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].
Evogene(EVGN) - 2024 Q3 - Quarterly Report