EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1
 

Evogene Reports Third Quarter 2022 Financial Results
 
Conference call and webcast: today, November 17, 2022, 9:00 am ET
 
Rehovot, Israel – November 17, 2022 – Evogene Ltd. (Nasdaq: EVGN, TASE: EVGN), a leading computational biology company targeting to revolutionize life-science based product discovery and development utilizing cutting edge computational biology technologies, across multiple market segments, announced today its financial results for the third quarter, ended September 30, 2022.
 
Mr. Ofer Haviv, Evogene's President and Chief Executive Officer, stated, “Reviewing our developments in 2022, the activities of Evogene and our subsidiaries are advancing well, and we have met important milestones.  Each one, whose technology leverages Evogene’s AI tech engines, is generating significant value for the Evogene Group, and I am very pleased with our progress.
 
“An example for such milestone progress can be seen in our clinical trial for subsidiary Biomica’s microbiome-based immuno-oncology drug candidate, which was launched earlier this year and developed using Evogene’s MicroBoost AI tech engine. In recent weeks, we progressed to our third patient out of twelve, and we aim to have our first data readout in spring 2023, as these first few patients conclude their treatment programs. Another important milestone achieved recently by our subsidiary Lavie Bio, was the submission of the registration package to the U.S. Environmental Protection Agency in October, for its novel bio-fungicide product, developed using Evogene’s MicroBoost AI tech engine. We expect this process to take around 18 months. Our goal is a soft launch for the 2024 growing season, pending the regulatory approval.”
 
Continued Mr. Haviv, “In these challenging times in the capital markets, it's important to emphasize that we maintain a strong consolidated cash position of approximately $38 million, which based on our business plan, we expect will be enough to take us towards late 2024. Furthermore, with the strategic steps we continue to pursue, the fundraising at our subsidiary level, as well as the collaborations with non-dilutive payments, we believe we will extend this runway out further.
 
“The strategic collaboration and $10 million investment in the quarter by ICL, a leading specialty minerals company, into our subsidiary, Lavie Bio, is a great example of the successful execution of this strategy. It brought a new and additional source of capital to that subsidiary, it brought a value-adding partner to the subsidiary, which has a strong share in the ultimate success and upside in that subsidiary, and it also demonstrated the inherent financial value of the subsidiary and ultimately Evogene’s share in it. We continue to work hard in identifying additional value-adding partners and investors and bringing them into our subsidiaries.”
 
Added Mr. Haviv, “In parallel, we continue to pursue collaborations which can add new revenue streams for both Evogene and its subsidiaries, built upon the successful products all developed using Evogene’s underlying AI tech-engines. A recent example for this strategy was the announcement made by our subsidiary Casterra, focusing on castor seed technology development. They signed a royalty agreement with Zambian company, Titan, for sales of castor oil produced by Titan, which are based on Casterra's castor seeds and developed using Evogene's GeneRator AI tech engine.

“Another collaboration we are proud of was announced by our subsidiary Canonic, developing cannabis products, leveraging Evogene’s GeneRator AI tech engine. They announced a new licensing and royalty agreement signed with GroVida, a Portuguese cannabis cultivation company, in European markets for two of our new cannabis lines. Europe is a first and key target market for Canonic beyond our local market in Israel, with total medical cannabis market sales estimated at approximately €400 million.”
 
Concluded Mr, Haviv, "These represent some of the initial fruits of our focus on this strategy and I look forward to further such deals in the coming months."


Consolidated Financial Results Summary

Cash position: Evogene continues to maintain a solid financial position for its activities with approximately $38 million in consolidated cash, cash equivalents and marketable securities as of September 30, 2022.  Approximately $11.9 million of Evogene’s consolidated cash is appropriated to its subsidiary, Lavie Bio.

During the third quarter, the consolidated cash usage was approximately $7.3 million, or approximately $4.7 million, excluding Lavie Bio.

Revenues: Revenues for the third quarter of 2022 were $466 thousand, in comparison to $151 thousand in the same period the previous year and were primarily due to revenues recognized per the collaboration agreement of Evogene’s subsidiary AgPlenus with Corteva.

