminated as of the date Participant is no longer providing Services to BioLargo, its Parent or one of its Subsidiaries or Affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant's employment agreement, if any) (the "**Termination Date**"). The Committee will have the exclusive discretion to determine when Participant is no longer actively providing services for purposes of Participant's Option (including whether Participant may still be considered to be providing services while on an approved leave of absence). Unless otherwise provided in this Option Agreement or determined by BioLargo, Participant's right to vest in this Option under the Plan, if any, will terminate as of the Termination Date and will not be extended by any notice period (*e.g.*, Participant's period of services would not include any contractual notice period or any period of "garden leave" or similar period mandated under employment laws in the jurisdiction where Participant is employed or the terms of Participant's employment agreement, if any). Following the Termination Date, Participant may exercise the Option only as set forth in the Notice and this Section, provided that the period (if any) during which Participant may exercise the Option after the Termination Date, if any, will commence on the date Participant ceases to provide services and will not be extended by any notice period mandated under employment laws in the jurisdiction where Participant is employed or terms of Participant's employment agreement, if any. If Participant does not exercise this Option within the termination period set forth in the Notice or the termination periods set forth above, the Option will terminate in its entirety. In no event may any Option be exercised after the Expiration Date of the Option as set forth in the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Exercise of Option</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Right to Exercise</u>. This Option is exercisable during its term in accordance with the Vesting Schedule set forth in the Notice and the applicable provisions of the Plan and this Option Agreement. In the event of Participant's death, Disability, termination for Cause or other cessation of Service, the exercisability of the Option is governed by the applicable provisions of the Plan, the Notice and this Option Agreement. This Option may not be exercised for a fraction of a Share.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Method of Exercise</u>. This Option is exercisable by delivery of an exercise notice in a form specified by BioLargo (the "**Exercise Notice**"), which will state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the "**Exercised Shares**") and such other representations and agreements as may be required by BioLargo pursuant to the provisions of the Plan. The Exercise Notice will be delivered in person, by mail, via electronic mail or facsimile or by other authorized method to the Secretary of BioLargo or other person designated by BioLargo. The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares together with any applicable Tax-Related Items (as defined in **Section 8** below). This Option will be deemed to be exercised upon receipt by BioLargo of such fully executed Exercise Notice accompanied by such aggregate Exercise Price, if any, and payment of any Tax-Related Items. No Shares will be issued pursuant to the exercise of this Option unless such issuance and exercise complies with all relevant provisions of law and the requirements of any stock exchange or quotation service on which the Shares are then listed. Assuming such compliance, for income tax purposes the Exercised Shares will be considered transferred to Participant on the date the Option is exercised with respect to such Exercised Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exercise by Another</u>. If another person wants to exercise this Option after it has been transferred to him or her in compliance with this Option Agreement, then that person must prove to BioLargo's satisfaction that he or she is entitled to exercise this Option. That person also must complete the proper Exercise Notice form (as described above) and pay the Exercise Price (as described below) and any applicable Tax-Related Items (as described below).

&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Method of Payment</u>.** Payment of the aggregate Exercise Price will be by any of the following, or a combination thereof, at the election of Participant:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Participant's personal check (or readily available funds), wire transfer or a cashier's check;

&nbsp;&nbsp;&nbsp;&nbsp;(b) certificates for shares of BioLargo stock that Participant owns, along with any forms needed to effect a transfer of those shares to BioLargo; the value of the shares, determined as of the effective date of the Option exercise, will be applied to the Option Exercise Price. Instead of surrendering shares of BioLargo stock, Participant may attest to the ownership of those shares on a form provided by BioLargo and have the same number of shares subtracted from the Option shares issued to Participant. However, Participant may not surrender, or attest to the ownership of, shares of BioLargo stock in payment of the Exercise Price of Participant's Option if Participant's action would cause BioLargo to recognize compensation expense (or additional compensation expense) with respect to this Option for financial reporting purposes;

&nbsp;&nbsp;&nbsp;&nbsp;(c) cashless exercise through irrevocable directions to a securities broker approved by BioLargo to sell all or part of the Shares covered by this Option and to deliver to BioLargo from the sale proceeds an amount sufficient to pay the Exercise Price and any applicable Tax-Related Items. The balance of the sale proceeds, if any, will be delivered to Participant. The directions must be given by signing a special notice of exercise form provided by BioLargo; or

&nbsp;&nbsp;&nbsp;&nbsp;(d) cashless exercise, where the number of shares to be issued to Participant after exercise of the Option is calculated by (i) subtracting the Option Exercise Price from the Fair Market Value as of the date the Exercise Notice is received by BioLargo, (ii) multiplying that number times the number of shares requested to be exercised, and (iii) dividing that number by the Fair Market Value as of the date the Exercise Notice is received by BioLargo; or

&nbsp;&nbsp;&nbsp;&nbsp;(e) other method authorized by BioLargo.

