| ◾ | In the first nine months of 2024, total revenues reached approximately $6.9 million, compared to approximately $5.1 million in the first nine months of 2023. |
| ◾ | In Q3 2024, total revenues reached approximately $1.8 million, compared to approximately $3.8 million in Q3 2023. The revenues in Q3 2024 are mainly based on Casterra’s seed sales. The revenues in Q3 2023 included a license fee payment of $2.5 million received by Lavie Bio. |
| ◾ | For the full year 2024, Evogene anticipates continued revenue growth, compared to the previous year, mainly due to Casterra’s supply of existing seed orders. |
| ◾ | G&A expenses in Q3 2024 included expenses of approximately $1.4 million resulting from Evogene’s fundraising and an allowance for doubtful debt from one of Casterra’s seed suppliers. The remaining G&A expenses in Q3 2024 amounted to approximately $1.5 million, unchanged compared to Q3 2023. |
| ◾ | In the first nine months of 2024, operating loss was approximately $17.6 million, which included the G&A expenses of approximately $1.5 million due to Evogene’s fundraising and an allowance for doubtful debt mentioned above, and other expenses of approximately $0.5 million, compared to approximately $18.9 million in the first nine months of 2023. |
| ◾ | In the first nine months of 2024, financing expenses net, were approximately $0.38 million compared to financing income net of approximately $0.23 million in the first nine months of 2023. The financing expenses net in the first nine months of 2024, included approximately $0.88 million of expenses related to accounting treatment of warrants issued as part of Evogene’s August 2024 fundraising. |
| ◾ | Projected cash usage for 2024, without Biomica and Lavie Bio, is approximately $8-$10 million compared to $12.5 million in 2023. |
| ◾ | In August 2024, Evogene completed a fundraising totaling $5.5 million in gross proceeds, including ordinary shares and two sets of warrants. |
| ◾ | The Company has taken measures to strengthen its cash position by reducing its expenses, including a reduction of 16% in its head count, and is exploring additional business opportunities to inject funds into the Company and its subsidiaries. |
| - | July 31 - Successfully completed castor seed growing and harvesting season in Brazil with shipments planned to be initiated starting Q3 2024. |
| - | October 29 - Achieving key milestone in operational expansion in Africa, with completion of first shipment of over 100 tons of castor seeds grown and processed in Kenya. |
| - | As a result of the extended rain season in Africa, the current harvest season in Africa is expected to be completed by Q1 2025, supporting current and future demands. |
| - | Casterra is expected to supply a major portion of its existing seed orders by the end of 2024. |
| - | Casterra and its business partners are currently discussing the supply schedule, quantity and seed varieties of the remainder of the orders and future orders in 2025. |
| - | July 2 - Commercial expansion of Yalos® to winter wheat. Initial sales to growers started in Q3 2024. |
| - | July 17 - ICL and Lavie Bio announced achieving a milestone in developing bio-stimulant solutions leveraging AI, by identifying over a dozen novel microbes within 12 months, for crops facing extreme weather conditions. |
| - | September 30 - Grant received from the Israel Innovation Authority to advance the development of ‘MicroFermentor’, a unique technology that can change the economics of ag-biologicals. |
| - | November 12 - Positive results for Yalos® as seed-treatment for soybean. Initial sales to growers expected in spring 2025. |
| - | November 19 - Advancement of LAV321, targeting downy mildew, to pre-commercialization, following successful 2024 field trial results. |
