Evelo Biosciences, Inc. (EVLO): Business Model Canvas [Dec-2025 Updated]

You came here looking for the usual deep dive into a biotech's R&D engine-the SINTAX platform, the pipeline, the whole nine yards. Honestly, that chapter for Evelo Biosciences, Inc. (EVLO) closed when shareholders voted for dissolution in early 2024. What we're looking at now isn't a growth model; it's a wind-down blueprint focused entirely on maximizing the final payout. This final Business Model Canvas reflects a highly unusual structure centered on settling the $45 million loan and distributing residual cash, last reported around $17.3 million in September 2023, back to you, the common stockholder. Keep reading to see the precise steps-from IP sales to creditor negotiations-that define this company's final financial maneuvers.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Key Partnerships

You're looking at the final stages of Evelo Biosciences, Inc. (EVLO), where the key partnerships shift from drug development to corporate wind-down. The structure is now entirely focused on compliance, asset realization, and shareholder distribution, following the November 2023 announcement of the planned dissolution after finding "no viable alternative" to closing.

Key Partnerships

The partnerships critical to Evelo Biosciences, Inc. as of late 2025 are transactional and focused on executing the Plan of Complete Liquidation and Dissolution. These entities are essential for managing the final liabilities and distributing remaining value.

The most significant financial partnership identified, which heavily influenced the final stages, was the debt facility:

The dissolution process itself mandates specific professional relationships to manage legal, financial, and shareholder obligations. The Plan of Dissolution requires the company to pay or make provision for all claims and obligations. This necessitates the following types of partners:

• Legal counsel specializing in corporate dissolution and compliance
• Accounting firm executive managing the wind-down process
• Transfer agent for managing shareholder communications and distributions
• Potential buyers for intellectual property (IP) and remaining assets

The Transfer Agent becomes crucial because Evelo Biosciences, Inc. will close its stock transfer books at the Effective Time of dissolution, meaning transfers will only occur by specific legal means, requiring meticulous record-keeping for final distributions.

The need to settle the $45 million loan agreement with Horizon Technology Finance is a primary financial task during the wind-down, as the company must pay or make reasonable provision for all known and likely claims.

The company may retain consultants or advisors to facilitate the wind-up, as the Plan allows for hiring necessary personnel to supervise or facilitate the dissolution. This is where the specialized legal counsel and accounting executive come into play to ensure compliance with the General Corporation Law of the State of Delaware (DGCL).

Any realization from potential buyers for intellectual property (IP) and remaining assets would directly feed the pool available for distribution to creditors and, ultimately, stockholders, after all claims are settled or provided for.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Key Activities

The Key Activities for Evelo Biosciences, Inc. as of late 2025 are centered entirely on the execution of its Plan of Complete Liquidation and Dissolution, adopted following the determination that no viable alternative to closing existed after clinical setbacks and funding searches. The company ceased normal business operations after the Effective Time of dissolution filing, engaging only in activities necessary to wind up affairs and preserve asset value.

The core activities are mandated by the Delaware General Corporation Law (DGCL) Section 281(b) plan of distribution. The insolvency expert, Craig Jalbert, oversees this winding-up process, which involves monetizing assets to satisfy claims in order of legal priority.

The initial financial position that informed the liquidation strategy, based on filings prior to the dissolution announcement, provides context for the scale of asset management required:

Here's the quick math: with liabilities exceeding reported assets, the primary focus is on maximizing asset realization to cover creditor claims first, as per the plan.

The specific Key Activities driving the business model in this final phase are:

• Liquidating remaining tangible and intangible assets, including IP
• Settling all outstanding liabilities and creditor claims
• Managing regulatory and legal compliance for the dissolution process
• Preparing and filing final SEC and tax documentation
• Distributing residual cash to common stockholders

Liquidating remaining tangible and intangible assets, including IP

This involves engaging advisors, such as Rock Creek Advisors, to identify strategic alternatives to monetize assets. The intangible assets, primarily the proprietary platform technology and associated intellectual property (IP) related to monoclonal microbials, are the subject of these monetization efforts. The goal is to preserve and realize maximum value from these assets before they are written off or sold. The company previously halted development on EDP1815 and EDP2939, meaning the value resides in the platform itself and any in-process research data.