R&D expenses for the third quarter of 2022, which are reported net of non-refundable grants received, were $5.0 million, in comparison to $5.8 million in the same period the previous year. The main contributors to R&D expenses were Lavie Bio's activities supporting the production and commercialization of its inoculant product and Evogene’s ongoing development of its technology engines.

Business Development expenses were approximately $0.9 million for the third quarter of 2022, in comparison to $0.8 million in the same period the previous year.

General and Administrative expenses were $1.6 million in the third quarter of 2022, in comparison to $2.0 million in the same period in the previous year.

Operating loss: Operating loss for the third quarter of 2022 was $7.1 million in comparison to $8.6 million in the same period in the previous year.
 
Financing expenses for the third quarter of 2022 were $61 thousand, in comparison to financing income of $221 thousand in the same period in the previous year. The difference between periods was mainly due to U.S. Dollar and New Israeli Shekel exchange rate differences between periods and a change in the value of marketable securities.
 
Net loss: Net loss for the third quarter of 2022 was $7.2 million, in comparison to a net loss of $8.3 million in the same period in the previous year.

***

Conference Call & Webcast Details:
 
Date: November 17, 2022
 
Time: 9:00 am ET; 16:00 Israel time
 
Dial-in numbers:1-888-281-1167 toll free from the United States, or +972-3-918-0609 internationally
 
Webcast & Presentation link available at:
 
https://www.evogene.com/investor-relations/presentations-and-webcasts/
 
The Company's investor presentation can be viewed at the above link, which is in the investor relations section of the company website.
 
Replay Information: A replay of the conference call will be available approximately two hours following the completion of the call.
 
To access the replay, please dial 1-888-326-9310 toll free from the United States, or +972-3-925-5901 internationally. The replay will be accessible following the call for three days. An archive of the webcast will be available on the Company’s website.

 
About Evogene Ltd.:
 
Evogene (Nasdaq: EVGN, TASE: EVGN) is a computational biology company aiming to revolutionize the development of life-science based products by utilizing cutting edge technologies to increase probability of success while reducing development time and cost. Evogene established three unique technological engines – MicroBoost AI, ChemPass AI and GeneRator AI – leveraging Big Data and Artificial Intelligence and incorporating deep multidisciplinary understanding in life sciences. Each technological 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 technological engines to develop products through subsidiaries and with strategic partners. Currently, Evogene’s main subsidiaries utilize the technological engines to develop human microbiome-based therapeutics by Biomica Ltd., medical cannabis products by Canonic Ltd., ag-chemicals by Ag Plenus Ltd. and ag-biologicals by Lavie Bio Ltd.  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” or words of similar meaning. For example, Evogene is using forward-looking statement in this press release when it discusses its expectations with respect to value creation and potential funding options, including through its subsidiaries, untapped potential and value, including the potential to establish new activities that can benefit from Evogene’s technology, its and its subsidiaries’ expected timing for trials and studies, expected product advancements, pipelines, commercializations, collaborations and value-adding partners, sales, launches, milestones, target markets and their sizes, the sufficiency of its cash runway to meet its business plan and strategic goals through late 2024 or further, and the potential advantages of its technology. 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, 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 Contact:
Kenny Green
Email: ir@evogene.com
Tel: +1 212 378 8040


CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands (except share and per share data)

   
September 30,
    
December 31,
  
   
2022
    
2021
  
   
Unaudited
    
Audited
  
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
31,860
    
$
32,325
  
Marketable securities
    
6,090
      
18,541
  
Short-term bank deposits
    
-
      
3,000
  
Trade receivables
    
452
      
281
  
Inventories
    
165
      
92
  
Other receivables and prepaid expenses
    
2,205
      
2,651
  
                 
     
40,772
      
56,890
  
LONG-TERM ASSETS:
                
Long-term deposits
    
21
      
25
  
Right-of-use-assets
    
1,639
      
2,109
  
    Property, plant and equipment, net
    
2,571
      
2,073
  
Intangible assets, net
    
14,385
      
15,207
  
                 
     
18,616
      
19,414
  
                 
   
$
59,388
    
$
76,304
  
CURRENT LIABILITIES:
                
