ZIVO Bioscience, Inc. (ZIVO): Business Model Canvas [Dec-2025 Updated]

You're digging into ZIVO Bioscience, Inc.'s business structure, and as an analyst who's seen this movie before, I can tell you it's the quintessential high-risk, high-reward biotech R&D model: massive upfront investment for a future licensing jackpot. To be frank, the financials reflect this reality; while they are building out cultivation capacity and securing key partnerships, the trailing twelve-month revenue as of Q3 2025 was only $209K, following a significant FY 2024 net loss of $(13,384,836). This Business Model Canvas strips away the jargon to show you exactly where the money is going-from R&D costs to securing IP-and how they plan to turn that proprietary algal biomass into major revenue streams through strategic deals. Keep reading to see the full nine-block breakdown of their strategy.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that make ZIVO Bioscience, Inc.'s (ZIVO) model work, especially as they push their therapeutic pipeline alongside their nutritional biomass sales. These partnerships are critical because, honestly, a company in pre-revenue status for its main therapeutic assets-like ZIVO Bioscience is for its drug candidates as of September 2025-relies heavily on others for funding, production, and market access.

The Key Partnerships block is where ZIVO Bioscience de-risks its R&D and ensures its Zivolife algal biomass gets to market. Here's the breakdown of the essential players supporting their operations as of late 2025.

Strategic Alliances for Therapeutic Development

ZIVO Bioscience is using strategic alliances to advance its proprietary compounds in the animal health space, particularly poultry. This approach leverages external capital and expertise to validate their science.

• The relationship with a leading global animal health company is key; they have executed two agreements for independent studies on coccidiosis and viral diseases.
• Both studies are fully funded by the collaborating company.
• The first agreement covers a 42-day study focused on coccidiosis, a market segment valued at $1.5 billion.
• The second study assesses compounds against a model of various viral diseases, which is an expansion of their therapeutic range.
• Positive outcomes from these trials are intended to support the regulatory approval process of the USDA's Center for Veterinary Biologics and lead to a commercial agreement.

Production and Distribution for Algal Biomass (Zivolife)

For the commercial side, specifically the Zivolife algal biomass for human consumption, ZIVO Bioscience relies on a tight manufacturing and distribution loop. The revenue from this segment is expected to fund the ongoing therapeutic development.

Here's how the supply chain is structured:

To give you a sense of the scale of commitment, ZWorldwide has committed to purchasing a minimum of 24,000 kilograms annually for five years, contingent on certain factors. On the production side, ZIVO Bioscience purchased $108,268 of product from Alimenta Algae in the year ended December 31, 2024, up from $16,040 in 2023.

R&D and Validation Support

Beyond the major commercial and therapeutic partners, ZIVO Bioscience uses academic and third-party validation to bolster its scientific claims. This is crucial for establishing credibility in the nutraceutical and animal health markets.

• Academic Institutions: Work with entities like the University of Delaware is ongoing for R&D, specifically showing promising results in reducing viral shedding for avian influenza.
• Validation & Testing: The company uses certified third-party laboratories for quality-control testing, in addition to internal testing at facilities in Ica, Peru, and Ft. Myers, Florida.
• Legal/Settlement Data: While not a typical R&D partner, ZIVO Bioscience settled a pending arbitration matter with AEGLE Partners in April 2023 for $13,000.

The company's overall trailing twelve-month revenue as of September 30, 2025, was $209K, showing the current financial scale these partnerships are supporting.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Key Activities

You're looking at the core engine of ZIVO Bioscience, Inc. (ZIVO)-the things they absolutely must do well to bring their algae-based science to market. For a research and development firm like ZIVO Bioscience, Inc., these activities are where the real cash burn and potential value creation happen.

R&D on proprietary algal extracts for therapeutic and nutritional applications

The R&D focus is split between human nutrition applications, like promoting healthy cholesterol balance and immune support, and animal therapeutics, specifically targeting bovine mastitis and canine joint health, plus new work in poultry with immune-enhancing biologics. You need to watch the cash flow here, as R&D is expensive. For the nine months ended September 30, 2025, the Net loss was $6,884,474, which is an improvement from the $11,783,451 net loss reported for the same period in 2024. That's a significant step toward efficiency, though still a substantial burn. The quarterly R&D expenses show volatility, which is typical for a development-stage company. For instance, Research and Development Expenses were reported as $2,769.24 thousand for Q1 2025, but dropped to $203.44 thousand for Q3 2025. To give you context from the prior year, internal R&D staff salaries alone were approximately $1.2 million for the full year 2023, alongside external clinical study expenses of about $900,000 for that same year.