Settling all outstanding liabilities and creditor claims

The Plan of Complete Liquidation requires the Company to pay or make reasonable provision to pay all claims and obligations. If assets are insufficient, claims are paid according to their priority and ratably to the extent of legally available assets. The total liabilities reported were $39.76 million in the latest reported quarter prior to the dissolution filing. The process prioritizes secured creditors, then unsecured creditors, before any distribution to stockholders.

Managing regulatory and legal compliance for the dissolution process

This activity ensures adherence to the DGCL, including filing the Certificate of Dissolution at the time determined by the Board. It also covers managing any ongoing legal proceedings or contingent liabilities that may arise during the wind-down period. The company must maintain compliance to avoid penalties that would further deplete the asset pool available for distribution. The company had 66 employees as of the last reported count, and retaining necessary personnel or consultants to manage this compliance is a critical, albeit temporary, activity.

Preparing and filing final SEC and tax documentation

This involves filing all necessary final reports with the Securities and Exchange Commission (SEC), including Form 10-K/10-Q updates reflecting the liquidation status, and ensuring all final tax obligations are met with the IRS and state authorities. Accurate final reporting is essential to formally terminate the entity's public reporting requirements. The company must close its stock transfer books at the Effective Time, discontinuing the recording of stock transfers.

Distributing residual cash to common stockholders

This is the final step, occurring only after all creditor claims and dissolution expenses are paid in full. Any residual cash is distributed to common stockholders. This distribution may occur all at once or in a series of distributions, in cash or assets, as the Company determines. The distribution is deemed to be in complete cancellation of all outstanding shares of capital stock. The company previously raised $340M in total financing, and the amount returned to stockholders, if any, will be the residual amount after all other obligations are settled.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Key Resources

You're looking at the core assets Evelo Biosciences, Inc. (EVLO) has left to manage its wind-down, which is a very specific set of resources for a company in dissolution mode. Honestly, for a company executing a dissolution plan, the key resources shift entirely from R&D engines to financial runway and legal structure.

Here's a breakdown of what Evelo Biosciences, Inc. is holding onto as of late 2025, focusing only on the hard numbers and tangible assets.

Remaining Cash and Financial Position

The cash position is the most critical resource for executing the wind-down and making final distributions. While the prompt notes a specific historical figure, the latest available year-end data gives a better picture of the current runway, though the company's operational status is clearly focused on cessation.

• Remaining cash and cash equivalents, last reported at $17.3 million as of September 30, 2023.
• Cash at End of Period reported as $49.10 million for the fiscal year ended December 31, 2024.
• In the latest reported quarter, the net change in cash was $9.28 million.
• Total assets were reported at $20.63 million against total liabilities of $39.76 million in the latest quarter.
• The Cash Ratio stood at 3.87, indicating substantial liquidity relative to current liabilities.

Intellectual Property Portfolio Related to the SINTAX Platform

The intellectual property, centered around the small intestinal axis (SINTAX) platform, represents the residual value that the dissolution process aims to preserve or monetize. These are the tangible scientific assets.

The SINTAX platform itself is the network of connections linking the small intestine and the rest of the body, which the orally delivered product candidates act upon.

Minimal Administrative Team and Corporate Status

The team size is a direct reflection of the commitment to a minimal structure for winding down operations, a key factor in preserving cash for stakeholders. The corporate shell maintains the legal structure necessary for final asset distribution.

• The company reported having 66 employees as of late 2025.
• The Plan of Complete Liquidation and Dissolution allows the company to continue for a term of 3 years from dissolution to settle and close its business.
• The dissolution process was initiated after the company found "no viable alternative" to closing.

Corporate Shell and Public Listing Status

The public listing status is a resource for potential final recovery, even if trading volume is minimal. It is the vehicle through which final distributions to stockholders will occur.

• The corporate entity is a Delaware corporation.
• The public listing status is on the OTC Markets stock exchange.
• The stock symbol remains EVLO.
• As of December 4, 2025, the stock price was $0.02, with a market capitalization of $379.66K.

Finance: draft 13-week cash view by Friday.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Value Propositions

You're looking at the final stages of Evelo Biosciences, Inc. (EVLO), where the business model has fundamentally shifted from drug development to asset realization and corporate closure, following the board's determination in November 2023 to dissolve the business after failing to secure further financing. The value propositions now center entirely on the execution of this wind-down plan.

