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Pitch Deck Teardown: Phospholutions's $10M Series A extension AgTech deck

Phospholutions is developing a new fertilizer additive called RhizoSorb to improve phosphorus use efficiency in agriculture. RhizoSorb is embedded into fertilizer during production and releases phosphorus based on plant needs rather than environmental conditions, allowing crops to utilize more of the applied nutrients. Trials have shown RhizoSorb can preserve crop yields while reducing phosphorus use by 50%. This has sustainability benefits like decreasing fertilizer costs, runoff, and greenhouse gas emissions. Phospholutions is currently selling RhizoSorb in the US and seeking funding to further partnerships and commercialization efforts to make phosphorus fertilizer use more efficient and sustainable globally.

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We Are Changing How The World Uses Phosphorus
Global P Use is Inefficient & Unsustainable Inefficient Use As much as 90% of conventional P fertilizer is wasted, lowering profitability for farmers and contributing to runoff Global Impact Inefficient use degrades our waterways and is a large contributor of GHG emissions at ~1.7MT CO2 eq./ MT P2O5 Limited Resource P rock is mined in only a few select regions globally, limiting availability and contributing to food insecurity Growers need more reliable solutions to increase phosphorus fertilizer efficiency Confidential 1
Global P Market Opportunity & Growth Today Short Term Long Term Conventional sources are not efficient Phosphorus fertilizer prices are volatile Resources are finite Global P Market Expected to Reach $70B+ by 2025 Global resources located in only a few select regions • 70%+ of the world’s supply is in Morocco; US has less than 40 years left • Lack of phosphorus fertilizer leads to yield loss • Unequal access of affordable fertilizer exaggerated by geopolitical factors • Inefficient use and lack of availability of fertilizer is destabilizing fragile food systems • P fertilizer prices were up 4x from 2019 to 2022 Confidential 2
Phospholutions Commercial Opportunity Market Need Farmers are seeking reliable phosphate efficiency solutions; P has fewer alternative solutions than N available Business Model Profit sharingmodel with fertilizer producers to manufacture and sell through established Ag retail channels, increasing scalability and reducing commercial launch risk Commercial Status Actively selling RhizoSorb® to US row crop market; Not exclusive with any producer, but working with most major input companies Partnerships Partnering with raw material suppliers and large fertilizermanufacturers to create more sustainable fertilizers Confidential 3
RhizoSorb® – The Future of Phosphorus Sust a i na b l e So l ut i o n Reduces GHG emissions for fertilizer use by 51% per acre and reduce runoff potential by 58% Hi g h e r P r o fi t a bi l i t y Decrease cost of production and increase sales price to improve P manufacture margins per ton Sc a l a b l e & E a sy t o U se Breakthrough tech to improve efficiency and only patented fertilizer additive embedded into granules during production Pr e s e r v e d Y i e l ds Growers use 50% less phosphorus per acre while preserving yield and cutting P fertilizer costs by 10% or up to $20 in savings per acre 1 2 3 4 Confidential 3
Ensuring Fertilizer is Available When Needed Confidential 4 Plant-Based Release RhizoSorb® releases P based on plant dependent factors rather than environmental conditions allowing the plant to utilize more applied nutrients during the growing season. Soil Chemistry Approach Majority of applied phosphates are quickly tied up in the soil making them unavailable for plant uptake. RhizoSorb® acts a reversible reservoir avoiding tie up while decreasing nutrient leaching. Anionic Exchange Capacity RhizoSorb® is the first technology that increases Anionic Exchange Capacity to promote more efficient nutrient exchange around the root zone.
Proven to Preserve Yield Using 50% Less Phosphorus Fertilizer RhizoSorb® has been tested across 200 trial locations across 14 states demonstrating increased yields using 50% less phosphorus per acre. 215 220 189 192 100 180 220 2021 GSP 2021 RhizoSorb® 2022 GSP 2022 RhizoSorb® Corn Yield 56 61 51 52 0 20 40 Yield (bu/acre) 60 2021 GSP 2021 RhizoSorb® 2022 GSP 2022 RhizoSorb® Soybean Yield +5 +3 +5 +1 BU/AC BU/AC BU/AC BU/AC 50% P Reduction 50% P Reduction 140 Yield (bu/acre) 50% P Reduction 50% P Reduction Iowa Spotlight RhizoSorb® had a 92% success rate across 31 sites in 2022 using 50% less P. +3.6 BU/AC *Grower standard practice (GSP) Confidential 5
Global Sustainability Impact Confidential 6 • Reduce runoff potential by 58% and leaching by 84%1 *Study conducted by New Zealand Plant and Food Research Institute • Decrease CO2e emissionsby 51% equating to 44million MT CO2ereduction annually2 *Excludes additional reductions from reducing eutrophication. • Increase in root biomass and reduction in synthetic fertilizer use leads to better soilhealth, organic matter, and increased biodiversity 1. USGS and USEPA estimated 6% loss of P fertilizer from farms. 2. LCA estimate based on industry LCA data and reduction of input needs.
