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Evogene Reports Third Quarter 2024 Financial Results

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Evogene (EVGN) reported Q3 2024 financial results with total revenues of $1.8M in Q3 2024, down from $3.8M in Q3 2023. However, nine-month revenues reached $6.9M, up from $5.1M in the same period of 2023. The company's operating loss for the first nine months was $17.6M, improved from $18.9M in 2023. Cash position stood at $20.0M as of September 30, 2024. The company completed a $5.5M fundraising in August 2024 and implemented cost-reduction measures, including a 16% headcount reduction. Projected cash usage for 2024 is expected to be $8-10M, down from $12.5M in 2023.

Evogene (EVGN) ha riportato i risultati finanziari del Q3 2024 con ricavi totali di $1,8M nel Q3 2024, in diminuzione rispetto ai $3,8M del Q3 2023. Tuttavia, i ricavi nei nove mesi hanno raggiunto i $6,9M, in aumento rispetto ai $5,1M nello stesso periodo del 2023. La perdita operativa dell'azienda per i primi nove mesi è stata di $17,6M, migliorata rispetto ai $18,9M del 2023. La posizione di liquidità si attestava a $20,0M al 30 settembre 2024. L'azienda ha completato una raccolta fondi di $5,5M nell'agosto 2024 e ha implementato misure di riduzione dei costi, inclusa una riduzione del personale del 16%. Si prevede che l'uso di liquidità per il 2024 sarà compreso tra $8-10M, in calo rispetto ai $12,5M del 2023.

Evogene (EVGN) reportó los resultados financieros del Q3 2024 con ingresos totales de $1.8M en el Q3 2024, una disminución desde los $3.8M en el Q3 2023. Sin embargo, los ingresos en los nueve meses alcanzaron los $6.9M, un aumento desde los $5.1M en el mismo periodo de 2023. La pérdida operativa de la empresa durante los primeros nueve meses fue de $17.6M, mejorando respecto a los $18.9M de 2023. La posición de caja se situó en $20.0M a fecha del 30 de septiembre de 2024. La compañía completó una recaudación de fondos de $5.5M en agosto de 2024 e implementó medidas de reducción de costos, que incluyen una reducción del 16% en la planta laboral. Se espera que el uso de efectivo para 2024 sea de $8-10M, una reducción de los $12.5M de 2023.

Evogene (EVGN)는 2024년 3분기 재무 결과를 보고하였으며, 2024년 3분기의 총 수익은 $1.8M으로 2023년 3분기의 $3.8M에서 감소하였습니다. 그러나 9개월 간의 수익은 $6.9M에 달해, 2023년 같은 기간의 $5.1M에서 증가하였습니다. 회사의 첫 9개월 운영 손실은 $17.6M으로, 2023년의 $18.9M에서 개선되었습니다. 현금 잔고는 2024년 9월 30일 기준으로 $20.0M에 달했습니다. 회사는 2024년 8월에 $5.5M의 자금 조달을 완료하였고, 16%의 인력 감축을 포함한 비용 절감 방안을 시행하였습니다. 2024년에 예상되는 현금 사용량은 $8-10M로, 2023년의 $12.5M에서 감소할 것으로 보입니다.

Evogene (EVGN) a annoncé ses résultats financiers du T3 2024 avec des revenus totaux de 1,8 M$ au T3 2024, en baisse par rapport à 3,8 M$ au T3 2023. Cependant, les revenus des neuf premiers mois ont atteint 6,9 M$, en hausse par rapport à 5,1 M$ pendant la même période en 2023. La perte opérationnelle de l'entreprise pour les neuf premiers mois était de 17,6 M$, améliorée par rapport à 18,9 M$ en 2023. La position de trésorerie s'élevait à 20,0 M$ au 30 septembre 2024. L'entreprise a complété une levée de fonds de 5,5 M$ en août 2024 et a mis en œuvre des mesures de réduction des coûts, y compris une réduction des effectifs de 16 %. L'utilisation prévue de liquidités pour 2024 devrait se situer entre 8 et 10 M$, en baisse par rapport à 12,5 M$ en 2023.

