Core Insights - Lavie Bio is a leader in the ag-biologicals industry with a strong pipeline of microbiome-based products, transferring key assets to ICL, including its core team, BDD technology platform, microbial bank, and most development programs [1][2][3] - The transaction is a result of over two years of collaboration between ICL and Lavie Bio, aimed at developing bio-stimulant solutions for crops under abiotic stress [2][3] - The integration of Lavie Bio into ICL is expected to significantly advance the ag-biologicals field and drive innovation in agriculture [3] Company Overview - Lavie Bio, a subsidiary of Evogene Ltd., focuses on enhancing food quality and agricultural productivity through microbiome-based products, utilizing a proprietary computational predictive platform powered by Evogene's MicroBoost AI technology [4] - Evogene Ltd. is a computational biology company that aims to revolutionize life-science product development through advanced technologies, including MicroBoost AI, ChemPass AI, and GeneRator AI, which are designed for discovering and developing products based on microbes, small molecules, and genetic elements [6]

Financial Performance and Market Conditions - The appreciation of the NIS against the U.S. dollar was (0.6%), (3.1%), and (13.2%) for the years ended December 31, 2024, 2023, and 2022, respectively, which may negatively affect financial results [154]. - The Israeli annual rate of inflation was 5.3%, 3.0%, and 3.2% for the years ended December 31, 2022, 2023, and 2024, respectively [154]. - The market price of the company's ordinary shares has declined since the reverse split, affecting total market capitalization [171]. Grants and Royalties - The company received approximately $9.4 million in royalty-bearing grants from the Israeli Innovation Authority, with a repayment of approximately $3.9 million in royalties [158]. - The company is committed to pay royalties at a rate of 3.0% - 4.0% on sales proceeds from products developed under IIA programs [157]. Nasdaq Compliance and Corporate Governance - On October 31, 2022, the company received a notification from Nasdaq for non-compliance with the minimum bid price requirement of $1.00 per share [166]. - The company was granted an additional 180-day grace period until October 30, 2023, to regain compliance with Nasdaq listing requirements [167]. - A reverse share split of 1-for-10 was executed on July 24, 2024, to temporarily regain compliance with Nasdaq listing standards [169]. - Being a public company in both the U.S. and Israel may strain resources and distract management, increasing legal and financial compliance costs [175]. - The company follows Israeli corporate governance practices instead of Nasdaq requirements, potentially providing less protection to investors [178]. - Loss of foreign private issuer status could significantly increase compliance costs and regulatory burdens [179]. Legal and Regulatory Challenges - The company may face challenges in transferring know-how and manufacturing rights outside of Israel due to restrictions from IIA grants [158]. - The company may encounter difficulties in enforcing U.S. judgments in Israel or asserting U.S. securities law claims due to its incorporation in Israel [159]. - The company currently utilizes U.S. reporting standards but may face increased compliance costs if parallel reporting obligations in Israel and the U.S. are imposed [174]. - The company incurs significant accounting, legal, and other expenses related to reporting requirements under the Exchange Act and Sarbanes-Oxley Act, which may divert management's attention from business operations [176]. - As a foreign private issuer, the company is exempt from certain U.S. regulations, which may reduce the frequency and scope of information available to investors [177]. Tax Implications - U.S. shareholders owning at least 10% of the company's ordinary shares may face adverse federal income tax consequences [180]. - The company believes it was not a Passive Foreign Investment Company (PFIC) for 2024, but there is a risk of being classified as such in 2025, which could lead to adverse tax consequences for U.S. shareholders [182]. Internal Control and Reporting - Failure to maintain effective internal control over financial reporting could adversely affect the price of the company's ordinary shares [184].