Maximizing the net residual cash value returned to stockholders

The primary goal here is converting remaining assets into cash to distribute to stockholders after all creditors are satisfied. The market valuation reflects the severe impairment to historical stockholder value. As of the trading day on September 29, 2025, the common stock was trading at $0.000500 USD per share. This is a significant drop from the initial public offering price of $16.00 per share in 2018. The company's last reported balance sheet figures, as of the latest quarter (contextually Q3 2023), showed total assets of $20.63 million against total liabilities of $39.76 million. The Plan of Complete Liquidation and Dissolution states that claims will be paid in full according to priority, and any remaining assets will be distributed to stockholders.

Orderly and compliant wind-down of all corporate operations

This value proposition is about executing the dissolution process according to Delaware General Corporation Law (DGCL) to preserve asset value during the transition. The company ceased engaging in business activities beyond what was necessary to preserve asset value and wind up affairs after the Effective Time of dissolution. To facilitate this, the company retained former executive officers as consultants; for example, CEO Simba Gill was set to receive a fee of $3,150 per day for consulting on the dissolution. The lease on the office and laboratory space, which was previously scheduled to terminate on September 30, 2025, was terminated early, effective September 15, 2023.

Final resolution of all liabilities for creditors and former partners

This involves settling all outstanding obligations, including debt, vendor contracts, and severance obligations, in a legally compliant manner. The company restructured debt in July 2023, paying down $5.0 million of existing debt and converting a further $5.0 million from debt to equity. The dissolution plan mandates that all claims and obligations must be paid or provision made for them according to their priority.

Transfer of proprietary SINTAX platform IP to a new owner

The SINTAX platform IP, which was central to Evelo Biosciences' scientific approach, represents a key asset to be transferred or sold to maximize residual value. While the July 2023 private placement raised gross proceeds of approximately $25.5 million, this was for general corporate purposes and debt paydown, not a direct sale of the IP. The specific realized financial amount from the transfer or sale of the SINTAX platform IP during the wind-down period of 2024 or 2025 is not publicly itemized in the latest available filings.

Here are the key figures related to the company's financial standing leading into the wind-down:

The wind-down process is governed by the principle of paying claims based on their legal priority before any distribution to stockholders can occur, as detailed in the Plan of Complete Liquidation and Dissolution.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Customer Relationships

You're looking at the relationships Evelo Biosciences, Inc. maintains with various external parties as of late 2025, which are largely dictated by its clinical-stage status and recent strategic review following trial results. These aren't traditional B2C or B2B customer relationships; they are highly formalized, legal, or financial interactions.

Formal, statutory communication with shareholders via SEC filings

Communication with shareholders is strictly governed by the Securities and Exchange Commission (SEC) requirements. As of the last reported status, Evelo Biosciences, Inc. is classified as a Non-accelerated filer, a Smaller reporting company, and an Emerging growth company.

The relationship is characterized by mandatory disclosures:

• Filing of Annual Reports on Form 10-K.
• Filing of Quarterly Reports on Form 10-Q.
• Filing of Current Reports on Form 8-K for material events.

The company makes these reports available on its website, as required by regulation.

Direct, legal negotiation with creditors to settle outstanding debt

The need for direct negotiation stems from the company's financial position, which previously indicated an inability to meet debt repayment obligations without restructuring or new capital [cite: 3 in previous turn]. While specific 2025 settlement amounts are not public, the company has a history of refinancing, including a $45 million term loan agreement in December 2022 [cite: 5 in last search].

The nature of these interactions is summarized below:

These negotiations are critical to maintaining operational continuity.

Minimal, transactional relationship with IP buyers

Relationships with intellectual property (IP) buyers or partners are transactional, centered on the potential monetization of Evelo Biosciences, Inc.'s proprietary platform and product candidates. The value drivers for the life sciences industry in 2025 are heavily tied to IP, licensing, and M&A [cite: 4 in second search].

The relationship framework involves:

• Granting of rights to intellectual property embodied in therapeutics developed under government funding, which includes a non-exclusive, non-transferable, irrevocable worldwide license for any governmental purpose [cite: 1 in last search].
• Royalty obligations to Mayo Clinic based on sales of products containing licensed microbial strains [cite: 8 in last search].

Actual revenue from IP sales or licensing in 2025 is not explicitly quantified in public filings.

Managed communication with former employees regarding severance

Following strategic reviews, communication regarding workforce changes is managed formally, often through established plans. Evelo Biosciences, Inc. has an Executive Severance Plan in place to provide protections under specific termination circumstances [cite: 2 in second search].