Evogene (EVGN) berichtete über die finanziellen Ergebnisse des Q3 2024 mit Gesamteinnahmen von $1,8M im Q3 2024, ein Rückgang gegenüber $3,8M im Q3 2023. Die Einnahmen der neun Monate erreichten jedoch $6,9M, ein Anstieg von $5,1M im gleichen Zeitraum 2023. Der operative Verlust des Unternehmens für die ersten neun Monate betrug $17,6M, eine Verbesserung gegenüber $18,9M im Jahr 2023. Die Barmittelposition belief sich zum 30. September 2024 auf $20,0M. Das Unternehmen hat im August 2024 eine Finanzierung in Höhe von $5,5M abgeschlossen und Kostensenkungsmaßnahmen umgesetzt, darunter eine Reduzierung der Mitarbeiterzahl um 16%. Der voraussichtliche Bargeldverbrauch für 2024 wird auf $8-10M geschätzt, ein Rückgang von $12,5M im Jahr 2023.

Positive
  • Nine-month revenues increased to $6.9M from $5.1M year-over-year
  • Operating loss improved to $17.6M from $18.9M in first nine months
  • Projected cash usage reduced by 20-36% for 2024
  • Successfully raised $5.5M in gross proceeds through fundraising
Negative
  • Q3 revenues declined to $1.8M from $3.8M year-over-year
  • Q3 net loss increased to $8.2M from $3.9M year-over-year
  • 16% workforce reduction implemented
  • G&A expenses increased due to $1.4M in fundraising costs and doubtful debt allowance

Insights

The Q3 2024 results reveal a mixed financial picture for Evogene. Total revenues reached $6.9 million in the first nine months of 2024, showing 35% growth from 2023. However, Q3 revenues declined to $1.8 million from $3.8 million year-over-year, mainly due to the absence of a one-time $2.5 million license payment received in Q3 2023.

Significant operational improvements are evident in cost management, with projected cash usage excluding Biomica and Lavie Bio reduced to $8-10 million for 2024, down 20-36% from 2023. The company's $20 million cash position, plus $1.4 million in receivables, provides runway for operations.

The 16% headcount reduction and recent $5.5 million fundraising demonstrate active steps to strengthen the balance sheet. However, increased G&A expenses and financing costs related to warrant accounting impacted the bottom line, resulting in a wider Q3 net loss of $8.2 million.

The collaboration with Google Cloud to develop an advanced generative AI foundation model represents a significant technological leap. Expanding the training dataset from 6 million to 40 billion molecules for the ChemPass AI engine could dramatically improve small molecule discovery capabilities and efficiency.

The exclusive ownership of this enhanced foundation model provides Evogene with a competitive advantage in computational biology. The integration of three proprietary AI engines - MicroBoost AI, ChemPass AI and GeneRator AI - creates a comprehensive tech stack for life science product development across multiple verticals.

The strategic focus on partnerships leveraging ChemPass AI for small-molecule drug development indicates a push to monetize these technological capabilities. The recent strengthening of the business development team specifically for this initiative suggests potential new revenue streams.

Conference call and webcast: today, November 21, 2024, 9:00 am ET

Financial 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 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.

REHOVOT, Israel, Nov. 21, 2024 /PRNewswire/ -- Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN) ("Evogene" or the "Company"), a leading computational biology company aiming to revolutionize the development of life-science-based products, today announced its financial results for the third quarter period ended September 30, 2024.

Evogene Logo

Mr. Ofer Haviv, Evogene's President and Chief Executive Officer, stated: "Our vision is to position Evogene as a pioneering company in the development of groundbreaking life-science products, rooted in microbes, small molecules, and genomics.

