VISION: BE A GLOBAL LEADER IN DELIVERING TARGETED, SCIENCE-DRIVEN BIOLOGICAL PRODUCTS THAT IMPROVE CROP PRODUCTIVITY

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OUR VISION: IMPROVING CROP PRODUCTIVITY

enhanced efficiency fertilizers

(EEFs), starters and blends

Higher yield

potential drives

greater nutrient

use efficiency

In-furrow-applied/fertilizer-blended

products that improve nutrient uptake

and overall crop performance

Foliar applied biostimulants that

enhance or stabilize crop yield→

Priority Product Concepts:

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HISTORY

2014 2015 2016 2017

Formed as a business unit within Koch Agronomic

Services in 2014 to pursue biologicals opportunities

Acquired R&D platform assets

of Mendel Biotechnology, Inc.

Strategic minority investment

in Pathway Biologic, LLC

Acquired exclusive rights to sell

Regalia® products for broad-acre

crop applications in U.S. & Canada

2018

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1997 2002 2007 2012 2017

GMO Trait discovery

and development

Performance chemistry

validation and development

Biologicals business

Founding Mission:

improve crop performance by controlling gene activity

December 2014:

KAS acquires Mendel

assets to form:

HISTORY

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PRODUCT CANDIDATES HAVE BEEN IDENTIFIED USING THE MENDEL DISCOVERY PLATFORM

– MBS-102 and MBS-114 are microbial fermentation broths

– Products were applied two weeks prior to the stress treatment

– We are exploring the commercialization of these product

candidates in the professional turf market

experimental treatments (500 mL/1000 ft2)

control(mock)

Creeping bentgrass ‘Memorial’ heat and drought stress

MBS-102 (mL/1000 ft2)

1000500100

Kentucky bluegrass ‘Wildhorse’

heat stress tolerance

control(mock)

qualit

y

time(weeks post-stress)

1

9

2 6

**

*Significant p<0.01

(Fisher’s protected LSD )

MBS-102 MBS-114

controls

time(weeks post-stress)

2 6

ph

oto

synth

etic

rate

controls

*

*

4

14

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THE PLANT GENE REGULATORY NETWORK (PGRN) DATABASE IS A CORE ASSET DEVELOPED OVER 15 YEARS

Droughttolerance

Diseaseresponse

Physiology

Growth rate

transgenic

wild-type

transgenic wild-type

transgenicwild-type

transgenic

wild-type

Schematic of a PGRN

Transcription factors (TFs) are

the PGRN “nodes” that control

target gene expression

The pattern of target gene expression is a diagnostic for valuable

yield components (e.g. disease response, drought tolerance, etc.)

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Product opportunities1°TF

2°TF

3°TF3°TF 3°TF

TARGET TARGET TARGET TARGET

Schematic

of a PGRN:

regulator

s

biochemicals

BIOLOGICAL PRODUCT OPPORTUNITIES ENABLED BY THE MENDEL PGRN DATABASEThe Mendel platform identifies biological products that regulate Plant Gene Regulatory Networks

to drive improved yield and crop performance

microbes

Product candidates are identified based on the

induction of diagnostic target genes

Valuable agronomic yield components (e.g. drought tolerance)

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TRANSCRIPTIONAL PROFILING OF TRAIT LEADS IDENTIFIED DIAGNOSTIC MARKERS FOR YIELD RELEVANT PGRNS

global gene expression fingerprint

PGRNs(each row represents a transgenic line with a

demonstrated trait, e.g. abiotic stress tolerance)

PGRNs

w/trait

PGRNs

w/o trait

Target gene expression

Log

2(r

atio

) The selected target gene is

diagnostic for the trait (e.g.

abiotic stress tolerance)

PGRNsactivated?

no

yes

assay

development

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THE PRODUCTIVITY REPORTER PANEL (PRP) ASSAYS ARE TRANSGENIC ARABIDOPSIS REPORTER LINES

prTARGET LexA:GAL4 LUC GFPopLexA

LexA:GAL4LUC

GFP

5’ promoter sequence for PGRN target gene

two-component “booster” architecture

(U.S. Patent No. 9,322,070)

Target gene-specific molecular constructs are

generated and used to transform Arabidopsis:

Fused luciferase (LUC) and green fluorescent

protein reporter enables flexible quantitation

methods in Arabidopsis seedlings

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PRODUCTIVITY REPORTER PANEL (PRP)HIGH-THROUGHPUT DISCOVERY PLATFORM

Quantifysignal

PGRNactivated?

no

yes

Product candidate for greenhouse validation

96-well microtiter plate containing transgenic reporter line

seedlings (PRP discovery assays) and multiple product

candidates (one candidate per well)

plate tracking

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THE PRP IS A VERSATILE PLATFORM FOR DISCOVERY AND RAPID MOA CLASSIFICATION

– The PRP detects treatment activity

across a range of hormone,

environmental response and

xenobiotic response pathways

– Clustering can rapidly associate

unknown modes-of-action with

treatments with known activities

PRP assays

Tre

atm

en

ts

+

-

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THE PRP IS A VERSATILE PLATFORM FOR DISCOVERY AND RAPID MOA CLASSIFICATION

– Hormones and synthetic compounds with known activities on

abiotic and biotic stress response PGRNs give distinct,

diagnostic signatures across our full PRP assay suite

~50 PRP assays spanning nutrient use efficiency, leaf

physiology, abiotic and biotic stress tolerance PGRNs: +-

ABA

MeJA+ACC

MeJA

NaSA

BTH

Flg22

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PRODUCT CANDIDATE MBS-117 ACTIVATES A PGRN ASSOCIATED WITH LEAF PHYSIOLOGY

– Does the activation of the target PGRN in our plate-based seedling PRP assays translate to older plants treated via foliar application?