Establishing a New Industry Standard Agnostic of Crop Cost Savings Stable Shelf Life Ease of Use Upstream Production Plant Driven Release RhizoSorb® Trivar Best X-cote Avail Source MAP/DAP Confidential 7
Value Proposition to Grower and Channel Confidential 8 MAP RhizoSorb® Cost per ton $951 $1299 Use rate per acre 154lbs 103lbs Cost per acre $73.23 $66.90 Farmer Value Proposition: Reduce costs by ~10% per acre and preserve yield MAP RhizoSorb® Revenue per ton $951 $1299 Cost per ton $851* $1149 Margin per ton $100 $150 Margin per acre $7.70 $7.70 Tons per acre .077 .052 *Avg NO Retailer Value Proposition: Make more margin per ton, move 33% less product per acre LA F.O.B. pricing of $851 per MAP ton in 2022
Improving Profitability for Commodity Phosphate Producers with Breakthrough Technology $110 $741* $625 $524 Traditional P Fertilizer MAP 11-52-0 NOLA $851/ ton RhizoSorb® 8-39-0 NOLA $1149/ ton Sales price 35% premium compared to commodity pricing while still providing savings to farmer and maintain retail margin per acre COGS 8% reduction • Decrease ammonia cost by 33.5% • Decrease phosphoric acid cost by 22% • Including input cost of RhizoSorb® Cost of Goods *Actual costs for The Mosaic Company (MOS:NYSE) in 2022 based on CRU data $150 $142 More retail margin per ton; Same retail margin per acre 10% cost savings per acre to grower Margin Channel/Grower Incentive Retailer Incentive Grower Savings $100 Confidential 9
Profit-Sharing Model Improves Margin for Producers with Low-Cost Higher-Efficiency Technology $625 $524 RhizoSorb® 8-39-0 NOLA $1149/ ton 50% $262/ton $13.50/acre $262/ton $13.50/acre 50% P Manufacturer Benefits • Double profit margin per ton • Increase profit margin by $5+ per acre • Reduced handling costs by 33% • Extend mine life by 2x • Reduced GHG emissions by 51% Phospholutions Contribution • Formulation know-how • Technology and IP protection • Raw material supply for RhizoSorb® • Brand value • Commercial data • Ag retail partnerships Cost of Goods Margin Profit sharing incentivizes both parties to reduce cost, maintain value, and share commodity cycle impacts equally Confidential 10 REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
Go to Market Strategy Strategic Partnerships Confidential 11 Milestones Partner with large phosphate producers to reduce cost and scale production • Performance trials in US on row crops • Production pilot runs to define COGS at scale • Establish retail distribution partnerships for demand creation and market validation Distributing product in US directly through Ag retail partnerships • Marketing RhizoSorb direct to grower for demand creation at retail level • Retail demo program this spring • Providing additional margin per ton to match per acre margin from conventional fertilizer • Hiring sales team to establish retail partnerships to distribute product at scale Creating grower demand through product demonstrations • Technical sales team managing product demonstrations this spring with select growers • Providing cost-savings benefit to growers per acre • Grower direct marketing efforts Immediate Actions • Provide product & trial support for performance trials • Manufacturing pilots at scale and formulation support • Establishing early market demand through retail partnerships being formed in 2023-2024 • Building team of regional agronomists to support retail distribution • Producing 250 tons with a toll manufacturer for Spring 2023 demo program • Selling 5,000 tons (~100K acres) this fall through retail for delivery in Spring 2024 • Building brand awareness through email campaigns, media exposure, trade show attendance, and demo program
Raising Series B to Establish Retail & Manufacturing Partnerships 2019 Confidential 12 $1.5M Seed round for research and development 2021 $10.3M Series A for product development and on-farm trials 2022 Raised $5.3M convertible note to supportpre- commercial trials 2023 Raising $9M to provide runway for commercial milestones before Series B 2024 Raising an additional $30MSeriesB to drive revenuegrowthin US marketsto be profitable by 2026