This led to the development of our three proprietary AI tech-engines: MicroBoost AI, ChemPass AI and GeneRator AI. Our AI-driven tech-engines offer a strong value proposition by efficiently identifying and optimizing the most promising candidates, enhancing the likelihood of achieving breakthrough products within competitive timelines and in a cost-effective way.

To maintain the competitive advantage of our AI tech-engines, Evogene continuously invests in enhancements and the addition of new applications and capabilities. This commitment is exemplified by our recent collaboration with Google Cloud to develop an advanced generative AI foundation model for small molecule design.

Building on the successful integration of ChemPass AI into Google Cloud, this collaboration will now focus on expanding the value of our tech-engine specifically through the creation of a cutting-edge foundation model. This model will be designed to generate and optimize innovative small molecule structures with better specific, desired properties, by expanding the training set for the model from 6 million molecules to 40 billion molecules.

The primary objective of this initiative is to enhance and expedite the discovery and development of new small molecules for drug development, sustainable crop protection, and other innovative applications across various life-science sectors.

The significant expansion of the model training set is expected to lead to the following key benefits:

- Innovative molecules, more accurately addressing the specific product requirements

- Shortening development timelines

- Enhanced cost efficiency

I want to emphasize that the foundation model, which will be integrated into ChemPass AI, will remain the exclusive property of Evogene."

Mr. Ofer Haviv continued: "To effectively harness the value embedded in our technology, we implement a targeted business strategy designed to maximize potential while minimizing risk, by establishing a diverse network of collaborative partnerships for life-science product development. We partner with experts in complementary fields, forming licensing or collaboration agreements with companies that bring domain-specific knowledge. Through these strategic alliances, we aim to co-develop innovative products. The upside for Evogene stems from revenue sharing mechanisms of the end-product, or through equity holdings in the company developing the end-product.

In the passing quarter all our subsidiaries continued progressing in accordance with their work-plans, and we're very proud of their achievements.

With respect to activities in market segments not covered by our subsidiaries, I would like to share that, starting this past quarter, we have increased our efforts to establish partnerships with companies specializing in small-molecule drug development, leveraging the unique capabilities of ChemPass AI. To support this strategic focus, we have strengthened the business development team with a dedicated business development manager with the clear objective of generating new business opportunities for Evogene.

Additionally, we recently announced, alongside Watershed AC and Ben-Gurion University, the approval of a second-year grant to advance our joint project aimed at enhancing crustacean traits through gene-editing technology. In the second year, the collaboration will focus on scaling up CRISPR technology for the industrial production of giant freshwater prawns, with plans to extend these advancements to additional crustacean species."

Subsidiaries' Business Highlights:

Casterra Ag Ltd. – focuses on developing an integrated solution to enable large-scale commercial cultivation of castor to address the global demand for stable castor oil supply, mainly for the biodiesel industry. Casterra is utilizing Evogene's GeneRator AI tech-engine to direct and accelerate the development of its unique elite castor seed varieties.

  • 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.

Lavie Bio Ltd. – a leading ag-biologicals company that develops microbiome-based, computational-driven, novel bio-stimulant and bio-pesticide products, utilizing Evogene's MicroBoost AI tech-engine.

  • 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.

AgPlenus Ltd. – specializes in developing novel and sustainable crop protection products, utilizing Evogene's ChemPass AI tech-engine.

  • 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. 

Biomica Ltd. – a clinical-stage biopharmaceutical company developing innovative microbiome-based therapeutics, utilizing Evogene's MicroBoost AI tech-engine.

  • 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.

Financial Highlights:

Cash Position: As of September 30, 2024, Evogene held consolidated cash, cash equivalents, and short-term bank deposits of approximately $20.0 million. This amount does not include approximately $1.4 of payments due from customers regarding deliveries made in September 2024. The consolidated cash usage during the third quarter of 2024 was approximately $5.7 million. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $3.1 million in cash during the third quarter of 2024. Projected cash usage for 2024, excluding Lavie Bio and Biomica, is expected to be approximately $8.0 - $10.0 million, marking a notable 20% - 36% decrease from approximately $12.5 million in 2023.