Cultivation and processing of proprietary algal strains (Zivolife)

This is the physical side of the business, moving from lab to scale. ZIVO Bioscience, Inc. is planning to complete the build-out at Alimenta Algae to hit full production capacity in late 2025. The target capability here is roughly 100,000 kg per year of output. This production is tied directly to commercial commitments. For example, the offtake agreement with ZWorldwide, Inc. mandates the purchase of at least 24,000 kg per year for a minimum of five years, following the commitment to purchase all output through 2024. This commitment underpins the entire cultivation strategy.

Here's a look at the top-line financial reality as of late 2025:

Securing regulatory approvals (e.g., USDA Center for Veterinary Biologics)

Regulatory hurdles define market access, especially in therapeutics. For the human nutrition side, ZIVO Bioscience, Inc. began sales of Zivolife in June 2023 after completing the self-affirmed GRAS (Generally Recognized As Safe) status, with the dossier updated to current FDA standards in May 2023. However, beyond that specific dried algal biomass use in human food with nutritional claims, the company has not yet received the required approvals for commercialization for any other product form or application. On the animal side, a key activity in 2025 was advancing compounds for poultry. A 42-day study initiated in June 2025 is specifically intended to support the regulatory approval process of the USDA's Center for Veterinary Biologics for their immune-enhancing compounds.

Managing and expanding the intellectual property (IP) portfolio

The entire ZIVO Bioscience, Inc. platform rests on its IP. The portfolio is described as comprising proprietary algal and bacterial strains, biologically active molecules and complexes, production techniques, cultivation techniques, and patented or patent-pending inventions for both human and animal health applications. This IP management is a constant activity, as the company intends to negotiate with major companion animal product companies based on their excellent scientific validation results.

Negotiating and executing licensing and commercial agreements

Commercial execution is critical to stop the cash burn. You saw the offtake agreement with ZWorldwide, Inc. mentioned earlier, which locks in a minimum purchase volume. More recently, in June 2025, ZIVO Bioscience, Inc. executed two agreements with a leading global animal health company to advance immune-boosting compounds in poultry. These agreements govern independent studies designed to validate the commercial business case and lead to a future commercial agreement. The first agreement covers a 42-day study focused on coccidiosis, and the second covers a study using a model of various viral diseases. Also, note the $2,738,281 in Other expenses related to extinguishment of colicense agreements recorded in the nine months ended September 30, 2025, which shows active management of prior commercial arrangements.

The company's key activities are heavily weighted toward de-risking the science through trials and securing production commitments.

• Sales of Zivolife began in June 2023.
• Two agreements executed with a global animal health partner in June 2025.
• Plans to reach 100,000 kg per year production capacity by late 2025.
• Equity-based compensation for employees and directors was $964,247 for the 9 months ending September 30, 2025.

Finance: draft 13-week cash view by Friday.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Key Resources

You're looking at the core assets ZIVO Bioscience, Inc. (ZIVO) relies on to execute its strategy in the biotech and agtech space. These aren't just ideas; they are tangible and intangible things that make their value proposition possible.

Proprietary, Optimized Freshwater Algal Strains and Bioactive Molecules

The foundation of ZIVO Bioscience, Inc.'s platform is its unique biological material. This resource is described as a portfolio of optimized freshwater algae strains, which serve as a sustainable, plant-based, non-GMO, antibiotic-free source of protein, fiber, and micronutrients with added health benefits. ZIVO Bioscience, Inc. is dedicated to the study, development, and commercialization of natural nutritional compounds and bioactive molecules derived from these proprietary strains. The platform is adaptable for various applications, including functional food ingredients for humans and feed ingredients for animals like dairy cows and poultry.

