PHYCOCYANIN EXTRACTION AND SUPPLY BUSINESS PLAN

I. Executive Summary

Company Description

We are a San Diego–based biotechnology innovator focused on producing premium natural blue pigments from spirulina using advanced photobioreactors and proprietary extraction methods. We supply high-purity phycocyanin in powder and liquid formats to the US food, beverage, and cosmetic industries via a reliable domestic supply chain designed for high-volume B2B sales. One-liner: premium, domestic, high-volume natural blue pigment supply.

Our core activities are cultivation, extraction, formulation, and B2B distribution with built-in sustainability and quality controls that provide a transparent alternative to synthetic dyes. Short-term goals are to scale production capacity and secure multi-year supply contracts; long-term goals are category leadership in natural blue pigments and expansion into adjacent colorant and ingredient markets. One-liner: scale fast, lock in contracts, lead the category.

Problem

Food, beverage, and cosmetic manufacturers face mounting regulatory and consumer pressure to replace synthetic FD&C Blue No. 1, yet available natural blues routinely fail industrial requirements for pH and thermal stability, causing color shifts, batch failures, and reformulation delays.

Supply chains for high-purity natural blue are opaque and fragile, increasing procurement, compliance, and price-volatility risk for US manufacturers; current natural options also produce dull or grey final colors that hurt shelf appeal and market acceptance.

There is a critical shortage of high-purity phycocyanin that meets US cosmetic and nutraceutical safety standards, and our San Diego-based operation—using advanced photobioreactors and proprietary extraction—targets that gap with a reliable domestic supply of vibrant, stable powder and liquid pigments.

One-liner: Manufacturers need a stable, vibrant, compliant, and reliably supplied natural blue—phycocyanin—currently in short supply.

Solution

CPG brands face pressure to replace synthetic blues amid poor performance from existing naturals and supply-chain risk from overseas suppliers. We address that gap by operating a state-of-the-art biotechnology facility in San Diego that produces domestically sourced, high-purity phycocyanin meeting US cosmetic and nutraceutical standards and offering faster, traceable supply.

Using a proprietary extraction and purification process, we supply a range of stable, application-grade pigments: Blue Powder 25, Blue Liquid 10, Phycocyanin E18, and Cosmetic Grade Ultra, and we maintain a fully domestic supply chain for traceability and lead-time reliability. One clean line: domestic, high-purity phycocyanin that scales into food, beverage, cosmetic, and ingredient manufacturing.

Mission Statement

We empower global brands with the most vibrant, stable, and sustainable natural color solutions through US-based biotechnology innovation, replacing synthetic dyes with a superior clean-label alternative that meets the highest purity standards. We aim to be the leading domestic partner for the CPG industry, driving a transparent transition to natural ingredients while delivering reliable quality and measurable value. We commit to continuous R&D in phycology to advance the science, reduce environmental impact, and set the benchmark for quality in the natural ingredient sector.

Key Success Factors

Critical operational and commercial milestones that must be met to deliver projected growth and margins.

• Operational breakeven achieved within the first two months of the 2026 launch.
• $1,495,000 capital fully deployed into a state-of-the-art production facility on schedule.
• Fully domestic supply chain maintained to eliminate international logistics risk and 6.5% shipping overhead.
• Long-term contracts secured with major food and cosmetic manufacturers to support $9.414M revenue by Year 5.
• Retention of key management including a Chief Science Officer and dedicated B2B Sales Director.

Financial Summary

Summary of financial projections, profitability, and capital needs for the Executive Summary.

Financial requirements: minimum cash of $350,000 (required by Oct-26) and a 24-month payback on the initial investment; projected breakeven in Feb-26. The project targets IRR of 6.9% and ROE of 11.86%.

Outlook: revenues scale from $2.76M in Year 1 to $9.414M in Year 5 with EBITDA growing from $824K to $4.153M.

Funding Requirements

USD 1,845,000 funds buy equipment and provide the minimum cash reserve to reach projected revenue and a 6.9% IRR.