Short-Term Objectives 02 Execute on Spring demo program with retailers and select growers 04 Register RhizoSorb® V2 formulation for sale in 2024 06 Sell 5,000 tons (~$6M in gross product sales) through select retailers for spring delivery 01 Hire VP Sales and three sales agronomists throughout the Midwest 03 Continue product trials with retailers and fertilizer manufacturers 05 Sign manufacturing partnership to produce 5,000 tons for delivery in Spring ‘24 2023 Pre-Series B Confidential 13 REDACTED
5-Year Forecast Confidential 14 Product demo Year Toll manufacture Phosphate producer 2023 2024 2025 2026 2027 Revenue $5,738,000 $24,863,000 $114,750,000 $344,250,000 COS $4,055,000 $17,572,000 $62,500,000 $187,500,000 Gross $1,683,000 $7,291,000 $52,250,000 $156,750,000 GM % 29% 29% 46% 46% Partner incentive for manufacturing/distribution $841,500 $3,645,500 $26,125,000 $78,375,000 Phospholutions revenue (50% profit share) $841,500 $3,645,500 $26,125,000 $78,375,000 Expenses Commercial $2,285,000 $2,643,000 $3,620,000 $4,236,000 $4,874,000 Research and Development $2,491,000 $3,329,000 $3,299,000 $4,875,000 $6,456,000 G&A $2,021,000 $1,647,000 $1,697,000 $1,751,000 $1,810,000 Operations $814,000 $887,000 $932,000 $980,000 $1,032,000 Total Operations Expenses $7,611,000 $8,506,000 $9,548,000 $11,842,000 $14,172,000 Operating profit (loss) ($7,611,000) ($7,664,500) ($5,902,500) $14,283,000 $64,203,000 Operating margin 55% 82% REDACTED
Series B Use of Proceeds • Scale production with phosphate manufacturer(s) under a profit- sharing model • Reach profitability by 2026 through rapid US revenue growth • Expand product portfolio with at least two new products • Expand field trial program to new international regions Commercial operations • Manufacturing partnerships with large P-producers • Direct-to-grower marketing efforts & retail support • Build regional support team of agronomists $9.2 Additional IP Filings • Eight patents pending + new IP filings $2.9 Product & Formulation Development • Product portfolio expansion • Contract research & co-development partnerships $2.3 Operations • Product registration & regulatory compliance • Working capital • Supply chain partnerships $2.9 Research & Development • New product development • Field and greenhouse trials • Lab researchers and field agronomists $12.7 $30 Use of Funds through 2026 (millions) Confidential 15 REDACTED
Open Position VP Research & Development Confidential 18 Jacquelyeen Boney Director of People and Culture Craig Dick, MBA VP Sales & Marketing Megan Kuhlman Executive Assistant Byron Bredael Product Development Lead Nick Macris, MS MBA Director of Business Development Brianna Erdman Operations Manager Brad Consevage MKTG & Coms. Specialist Kyle Isaacson, PhD Formulation Chemist Carlos Leon y Leon, PhD Materials Scientist Steve Levitsky, MBA Chief Operations Officer/ VP of Sustainability Mike Castiglione, MS MBA Director of Supply Chain Development Sheila Carl, MS HR Administrator Brian Milam Key Accounts Manager Lia Novak Research Associate Pauline Welikhe, PhD Research Scientist Berson Valcin, MS Research Associate David Visser Regional Sales Manager Taylor Strehl, MS Technical Agronomist World Class Team Hunter Swisher CEO & Founder Jason Burke, MBA VP Finance
Backed By Leading Investors Confidential 17
We Are Changing How Fertilizer is Delivered Confidential 18 Massive Market $70B+ worth of P fertilizers applied globally each year Breakthrough Technology Only patented technology embedded into the fertilizer manufacturing process to release nutrients based on plant needs Strong Team World class team backed by leading investors and advisors Differentiated Approach Enhancing soil chemistry to improve nutrient use efficiency Significant Milestones RhizoSorb® is being sold in 2023 to US farmers for maintaining yield with 50% less phosphorus Growth Potential Platform approach to create more sustainable fertilizer products beyond phosphates
HunterSwisher CEO & Founder hswisher@phospholutions.com Let’s Make Global Phosphorus Use More Sustainable