Compugen(US:CGEN)2026-03-02 12:16Revenue Recognition - The company recognized revenues of $65 million in 2025 from amending the license agreement with AstraZeneca, following previous milestone revenues of $2 million, $6 million, $7.5 million, and $10 million in 2020, 2021, 2022, and 2023, respectively [435]. - In December 2023, the company recognized $23.5 million in revenue from a license agreement with Gilead, reflecting the initial transaction price allocated to the license performance obligation [439]. - For the year ended December 31, 2025, the company recognized $7,764 in Phase 1 services revenues, while $22,864 and $23,459 were recognized in 2024 and 2023, respectively [441]. Financial Performance - Share-based compensation expense recognized under ASC 718 was approximately $1.9 million, $3.0 million, and $3.6 million for the years ended December 31, 2025, 2024, and 2023, respectively [446]. - The company included deferred revenues of $10,970 in current liabilities and $24,943 in non-current liabilities as of December 31, 2025 [441]. Market Trends - Biologics accounted for 31% of FDA approved drugs in 2023, increasing to 32% in 2024, but projected to decrease to 25% in 2025, indicating a competitive landscape for new therapeutic candidates [429]. Risk Factors - The company’s financial income is subject to interest rate risk, which can significantly impact net loss and capital markets [428]. - The company’s cash and cash equivalents are invested in bank deposits or marketable securities, making them sensitive to fluctuations in interest rates [428]. - The company evaluates estimates related to revenue recognition and share-based payments on an ongoing basis, which may differ from actual results under different assumptions [430][431]. Currency Impact - The depreciation of the dollar against the NIS was 12.5% in 2025, while it appreciated by 0.6% and 3.1% in 2024 and 2023, respectively [427].