Financial Data and Key Metrics Changes - Total revenues for 2024 reached approximately $8.5 million, an increase from approximately $5.6 million in 2023, primarily driven by AgPlenus revenues from collaboration with Bayer and increased Casterra seed sales [14][56] - Q4 2024 total revenues were approximately $1.6 million, compared to $0.6 million in Q4 2023, mainly due to increased Casterra seed sales [15][56] - Total R&D expenses for 2024 were approximately $16.6 million, down from $20.8 million in 2023, with Q4 2024 R&D expenses at approximately $3.4 million, down from $5.5 million in Q4 2023 [16][57] - General and administrative expenses for 2024 increased to approximately $7.4 million from $6.1 million in 2023, influenced by one-time expenses related to fundraising [18][59] - The net loss for 2024 was approximately $18.1 million, a decrease from $26 million in 2023, with Q4 2024 net loss at approximately $5,000, down from $7.3 million in Q4 2023 [61][62] Business Line Data and Key Metrics Changes - Casterra delivered approximately 215 tons of castor seeds in 2024, with only 76 tons delivered in Q4 2024, but 250 tons delivered in February 2025 alone, indicating a resolution of previous production bottlenecks [15][20] - Lavie Bio signed a new collaboration agreement with Syngenta in February 2024 and reported advancements in biostimulants and bio fungicides throughout 2024 [23][24] - AgPlenus signed a collaboration agreement with Bayer in February 2024 and achieved milestones with Corteva for novel herbicides [25][26] Market Data and Key Metrics Changes - Casterra is focusing on expanding its seed production in Africa and Brazil, with significant demand for castor grain in both markets [21][70] - The company is exploring new commercial opportunities in the castor oil industry, leveraging its unique seed varieties and advanced growth protocols [48][49] Company Strategy and Development Direction - The company aims to position itself as a leader in life science product development, integrating advanced computational technologies with life sciences [28][30] - A targeted business strategy is in place to maximize potential while minimizing risk through collaborative partnerships for product development [32][34] - The focus for 2025 includes enhancing ChemPass AI for drug discovery and creating exit events for subsidiaries to inject funds into the company [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's potential to unlock significant value through its subsidiaries and advanced computational capabilities [11][12] - The company is committed to a capital-efficient model and anticipates achieving strategic goals in 2025 [12][34] Other Important Information - The company established an expense reduction plan expected to reduce expenses by approximately 30% by Q1 2025 [17] - The company is currently in discussions for potential collaborations and partnerships in the drug discovery space [43][46] Q&A Session Summary Question: Expected cash burn for 2025 - Expected cash burn for 2025 is projected to be between $6 million to $7 million, excluding cash from potential subsidiary sales [64] Question: Status of exit efforts for subsidiaries - Exit efforts are being prioritized, but specific details cannot be disclosed at this time [66][68] Question: Initial sales expectations in Brazil for Casterra - Initial sales in Brazil are expected to come from both seed and grain sales, with a focus on seed sales in 2025 [69][72] Question: Base case sales goal for Yalos in spring wheat and soybeans - Specific sales goals were not disclosed, but there is growing interest in Yalos for soybean growers due to higher margins [73][75] Question: Magnitude of castor sales in 2025 - Q1 2025 is expected to be a strong quarter for Casterra, with 250 tons already delivered, but not necessarily the largest quarter for the year [76][79] Question: Structure of potential joint venture for oil production - The company is currently responsible for seed production and cultivation, with plans to sell grain under offtake agreements, while not taking on responsibilities for oil production in 2025 [83][85] Question: Expense levels for 2025 - Expense levels in Q4 2024 are expected to reflect similar levels in 2025, with potential further declines anticipated [87][90]

Core Insights - Evogene Ltd. reported financial results for Q4 and full year 2024, highlighting significant revenue growth and a strategic focus on AI-powered drug discovery and subsidiary exit events [2][3][4]. Financial Performance - Total revenues for 2024 reached approximately $8.5 million, up from $5.6 million in 2023, driven by AgPlenus' collaboration with Bayer and increased seed sales from Casterra [4][11]. - Q4 2024 revenues were approximately $1.6 million, compared to $0.6 million in Q4 2023, primarily due to increased Casterra seed sales [4][11]. - R&D expenses for 2024 were approximately $16.6 million, down from $20.8 million in 2023, reflecting reduced activities in several subsidiaries [4][12]. - General and administrative expenses increased to approximately $7.4 million in 2024 from $6.1 million in 2023, influenced by one-time fundraising costs [4][16]. - The net loss for 2024 was approximately $18.1 million, a decrease from $26.0 million in 2023, attributed to higher revenues and lower R&D expenses [20]. Strategic Focus - The company plans to enhance its ChemPass AI tech-engine for drug discovery and expects to announce collaborations with biotech firms and academic institutions [3]. - Evogene aims to create exit events for its subsidiaries to inject funds into its operations, with a focus on strengthening Casterra's market position [3][5]. - The company has initiated an expense reduction plan, targeting a 30% reduction in headcount by the end of Q1 2025 [4][10]. Subsidiary Developments - Casterra Ag Ltd. is focused on large-scale castor bean farming solutions using GeneRator AI [6]. - Lavie Bio Ltd. develops microbiome-based bio-stimulants and bio-pesticides powered by MicroBoost AI [7]. - AgPlenus Ltd. specializes in sustainable crop protection products utilizing ChemPass AI [8]. - Biomica Ltd. is advancing microbiome-based therapeutics powered by MicroBoost AI [9]. Cash Position - As of December 31, 2024, Evogene held approximately $15.3 million in cash and equivalents, with cash usage in Q4 2024 at approximately $4.6 million [10][27].