&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Non-Transferability of Option</u>.** This Option may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of other than by will or by the laws of descent or distribution or court order and may be exercised during the lifetime of Participant only by Participant or unless otherwise permitted by the Committee on a case-by-case basis. The terms of the Plan and this Option Agreement will be binding upon the executors, administrators, heirs, successors and assigns of Participant.

&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Term of Option</u>.** This Option will in any event expire on the expiration date set forth in the Notice, which date is ten (10) years after the Date of Grant (five (5) years after the Date of Grant if this Option is designated as an ISO in the Notice of Stock Option Grant and **Section 5.3** of the Plan applies).

&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Tax Consequences</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Responsibility for Taxes</u>. Participant acknowledges that, regardless of any action taken by BioLargo or, if different, a Parent, Subsidiary or Affiliate employing or retaining Participant (the "**Employer**"), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Participant's participation in the Plan and legally applicable to Participant ("**Tax-Related Items**") is and remains Participant's responsibility and may exceed the amount actually withheld by BioLargo or the Employer. Participant further acknowledges that BioLargo and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this Option, including, but not limited to, the grant, vesting or exercise of this Option, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of this Option to reduce or eliminate Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction, Participant acknowledges that BioLargo and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. *PARTICIPANT SHOULD CONSULT A TAX ADVISER APPROPRIATELY QUALIFIED IN THE COUNTRY OR COUNTRIES IN WHICH PARTICIPANT RESIDES OR IS SUBJECT TO TAXATION BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.*

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding</u>. Before any relevant taxable or tax withholding event, as applicable, Participant agrees to make adequate arrangements satisfactory to BioLargo and/or the Employer to satisfy all Tax-Related Items. In this regard, Participant authorizes BioLargo and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:

(i) withholding from Participant's wages or other cash compensation paid to Participant by BioLargo and/or the Employer; or

(ii) withholding from proceeds of the sale of Shares acquired at exercise of this Option either through a voluntary sale or through a mandatory sale arranged by BioLargo (on Participant's behalf pursuant to this authorization); or

(iii) withholding in Shares to be issued upon exercise of the Option, provided that BioLargo only withholds the number of Shares necessary to satisfy no more than the maximum applicable statutory withholding amounts; or

(iv) Participant's payment of a cash amount (including by check representing readily available funds or a wire transfer); or

(v) any other arrangement approved by the Committee and permitted by applicable law;

all under such rules as may be established by the Committee and in compliance with BioLargo's Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable.

Depending on the withholding method, BioLargo may withhold or account for Tax-Related Items by considering applicable statutory withholding rates or other applicable withholding rates, including up to maximum applicable rates, in which case Participant will receive a refund of any over-withheld amount in cash and will have no entitlement to the Common Stock equivalent. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Shares issued upon exercise of the Option; notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items. The Fair Market Value of these Shares, determined as of the effective date of the Option exercise, will be applied as a credit against the Tax-Related Items withholding.

Finally, Participant agrees to pay to BioLargo or the Employer any amount of Tax-Related Items that BioLargo or the Employer may be required to withhold or account for as a result of Participant's participation in the Plan that cannot be satisfied by the means previously described. BioLargo may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if Participant fails to comply with his or her obligations in connection with the Tax-Related Items.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Disqualifying Disposition of ISO Shares</u>. For U.S. taxpayers, if Participant sells or otherwise disposes of any of the Shares acquired pursuant to an ISO on or before the later of (i) two (2) years after the grant date or (ii) one (1) year after the exercise date, Participant will immediately notify BioLargo in writing of such disposition. Participant agrees that he or she may be subject to income tax withholding by BioLargo on the compensation income recognized from such early disposition of ISO Shares by payment in cash or out of the current earnings paid to Participant.