Intellectual Property (IP) Portfolio of Patents and Production Know-how

The company's competitive moat is built on its Intellectual Property, which covers more than just the algae itself. This includes patented or patent-pending inventions related to the strains, the biologically active molecules, and the processes used to create them. The know-how is critical for scaling production efficiently and cost-effectively.

Key IP filings as of late 2025 include:

• Patent Application filed January 28, 2025, for algal biomass reversing coccidiosis effects in poultry.
• Patent Application filed December 19, 2024, for algal/bacterial biomass compounds for coccidiosis prevention and treatment.
• Patented process for producing the culture and extracting nutritive or bioactive components.

Expanded Cultivation Facility Capacity in Peru

Scaling production is a primary focus, executed through a long-term collaboration with Grupo Alimenta in Peru. The goal for this facility build-out is to reach full capacity in late 2025, targeting an output of up to 100,000 kg per year of dried product. This production capacity is directly linked to commercial commitments.

Here's a look at some relevant operational and financial metrics as of late 2025:

Scientific Data from Clinical and Pre-Clinical Trials

The value of the bioactive molecules is validated through scientific testing, particularly in animal health applications. This data supports the commercial business case and regulatory approval processes. The company has reported data showing positive results in key areas.

Key trial areas and findings mentioned:

• Coccidiosis: A 42-day study was executed to confirm effects when co-administered with a collaborator's vaccine.
• Bovine Mastitis: Formulations are designed to promote a healthy immune response in dairy cows.
• Avian Influenza: Previous study data showed reduced severity and spread of low-pathogenic avian influenza (LPAI) in treated birds.
• Immune Priming: A patent application covers a method to prime the immune response for a more robust reaction to pathogens.

Key R&D Personnel and Management Expertise in Biotech/Agtech

The execution of the R&D and commercial strategy relies on experienced leadership. John B. Payne serves as Chairman, President, and Chief Executive Officer for ZIVO Bioscience, Inc. The company's structure includes subsidiaries like ZIVOLife, LLC, which handles the nutritional product commercialization. The R&D efforts are supported by key personnel, including named inventors on recent patent applications, such as Andrew A. Dahl and Amy E. Steffek.

The minimum purchase commitment from distributor ZWorldwide is at least 24,000 kilograms of product annually for five years, which ties directly to the R&D and production output. That's a solid baseline demand you can count on. Finance: draft 13-week cash view by Friday.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Value Propositions

You're looking at the core value ZIVO Bioscience, Inc. (ZIVO) offers across its distinct business lines, which are heavily reliant on its proprietary algal technology. The value propositions center on providing natural, science-backed alternatives in both animal health and human nutrition markets.

Non-antibiotic, immune-enhancing biologics for animal health (e.g., poultry)

ZIVO Bioscience, Inc. (ZIVO) offers a non-antibiotic method of action product candidate for poultry, designed to augment the bird's immune system to combat pathogens like the coccidiosis-causing parasite, Eimeria. This directly addresses industry and consumer concerns about residual antibiotics in the food supply. The focus is on mitigating major livestock diseases like coccidiosis, which represents an estimated annual cost exceeding $15 billion globally.

In 2024, the global poultry vaccines market was valued at $2.3 billion in 2023, projected to reach $4.2 billion by 2032. ZIVO Bioscience, Inc. (ZIVO) is targeting this space, noting that the antibiotic-free livestock feed segment was valued at $4.5 billion in 2024 and is forecasted to grow to $8.9 billion by 2033.

The value proposition is demonstrated through study results where ZIVO's product, when used with an ionophore or vaccine, resulted in statistically significant improvements in Feed Conversion Ratio (FCR) over a 42-day grow-out period, performing on par with the healthy, uninfected control group. Furthermore, ZIVO Bioscience, Inc. (ZIVO) is advancing its immune-enhancing compounds through two agreements executed in June 2025 with a leading global animal health company, including a 42-day study for coccidiosis and another to assess compounds against viral diseases.

The company also intends to continue development for bovine mastitis treatment based on previous successful proof of concept studies.

