Date: August 11, 2016 |
EVOGENE LTD.
(Registrant) By: /s/ Eyal Leibovitz —————————————— Eyal Leibovitz Chief Financial Officer |
EXHIBIT NO.
|
DESCRIPTION
|
99.1
|
Press Release: Evogene Reports Second Quarter 2016 Financial Results.
|
· | Positive results for a set of Evogene discovered genes demonstrating the potential to achieve yield enhancement in corn and soybean as previously reported. Genes are progressing into further testing under our collaboration with Monsanto; |
· | Microbial genes identified as part of our collaboration with Marrone Bio Innovations have demonstrated toxic activity against target insects and are now progressing into further characterization tests and validation in plants; |
· | Following positive results received in soybean model system in our nematode program, promising genes are now undergoing stable soybean transformation at our facilities in St. Louis and are expected to begin validation tests next year; |
· | Genes showing positive results for black sigatoka resistance are currently undergoing larger scale field trials in Central America; |
· | Positive initial results in our promotor discovery activity where we were able to validate that our predicted promotors led to the specific gene expression pattern; |
· | The discovery and successful validation in plants of the first set of novel plant targets for herbicides which have now been incorporated into our BASF collaboration, and the on-going design of chemical libraries to inhibit these targets utilizing a unique computational based methodology; |
· | Successful demonstration in lab and greenhouse of herbicidal activity for several Evogene chemical compounds, including selected compounds displaying activity against a panel of weeds, which have now progressed into additional characterization within our product development pipeline; |
· | And finally, positive performance in initial model plant and corn greenhouse testing of tens of bacterial strain candidates predicted to have potential for development of ag-biologicals, a portion of which are now undergoing corn field trials." |
As of June 30,
|
As of December 31,
|
|||||||||||
2016
|
2015
|
2015
|
||||||||||
Unaudited
|
Audited
|
|||||||||||
CURRENT ASSETS:
|
||||||||||||
Cash and cash equivalents
|
$
|
5,533
|
$
|
7,949
|
$
|
10,221
|
||||||
Restricted cash
|
47
|
-
|
47
|
|||||||||
Marketable securities
|
74,801
|
78,812
|
71,807
|
|||||||||
Short-term bank deposits
|
16,561
|
23,228
|
18,603
|
|||||||||
Trade receivables
|
80
|
750
|
2,675
|
|||||||||
Other receivables
|
1,542
|
1,084
|
1,023
|
|||||||||
98,564
|
111,823
|
104,376
|
||||||||||
LONG-TERM ASSETS:
|
||||||||||||
Long-term deposits
|
16
|
24
|
22
|
|||||||||
Property, plant and equipment, net
|
7,354
|
8,016
|
8,197
|
|||||||||
7,370
|
8,040
|
8,219
|
||||||||||
$
|
105,934
|
$
|
119,863
|
$
|
112,595
|
|||||||
CURRENT LIABILITIES:
|
||||||||||||
Trade payables
|
$
|
1,364
|
$
|
1,205
|
$
|
1,771
|
||||||
Other payables
|
2,495
|
2,485
|
3,049
|
|||||||||
Liabilities in respect of government grants
|
766
|
553
|
