Phospholutions Financial Model
Hardware/Deep-tech Startup Financials (Free Excel Download)
Phospholutions develops RhizoSorb®, a patented fertilizer additive embedded into phosphate granules that reduces P fertilizer use by 50% per acre while preserving crop yield.
professionals from Deloitte
Used by professionals from
About this model
Phospholutions develops RhizoSorb, a fertilizer additive intended to reduce phosphate use while preserving crop yield. The product is embedded in fertilizer granules and sold through agricultural-input channels, making field performance and channel adoption central to commercial success.
Farmers and distributors need evidence that lower phosphate application does not compromise yield. Adoption can therefore move from trials to acres served, while fertilizer partners, price per treated tonne, manufacturing capacity, and channel margin determine how much of that agronomic value the company captures.
Model field trials, conversion to commercial acres, fertilizer volume, additive price, channel margin, and repeat adoption. Include manufacturing, formulation, logistics, agronomy support, certification, and sales costs. Yield proof, distributor wins, acres per customer, price, manufacturing margin, seasonal timing, and repeat purchase should drive scenarios.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
About Phospholutions
phospholutions.com
How to build a detailed financial model for Phospholutions
A complete walkthrough of the business, drivers, and assumptions behind the downloadable Phospholutions model - distilled from its pitch deck and publicly available information.
Product & value proposition
- Product: RhizoSorb® - a patented technology embedded into phosphate fertilizer granules (formulation: 8-39-0) during manufacturing. It is the only patented fertilizer additive embedded upstream into the production process.
- Mechanism: Increases Anionic Exchange Capacity to act as a reversible P reservoir around the root zone; releases P based on plant-driven factors rather than environmental conditions, reducing soil tie-up and leaching.
- Farmer value: Use 50% less phosphorus per acre, preserve yield, cut P fertilizer cost by ~10% per acre (~$6.33/acre savings: $73.23 MAP vs. $66.90 RhizoSorb®) or up to ~$20/acre in broader framing.
- Retailer value: Higher margin per ton ($150 vs. $100), same margin per acre ($7.70); move 33% less product per acre (.052 vs. .077 tons/acre).
- Manufacturer value: COGS 8% reduction (less ammonia –33.5%, less phosphoric acid –22%), 35% sales price premium vs. commodity MAP, double profit margin per ton, $5+ more margin per acre, extend mine life by 2x, –33% handling costs.
- Sustainability: –51% GHG emissions per acre, –58% runoff potential, –84% leaching.
Market
- Global phosphorus fertilizer market expected to reach $70B+ by 2025.
- P fertilizer prices were up 4x from 2019 to 2022.
- 70%+ of world's P rock supply is in Morocco; US has <40 years of reserves remaining.
Revenue model
- Business model: Profit-sharing with phosphate manufacturers. Phospholutions contributes formulation IP, RhizoSorb® raw material supply, ag retail partnerships, and commercial data. Manufacturers produce and sell through established ag retail channels.
- Pricing: RhizoSorb® 8-39-0 sells at a 35% premium to commodity MAP (NOLA ~$1,149/ton vs. $851/ton for MAP). Phospholutions' revenue comes from its share of the manufacturer's margin uplift; exact profit-split percentage is REDACTED in the deck.
- Channel: Ag retail (distributors/retailers). No exclusive arrangements with any single producer; working with most major input companies.
- Unit: Revenue per ton sold through the channel. Volume driver = acres treated × use rate (0.052 tons/acre for RhizoSorb® 8-39-0).
- Platform ambition: Extend technology platform to other nutrient types beyond phosphorus.
Traction & metrics
- Trials: 200 trial locations across 14 states.
- Iowa 2022: 92% success rate across 31 sites using 50% less P.
- Corn yield (Iowa): 2022 RhizoSorb® 192 bu/ac vs. GSP 189 bu/ac (+3 bu/ac); 2021 RhizoSorb® 220 bu/ac vs. GSP 215 bu/ac (+5 bu/ac).
- Soybean yield (Iowa): 2022 RhizoSorb® 52 bu/ac vs. GSP 51 bu/ac (+1 bu/ac); 2021 RhizoSorb® 61 bu/ac vs. GSP 56 bu/ac (+5 bu/ac).
- Commercial status: Actively selling RhizoSorb® to US row crop market in 2023.
- Near-term target: 250 tons produced with toll manufacturer for Spring 2023 demo; 5,000 tons (~100K acres) target for fall 2023 retail sell-through / Spring 2024 delivery.
- Profitability target: Profitable by 2026.
Unit economics
- Retailer margin per ton: $150 (RhizoSorb®) vs. $100 (MAP).