Sustainable, non-GMO, plant-based source of protein, fiber, and micronutrients

The core technology provides a sustainable, non-GMO source of nutritional components derived from proprietary algal culture. This positions ZIVO Bioscience, Inc. (ZIVO) to capture value in the growing plant-based sector. You can see the scale of this opportunity in the broader market projections:

The production capacity goal for the Alimenta Algae facility is roughly 100,000 kg per year, with completion planned for late 2025 under a contract manufacturing arrangement where ZIVO Bioscience, Inc. (ZIVO) commits to purchasing the entire output.

Functional food ingredient for human health (cholesterol, immune, joint support)

The bioactive extracts and fractions from the algal culture are targeted for human health applications, including cholesterol, immune, and joint support. This aligns with consumer trends, as 25% of US consumers identified as flexitarian in early 2025, driving demand for plant-forward options.

The application of these ingredients within the supplements market is significant, with functional foods accounting for a 52.22% market share in 2024 for the global plant-based protein supplements segment. ZIVO Bioscience, Inc. (ZIVO) is optimistic about near-term growth from new product commitments in the nutraceutical market.

The company's strategy includes developing products for:

• Immune modulation.
• Cholesterol management.
• Canine joint health, with studies indicating a potential chondroprotective effect in ex vivo canine joint tissues.

Mitigation of major livestock diseases like coccidiosis and bovine mastitis

This value proposition is directly tied to the non-antibiotic biologics. For coccidiosis, ZIVO Bioscience, Inc. (ZIVO)'s product candidate showed performance comparable to a market-leading anticoccidial product containing an antibiotic and chemical. The global poultry industry spent over $1.5 billion annually on coccidiosis control in 2024.

The value is quantified by the performance metrics achieved in studies:

• Statistically significant reduction in intestinal damage caused by Eimeria compared with untreated controls.
• Statistically significant improvement in Feed Conversion Ratio (FCR) compared with untreated controls.

For bovine mastitis, ZIVO Bioscience, Inc. (ZIVO) intends to continue development based on previous successful proof of concept studies using active materials from its proprietary algal culture.

Scientifically validated, superior antioxidant performance

ZIVO Bioscience, Inc. (ZIVO) develops bioactive extracts, fractions, and molecules derived from its proprietary algal culture. The company's product candidates are immune modulators. The value here is rooted in the scientific validation of these proprietary materials, though specific, comparative antioxidant performance numbers for late 2025 are not present in the available filings or press releases.

Finance: draft 13-week cash view by Friday.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Customer Relationships

You're looking at how ZIVO Bioscience, Inc. (ZIVO) manages its key relationships, which are heavily weighted toward strategic partnerships for both its biotech pipeline and its nutritional product line. These aren't just transactional sales; they are deep, science-backed engagements.

Strategic, long-term R&D collaboration with major animal health partners

ZIVO Bioscience, Inc. entered into a relationship with one of the world's leading animal health companies in June 2025 to advance its immune-boosting compounds in poultry. This relationship started with the execution of two agreements governing independent studies. These initial studies are fully funded by the collaborating company. The first agreement covers a 42-day study focused on coccidiosis, and the second assesses compounds against various viral diseases, including one characterized by rapid onset and high mortality rates. Positive outcomes from these trials are explicitly intended to lead to a broader research agreement to pursue additional diseases. This collaboration supports the strategy to partner with a major entity bringing scientific expertise and R&D infrastructure to scale innovations efficiently. ZIVO Bioscience, Inc. is targeting applications in animal feed, dietary supplements, and drug development.

Licensor relationship with large pharmaceutical and food ingredient companies

For its therapeutic pipeline, ZIVO Bioscience, Inc. operates as a licensor of internally developed intellectual property, including proprietary algae cultures and extracts. Regarding its product targeting coccidiosis in broiler chickens, ZIVO Bioscience, Inc. reported in late 2024 that it expected to finalize a definitive exclusive license agreement in the first quarter of 2025. The intended deal terms for this licensing arrangement include an upfront payment, milestone payments tied to commercialization targets, and a royalty based on product sales. ZIVO Bioscience, Inc. is a licensor targeting human dietary supplements, nutraceuticals, and pharmaceuticals for human use.

