# Biodel 2023 Shareholder Report | Biodel AG Inc.

- Canonical URL: https://wefunder.com/feed/166934
- Entity ID: wefunder:feed_item:166934
- Published at: 2024-02-21 21:30:46 UTC
- Updated at: 2025-07-11 16:41:20 UTC

## Author
Michael Kirksey

## Subject
Biodel AG Inc.

## Content
2023 was a growth year for Biodel AG as Sequester® reached many new customers, unit volumes grew by 140% and Revenues increased by 73% over 2022. Most importantly, Biodel built a funding agreement with Pangaea Ventures that brings new capital into the Company to expand revenues, technical capabilities and the asset base to support growth. Beyond the funding, Pangaea brings a wealth of expertise and contacts that will support accelerated growth and value. The additional expenses in 2023 reflect the use of these funds to build a stronger and more agile organization.In addition to the growth reflected on the Income Statements, Biodel is in a much stronger Balance Sheet position at the close of Fiscal Year 2023. Old debts have been relieved, new assets acquired and the cash position reflects additional ‘runway’ for Biodel as we work through our 2024 Plan. 2024 will see the full emergence of the Biodel AG business plan. Since our founding in 2015, we have developed a suite of regenerative inputs (soil amendments, fertilizers, and biostimulants) beginning with Sequester®, BAM™ (beneficial aerobic microbes), Carbon-Complexed Fertilizer™, and Carbon Accelerate™, a plant biostimulant. These products are being introduced to the marketplace through normal agricultural distribution methods ranging from direct to grower, regional distributors, and AG retailers. Now we are ready to take the next step by entering the world of Carbon MRV (measure, report, verify) as a Carbon Project Developer. As a Carbon Project Developer, we assemble AG Landowners and Operators in geographic areas into a formal carbon project to sell Voluntary Carbon Credits and Equivalents. Biodel AG organizes the carbon project, performs the measurement step using a highly accurate carbon scanner that feeds the data directly to the Verifier (3rd party) through the secure Microsoft AZURE blockchain system. The Verifier then delivers the results to the Registry Firm who sells the certified carbon credit and equivalents to carbon emitters (oil & gas firms, coal-fired power plants, etc.).Biodel AG will soon be announcing a partnership agreement with a specific Carbon Registry firm. Our job is to organize the AG Landowners and Operators into a formal carbon project and prepare a Defined Operating Plan for each Participant. Biodel AG gathers the data required by the Registry, performs the field scanning function, and helps implement the Defined Operating Plan. As each Carbon Project is organized, a Biodel AG CCA (certified crop advisor) is assigned to the project. It is at the CCA level that our regenerative inputs are introduced as a means of achieving the objective of selling carbon credits. Our regenerative input products are designed to restore carbon cycling to the soil, improve water use efficiency, and significantly reduce the need for synthetic fertilizer while increasing average crop yields.   Why do we provide AG Landowners and Operators the tools and support to restore carbon cycling to Ag Lands? As of the summer of 2023, CO2 levels in our atmosphere exceeded 420 parts per million, a 50% increase over pre-industrial levels of 270 parts per million (Scripps). The concern is the CO2 imbalance in our atmosphere is growing exponentially, which means mankind must act to prevent significant climate issues as CO2 levels continue to rise unchecked.What role do AG Lands have in rebalancing our atmosphere? Well, AG Lands, as well as our Oceans are the primary carbon sinks that keep the CO2 levels cycling from our soils to the atmosphere and back again. The problem is AG Lands have shifted from being a significant carbon sink to a primary emitter of CO2 and Equivalents. This has overloaded the oceans which are acidifying at a rapid rate. The cycling of carbon with our AG Lands has been interrupted by our management practices. Biodel AG is committed to restoring carbon cycling on AG Lands. The management failure of AG Producers over the past 85 years is based on one thing: the loss of the soils’ microbial biomass. Microbes are essential as they work synergistically with plants to convert atmospheric CO2 into a stable form of carbon that remains in the soil for 1,000’s of years.To accomplish the objective of restoring carbon cycling to AG Lands, Biodel AG provides regenerative inputs that restore the microbial biomass in the soil.  There are three steps for the Operator of the farm enterprise to implement: ·        First, our regenerative inputs are applied to inoculate the soil with beneficia, aerobic microbes at the planting of each crop, or spring for permanent crops. ·        Second, we then feed the microbes to begin cycling carbon as well as nutrients; and ·        Third, we maintain the soils microbial biomass between cash crops with the use of terrestrial or micro cover crops that keep the microbes working and sequestering carbon.So, we apply Sequester® and BAM™ (beneficial aerobic microbes) at planting to inoculate the soil and seed. Then we feed the microbes by applying Carbon-Complexed Fertilizer™ and moving synthetic fertilizers to a subordinate role as a nutrient source. Over a 3-year period, synthetic fertilizer applications are reduced by 70-80%. We also apply Carbon Accelerate™, a plant biostimulant product to optimize crop performance and manage stresses from extreme heat and cold. Finally, we encourage the planting of a multi-species terrestrial cover crop, or another application of Sequester® which serves as a micro-cover crop with similar benefits as a terrestrial cover crop. This combination of Sequester®, BAM™, Carbon-Complexed Fertilizer™, and Carbon Accelerate™, costs less than a conventional approach (synthetic and chemical only) while restoring the ability of the soil to cycle carbon and increasing average yields and income. Finally, as the Operators begin to transition to our regenerative program, we provide a Carbon MRV program to accurately measure the accumulation of carbon in the soil and generate Voluntary Carbon Credits and Equivalents that provide a new revenue stream for the AG Landowner and Operator. With an average Carbon Project of 25,000 acres or more, we can offer our regenerative inputs at a discounted price since marketing becomes more efficient.2024 is an important year for Biodel AG as we will see our full business plan in action. That is selling our regenerative inputs and Carbon Project Development. Our objective for 2024 is to organize 3-5 Carbon Projects. We have a strong schedule of conferences and grower meetings as reflected in the photo below. Biodel AG generates revenue from the following:·        Regenerative Input Sales ·        Carbon Project Development (We receive a percentage of all carbon credit sales and a per acre fee for field scanning). Why enter the Carbon Project Development and MRV business?Selling our regenerative input products to the broad agricultural market is a hit or miss proposition as the agricultural industry is just beginning to consider using AG Lands for carbon sequestration. Generally, we can sell one product, like Sequester, and earn $25 per acre as the manufacturer. The problem is that a complete fertility program must be used by the farm enterprise to achieve positive accumulation of atmospheric carbon. That is difficult when a complete crop input program is required.  Also, it is difficult for our salespeople, CCA’s, to make significant income.By serving as a Carbon Project Developer, we have a receptive audience to a complete fertility program as Participants understand they will generate additional income from the sale of carbon credits. For Biodel AG, our average sales increase to $140+ per acre and we enjoy additional income from carbon sales and field scanning. The project size provides a high-income opportunity for our CCA’s.  What I find interesting is the motivating factor for AG Landowners and Operators to participate in a Carbon Project is they don’t want to be left out of the carbon sequestration business. To illustrate the economic benefits, commercial farming enterprises can generate $150 per acre in annual revenue from carbon credit sales. If one averages $150 per acre over 20 years that is $3,000 in additional income, plus the AG Lands will appreciate by a similar number. Finally, the future value of carbon credits is expected to increase significantly with a potential to rise 5x by 2035.  This puts us in a fast growth opportunity with the potential to grow exponentially going forward.Ben Cloud, CEO