- Retailer margin per acre: $7.70 (identical for both products).
- Manufacturer COGS per ton: $625 for RhizoSorb® 8-39-0 (vs. $741 for MAP, an 8% reduction).
- Manufacturer margin per ton: $524 (RhizoSorb®) vs. $110 (MAP); includes $150 retailer incentive and $142 grower savings component in RhizoSorb® structure.
- Farmer cost per acre: $66.90 (RhizoSorb®, 103 lbs/acre × $1,299/ton) vs. $73.23 (MAP, 154 lbs/acre × $951/ton).
- Phospholutions' share of manufacturer margin uplift: REDACTED.
Competition / moat
- Competitive positioning: Claims to be the only patented fertilizer additive embedded into the granule during upstream manufacturing - differentiating from downstream/soil-applied alternatives.
- Competitors named: Trivar, Best X-cote, Avail, Source, MAP/DAP (commodity baseline).
- Competitive matrix: RhizoSorb® shown as superior on agnostic-of-crop, cost savings, stable shelf life, ease of use, upstream production, and plant-driven release vs. competitors.
- Moat: Patent protection on formulation + upstream embedding process; raw material supply control; proprietary commercial trial data across 200 locations; established ag retail partnerships; brand value of RhizoSorb® trademark.
Team & funding ask / use of funds
- CEO & Founder: Hunter Swisher
- COO/VP Sustainability: Steve Levitsky, MBA
- VP Finance: Jason Burke, MBA
- VP Sales & Marketing: Craig Dick, MBA
- Director of Business Development: Nick Macris, MS MBA
- Director of Supply Chain Development: Mike Castiglione, MS MBA
- Research team: Pauline Welikhe (PhD), Kyle Isaacson (PhD, Formulation Chemist), Carlos Leon y Leon (PhD, Materials Scientist), Taylor Strehl (MS, Technical Agronomist), plus associates.
- VP R&D: Open position.
- Investors: Ag Ventures Alliance, Ben Franklin Technology Partners, TEKFEN Ventures, The Andersons, 1855 Capital, Continental Grain Company, Ospraie Ag Science, UPL OpenAg, Bunge, Radicle Growth.
- Funding history: $1.5M Seed (2019) → $10.3M Series A (2021) → $5.3M convertible note (2022). Total raised before current rounds: ~$17.1M.
- Current raise: $9M bridge (2023) to reach commercial milestones before Series B.
- Series B ask: $30M (2024) to drive US revenue growth and reach profitability by 2026.
- Use of Series B proceeds: REDACTED.
Recommended financial model
- Archetype + why: AgTech / specialty inputs revenue model - volume-based P&L with profit-sharing economics. Not a SaaS or marketplace model; closest archetype is a specialty chemical / ingredients company where Phospholutions earns a per-ton royalty/share from manufacturer partners. The key output is tons sold × Phospholutions' per-ton economics, scaling with the number of manufacturer partnerships and acres penetrated. A 3-statement build (IS / BS / CF) with a volume-based revenue bridge is appropriate given the capital raises and explicit profitability target by 2026.
- Forecast horizon & granularity: 5 years (2023–2027/2028), annual with quarterly split for the first 2 years. Deck explicitly calls out a 5-Year Forecast section (redacted) and profitable-by-2026 target.