Supplier/exclusive distributor relationship with ZWorldwide for nutritional product

The nutritional product, Zivolife™, relies on an exclusive commercial agreement with ZWorldwide, Inc. for distribution in North America. ZWorldwide, Inc. is an independent distributor. This relationship is cemented by firm volume commitments. ZWorldwide, Inc. committed to purchasing the entire supply of Zivolife produced over the first 18 months following initial strong sales. Furthermore, subject to certain contingencies, ZWorldwide, Inc. has committed to purchasing at least 24,000 kilograms of product annually for a minimum of five years, which includes the initial 18-month period. The contract manufacturing partner, Alimenta Algae SAC, was expected to have expanded production capacity fully operational in 2025, with the ability to produce up to 100,000 kilograms of dried product per year. ZIVO Bioscience, Inc.'s trailing 12-month revenue as of September 30, 2025, was reported as \$209K. Sales of Zivolife™ began in June 2023.

Here's the quick math on the ZWorldwide commitment:

High-touch, science-driven engagement for regulatory and commercial validation

The customer relationship in the biotech segment is characterized by high-touch, science-driven engagement necessary to navigate regulatory pathways. The studies being conducted with the leading animal health company are specifically designed to support the regulatory approval process of the USDA's Center for Veterinary Biologics, alongside validating the commercial business case. ZIVO Bioscience, Inc.'s overall R&D policy mandates rigorous scientific testing, peer review, and regulatory compliance before any product is made available. This involves ensuring efficacy and safety meet the appropriate standard for each product category. The company focuses on two main compliance benchmarks: Dietary Supplement Health Education (DSHEA) requirements and Food Safety Modernization Act (FSMA) benchmarks for its food/feed ingredients.

The engagement points for validation include:

• Confirming effects of the compound co-administered with a collaborator's vaccine.
• Collecting tissue and plasma samples for performance evaluation.
• Assessing compounds using a model of various viral diseases.
• Investigating the ability to reduce time between immunization and protective immunity.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Channels

You're looking at how ZIVO Bioscience, Inc. (ZIVO) gets its Zivolife product from the algae ponds in Peru to the customer, which is a mix of exclusive partnerships and direct licensing potential. The channels here are heavily weighted on the supply and distribution side right now, which makes sense given the focus on scaling up production.

Direct licensing agreements with major animal health and pharma companies

ZIVO Bioscience, Inc. operates by licensing and selling its natural bioactive ingredients derived from proprietary algae cultures to various manufacturers in the animal, human, dietary supplement, and medical food sectors. For potential licensing deals outside the immediate Zivolife distribution channel, the company has established a financial structure where participants who provided funding are entitled to a 44.775% "Revenue Share" of all license fees generated by ZIVO from any licensee. This structure gives ZIVO Bioscience an option to buy back this revenue share right, title, and interest, with the cost depending on when the option is exercised: for less than 18 months following execution, the cost is the amount funded plus a forty percent (40%) premium, or forty (40%) or fifty percent (50%) if exercised later.

Exclusive North American distribution network via ZWorldwide for Zivolife

The primary channel for the Zivolife human nutrition product in North America is through ZWorldwide, Inc., an independent distributor holding exclusive rights. This relationship is cemented by significant purchase commitments. ZWorldwide committed to buying the entire supply of Zivolife produced during the first 18 months of commercialization. Furthermore, subject to certain contingencies, ZWorldwide is committed to purchasing a minimum volume of at least 24,000 kilograms of product annually for a total of five years, including the initial 18-month period. Breaking that down further, the commitment is for at least 2,000 kilograms per month through August 31, 2028. As of the third quarter of 2025, ZIVO Bioscience, Inc.'s trailing twelve-month revenue stood at $209K, with the Q3 2025 actual revenue reported as $65.63K.

Here's a quick look at the key volume and time commitments tied to the Zivolife distribution and supply chain:

Contract manufacturing and supply chain via Alimenta Algae SAC

The physical production channel relies on a contract manufacturing agreement with Alimenta Algae SAC, the microalgae subsidiary of Grupo Alimenta in Peru. This binding Term Sheet, signed in July 2023, commits ZIVOLife LLC to purchase all Zivolife product produced at the site, subject to capacity limitations. Alimenta Algae is making necessary investments to scale up the facility, which is anticipated to be fully operational in the second or third quarter of 2025. Once at full capacity, the facility is planned to produce up to 100,000 kilograms of dried product per year. The purchases made under this agreement were $16,040 for the year ended December 31, 2023, and $108,268 for the year ended December 31, 2024. The overall contract manufacturing agreement is for 5 years.