Core Insights - Evogene Ltd. has appointed Mr. Nir Nimrodi as the new Chairperson of the Board, succeeding Ms. Sarit Firon, who will remain a Board member [1][2] - Mr. Nimrodi's extensive experience in scaling life sciences businesses positions him well to guide Evogene through its next growth phase [2][3] - The company aims to leverage advanced computational capabilities and AI to enhance drug discovery processes and create significant value for shareholders [3] Company Overview - Evogene Ltd. is a computational biology company focused on revolutionizing life-science product development through big data and artificial intelligence [4] - The company has established three unique tech-engines: MicroBoost AI, ChemPass AI, and GeneRator AI, each targeting different core components for product development [5] Subsidiaries and Focus Areas - Evogene operates four subsidiaries: 1. Casterra Ag Ltd. focuses on high-yield castor seed varieties for biofuel and other industries [6] 2. Lavie Bio Ltd. develops microbiome-based ag-biologicals [6] 3. AgPlenus Ltd. works on next-generation ag chemicals for sustainable crop protection [6] 4. Biomica Ltd. is advancing microbiome-based therapeutics for human disorders [6]

Company Overview - Evogene Ltd. is a computational biology company focused on revolutionizing life-science product discovery and development through big data and artificial intelligence [3][4] - The company aims to increase the probability of success while reducing development time and costs in life-science-based products [3] Financial Results Announcement - Evogene will release its financial results for the fourth quarter of 2024 on March 6, 2025 [1] - A conference call to discuss these results is scheduled for the same day at 9:00 AM Eastern Time [2] Technology and Product Development - The company has established three unique tech-engines: MicroBoost AI, ChemPass AI, and GeneRator AI, each targeting different core components: microbes, small molecules, and genetic elements respectively [4] - Evogene develops products through strategic partnerships and collaborations, leveraging its tech-engines [4] Subsidiaries - Evogene operates four subsidiaries focused on various applications of its technology: 1. Biomica Ltd. - developing microbiome-based therapeutics [5] 2. Lavie Bio Ltd. - advancing microbiome-based ag-biologicals [5] 3. AgPlenus Ltd. - developing next-generation ag chemicals for crop protection [5] 4. Casterra Ag Ltd. - marketing superior castor seed varieties for biofuel and other industries [5]

Industry Insights - Zymoseptoria tritici is a significant cause of wheat crop loss globally, with over 70% of fungicides in Europe targeting this fungus, representing a market exceeding 1.2 billion euros annually [1] - The increasing resistance of fungi to existing fungicides highlights the urgent need for new modes of action (MoA) in crop protection [1] Company Developments - AgPlenus has initiated a Zymoseptoria program using the TargetSelector™ tool to identify essential target proteins for the fungus, followed by the PointHit™ tool to discover chemical inhibitors [2] - Preliminary results from greenhouse trials indicate the efficacy of the identified molecules in managing Zymoseptoria, prompting the program to advance to the optimization phase using the ActiveSearch™ tool [3] - Dr. Dan Gelvan, CEO of AgPlenus, expressed optimism regarding the program's progress and the timely identification of novel targets amid rising fungicide resistance [4] - AgPlenus aims to develop innovative and sustainable crop protection solutions, leveraging predictive biology and artificial intelligence through its ChemPass AI tech-engine [5] Parent Company Overview - Evogene Ltd. is a computational biology company focused on life-science product development, utilizing advanced technologies to enhance success rates while reducing costs [6] - Evogene operates three tech-engines: MicroBoost AI, ChemPass AI, and GeneRator AI, each targeting different components for product discovery [6] - The company collaborates with various subsidiaries to develop products across multiple sectors, including ag-biologicals and ag-chemicals [7]