- Key drivers & assumptions:
- Volume (tons sold per year)
- 2023: ~250 tons demo batch + 5,000 tons fall retail target - use 5,000 tons as initial sell-through milestone
- 2024–2027: ramp toward full Series B commercial scale; typical US corn+soy addressable acres in the hundreds of millions; penetration rate needed to be chosen (start <1%)
- Use rate: 0.052 tons/acre
- Implied acres from volume: 5,000 tons ÷ 0.052 = ~96,154 acres in 2023
- Selling price (NOLA): $1,149/ton for RhizoSorb® 8-39-0 - this is the manufacturer's revenue; Phospholutions receives its profit-sharing cut
- Phospholutions' per-ton share: REDACTED - range of ~$50–$150/ton given manufacturer margin uplift of ~$414/ton ($524 vs. $110) and qualitative "double profit margin per ton" claim; model should sensitize this split
- COGS (Phospholutions): cost of RhizoSorb® raw material additive per ton of product; not disclosed - priced as a spread vs. manufacturer's $625 COGS baseline; additive cost likely $80–$150/ton range given it's the key IP
- Gross margin for Phospholutions: 50–70% on per-ton economics, pending disclosure of additive COGS and profit-split %
- Headcount/OpEx: Current team of ~20; scale to 40–60 over 5 years with commercial sales team build-out per GTM slide
- SG&A: ~$5–8M/year near term given the $9M bridge and $30M Series B for runway + commercial launch
- R&D: ongoing but declining as % of revenue post-commercialization; VP R&D open - material cost to fill
- P fertilizer commodity price: $1,149/ton assumed as 2023 base; high volatility (4x swing 2019–2022) - key scenario variable
- Manufacturer partnerships: Not quantified; 1–3 in 2023, 3–6 by 2026; each adds volume capacity
- Profitability target: Break-even/profitable by 2026
- Scenarios (Base / Bull / Bear - which variables flex):
- Base: 5,000 tons in 2023 ramping to ~100–200K tons by 2026; commodity prices flat; 2 manufacturer partnerships; Phospholutions share ~$100/ton
- Bull: Faster retail adoption, 3+ manufacturer partnerships by 2024, commodity prices elevated (supports premium pricing), international expansion, platform extension to N/K products begins generating revenue
- Bear: Slow retail adoption (<2,000 tons 2023), one manufacturer partner delays, commodity P prices fall (compresses premium economics), VP R&D vacancy prolongs formulation work, regulatory/IP challenges
- Required sheets / outputs:
- Assumptions dashboard (commodity price, per-ton economics, adoption rate, headcount)
- Revenue bridge: Acres treated → Tons sold → Phospholutions revenue (per-ton share)
- P&L (IS): Revenue, COGS (additive cost), Gross Profit, OpEx (S&M, R&D, G&A), EBITDA, net income
- Cash flow statement: Operating CF, investing (CapEx minimal - asset-light model), financing (track capital raises vs. deployment)
- Balance sheet: Track cash runway; convertible note conversion; Series B proceeds deployment
- Funding waterfall: Seed → Series A → convert note → bridge → Series B; implied post-money ownership dilution
- Break-even analysis: Tons needed to cover OpEx; timeline to 2026 profitability
- Scenario / sensitivity table: Phospholutions per-ton share × volume (key 2-way sensitivity)
Frequently asked
Is the Phospholutions financial model free?+
Yes. The Phospholutions model is a free Excel (.xlsx) download with live formulas. Sign up with your email and the workbook is yours to keep, review, and edit.
What's included in the model?+
A 5-year monthly forecast with P&L, cash flow and runway, valuation (exit multiple plus a DCF cross-check), MOIC/IRR returns, and unit economics, with live formulas throughout.
How was this model built?+
It was built from Phospholutions's pitch deck and publicly available information, then structured to investment-banking standards as a fully editable Excel model.
Can I change the assumptions?+
Yes. You can change assumptions and the live formulas will recalculate in the downloadable Excel model.
Have more financial modelling questions? Contact us
Created by ex-finance professionals
Hey, I’m Alex and I created Finamodel.
Over my years in the finance industry I kept building the same models over and over again. Same structure, same assumptions, different logo. So I started building frameworks to turn them into clean, reusable templates.
Every model here is one I’d actually use for a client, and I personally vet each one before it goes up.
I’m not an expert in every industry, but I’ve built enough models to know what belongs in one. And when something is completely foreign to me, I reach out to my network for experts to work on our models with us.
Having a template library on hand cuts a first build from hours to minutes.
Need help finding your model? You’ll find me in the Finamodel app!
Other Hardware/Deep-tech Startup Financial Models
Browse another startup in the same category.
ANYbotics
ANYbotics builds and sells autonomous legged inspection robots (ANYmal) for industrial facilities, targeting oil & gas, chemicals, power, offshore, mining, and manufacturing sectors.
Awake Security
Awake Security - AI-driven Network Detection & Response (NDR) platform for the hybrid cloud, positioning as the "intent detection" layer of the SOC visibility triad.
Beem
AR communications platform that overlays full-body "hologram" video of a person into the recipient's physical space via smartphone or web.
Blue White Robotics
Autonomous robotics platform converting existing farm equipment to self-driving tractors for permanent-crop growers, sold as Robots-as-a-Service.
Cambridge GaN Devices
Fabless semiconductor startup commercialising self-protected GaN power transistors (HiGaN) that replace silicon and standard GaN with higher efficiency and no external protection circuitry.
Canix
Cannabis-focused ERP (inventory tracking, compliance automation, sales management, yield forecasting) sold as SaaS to cannabis cultivators, manufacturers, and distributors.
Chobani
Chobani is the US market leader in Greek yogurt; TPG invested $671M in April 2014 for a 35% stake via a structured second lien + equity deal
Cipher Skin
Wearable sensor mesh platform that collects dense multi-modal data from human bodies and industrial objects to predict structural and functional failure before it occurs.