| - | Collaborations: Bayer and Corteva collaborations advancing according to plan. |
| - | Pipeline: |
| ◾ | Septoria, novel fungicide program - 3 out of 3 predicted proteins have been verified to be essential in Septoria. |
| ◾ | Ongoing testing of ~1,000 compounds against Septoria targets; currently at least one target is showing high rates of in vitro hits. |
| - | BMC128 continued phase I clinical study, with prolonged positive response of 5 patients. |
| - | Pre IND meeting with positive feedback from the FDA, and preparation for IND submission. |
| - | Manufacturing of clinical batch of BMC128 as part of preparation for FDA approved phase II clinical study. |
| - | 2 new programs initiated: obesity & longevity, following extensive evaluations of over 40 possible indications. Acquisition and partial analysis of relevant data for the new programs. |
| • | Biomica Ltd. (www.biomicamed.com) – developing and advancing novel microbiome-based therapeutics to treat human disorders powered by MicroBoost AI; |
| • | Lavie Bio (www.lavie-bio.com) – developing and commercially advancing, microbiome based ag-biologicals powered by MicroBoost AI; |
| • | AgPlenus Ltd. (www.agplenus.com) – developing next generation ag-chemicals for effective and sustainable crop protection powered by ChemPass AI; and |
| • | Casterra Ag (www.casterra.co) – developing and marketing superior castor seed varieties producing high yield and high-grade oil content, on an industrial scale for the biofuel and other industries powered by GeneRator AI. |
| Page | |
| 9 | |
| 10 | |
| 11-12 |
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Unaudited | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 11,317 | $ | 20,772 | ||||
| Short-term bank deposits | 8,636 | 10,291 | ||||||
| Trade receivables | 1,590 | 357 | ||||||
| Other receivables and prepaid expenses | 2,360 | 2,973 | ||||||
| Inventories | 1,456 | 76 | ||||||
| 25,359 | 34,469 | |||||||
| LONG-TERM ASSETS: | ||||||||
| Long-term deposits and other receivables | 39 | 28 | ||||||
| Investment accounted for using the equity method | 95 | - | ||||||
| Right-of-use-assets | 619 | 980 | ||||||
| Property, plant and equipment, net | 1,562 | 2,455 | ||||||
| Intangible assets, net | 12,440 | 13,169 | ||||||
| 14,755 | 16,632 | |||||||
| $ | 40,114 | $ | 51,101 | |||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 1,198 | $ | 1,785 | ||||
| Employees and payroll accruals | 2,289 | 2,537 | ||||||
| Lease liability | 417 | 853 | ||||||
| Liabilities in respect of government grants | 782 | 388 | ||||||
| Deferred revenues and other advances | 742 | 362 | ||||||
| Warrants and pre-funded warrants liability, net | 6,382 | - | ||||||
| Convertible SAFE | 10,320 | - | ||||||
| Other payables | 1,158 | 1,019 | ||||||
| 23,288 | 6,944 | |||||||
| LONG-TERM LIABILITIES: | ||||||||
| Lease liability | 269 | 285 | ||||||
| Liabilities in respect of government grants | 4,148 | 4,426 | ||||||
| Deferred revenues and other advances | 171 | 393 | ||||||
| Convertible SAFE | - | 10,368 | ||||||
| 4,588 | 15,472 | |||||||
| SHAREHOLDERS' EQUITY: | ||||||||
Ordinary shares of NIS 0.2 par value: Authorized − 15,000,000 ordinary shares; Issued and outstanding – 6,792,746 shares as of September 30, 2024 and 5,079,313 (*) shares as of December 31, 2023 | 301 | 286 | ||||||
| Share premium and other capital reserve | 269,854 | 269,353 | ||||||
| Accumulated deficit | (274,498 | ) | (257,586 | ) | ||||
| Equity attributable to equity holders of the Company | (4,343 | ) | 12,053 | |||||
| Non-controlling interests | 16,581 | 16,632 | ||||||
| Total equity | 12,238 | 28,685 | ||||||
| $ | 40,114 | $ | 51,101 | |||||