259
|
|||||||||
Deferred revenues and other advances
|
820
|
1,248
|
560
|
|||||||||
5,445
|
5,491
|
5,639
|
||||||||||
LONG-TERM LIABILITIES:
|
||||||||||||
Liabilities in respect of government grants
|
2,614
|
3,145
|
2,880
|
|||||||||
Deferred revenues and other advances
|
157
|
845
|
298
|
|||||||||
Severance pay liability, net
|
30
|
28
|
26
|
|||||||||
2,801
|
4,018
|
3,204
|
||||||||||
SHAREHOLDERS' EQUITY:
|
||||||||||||
Ordinary shares of NIS 0.02 par value:
Authorized - 150,000,000 ordinary shares; Issued and outstanding – 25,447,024, 25,388,938 and 25,404,362 shares
at June 30, 2016 and 2015 and December 31, 2015, respectively
|
140
|
140
|
140
|
|||||||||
Share premium and other capital reserve
|
181,985
|
177,962
|
180,214
|
|||||||||
Accumulated deficit
|
(84,437
|
)
|
(67,748
|
)
|
(76,602
|
)
|
||||||
97,688
|
110,354
|
103,752
|
||||||||||
$
|
105,934
|
$
|
119,863
|
$
|
112,595
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2015
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Revenues
|
$
|
3,824
|
$
|
5,357
|
$
|
1,808
|
$
|
2,656
|
$
|
11,129
|
||||||||||
Cost of revenues
|
3,090
|
3,762
|
1,575
|
1,932
|
8,255
|
|||||||||||||||
Gross profit
|
734
|
1,595
|
233
|
724
|
2,874
|
|||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Research and development, net
|
7,765
|
7,229
|
4,040
|
3,690
|
14,449
|
|||||||||||||||
Business development
|
790
|
999
|
428
|
502
|
1,964
|
|||||||||||||||
General and administrative
|
1,944
|
2,137
|
946
|
1,174
|
4,382
|
|||||||||||||||
Total operating expenses
|
10,499
|
10,365
|
5,414
|
5,366
|
20,795
|
|||||||||||||||
Operating loss
|
(9,765
|
)
|
(8,770
|
)
|
(5,181
|
)
|
(4,642
|
)
|
(17,921
|
)
|
||||||||||
Financing income
|
2,095
|
1,277
|
761
|
331
|
2,571
|
|||||||||||||||
Financing expenses
|
(165
|
)
|
(866
|
)
|
(43
|
)
|
(639
|
)
|
(1,863
|
)
|
||||||||||
Net loss
|
$
|
(7,835
|
)
|
$
|
(8,359
|
)
|
$
|
(4,463
|
)
|
$
|
(4,950
|
)
|
$
|
(17,213
|
)
|
|||||
Other comprehensive income (loss):
|
||||||||||||||||||||
Gain (loss) from cash flow hedges
|
$
|
-
|
$
|
(45
|
)
|
$
|
-
|
$
|
19
|
$
|
(45
|
)
|
||||||||
Amounts transferred to the statement of profit or loss for cash flow hedges
|
-
|
267
|
-
|
72
|
267
|
|||||||||||||||
Total comprehensive loss
|
$
|
(7,835
|
)
|
$
|
(8,137
|
)
|
$
|
(4,463
|
)
|
$
|
(4,859
|
)
|
$
|
(16,991
|
)
|
|||||
Basic and diluted loss per share
|
$
|
(0.31
|
)
|
$
|
(0.33
|
)
|
$
|
(0.18
|
)
|
$
|
(0.20
|
)
|
$
|
(0.68
|
)
|
|||||
Share
capital
|
Share
premium and
other
capital reserve
|
Accumulated
deficit
|
Total
|
|||||||||||||
Unaudited
|
||||||||||||||||
Balance as of January 1, 2016 (audited)
|
$
|
140
|
$
|
180,214
|
$
|
(76,602
|
)
|
$
|
103,752
|
|||||||
Net and comprehensive loss
|
-
|
-
|
(7,835
|
)
|
(7,835
|
)
|
||||||||||
Exercise of options
|
*) -
|
|
114
|
-
|
114
|
|||||||||||
Share-based compensation
|
-
|
1,657
|
-
|
1,657
|
||||||||||||
Balance as of June 30, 2016
|
$
|
140
|
$
|
181,985
|
$
|
(84,437
|
)
|
$
|
97,688
|
Share
capital
|
Share
premium and
other capital
reserve
|
Accumulated