Financial Performance - Total revenues for the first nine months of 2024 were approximately $6.9 million, an increase of 35.3% from approximately $5.1 million in the same period of 2023[11]. - Revenues for Q3 2024 were approximately $1.8 million, a decrease of 52.6% compared to approximately $3.8 million in Q3 2023, primarily due to a $2.5 million licensing fee recognized in Q3 2023[5]. - The net loss for the first nine months of 2024 was approximately $18.0 million, a slight improvement from a net loss of approximately $18.6 million in the same period of the previous year[60]. - The net loss for the third quarter of 2024 was approximately $8.2 million, compared to approximately $3.9 million in the same period of the previous year, indicating a $4.3 million increase in net loss due to decreased revenues and increased expenses[60]. - Gross profit for the nine months ended September 30, 2024, was $4,972,000, compared to $3,768,000 in the same period of 2023, indicating a gross profit margin improvement[78]. - The basic and diluted loss per share attributable to equity holders of the company for the nine months ended September 30, 2024, was $(3.17), compared to $(3.91) for the same period in 2023[78]. Expenses and Liabilities - General and administrative expenses for the first nine months of 2024 increased to approximately $6.1 million from approximately $4.8 million in the same period of 2023[30]. - Financing expenses, net for the first nine months of 2024 were approximately $0.38 million, compared to financing income of approximately $0.23 million in the same period of 2023[35]. - Operating loss for the first nine months of 2024 was approximately $17.6 million, a decrease from approximately $18.9 million in the same period of 2023[55]. - Research and development expenses for the first nine months of 2024 were approximately $13.2 million, a decrease from approximately $15.2 million in the same period of 2023[54]. - The total liabilities increased significantly to $23.3 million as of September 30, 2024, compared to $6.9 million at the end of 2023[66]. - The company incurred transaction costs and financial expenses of approximately $1.5 million related to warrants issued in a recent transaction[60]. Cash Flow and Assets - Cash usage during Q3 2024 was approximately $5.7 million, with projected cash usage for 2024 expected to be approximately $8.0 - $10.0 million, a decrease of 20% - 36% from approximately $12.5 million in 2023[53]. - Cash and cash equivalents decreased to $11.3 million as of September 30, 2024, down from $20.8 million at the end of 2023[66]. - Total current assets decreased to $25.4 million as of September 30, 2024, compared to $34.5 million at the end of 2023[66]. - The company reported cash used in operating activities of $14.5 million for the nine months ended September 30, 2024, compared to $15.7 million for the same period in 2023[68]. - The company reported a net cash provided by financing activities of $4,216,000 for the nine months ended September 30, 2024, compared to $18,299,000 in the same period of 2023[81]. Future Outlook and Strategic Initiatives - The company anticipates continued revenue growth in Q4 2024, mainly based on Casterra's forecast for seed-order supply[29]. - The company anticipates continued revenue growth for 2024, supported by ongoing investments in novel products and applications[74]. - The integration with Google Cloud is expected to enhance the company's capabilities and value proposition in the market[74]. - The company is focusing on enhancing its AI tech-engines and expanding its collaboration with Google Cloud to develop a generative AI foundation model for small molecule design[15]. - Evogene has established three tech-engines: MicroBoost AI, ChemPass AI, and GeneRator AI, focusing on product development in microbiomes, small molecules, and genetic elements respectively[70]. - The company is advancing its subsidiaries, including Lavie Bio and Casterra Ag, to develop microbiome-based ag-biologicals and superior castor seed varieties[62]. Fundraising Activities - The company completed a fundraising totaling $5.5 million in gross proceeds in August 2024[7].

Conference call and webcast: today, November 21, 2024, 9:00 am ETFinancial Highlights: 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 Lav ...

Industry Overview - Downy mildew is a significant foliar disease affecting grapes, causing yield losses of up to 75% in key growing regions [1] - The global fungicide market is valued at over $24.5 billion in 2024 and is projected to grow to $33.27 billion by 2028, with a compound annual growth rate (CAGR) of 7.9% [2] - There is a rising public interest in environmentally friendly farming practices and concerns about fungal resistance to chemical solutions, leading to a preference for ag-biologicals like LAV321 [1] Company Insights - Lavie Bio conducted field trials for LAV321 targeting downy mildew and late blight in tomatoes, achieving an average efficacy rate exceeding 60%, comparable to traditional copper products [2] - LAV321 was developed through Lavie Bio's Biology Driven Design (BDD) platform, utilizing Evogene's MicroBoost AI technology, aimed at enhancing productivity and sustainability in Integrated Pest Management (IPM) practices [3] - CEO Amit Noam expressed satisfaction with LAV321's performance, achieving a target efficacy of 70% against downy mildew and entering the pre-commercial stage with regulatory processes to begin [4] - Lavie Bio, a subsidiary of Evogene Ltd., focuses on improving food quality and agricultural productivity through microbiome-based ag-biological products [5] Technological Advancements - Evogene employs three unique tech-engines, including MicroBoost AI, to develop life-science based products, enhancing the probability of success while reducing development time and costs [6] - The tech-engines are utilized by Evogene's subsidiaries to develop various products, including ag-biologicals by Lavie Bio [7]