&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Nature of Grant</u>.** By accepting the Option, Participant acknowledges, understands and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the Plan is established voluntarily by BioLargo, it is discretionary in nature, and it may be modified, amended, suspended or terminated by BioLargo at any time, to the extent permitted by the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;(b) the grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past;

&nbsp;&nbsp;&nbsp;&nbsp;(c) all decisions with respect to future option or other grants, if any, will be at the sole discretion of BioLargo;

&nbsp;&nbsp;&nbsp;&nbsp;(d) the Option grant and Participant's participation in the Plan will not create a right to employment or be interpreted as forming an employment or services contract with BioLargo, the Employer or any Parent or Subsidiary or Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;(e) Participant is voluntarily participating in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;(f) the Option and the Shares acquired under the Plan are not intended to replace any pension rights or compensation;

&nbsp;&nbsp;&nbsp;&nbsp;(g) the Option and any Shares acquired under the Plan and the income and value of same are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

&nbsp;&nbsp;&nbsp;&nbsp;(h) the future value of the Shares underlying the Option is unknown, indeterminable, and cannot be predicted with certainty;

&nbsp;&nbsp;&nbsp;&nbsp;(i) if the underlying Shares do not increase in value, the Option will have no value;

&nbsp;&nbsp;&nbsp;&nbsp;(j) if Participant exercises the Option and acquires Shares, the value of such Shares may increase or decrease in value, even below the Exercise Price;

&nbsp;&nbsp;&nbsp;&nbsp;(k) no claim or entitlement to compensation or damages will arise from forfeiture of the Option resulting from Participant's termination of Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant's employment agreement, if any), and in consideration of the grant of the Option to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against BioLargo, or any Parent or Subsidiary or Affiliate or the Employer, waives his or her ability, if any, to bring any such claim, and releases BioLargo, any Parent or Subsidiary or Affiliate and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant will be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim;

&nbsp;&nbsp;&nbsp;&nbsp;(l) unless otherwise provided in the Plan or by BioLargo in its discretion, the Option and the benefits evidenced by this Option Agreement do not create any entitlement to have the Option or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any Corporate Transaction affecting the Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;(m) the following provisions apply only if Participant is providing services outside the United States:

(i) the Option and the Shares subject to the Option are not part of normal or expected compensation or salary for any purpose;

(ii) Participant acknowledges and agrees that neither BioLargo, the Employer nor any Parent or Subsidiary or Affiliate will be liable for any foreign exchange rate fluctuation between Participant's local currency and the United States Dollar that may affect the value of the Option or of any amounts due to Participant pursuant to the exercise of the Option or the subsequent sale of any Shares acquired upon exercise.

&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>No Advice Regarding Grant</u>.** BioLargo is not providing any tax, legal or financial advice, nor is BioLargo making any recommendations, regarding Participant's participation in the Plan or Participant's acquisition or sale of the underlying Shares. Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Data Privacy</u>.** Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant's personal data as described in this Option Agreement and any other Option grant materials by and among, as applicable, the Employer, BioLargo and any Parent, Subsidiary or Affiliate for the exclusive purpose of implementing, administering and managing Participant's participation in the Plan.

Participant understands that BioLargo and the Employer may hold certain personal information about Participant, including, but not limited to, Participant's name, home address, email address and telephone number, date of birth, social insurance number, passport number or other identification number, salary, nationality, job title, any shares of stock or directorships held in BioLargo, details of all Options or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in Participant's favor ("Data"), for the exclusive purpose of implementing, administering and managing the Plan.

Participant understands that Data will be transferred to the stock plan service provider as may be designated by BioLargo from time to time or its affiliates or such other stock plan service provider as may be selected by BioLargo in the future, which is assisting BioLargo with the implementation, administration and management of the Plan. Participant understands that the recipients of the Data may be located in the United States or elsewhere and that the recipients' country (e.g., the United States) may have different data privacy laws and protections than Participant's country. Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. Participant authorizes BioLargo, the stock plan service provider as may be designated by BioLargo from time to time, and its affiliates, and any other possible recipients that may assist BioLargo (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant's participation in the Plan. Participant understands that if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis. If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing Participant's consent is that BioLargo would not be able to grant Participant options or other equity awards or administer or maintain such awards. Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant's ability to participate in the Plan. For more information on the consequences of Participant's refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative.

&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Language</u>.** If Participant has received this Option Agreement or any other document related to the Option and/or the Plan translated into a language other than English and if the meaning of the translated version is different from the English version, the English version will control.

&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Appendix</u>.** Notwithstanding any provisions in this Option Agreement, the Option grant will be subject to any special terms and conditions set forth in any Appendix to this Option Agreement for Participant's country. Moreover, if Participant relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to Participant, to the extent BioLargo determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>Imposition of Other Requirements</u>.** BioLargo reserves the right to impose other requirements on Participant's participation in the Plan, on the Option and on any Shares purchased upon exercise of the Option, to the extent BioLargo determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>Acknowledgement</u>.** BioLargo and Participant agree that the Option is granted under and governed by the Notice, this Option Agreement and by the provisions of the Plan (incorporated herein by reference). Participant: (a) acknowledges receipt of a copy of the Plan and the Plan prospectus, (b) represents that Participant has carefully read and is familiar with their provisions and (c) hereby accepts the Option subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>Entire Agreement; Enforcement of Rights</u>.** This Option Agreement, the Plan and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are superseded. No modification of or amendment to this Option Agreement, nor any waiver of any rights under this Option Agreement, will be effective unless in writing and signed by the parties to this Option Agreement. The failure by either party to enforce any rights under this Option Agreement will not be construed as a waiver of any rights of such party.