other
comprehensive
loss
|
Accumulated
deficit
|
Total
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Balance as of January 1, 2015 (audited)
|
$
|
140
|
$
|
175,553
|
$
|
(222
|
)
|
$
|
(59,389
|
)
|
$
|
116,082
|
||||||||
Net loss
|
-
|
-
|
-
|
(8,359
|
)
|
(8,359
|
)
|
|||||||||||||
Other comprehensive income
|
-
|
-
|
222
|
-
|
222
|
|||||||||||||||
Exercise of options
|
*) -
|
208
|
-
|
-
|
208
|
|||||||||||||||
Share-based compensation
|
-
|
2,201
|
-
|
-
|
2,201
|
|||||||||||||||
Balance as of June 30, 2015
|
$
|
140
|
$
|
177,962
|
$
|
-
|
$
|
(67,748
|
)
|
$
|
110,354
|
Share
capital
|
Share
premium and
other capital
reserve
|
Accumulated
deficit
|
Total
|
|||||||||||||
Unaudited
|
||||||||||||||||
Balance as of April 1, 2016
|
$
|
140
|
$
|
181,170
|
$
|
(79,974
|
)
|
$
|
101,336
|
|||||||
Net and comprehensive loss
|
-
|
-
|
(4,463
|
)
|
(4,463
|
)
|
||||||||||
Exercise of options
|
*) -
|
|
29
|
-
|
29
|
|||||||||||
Share-based compensation
|
-
|
786
|
-
|
786
|
||||||||||||
Balance as of June 30, 2016
|
$
|
140
|
$
|
181,985
|
$
|
(84,437
|
)
|
$
|
97,688
|
Share
capital
|
Share
premium and
other capital
reserve
|
Accumulated
other
comprehensive
loss
|
Accumulated
deficit
|
Total
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Balance as of April 1, 2015
|
$
|
140
|
$
|
176,437
|
$
|
(91
|
)
|
$
|
(62,798
|
)
|
$
|
113,688
|
||||||||
Net loss
|
-
|
-
|
-
|
(4,950
|
)
|
(4,950
|
)
|
|||||||||||||
Other comprehensive income
|
-
|
-
|
91
|
-
|
91
|
|||||||||||||||
Exercise of options
|
*) -
|
|
134
|
-
|
-
|
134
|
||||||||||||||
Share-based compensation
|
-
|
1,391
|
-
|
-
|
1,391
|
|||||||||||||||
Balance as of June 30, 2015
|
$
|
140
|
$
|
177,962
|
$
|
-
|
$
|
(67,748
|
)
|
$
|
110,354
|
Share
capital
|
Share
premium and
other capital
reserve
|
Accumulated
other
comprehensive
loss
|
Accumulated
deficit
|
Total
|
||||||||||||||||
Audited
|
||||||||||||||||||||
Balance as of January 1, 2015
|
$
|
140
|
$
|
175,553
|
$
|
(222
|
)
|
$
|
(59,389
|
)
|
$
|
116,082
|
||||||||
Net loss
|
-
|
-
|
-
|
(17,213
|
)
|
(17,213
|
)
|
|||||||||||||
Other comprehensive income
|
-
|
-
|
222
|
-
|
222
|
|||||||||||||||
Exercise of options
|
*) -
|
|
296
|
-
|
-
|
296
|
||||||||||||||
Share-based compensation
|
-
|
4,365
|
-
|
-
|
4,365
|
|||||||||||||||
Balance as of December 31, 2015
|
$
|
140
|
$
|
180,214
|
$
|
-
|
$
|
(76,602
|
)
|
$
|
103,752
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2015
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Cash flows from operating activities
|
||||||||||||||||||||
Net loss
|
$
|
(7,835
|
)
|
$
|
(8,359
|
)
|
$
|
(4,463
|
)
|
$
|
(4,950
|
)
|
$
|
(17,213
|
)
|
|||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||||||||||
Adjustments to the profit or loss items:
|
||||||||||||||||||||
Depreciation and amortization
|
1,176
|
1,266
|
585
|
612
|
2,433
|
|||||||||||||||
Share-based compensation
|
1,657
|
2,201
|
786
|
1,391
|
4,365
|
|||||||||||||||
Net financing expenses (income)
|
(2,017
|
)
|
(451
|
)
|
(723
|
)
|
240
|
(845
|
)
|
|||||||||||
