Date: February 28, 2018 |
EVOGENE LTD.
(Registrant) By: /s/ Alex Taskar —————————————— Alex Taskar Chief Financial Officer |
EXHIBIT NO.
|
DESCRIPTION
|
· |
Yield and environmental stress Collaboration with Monsanto: Evogene has successfully completed the gene discovery phase, and the collaboration is now focused on progressing selected gene candidates through additional testing in Monsanto’s product development pipeline in corn and soy.
|
· |
Disease Resistance Collaboration with Monsanto: An important milestone was achieved in our Fusarium collaboration with Monsanto, with Evogene genes showing resistance to Fusarium in model plants. The top prioritized genes are advancing to tests in Monsanto’s corn pipeline.
|
· |
Collaboration with Rahan Meristem: The collaboration achieved positive results in 2nd year field trials for Black Sigatoka resistant bananas, which are now being leveraged through genome editing.
|
· |
Bio-Stimulant collaboration with DuPont-Pioneer: Evogene entered a collaboration with DuPont-Pioneer to bring to market, in a broad acre approach, bio-stimulant coated corn seeds. This collaboration is based on the achievements of an internal product program for bio-stimulants. The next step in the collaboration will be field tests undertaken by DuPont-Pioneer.
|
· |
In January 2018, Evogene announced positive results in a second year field trial conducted by Evogene in 2017. The tested bio-stimulant seed treatments demonstrated up to 20% increases in corn yield under moderate drought conditions.
|
· |
Novel herbicide collaboration with BASF: The collaboration is progressing according to plan.
|
· |
Internal novel Mode-of-Action herbicide program: Evogene continued to integrate product development criteria to optimize 10 validated chemical compounds, computationally predicted to inhibit 8 Evogene discovered herbicidal protein targets. In February 2018, Evogene announced an important step in the advancement of this program: positive results with multiple ‘families’ of Evogene predicted chemical compounds demonstrating improved herbicidal effectiveness in lab and greenhouse experiments.
|
· |
Initiation of internal novel insecticides product program focusing on key nerve & muscle targets.
|
· |
Evofuel together with its partner achieved a breakthrough in terms of mechanical harvesting capabilities, which has been a major bottleneck in the commercialization of castor seeds.
|
· |
During 2017 Biomica was established by Evogene together with co-founder Prof. Yehuda Ringel, Biomica CSO, Chief Division of Gastroenterology and Hepatology at Meir Medical Center, Israel.
|
· |
In February 2018, Evogene announced the appointment of Dr. Elran Haber as CEO of Biomica.
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Unaudited
|
Audited
|
|||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
3,435
|
$
|
3,236
|
||||
Restricted cash
|
47
|
47
|
||||||
Marketable securities
|
59,940
|
71,738
|
||||||
Short-term bank deposits
|
8,380
|
13,137
|
||||||
Trade receivables
|
132
|
169
|
||||||
Other receivables
|
857
|
1,163
|
||||||
72,791
|
89,490
|
|||||||
LONG-TERM ASSETS:
|
||||||||
Long-term deposits
|
19
|
13
|
||||||
Property, plant and equipment, net
|
4,792
|
6,483
|
||||||
4,811
|
6,496
|
|||||||
$
|
77,602
|
$
|
95,986
|
|||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
1,110
|
$
|
1,330
|
||||
Other payables
|
2,934
|
2,803
|
||||||
Liabilities in respect of government grants
|
104
|
125
|
||||||
Deferred revenues and other advances
|
516
|
967
|
||||||
4,664
|
5,225
|
|||||||
LONG-TERM LIABILITIES:
|
||||||||
Liabilities in respect of government grants
|
3,438
|
3,303
|
||||||
Deferred revenues and other advances
|
89
|
138
|
||||||
Severance pay liability, net
|
33
|
31
|
||||||
3,560
|
3,472
|
|||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Ordinary shares of NIS 0.02 par value:
Authorized − 150,000,000 ordinary shares; Issued and outstanding –25,750,547 and 25,480,809 shares at
December 31, 2017 and 2016, respectively
|
142
|
141
|
||||||
Share premium and other capital reserve
|
186,268
|
183,342
|
||||||
Accumulated deficit
|
(117,032
|
)
|
(96,194
|
)
|
||||
69,378
|
87,289
|
|||||||
$
|
77,602
|
$
|
95,986
|
Year ended
December 31,
|
Three months ended
December 31,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||