&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Compliance with Laws and Regulations</u>.** The issuance of Shares and any restriction on the sale of Shares will be subject to and conditioned upon compliance by BioLargo and Participant with all applicable state, federal and local laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which BioLargo's Common Stock may be listed or quoted at the time of such issuance or transfer. Participant understands that BioLargo is under no obligation to register or qualify the Common Stock with any state, federal or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. Further, Participant agrees that BioLargo will have unilateral authority to amend the Plan and this Option Agreement without Participant's consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares. Finally, the Shares issued pursuant to this Option Agreement will be endorsed with appropriate legends, if any, determined by BioLargo.

&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>Severability</u>.** If one or more provisions of this Option Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision will be excluded from this Option Agreement, (b) the balance of this Option Agreement will be interpreted as if such provision were so excluded, and (c) the balance of this Option Agreement will be enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Governing Law and Venue</u>.** This Option Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto will be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. Any and all disputes relating to, concerning or arising from this Option Agreement, or relating to, concerning or arising from the relationship between the parties evidenced by the Plan or this Option Agreement, will be brought and heard exclusively in the United States District Court, Central District of California (Southern Division) or the Superior Court of the State of California, Orange County. Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to the fullest extent permitted by law, any objection that such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>No Rights as Employee, Director or Consultant</u>.** Nothing in this Option Agreement will affect in any manner whatsoever the right or power of BioLargo, or a Parent or Subsidiary or Affiliate, to terminate Participant's Service, for any reason, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>Consent to Electronic Delivery of All Plan Documents and Disclosures</u>.** By Participant's acceptance (whether in writing, electronically or otherwise) of the Notice, Participant and BioLargo agree that this Option is granted under and governed by the terms and conditions of the Plan, the Notice and this Option Agreement. Participant has reviewed the Plan, the Notice and this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel before executing this Option Agreement and fully understands all provisions of the Plan, the Notice and this Option Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice and the Option Agreement. Participant further agrees to notify BioLargo upon any change in Participant's residence address indicated on the Notice. By acceptance of this Option, Participant agrees to participate in the Plan through an on-line or electronic system established and maintained by BioLargo or a third party designated by BioLargo and consents to the electronic delivery of the Notice, this Option Agreement, the Plan, account statements, Plan prospectuses required by the U.S. Securities and Exchange Commission, U.S. financial reports of BioLargo and all other documents that BioLargo is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the Option and current or future participation in the Plan. Electronic delivery may include the delivery of a link to BioLargo intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via email or such other delivery determined at BioLargo's discretion. Participant acknowledges that Participant may receive from BioLargo a paper copy of any documents delivered electronically at no cost if Participant contacts BioLargo by telephone, through a postal service or electronic mail to Stock Administration. Participant further acknowledges that Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide upon request to BioLargo or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, Participant understands that Participant's consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if Participant has provided an electronic mail address), at any time by notifying BioLargo of such revised or revoked consent by telephone, postal service or electronic mail to Stock Administration. Finally, Participant understands that Participant is not required to consent to electronic delivery if local laws prohibit such consent.

&nbsp;&nbsp;&nbsp;&nbsp;**22. <u>Insider Trading Restrictions/Market Abuse Laws</u>.** Participant acknowledges that, depending on Participant's country, Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect Participant's ability to acquire or sell the Shares or rights to Shares under the Plan during such times as Participant is considered to have "inside information" regarding BioLargo (as defined by the laws in Participant's country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable BioLargo insider trading policy. Participant acknowledges that it is Participant's responsibility to comply with any applicable restrictions, and Participant is advised to speak to Participant's personal advisor on this matter.

&nbsp;&nbsp;&nbsp;&nbsp;**23. <u>Award Subject to BioLargo Clawback or Recoupment</u>.** To the extent permitted by applicable law, the Option will be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Participant's employment or other Service that is applicable to Participant. In addition to any other remedies available under such policy and applicable law, BioLargo may require the cancellation of Participant's Option (whether vested or unvested) and the recoupment of any gains realized with respect to Participant's Option.

**BY ACCEPTING THIS OPTION, PARTICIPANT AGREES TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.**

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**APPENDIX**

**None**