Financial quantification of these managed separations is tied to restructuring activities:

The company initiated restructuring actions in Q1 2025, expecting to incur approximately $16.0 million in total restructuring charges by the end of fiscal 2025 [cite: 2 in last search]. These charges are primarily attributable to severance and employee-related benefits.

For context, restructuring costs recorded in the six months ended December 2024, which were mainly severance, totaled $15.0 million [cite: 2 in last search].

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Channels

You're looking at how Evelo Biosciences, Inc. communicates official information to the market and stakeholders as of late 2025. This is all about the official conduits for data flow.

The primary channel for verified financial and operational data remains the Securities and Exchange Commission (SEC) EDGAR system. You can track filings using the CIK number 0001694665.

The corporate website, www.evelobio.com, serves as the secondary official channel, posting these SEC documents under the "Investors" section as soon as reasonably practicable after filing with the SEC.

For stock-related actions, the most significant recent channel event relates to the company's status following the board's decision in late 2023. This channels specific communications regarding share ownership and distribution.

• Stock Incentive Plan shares registered under Form S-8 (No. 333-256662) were subject to deregistration.
• Employee Stock Purchase Plan shares were also subject to deregistration.
• The process involved a Post-Effective Amendment No. 1 to the Form S-8 filing.

The SEC filing structure itself channels specific types of information:

• Form 10-Q includes financial statements and results of operations.
• Form 8-K is used for material, unscheduled corporate changes.
• Schedule 13G filings indicate beneficial ownership greater than 5%.

The fiscal year end for Evelo Biosciences, Inc. is 1231.

Finance: draft 13-week cash view by Friday.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Customer Segments

You're looking at the Evelo Biosciences, Inc. Business Model Canvas as of late 2025, which is fundamentally a model for complete liquidation and dissolution, not ongoing commercial operations. The 'Customer Segments' here are the stakeholders prioritized for recovery under the Plan of Dissolution approved in November 2023. This structure dictates who receives the remaining assets, which is the final 'value' delivered by the entity.

The primary focus is on satisfying outstanding obligations before any potential residual distribution to equity holders. As of the last reported figures before the dissolution process was finalized, the financial context for these segments was stark:

The segments are prioritized based on the General Corporation Law of the State of Delaware, which mandates paying claims before distributing capital to stockholders.

Creditors and vendors with outstanding claims against the company

This group holds the highest priority claim on the remaining assets. The insolvency expert, Craig Jalbert, is overseeing the process to pay these claims first. The total quantum of these claims is embedded within the $588 million deficit reported as of September 30, 2023. Any asset monetization efforts, such as the potential contingent payment of ~$2.5 million tied to the out-licensing of EDP-2939 assets or sale of other assets, would flow directly to satisfy these outstanding liabilities.

Former employees due severance and final compensation

Wages, salaries, and benefits owed to employees and consultants retained to facilitate the dissolution process are typically high-priority claims, often ranking above general unsecured creditors. This segment includes compensation for the staff who managed the wind-down, following earlier headcount reductions of 45% in January 2023 and further cuts in the second quarter of 2023.

Common stockholders seeking the final distribution of capital

This segment is last in line. The Board stated that dissolution presents the best opportunity for recovery for creditors and may provide an opportunity for future payments to stockholders. Given the $17.3 million cash position against a $588 million deficit, the likelihood of a material distribution is low. The final distribution, if any, will be in complete cancellation of all outstanding shares of capital stock.

Potential pharmaceutical or biotech companies interested in the IP

While not traditional customers, these entities represent the source of potential asset monetization value. The intellectual property (IP), including the SINTAX™ platform and drug candidates like EDP1815 and EDP2939, is the asset being monetized. Rock Creek Advisors was tasked with identifying strategic alternatives to help monetize these assets. Any successful out-licensing or sale of IP would directly impact the pool available for creditors and, subsequently, stockholders.

• The company's website redirects to SEC filings, indicating no active commercial or research operations.
• The last known trading activity was on OTCMKTS under ticker EVLO.
• The company's market capitalization was reported as 3.80K (likely nominal value reflecting dissolution status).
• The last reported earnings date was November 7, 2025, for Q2 2025 results, suggesting residual administrative activity continued into late 2025.