Direct sales of algal biomass to ingredient/supplement manufacturers (future)

While the current revenue generation is channeled through the ZWorldwide distribution agreement for the Zivolife branded product, the underlying business model for ZIVO Bioscience, Inc. involves licensing and selling the natural bioactive ingredients directly to manufacturers. The company's stated goal includes pursuing opportunities in the biotech and pharma markets, which would involve direct business-to-business sales or licensing arrangements beyond the current food ingredient distribution.

• ZIVO Bioscience has 7 total employees.
• The company's intellectual property portfolio includes proprietary algal and bacterial strains.
• ZIVO Bioscience is headquartered in Bloomfield Hills, MI.

Finance: draft 13-week cash view by Friday.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Customer Segments

You're looking at the customer base for ZIVO Bioscience, Inc. as of late 2025. The company's current revenue scale, based on Trailing Twelve Month (TTM) figures ending September 30, 2025, is quite small at approximately $209K. This suggests the customer base is currently in the early stages of commercial adoption or heavily focused on R&D partnerships rather than massive volume sales.

The core customer segments are defined by the applications for their proprietary algal extracts and bioactive molecules, which they primarily aim to license or sell as ingredients.

Global Animal Health/Pharmaceutical Companies (seeking non-antibiotic therapeutics)

This segment represents a major strategic focus, targeting the urgent need to reduce antibiotic use in agriculture. These companies are looking for validated, natural alternatives for animal health issues. The market opportunity is described as vast and rapidly growing due to regulatory pressure against antibiotic overuse.

• Targeting poultry coccidiosis treatment candidates.
• Developing solutions for bovine mastitis.
• Seeking immune-enhancing compounds for poultry.

Human Dietary Supplement and Nutraceutical Companies (seeking functional ingredients)

ZIVO Bioscience, Inc. positions its product as a powerful natural source of antioxidants, including beta-carotene and lutein, setting it apart in the nutraceutical marketplace. The company has stated it is in active discussions with major nutraceutical clients, anticipating significant commercial commitments to materially increase human health revenues. The company's intellectual property portfolio includes candidates for Human Immune Modulation and New Dietary Ingredient (NDI) applications.

Food and Beverage Manufacturers (seeking sustainable, plant-based ingredients)

While less detailed in recent public updates than the therapeutic and supplement arms, ZIVO Bioscience, Inc. targets the Food Ingredients sector. The value proposition here centers on sustainable, plant-based ingredients derived from their proprietary algal culture. The company's gross margin percentage decreased to 31% from 42% in the previous year, which is a factor when negotiating ingredient pricing with large manufacturers.

North American Green Powder/Supplement Consumers (indirectly, via distributor)

This group is an indirect customer segment, reached through the distribution of finished nutritional products containing ZIVO Bioscience, Inc.'s ingredients. The company's strategy involves commercial-scale production of its proprietary algal culture for nutritional use. The small scale of current operations is reflected in the Q3 2025 actual revenue of $65.63K, though analysts forecast the Q4 2025 revenue to reach $428.00K.

Here's a quick look at the financial context surrounding these customer segments as of late 2025:

The company is actively seeking partnerships to accelerate commercialization, which is the bridge to scaling revenue from these identified customer segments. The Net Loss for the prior year was $(13.38 million), showing the investment required before these segments generate substantial, profitable top-line results.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Cost Structure

You're looking at the expense side of ZIVO Bioscience, Inc.'s operations, and honestly, it's dominated by the costs of being a pre-commercial, R&D-heavy biotech/agtech firm. The structure is heavily weighted toward future development rather than current sales, which is typical for this stage.

High Research and Development (R&D) expenses for clinical trials and validation form a major cost center. For the full fiscal year 2024, Research and Development expenses totaled approximately $3.1 million. This covers internal staff costs and fees paid to independent outside contractors for clinical study expenses related to their biotech pipeline and the development and growing of algae for the agtech business. R&D costs are expensed as incurred.