Loss from sale of property, plant and equipment
|
17
|
-
|
17
|
-
|
-
|
|||||||||||||||
833
|
3,016
|
665
|
2,243
|
5,953
|
||||||||||||||||
Changes in asset and liability items:
|
||||||||||||||||||||
Decrease (increase) in trade receivables
|
2,595
|
433
|
545
|
66
|
(1,492
|
)
|
||||||||||||||
Decrease (increase) in other receivables
|
(477
|
)
|
(312
|
)
|
291
|
(308
|
)
|
(293
|
)
|
|||||||||||
Decrease (increase) in long-term deposits
|
6
|
(3
|
)
|
-
|
(4
|
)
|
(1
|
)
|
||||||||||||
Increase (decrease) in trade payables
|
(241
|
)
|
(400
|
)
|
54
|
(6
|
)
|
(68
|
)
|
|||||||||||
Increase (decrease) in other payables
|
(596
|
)
|
(1,246
|
)
|
160
|
9
|
(640
|
)
|
||||||||||||
Increase (decrease) in severance pay liability, net
|
4
|
(1
|
)
|
4
|
1
|
(3
|
)
|
|||||||||||||
Increase (decrease) in deferred revenues and other advances
|
119
|
129
|
-
|
(401
|
)
|
(1,055
|
)
|
|||||||||||||
Increase (decrease) in liabilities in respect of government grants
|
115
|
-
|
-
|
-
|
(284
|
)
|
||||||||||||||
1,525
|
(1,400
|
)
|
1,054
|
(643
|
)
|
(3,836
|
)
|
|||||||||||||
Cash received during the period for:
|
||||||||||||||||||||
Interest received
|
1,154
|
1,372
|
475
|
551
|
2,689
|
|||||||||||||||
Net cash used in operating activities
|
(4,323
|
)
|
(5,371
|
)
|
(2,269
|
)
|
(2,799
|
)
|
(12,407
|
)
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2015
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Purchase of property, plant and equipment
|
$
|
(474
|
)
|
$
|
(849
|
)
|
$
|
(91
|
)
|
$
|
(296
|
)
|
$
|
(2,005
|
)
|
|||||
Proceeds from sale of marketable securities
|
11,624
|
14,854
|
8,134
|
7,016
|
38,164
|
|||||||||||||||
Purchase of marketable securities
|
(13,750
|
)
|
(13,905
|
)
|
(8,465
|
)
|
(7,424
|
)
|
(31,168
|
)
|
||||||||||
Proceeds from (investment in) bank deposits, net
|
2,042
|
6,818
|
4,042
|
(42
|
)
|
11,443
|
||||||||||||||
Decrease in restricted cash
|
-
|
1,000
|
-
|
1,000
|
953
|
|||||||||||||||
Net cash provided by (used in) investing activities
|
(558
|
)
|
7,918
|
3,620
|
254
|
17,387
|
||||||||||||||
Cash Flows from Financing Activities
|
||||||||||||||||||||
Proceeds from exercise of options
|
114
|
208
|
29
|
134
|
296
|
|||||||||||||||
Proceeds from government grants
|
258
|
188
|
150
|
188
|
167
|
|||||||||||||||
Repayment of government grants
|
(199
|
)
|
(233
|
)
|
-
|
-
|
(418
|
)
|
||||||||||||
Net cash provided by financing activities
|
173
|
163
|
179
|
322
|
45
|
|||||||||||||||
Exchange rate differences - cash and cash equivalent balances
|
20
|
26
|
18
|
106
|
(17
|
)
|
||||||||||||||
Increase (decrease) in cash and cash equivalents
|
(4,688
|
)
|
2,736
|
1,548
|
(2,117
|
)
|
5,008
|
|||||||||||||
Cash and cash equivalents, beginning of the period
|
10,221
|
5,213
|
3,985
|
10,066
|
5,213
|
|||||||||||||||
Cash and cash equivalents, end of the period
|
$
|
5,533
|
$
|
7,949
|
$
|
5,533
|
$
|
7,949
|
$
|
10,221
|
||||||||||
Significant non-cash transactions
|
||||||||||||||||||||
Acquisition of property, plant and equipment
|
$
|
225
|
$
|
157
|
$
|
225
|
$
|
157
|
$
|
349
|