Revenues
|
$
|
3,381
|
$
|
6,540
|
$
|
734
|
$
|
1,180
|
||||||||
Cost of revenues
|
2,845
|
5,639
|
634
|
1,131
|
||||||||||||
Gross profit
|
536
|
901
|
100
|
49
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
16,987
|
16,405
|
4,668
|
4,735
|
||||||||||||
Business development
|
1,686
|
1,696
|
422
|
471
|
||||||||||||
General and administrative
|
3,810
|
3,889
|
1,029
|
995
|
||||||||||||
Total operating expenses
|
22,483
|
21,990
|
6,119
|
6,201
|
||||||||||||
Operating loss
|
(21,947
|
)
|
(21,089
|
)
|
(6,019
|
)
|
(6,152
|
)
|
||||||||
Financing income
|
2,125
|
2,424
|
356
|
138
|
||||||||||||
Financing expenses
|
(1,005
|
)
|
(891
|
)
|
(561
|
)
|
(614
|
)
|
||||||||
Loss before taxes on income
|
(20,827
|
)
|
(19,556
|
)
|
(6,224
|
)
|
(6,628
|
)
|
||||||||
Taxes on income
|
11
|
36
|
-
|
15
|
||||||||||||
Net loss
|
$
|
(20,838
|
)
|
$
|
(19,592
|
)
|
$
|
(6,224
|
)
|
$
|
(6,643
|
)
|
||||
Basic and diluted loss per share
|
$
|
(0.81
|
)
|
$
|
(0.77
|
)
|
$
|
(0.24
|
)
|
$
|
(0.26
|
)
|
Year ended
December 31,
|
Three months ended
December 31,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Net loss
|
$
|
(20,838
|
)
|
$
|
(19,592
|
)
|
$
|
(6,224
|
)
|
$
|
(6,643
|
)
|
||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||||||
Adjustments to the profit or loss items:
|
||||||||||||||||
Depreciation
|
2,145
|
2,279
|
521
|
516
|
||||||||||||
Share-based compensation
|
2,244
|
2,943
|
596
|
607
|
||||||||||||
Net financing expense (income)
|
(1,454
|
)
|
(1,688
|
)
|
125
|
480
|
||||||||||
Loss from sale of property, plant and equipment
|
-
|
39
|
-
|
22
|
||||||||||||
Taxes on income
|
11
|
36
|
-
|
15
|
||||||||||||
2,946
|
3,609
|
1,242
|
1,640
|
|||||||||||||
Changes in asset and liability items:
|
||||||||||||||||
Decrease (increase) in trade receivables
|
37
|
2,506
|
836
|
(69
|
)
|
|||||||||||
Decrease (increase) in other receivables
|
221
|
(100
|
)
|
44
|
567
|
|||||||||||
Decrease (increase) in long-term deposits
|
(6
|
)
|
9
|
(4
|
)
|
1
|
||||||||||
Increase (decrease) in trade payables
|
(86
|
)
|
(215
|
)
|
295
|
144
|
||||||||||
Increase (decrease) in other payables
|
136
|
(303
|
)
|
258
|
112
|
|||||||||||
Increase in severance pay liability, net
|
2
|
5
|
1
|
1
|
||||||||||||
Decrease in deferred revenues and other advances
|
(500
|
)
|
(81
|
)
|
(505
|
)
|
(503
|
)
|
||||||||
Increase in liabilities in respect of government grants
|
-
|
115
|
-
|
-
|
||||||||||||
(196
|
)
|
1,936
|
925
|
253
|
||||||||||||
Cash received (paid) during the period for:
|
||||||||||||||||
Interest received
|
2,173
|
2,360
|
491
|
522
|
||||||||||||
Taxes paid
|
(14
|
)
|
(6
|
)
|
-
|
(4
|
)
|
|||||||||
Net cash used in operating activities
|
(15,929
|
)
|
(11,693
|
)
|
(3,566
|
)
|
(4,232
|
)
|
Year ended
December 31,
|
Three months ended
December 31,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Purchase of property, plant and equipment
|
$
|
(590
|
)
|
$
|
(808
|
)
|
$
|
(148
|
)
|
$
|
(97
|
)
|
||||
Proceeds from sale of marketable securities
|
22,737
|
23,926
|
8,925
|
6,734
|
||||||||||||
Purchase of marketable securities
|
(11,659
|
)
|
(24,561
|
)
|
(5,451
|
)
|
(6,985
|
)
|
||||||||
Proceeds from bank deposits, net
|
4,757
|
5,466
|
1,137
|
1,921
|
||||||||||||
Proceeds from sale of property, plant and equipment
|
-
|
5
|
-
|
5
|
||||||||||||
Net cash provided by investing activities
|
15,245
|
4,028
|
4,463
|
1,578
|
||||||||||||
Cash Flows from Financing Activities
|
||||||||||||||||
Proceeds from exercise of options
|
683
|
186
|
1
|
43
|
||||||||||||
Proceeds from government grants
|
339
|
802
|
73
|
398
|
||||||||||||
Repayment of government grants
|
(208
|
)
|
(333
|
)
|
-
|
-
|
||||||||||
Net cash provided by financing activities
|
814
|
655
|
74
|
441
|
||||||||||||
Exchange rate differences - cash and cash equivalent balances
|
69
|
25
|
7
|
10
|
||||||||||||
Increase (decrease) in cash and cash equivalents
|
199
|
(6,985
|
)
|
978
|
(2,203
|
)
|
||||||||||
Cash and cash equivalents, beginning of the period
|
3,236
|
10,221
|
2,457
|
5,439
|
||||||||||||
Cash and cash equivalents, end of the period
|
$
|
3,435
|
$
|
3,236
|
$
|
3,435
|
$
|
3,236
|
||||||||
Significant non-cash transactions
|
||||||||||||||||
Acquisition of property, plant and equipment
|
$
|
39
|
$
|
150
|
$
|
39
|
$
|
150
|