Nine months ended September 30, | Three months ended September 30, | Year ended December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Revenues | $ | 6,900 | $ | 5,062 | $ | 1,796 | $ | 3,767 | $ | 5,640 | ||||||||||
| Cost of revenues | 1,928 | 1,294 | 1,081 | 511 | 1,692 | |||||||||||||||
| Gross profit | 4,972 | 3,768 | 715 | 3,256 | 3,948 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development, net | 13,247 | 15,232 | 4,430 | 5,063 | 20,777 | |||||||||||||||
| Sales and marketing | 2,775 | 2,578 | 855 | 850 | 3,611 | |||||||||||||||
| General and administrative | 6,069 | 4,838 | 2,885 | 1,526 | 6,068 | |||||||||||||||
| Other expenses | 524 | - | - | - | - | |||||||||||||||
| Total operating expenses, net | 22,615 | 22,648 | 8,170 | 7,439 | 30,456 | |||||||||||||||
| Operating loss | (17,643 | ) | (18,880 | ) | (7,455 | ) | (4,183 | ) | (26,508 | ) | ||||||||||
| Financing income | 2,820 | 1,128 | 2,153 | 429 | 1,486 | |||||||||||||||
| Financing expenses | (3,198 | ) | (894 | ) | (2,910 | ) | (109 | ) | (965 | ) | ||||||||||
| Financing income (expenses), net | (378 | ) | 234 | (757 | ) | 320 | 521 | |||||||||||||
| Share of loss of an associate | (26 | ) | - | (6 | ) | - | - | |||||||||||||
| Loss before taxes on income | (18,047 | ) | (18,646 | ) | (8,218 | ) | (3,863 | ) | (25,987 | ) | ||||||||||
| Taxes on income (tax benefit) | 2 | (29 | ) | 1 | (5 | ) | (33 | ) | ||||||||||||
| Loss | $ | (18,049 | ) | $ | (18,617 | ) | $ | (8,219 | ) | $ | (3,858 | ) | $ | (25,954 | ) | |||||
| Attributable to: | ||||||||||||||||||||
| Equity holders of the Company | (16,912 | ) | (17,278 | ) | (7,630 | ) | (3,984 | ) | (23,879 | ) | ||||||||||
| Non-controlling interests | (1,137 | ) | (1,339 | ) | (589 | ) | 126 | (2,075 | ) | |||||||||||
| $ | (18,049 | ) | $ | (18,617 | ) | $ | (8,219 | ) | $ | (3,858 | ) | $ | (25,954 | ) | ||||||
| Basic and diluted loss per share, attributable to equity holders of the Company (*) | $ | (3.17 | ) | $ | (3.91 | ) | $ | (1.31 | ) | $ | (0.81 | ) | $ | (5.20 | ) | |||||
| Weighted average number of shares used in computing basic and diluted loss per share (*) | 5,327,078 | 4,423,661 | 5,807,128 | 4,913,052 | 4,589,386 | |||||||||||||||
Nine months ended September 30, | Three months ended September 30, | Year ended December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| Unaudited | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
| Loss | $ | (18,049 | ) | $ | (18,617 | ) | $ | (8,219 | ) | $ | (3,858 | ) | $ | (25,954 | ) | |||||
| Adjustments to reconcile loss to net cash used in operating activities: | ||||||||||||||||||||
| Adjustments to the profit or loss items: | ||||||||||||||||||||
| Depreciation | 1,182 | 1,223 | 382 | 416 | 1,641 | |||||||||||||||
| Amortization of intangible assets | 729 | 726 | 245 | 245 | 971 | |||||||||||||||
| Share-based compensation | 1,478 | 1,764 | 479 | 545 | 1,877 | |||||||||||||||
| Remeasurement of pre-funded warrants and warrants | (1,940 | ) | - | (1,940 | ) | - | - | |||||||||||||
| Revaluation of convertible SAFE | (48 | ) | 177 | (72 | ) | (43 | ) | 254 | ||||||||||||
| Net financing expenses (income) | 943 | (206 | ) | 1,165 | (212 | ) | (666 | ) | ||||||||||||
| Loss (gain) from sale of property, plant and equipment | 524 | (26 | ) | - | - | (26 | ) | |||||||||||||
| Excess of initial fair value of pre-funded warrants over transaction proceeds | 2,684 | - | 2,684 | - | - | |||||||||||||||
| Amortization of deferred expenses related to issuance of warrants | 137 | - | 137 | - | - | |||||||||||||||
| Share of loss of an associate | 26 | - | 6 | - | - | |||||||||||||||
| Taxes on income (tax benefit) | 2 | (29 | ) | 1 | (5 | ) | (33 | ) | ||||||||||||
| 5,717 | 3,629 | 3,087 | 946 | 4,018 | ||||||||||||||||
| Changes in asset and liability items: | ||||||||||||||||||||
| Increase in trade receivables | (1,233 | ) | (997 | ) | (1,214 | ) | (1,167 | ) | (9 | ) | ||||||||||