• Mendel’s robust global gene expression profiling (RNAseq) platform provides deep mode-of-action insight into product candidate activity

+

-

Subset of PRP assays spanning nutrient use efficiency,

leaf physiology, abiotic and biotic stress tolerance PGRNs:

Strong up-regulation of a PRP assay for a

leaf physiology PGRN

MBS-117

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PRODUCT CANDIDATE MBS-117 ACTIVATES A PGRN ASSOCIATED WITH LEAF PHYSIOLOGY

– Mature plants sprayed with formulated exudates four-days

prior to sample collection

– MBS-117 (in red, left) strongly up-regulates the target gene

relative to other treatments in the same cohort

– MBS-117 significantly up-regulates genes associated with

the ‘photosynthesis’ biological process gene ontology

category (below)

Lo

g(2

) g

en

e e

xp

ressio

n

~150 distinct fermentation exudates

PGRN target gene

media

controls

MBS-117

Gene ontology enrichment:

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INSTANTANEOUS LEAF PHYSIOLOGY VALIDATION PLATFORM

– Gas exchange (Li-COR 6400) based

measurements for quantifying:• light-use efficiency

• water-use efficiency

• photosynthetic capacity

– Routinely used to assess product

performance on Arabidopsis and

wheat

mock( + )

controlphoto

synth

esis

(A

sat)

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REPRESENTATIVE BIOMASS VALIDATION PLATFORMShigh medium low

light

stress

irrigation

levels

high medium low

high medium low

fertilization

levels

high

low

highlow representative images shown

all plots depict dry weight measurements (grams)

n=50,bars=SD; all differences significant (p<0.01)

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PRODUCT CANDIDATE MBS-117 IMPROVES WATER USE EFFICIENCY

– Foliar application on pre-flowering mature plants 4 days prior to data acquisition

– Measured statistic [Photo-c(COND)] correlates with improved photosynthesis and water use

efficiency

Photo

–c(C

ON

D)

negative

controlsExperimental Treatments

positive

control

(↑CO2)

MBS-117

negative

control Experimental Treatments

MBS-117

Arabidopsis Wheat

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KOCH HAS EXCLUSIVELY LICENSED REGALIA® RX FOR BROAD ACRE CROP APPLICATIONS IN NORTH AMERICA

Grower standard Grower standard +

REGALIA® Rx (1 pt/ac)

Data courtesy of

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THE MENDEL PLATFORM CONFIRMS THE UNIQUE MODE-OF-ACTION OF REGALIA® RX

– PRP assays have been identified from initial studies that are diagnostic for Regalia® Rx activity

– We are using the Mendel platform to support the commercialization of Regalia® Rx in the broad-acre row crops

PRP assay 1 PRP assay 2

Regalia® Rx

Treatments

Control

Treatments

Regalia® Rx

Treatments

Control

Treatments

– REGALIA® Rx - group P5• P: host plant defense induction MOA

• 5: site unknown; recognized as a complex mixture with no known resistance

– Ideal resistance management tool when used as a tank mix partner in conventional fungicide programs

– Improves yield by activating immune responses and improving plant health

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2013-2015 SALES DEMO RESULTS REVEAL SIGNIFICANT IMPROVEMENTS IN CORN YIELD

– Regalia® Rx + Fungicide increased yield compared to fungicide alonein 77% of the trials;

– Overall average yield increase for all trials was 4.2 bu/acre (2.5%)

– Average gain across Regalia® Rx + fungicide where a yield increase was observed was 7.2 bu/A (4.1%)

1(grower fungicide program w/ Regalia Rx®) – (grower fungicide program)

ΔB

ushels

/Acre

1

– Regalia® Rx applied at 1 pt/acre

– Applications at V4-V7 or tassel

– Yield adjusted to 15.5% corn grain moisture

Data courtesy of

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field trialsquantitative

physiology

molecular

mode-of-action

microbial

extracts

productivity

reporter panel

control

hit

analytical

chemistry

fermentation

Discovery Agronomy

Development

THE MENDEL PLATFORM SUPPORTS PRODUCT DISCOVERY AND DEVELOPMENT

live

microbes

commercialization

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CONCLUSIONS

– Koch Biological Solutions, LLC was founded in 2014 with the

vision to be a global leader in delivering targeted, science-driven

biological products that improve crop productivity.

– The Mendel technology platform is being leveraged for the

discovery and development of biostimulant products.

– We are building the business through a flexible approach that

includes strategic investments and in-licensing.