Significant General and Administrative (G&A) expenses are another substantial drain. For the third quarter of 2024, G&A was reported at $1,943,127. To give you a sense of the full-year scale, General and administrative expenses for the entire fiscal year 2024 increased significantly to about $10.3 million, up from $5.9 million the prior year, largely driven by higher labor costs and director fees.

The costs associated with getting product ready for market are reflected in the Costs of goods sold (COGS) related to contract cultivation and production. For the full year 2024, COGS rose to $108,268, up from $27,650 in 2023, aligning with increased product volumes under their off-take agreement.

The company must also budget for Intellectual property maintenance and patent prosecution costs to protect its portfolio of proprietary algal and bacterial strains, bioactive molecules, and cultivation techniques. These costs are generally captured within the operating expenses, often falling under R&D or G&A, as specific line items for pure IP maintenance aren't always broken out in summary filings.

The cumulative effect of these expenditures, given minimal revenue, is an Operating expenses leading to a large Net Loss. The Net Loss for the fiscal year 2024 was $(13,384,836). This loss was significantly larger than the prior year's loss of $7.8 million. The company's accumulated deficit was approximately $137 million as of the end of 2024.

Here's a look at how the major expense categories stacked up for the full year 2024 compared to the prior year, based on available data:

The cost structure is characterized by these key operational spending areas:

• High non-cash equity compensation impacting both R&D and G&A.
• Increased labor-related costs driving G&A higher in 2024.
• Professional services expenses, including director compensation increases.
• Costs associated with scaling up production with the contract manufacturing partner.
• Expensing of all Research and Development costs as they are incurred.

Management has noted substantial doubt about the ability to continue as a going concern due to these recurring losses and negative cash flows, estimating that approximately $6.0 million is needed over the next 12 months to fund operations. Finance: draft 13-week cash view by Friday.

ZIVO Bioscience, Inc. (ZIVO) - Canvas Business Model: Revenue Streams

You're looking at ZIVO Bioscience, Inc. (ZIVO) revenue streams as of late 2025, and it's clear the model is transitioning from pure R&D funding and early sales toward commercial product revenue and future licensing milestones. The most concrete, realized revenue stream right now is from product sales of Zivolife algal biomass, which generated a Trailing Twelve Month (TTM) revenue as of Q3 2025 of $209K. To give you a more granular view, the revenue for the third quarter ending September 30, 2025, specifically was $65.63K. This revenue is tied to the commercialization of ZIVOLife, LLC output, with production scale-up plans targeting a capacity of roughly 100,000 kg per year at the Peru site by late 2025.

Here's a quick look at the recent product sales performance:

The next major component involves future licensing fees and royalties from therapeutic product commercialization. ZIVO Bioscience, Inc. has been actively pursuing exclusive license agreements, such as the one discussed for its coccidiosis product in the animal health sector. Deal terms being pursued include an upfront payment, milestone payments tied to commercialization targets, and a royalty based on product sales. While the company expected to finalize an agreement in the first quarter of 2025, the status of that specific deal's closing is a key factor for near-term non-product revenue generation.

Research funding from strategic partners represents another non-product revenue stream. ZIVO Bioscience, Inc. operates as a research and development company, and its progress often involves studies funded by potential partners, such as animal health companies, to validate its proprietary algal strains and bioactive molecules for specific applications like Bovine Mastitis or Canine Joint Health. This funding helps offset internal R&D expenses while advancing product candidates toward commercial viability.

Potential buy-out payments relate to the License Co-Development Participation Agreements originally entered into around 2020. These agreements provided ZIVO Bioscience, Inc. with aggregate proceeds of $2,985,000 in exchange for participants receiving an aggregate of 44.78% Revenue Share of all future license fees. The agreements contain a Company Buy-Back Option, which can only be exercised after the participant has received a stated threshold of revenue share, suggesting a potential future cash outlay for ZIVO Bioscience, Inc. to reclaim that 44.78% revenue participation, though the exact timing and terms of any 2025 stock exchange or buy-back execution are not explicitly detailed in the latest figures.

Key elements defining the revenue potential include:

• Upfront payment potential from licensing deals.
• Milestone payments tied to commercialization targets.
• Royalty stream from product sales post-licensing.
• Potential exercise of the Buy-Back Option on revenue sharing rights.

Finance: draft 13-week cash view by Friday.