| Decrease (increase) in other receivables | 601 | (420 | ) | 1,326 | (504 | ) | (1,445 | ) | ||||||||||||
| Decrease (increase) in inventories | (1,380 | ) | 453 | (662 | ) | 136 | 490 | |||||||||||||
| Decrease in deferred taxes | - | - | - | - | 94 | |||||||||||||||
| Increase (decrease) in trade payables | (534 | ) | 179 | 228 | 153 | 742 | ||||||||||||||
| Increase (decrease) in employees and payroll accruals | (248 | ) | 72 | (44 | ) | (100 | ) | 550 | ||||||||||||
| Increase (decrease) in other payables | 139 | (467 | ) | 353 | (305 | ) | (534 | ) | ||||||||||||
| Increase (decrease) in deferred revenues and other advances | (96 | ) | 190 | (12 | ) | 263 | (288 | ) | ||||||||||||
| (2,751 | ) | (990 | ) | (25 | ) | (1,524 | ) | (400 | ) | |||||||||||
| Cash received (paid) during the period for: | ||||||||||||||||||||
| Interest received | 646 | 433 | 244 | 150 | 905 | |||||||||||||||
| Interest paid | (56 | ) | (92 | ) | (15 | ) | (26 | ) | (115 | ) | ||||||||||
| Tax paid | - | (15 | ) | - | (5 | ) | (31 | ) | ||||||||||||
| Net cash used in operating activities | $ | (14,493 | ) | $ | (15,652 | ) | $ | (4,928 | ) | $ | (4,317 | ) | $ | (21,577 | ) | |||||
Nine months ended September 30, | Three months ended September 30, | Year ended December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| Unaudited | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
| Purchase of property, plant and equipment | $ | (304 | ) | $ | (699 | ) | $ | (132 | ) | $ | (216 | ) | $ | (785 | ) | |||||
| Proceeds from sale of marketable securities | - | 6,924 | - | - | 6,924 | |||||||||||||||
| Purchase of marketable securities | - | (503 | ) | - | - | (503 | ) | |||||||||||||
| Proceeds from sale of property, plant and aquipment | 58 | 26 | 48 | - | 26 | |||||||||||||||
| Investment in short term bank deposits, net | 1,110 | (9,700 | ) | 2,100 | 3,860 | (10,200 | ) | |||||||||||||
| Net cash provided by (used in) investing activities | 864 | (3,952 | ) | 2,016 | 3,644 | (4,538 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
| Issuance of a subsidiary preferred shares to non-controlling interests | - | 9,523 | - | - | 9,523 | |||||||||||||||
| Proceeds from issuance of ordinary shares, pre-funded warrants and warrants, net of issuance expenses | 4,854 | - | 4,854 | - | - | |||||||||||||||
| Proceeds from issuance of ordinary shares, net of issuance expenses | 123 | 8,404 | 37 | 8,068 | 8,449 | |||||||||||||||
| Repayment of lease liability | (695 | ) | (624 | ) | (233 | ) | (211 | ) | (836 | ) | ||||||||||
| Proceeds from government grants | 232 | 1,069 | 232 | (20 | ) | 1,089 | ||||||||||||||
| Repayment of government grants | (298 | ) | (73 | ) | (156 | ) | (38 | ) | (73 | ) | ||||||||||
| Net cash provided by financing activities | 4,216 | 18,299 | 4,734 | 7,799 | 18,152 | |||||||||||||||
| Exchange rate differences - cash and cash equivalent balances | (42 | ) | (344 | ) | 11 | (28 | ) | (245 | ) | |||||||||||
| Increase (decrease) in cash and cash equivalents | (9,455 | ) | (1,649 | ) | 1,833 | 7,098 | (8,208 | ) | ||||||||||||
| Cash and cash equivalents beginning of the period | 20,772 | 28,980 | 9,484 | 20,233 | 28,980 | |||||||||||||||
| Cash and cash equivalents end of the period | $ | 11,317 | $ | 27,331 | $ | 11,317 | $ | 27,331 | $ | 20,772 | ||||||||||
Significant non-cash activities: | ||||||||||||||||||||
| Acquisition of property, plant and equipment, net | $ | 28 | $ | 35 | $ | 28 | $ | 35 | $ | 81 | ||||||||||
| Increase of right-of-use asset recognized with corresponding lease liability | $ | 279 | $ | 135 | $ | 95 | $ | - | $ | 194 | ||||||||||
| Investment in affiliated Company with corresponding deferred revenues | $ | 120 | $ | - | $ | - | $ | - | $ | - | ||||||||||
