Evogene(US:EVGN)2023-05-18 18:43Financial Data and Key Metrics Changes - Revenues for the first quarter were $641,000 compared to $237,000 in the same period the previous year, primarily due to revenues recognized from the collaboration agreement of Evogene's subsidiary, AgPlenus, with Corteva and from sales of Canonic's medical cannabis products in Israel [35] - Net loss for the first quarter of 2023 was $7 million compared to a net loss of $9.1 million in the same period in the previous year [36] - Consolidated cash as of March 31, 2023, was approximately $28.8 million, excluding the $10 million investment in Biomica received in April 2023 [75] Business Line Data and Key Metrics Changes - Lavi Bio's product, Drivers, is a microbiome seed treatment that enhances yield in North America across 10 million acres, with plans to broaden sales into Canadian and European markets [64] - AgPlenus is focusing on developing new herbicides and has seen interest in its product pipeline, particularly the APH1 candidate [66] - Canonic launched 6 new second-generation products in Israel and is expanding its sales model to include licensing agreements [13][95] Market Data and Key Metrics Changes - The initial target market for Lavi Bio's bio-fungicide product is valued at $200 million, with a second product targeting a $500 million market [11] - The castor market, particularly for biofuel, is rapidly growing, and Castera is positioned to be a key player in that market [69] Company Strategy and Development Direction - The company aims to enter new business relationships for product development leveraging its tech engines, focusing on enhancing the robustness and attractiveness of its AI-driven tech engines [62][70] - The long-term plan includes realizing value by spinning out or IPO-ing one or more subsidiaries, depending on market conditions [99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for products exceeding supply and plans to ramp up production for the expected increase in sales next year [93] - The company is aware of the need to improve investor relations and plans to allocate more resources to this area [131] Other Important Information - The company has no bank debt and aims to maintain self-sufficiency financially for the foreseeable future [20][70] - Recent external investments in subsidiaries like Lavi Bio and Biomica validate the significant inherent value within these entities [71] Q&A Session Summary Question: What is the expected production for Lavi Bio in 2024? - Management indicated that they expect a few hundred tons a year in 2024, which will be inventory for sale [80] Question: How is the company addressing the stock price issue? - Management acknowledged the need for better communication with the market and plans to enhance investor relations activities [46][131] Question: Can you provide more details on the Phase I clinical trial for Biomica? - Management confirmed that approximately 12 patients are expected to be enrolled in the Phase I study, with several already participating [107]