Lighting the Future of Indoor Agriculture

Elevator PitchWe design and manufacture advanced lighting products for indoor agriculture using our patent-pending LED technology

We sell to large commercial farms throughout the US and globally

Multi-billion dollar LED horticultural lighting market

Sales doubling quarter-on-quarter

Y-Combinator company from Summer 2015

Who are our customers?

Controlled Environment Agriculture (CEA) farms. Defined as a

combination of engineering, plant science, and computer managed

greenhouse control technologies used to optimize plant growing

systems, plant quality, and production efficiency.

The ProblemTraditional lighting sucks

HID and Fluorescent waste massive amount of energy and poor photosynthetic lightThey have short lifespans and emit lots of heat

They shatter and have mercury or cadmium (bad for food)

Conventional LED also sucksThey require dozens of LED colors and need complex control systemsThey need inefficient LED colors for photosynthesis reducing system performance

They are large, heavy, require fans and expensive designs

The output spectrum has peaks and valleys and can’t be changed over time

The SolutionTranscend Lighting’s patent-pending LED technologies

Creates a perfectly optimized photosynthetic spectrumOutput spectrum can be changed to target different plants or different growth phases

Ultra-efficient and low heat output

Uses only one color LED which increases reliability and decreases complexity

Can be smaller, lighting and less expensive. No fans needed

High tech, more efficient, more reliable, more flexible

LED Horticultural Lighting Market Size

$3.6B

20202015

550M

Doubling every 2 years

Total Greenhouse LED Opportunity

$12 Billion dollar addressable market in the U.S.

$400 Billion dollar addressable market globally

* Based on already built structures. Not including thousands of acres per year of

new build facilities

Patent Pending Technologies

•  High energy blue photons energize a remotely placed phosphor mixture. •  The phosphor mixture converts blue photons to other colors

•  The phosphor component can be easily swapped to grow many different types of

plants or to optimize for different growth cycles.

•  Precisely targeted photosynthetic light is created at industry leading efficiencies.

Our Product•  Consumes 230 watts of power

•  Equivalent to 600 watt HID•  Equivalent to 350 watt LED

•  10 year lifetime (90% output) at 24 hours/day•  10x longer than HID•  5x longer than LED

•  5 year cost of ownership = $1,400 per light•  HID = $2,600 per light•  LED = $1,800 per light

The Competition  Transcend

LightingHigh Pressure

SodiumMetal Halide

Standard LED

Upfront Cost 2 5 5 3Total Cost of Ownership 5 2 1 3

Spectral Performance 5 1 1 3

Efficiency 5 3 2 4

Useful Lifespan 5 2 1 3

Heat Output 5 2 1 3Established

Brand 1 5 5 2

Total 28 20 16 21

Why now?

2012 = LED is a viable option

2015 = LED is the best option

2017 = LEDs is the ONLY option

Haitz’s law for LED is similar to Moore’s Law for Transistors

Riding two waves

•  Haitz’s LED law •  Rapid increase in performance

•  Rapid decrease in cost

•  New High Power LEDs

•  LEDs have just recently become the most efficient option

LED

•  Costs now rival traditional methods•  More plants can be grown in less space

•  Less water consumption, no pesticides

•  Innovative new growing technology

•  Global food security concerns•  Year around local production

•  Predictable profits w/ climate change

Indoor Growing

Sales Cycle and Traction

200% Quarter-on-Quarter sales growth

Revenue to date are sample sales to large facilities

Q1 sample sales are now converting in full production

orders$0  

$5,000  

$10,000  

$15,000  

$20,000  

$25,000  

$30,000  

Quarter  1                              (Jan,  Feb,  Mar)  

Quarter  2                                  (Apr,  May,  Jun)  

Quarter  3                                      (July,  Aug.  Sept)  

Quarter  4  

2015  Sales  

Sample Sale à 6-9 Month Test Period à Full Installation

$960kin

LOIs

In last 2 months

Product/Market Fit

$600,000 project in Canada

$102,500 project in Massachusetts

$258,000 project in The Netherlands

Example Customer (Canada)High Pressure Sodium$275,000 in electricity

Transcend Lighting$125,000 in electricity

$120,000 profit $270,000 profit

$358 COGS $600 Sales Price

Pricing Structure

$242 Gross Profit40% Profit Margin

1000 lights per acre à $600K revenue per acre à $242K profit per acre

(680,000 acres globally)

Lighting the Future of Indoor Agriculture