Revenue: Revenues for the first nine months of 2024 were approximately $6.9 million, an increase from approximately $5.1 million in the same period the previous year. This growth was primarily driven by revenues recognized from AgPlenus' new collaboration with Bayer and increased Casterra revenues for the supply of castor seeds during the period. Revenues for the third quarter of 2024 were approximately $1.8 million, compared to approximately $3.8 million in the same period the previous year. The decrease was mainly attributable to revenue of $2.5 million recognized in Lavie Bio in the third quarter of 2023 from the licensing agreement with Corteva, partially offset by increased revenues recognized in Casterra and AgPlenus during the third quarter of 2024.

Evogene anticipates continued revenue growth in the fourth quarter of 2024 compared to the previous year, mainly based on Casterra's forecast for seed-order supply.

R&D Expenses: Research and development expenses, net of non-refundable grants, for the first nine months of 2024 were approximately $13.2 million, a significant decrease from approximately $15.2 million in the first nine months of 2023. The decrease in expenses is mainly due to the cessation of Canonic's activities and a decrease in certain development expenses in Biomica as compared to the same period the previous year. Research and development expenses, net of non-refundable grants, for the third quarter of 2024 were approximately $4.4 million, and decreased as compared to approximately $5.1 million in the same period in the previous year. The decrease is mainly attributable to decreased expenses in Canonic and Biomica, as mentioned above.

Sales and Marketing Expenses: Sales and marketing expenses for the first nine months of 2024 were approximately $2.8 million, a slight increase from approximately $2.6 million in the same period in the previous year. The increase is mainly attributable to increased sales and marketing activities in Casterra during the first nine months of 2024 as compared to the same period in 2023. Sales and marketing expenses for the third quarter of 2024 were approximately $0.9 million and remained stable compared to approximately $0.9 million in the same period in the previous year.

General and Administrative Expenses: 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 the previous year. General and administrative expenses for the third quarter of 2024 increased to approximately $2.9 million compared to approximately $1.5 million in the same period of the previous year. The increase during the first nine months period and the third quarter of 2024 were mainly attributable to expenses recorded in Casterra due to provision on doubtful debt of one seed supplier and transaction costs related to Evogene's fundraising that occurred in August 2024, totaling approximately $1.4 million. Total other G&A expenses in Q3 2024 amounted to approximately $1.5 million, unchanged compared to Q3 2023.

Other Expenses: The decision to cease Canonic's operations in the first half of 2024 resulted in other expenses of approximately $0.5 million for the nine-month period ended September 30, 2024, mainly due to impairment of fixed assets in the first quarter of 2024.

Operating Loss: The 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 the previous year, mainly due to increased revenues as mentioned above. The operating loss for the third quarter of 2024 was approximately $7.5 million, an increase from approximately $4.2 million in the same period of the previous year, mainly due to decreased revenues and increased general and administrative expenses as mentioned above.

Financing Income / Expenses: Financing expenses, net for the first nine months of 2024 were $378 thousand, compared to financing income, net of $234 thousand in the same period of the previous year. Financing expenses, net for the third quarter of 2024 were $757 thousand, compared to financing income, net of $320 thousand in the same period of the previous year. The increase in financial expenses, net during the first nine month period and the third quarter of 2024 as compared to the respective periods of 2023 was mainly associated with accounting treatment of pre-funded warrants and warrants issued in August 2024 fund raising. Pre-funded warrants and warrants were classified as a liability on the consolidated statements of financial position, were initially recorded at fair value and subsequently remeasured at each reporting period using the Black - Scholes option pricing model. As a result, during the third quarter of 2024 the Company recorded net financial expenses, related to warrants of approximately $882 thousand

Net Loss: The net loss for the first nine months of 2024 was approximately $18.0 million, compared to approximately $18.6 million in the same period of the previous year. 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. The $4.3 million increase in net loss for the third quarter of 2024 as compared to the third quarter of 2023 was primarily due to decreased revenues, increased general and administrative expenses and increased financial expenses as mentioned above. This increase in net loss was impacted by an amount of approximately $1.5 million, due to transaction costs and the financial expenses related to warrants issued in that transaction.