Finance: draft 13-week cash view by Friday.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Cost Structure

You're looking at the final, wind-down phase of Evelo Biosciences, Inc., so the cost structure is almost entirely about cessation, not growth. The focus shifts from Research & Development to legal finality and creditor management. Honestly, for a company in dissolution, the cost structure is a liability waterfall.

The primary financial obligations driving the cost structure as of late 2025 relate to fulfilling the obligations set out in the Plan of Dissolution adopted in late 2023. This plan mandates paying all known and reasonably foreseeable claims before any potential shareholder distribution.

Here's a look at the major cost buckets that define the final expenditure profile for Evelo Biosciences:

• Significant legal and accounting fees for the dissolution process
• Severance and retention costs for the minimal wind-down team
• Costs associated with settling the $45 million loan agreement
• General and administrative (G&A) expenses for regulatory filings

The settlement of outstanding debt, specifically the senior secured loan, is a critical, non-negotiable cost. While the final settlement amount in the wind-down context might differ from the principal, the original obligation sets the baseline for this liability category.

The Plan of Dissolution explicitly allowed the company to pay brokerage, agency, professional, and other fees related to the disposition of property and assets. This directly covers the legal and accounting fees you're tracking. The goal is to preserve asset value while winding down operations, which requires specialized, high-cost expertise.

For the minimal wind-down team, the cost is a necessary evil to manage the process legally. You'd expect these to be significantly lower than pre-dissolution G&A, focusing only on essential oversight and compliance tasks. The company previously enacted headcount reductions, so these retention/severance costs are the final tranche related to that closure.

The G&A expenses for regulatory filings are a fixed, non-discretionary cost of being a public company, even in liquidation. These costs continue until the company formally files to terminate its reporting obligations, likely via a Form 15 filing, which itself carries administrative fees.

Finance: draft 13-week cash view by Friday.

Evelo Biosciences, Inc. (EVLO) - Canvas Business Model: Revenue Streams

You're looking at the final chapter of Evelo Biosciences, Inc. (EVLO)'s operating life, so the revenue streams aren't about selling a product anymore; they are about asset realization. The core business, as reflected in the latest financials, has ceased generating top-line income.

Total revenue TTM is $\mathbf{\$0.00}$ as of late 2025, reflecting no operating business. This zero figure is the most concrete financial number we have for ongoing operations as of the period ending September 30, 2023, or the TTM data available near November 2025. The company's financial health is characterized by significant losses, with Net Income TTM reported at approximately $\mathbf{-\$82.35M}$.

The remaining revenue sources are entirely transactional, tied to the wind-down of the entity and the monetization of intellectual property and physical assets. These are the categories that would capture any final cash inflows:

• Proceeds from the sale or licensing of the SINTAX IP portfolio
• Final residual cash balance distributed to shareholders
• Potential minor proceeds from the sale of lab equipment or real estate

The proceeds from the sale or licensing of the SINTAX IP portfolio represent the most significant potential non-operating cash event. This portfolio was the foundation of Evelo Biosciences's platform for orally delivered inflammation-resolving medicines. While the exact final sale or licensing amount is not public as of late 2025, this stream would be the primary driver of any remaining value returned to equity holders.

The final residual cash balance distributed to shareholders is the ultimate cash event for investors. This amount is contingent on settling all liabilities. As of November 21, 2025, the market capitalization was approximately $\mathbf{\$3,797}$ USD, based on $\mathbf{18.98M}$ shares outstanding trading at $\mathbf{\$0.0002}$ per share. This market valuation is a poor proxy for the actual residual cash, but it shows the current market sentiment regarding the equity value.

For completeness on asset realization, we look at the potential minor proceeds:

To be defintely clear, the cash on hand as of the last reported balance sheet data was $\mathbf{\$17.26M}$ in cash, offset by $\mathbf{\$33.95M}$ in debt, resulting in a net cash position of approximately $\mathbf{-\$16.69M}$ at that time. The final distribution, if any, would only occur after all wind-down costs and debt obligations are met, and any IP/asset sale proceeds are realized.

Here's a quick look at the operational revenue context:

• Revenue TTM (Operating): $\mathbf{\$0.00}$
• Net Income TTM: $\mathbf{-\$82.35M}$
• Shares Outstanding: $\mathbf{18.98M}$
• Stock Price (Dec 3, 2025): $\mathbf{\$0.0002}$

Finance: review the latest 10-Q filing for any specific disclosure regarding the SINTAX IP sale agreement terms by next Tuesday.