For the financial tables click here.

***

Conference Call & Webcast Details: Thursday, November 21, 2024. 9:00 AM EST 4:00 PM IDT

To join the Zoom conference, please register in advance here

Or join via audio

US: +15642172000, Israel: +972 3 978 6688
Webinar ID:    869 0801 3385
More International numbers

Webcast & Presentation link available at:
https://evogene.com/investor-relations/

About Evogene Ltd.

Evogene Ltd. (Nasdaq: EVGN, TASE: EVGN) is a computational biology company leveraging big data and artificial intelligence, aiming to revolutionize the development of life-science based products by utilizing cutting-edge technologies to increase the probability of success while reducing development time and cost.

Evogene established three unique tech-engines – MicroBoost AI, ChemPass AI and GeneRator AI. Each tech-engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI).

Evogene uses its tech-engines to develop products through strategic partnerships and collaborations, and its four subsidiaries including:

  • 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.

For more information, please visit: www.evogene.com.

Forward-Looking Statements

This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", "expects", "hopes" "intends", "anticipates", "plans", "believes", "scheduled", "estimates", "demonstrates" or words of similar meaning. For example, Evogene and its subsidiaries are using forward-looking statements in this press release when they discuss Evogene's strategy and vision, Evogene's value proposition and ability to identify and optimize candidates, enhance the likelihood of achieving breakthrough products within competitive timelines and in a cost-effective way, Evogene's investments in and ability to develop novel products, applications and capabilities, expected benefits from the integration with Google Cloud, potential partnerships and Evogene's ability to harness value and leverage ChemPass AI, the expected timing of and ability of Casterra to supply purchase orders, the expected timing of Lavie Bio's sales, AgPlenus' pipeline, Biomica's BMC128's future activity, and Evogene's projected cash usage for 2024 and Evogene anticipated continued revenue growth in for 2024. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance, or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, the current war between Israel, Hamas and Hezbollah and any worsening of the situation in Israel such as further mobilizations or escalation in the northern border of Israel, and those risk factors contained in Evogene's reports filed with the applicable securities authority. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, Evogene and its subsidiaries may experience significant delays in the conduct of their activities. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.

Evogene Investor Relations Contact:

Email: ir@evogene.com
Tel: +972-8-9311901

 



CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

U.S. dollars in thousands



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






(*) Shares and per shares amounts have been retroactively adjusted to reflect the reverse stock split.

 

 

CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS

U.S. dollars in thousands )except share and per share amounts)




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












(*) Shares and per shares amounts have been retroactively adjusted to reflect the reverse stock split

 

 

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS 


U.S. dollars in thousands






 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)


 

 

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS 

U.S. dollars in thousands




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 equipment


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


$            -


$          -


$          -


$          -











































 

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Cision View original content:https://www.prnewswire.com/news-releases/evogene-reports-third-quarter-2024-financial-results-302312882.html

SOURCE Evogene

FAQ

What were Evogene's (EVGN) Q3 2024 revenue results?

Evogene reported Q3 2024 revenues of $1.8 million, compared to $3.8 million in Q3 2023.

How much cash does Evogene (EVGN) have as of September 30, 2024?

Evogene held approximately $20.0 million in consolidated cash, cash equivalents, and short-term bank deposits as of September 30, 2024.

What cost-reduction measures did Evogene (EVGN) implement in 2024?

Evogene implemented cost-reduction measures including a 16% reduction in headcount and expects to reduce cash usage to $8-10 million in 2024, down from $12.5 million in 2023.

How much did Evogene (EVGN) raise in its August 2024 fundraising?

Evogene completed a fundraising totaling $5.5 million in gross proceeds in August 2024, including ordinary shares and two sets of warrants.

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