Trade payables
  
$
977
    
$
1,463
  
Employees and payroll accruals
    
2,324
      
2,662
  
Lease liability
    
884
      
974
  
Liabilities in respect of government grants
    
94
      
89
  
Deferred revenues and other advances
    
360
      
175
  
Other payables
    
944
      
1,519
  
                 
     
5,583
      
6,882
  
LONG-TERM LIABILITIES:
                
Lease liability
    
1,043
      
1,695
  
Liabilities in respect of government grants
    
4,464
      
4,307
  
Convertible SAFE
    
10,000
      
-
  
                 
     
15,507
      
6,002
  
SHAREHOLDERS' EQUITY:
                
Ordinary shares of NIS 0.02 par value:
Authorized − 150,000,000 ordinary shares; Issued and outstanding –
41,215,944 shares as of September 30, 2022 and 41,170,168
shares as of December 31, 2021
    
234
      
234
  
Share premium and other capital reserves
    
261,052
      
260,488
  
Accumulated deficit
    
(230,709
)
    
(207,069
)
                 
Equity attributable to equity holders of the Company
    
30,577
      
53,653
  
                 
Non-controlling interests
    
7,721
      
9,767
  
                 
Total equity
    
38,298
      
63,420
  
                 
   
$
59,388
    
$
76,304
  



CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS
U.S. dollars in thousands

   
Nine months ended
September 30,
    
Three months ended
September 30,
    
Year ended December 31,
  
   
2022
    
2021
    
2022
    
2021
    
2021
  
   
Unaudited
    
Audited
  
                               
Revenues
  
$
1,015
    
$
619
    
$
466
    
$
151
    
$
930
  
Cost of revenues
    
545
      
500
      
120
      
101
      
767
  
                                         
Gross profit
    
470
      
119
      
346
      
50
      
163
  
                                         
Operating expenses:
                                        
                                         
Research and development, net
    
16,039
      
15,109
      
4,996
      
5,826
      
21,125
  
Business development
    
2,765
      
2,018
      
895
      
776
      
2,738
  
General and administrative
    
4,825
      
5,253
      
1,552
      
2,004
      
7,253
  
                                         
Total operating expenses
    
23,629
      
22,380
      
7,443
      
8,606
      
31,116
  
                                         
Operating loss
    
(23,159
)
    
(22,261
)
    
(7,097
)
    
(8,556
)
    
(30,953
)
                                         
Financing income
    
679
      
997
      
194
      
380
      
1,935
  
Financing expenses
    
(3,498
)
    
(1,078
)
    
(255
)
    
(159
)
    
(1,414
)
                                         
Financing income (expenses), net
    
(2,819
)
    
(81
)
    
(61
)
    
221
      
521
  
                                         
Loss before taxes on income
    
(25,978
)
    
(22,342
)
    
(7,158
)
    
(8,335
)
    
(30,432
)
Taxes on income
    
45
      
19
      
5
      
8
      
13
  
                                         
Loss
  
$
(26,023
)
  
$
(22,361
)
  
$
(7,163
)
  
$
(8,343
)
  
$
(30,445
)
                                         
Attributable to:
                                        
Equity holders of the Company
    
(23,640
)
    
(20,422
)
    
(6,544
)
    
(7,610
)
    
(27,793
)
Non-controlling interests
    
(2,383
)
    
(1,939
)
    
(619
)
    
(733
)
    
(2,652
)
                                         
   
$
(26,023
)
  
$
(22,361
)
  
$
(7,163
)
  
$
(8,343
)
  
$
(30,445
)
                                         
Basic and diluted loss per share, attributable to equity holders of the Company
  
$
(0.57
)
  
$
(0.51
)
  
$
(0.16
)
  
$
(0.19
)
  
$
(0.69
)
                                         
Weighted average number of shares used in computing basic and diluted loss per share
    
41,202,049
      
40,184,407
      
41,215,944
      
40,847,117
      
40,433,303
  



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,
  
   
2022
    
2021
    
2022
    
2021
    
2021
  
   
Unaudited
    
Audited
  
Cash flows from operating activities
                              
                               
Loss
  
$
(26,023
)
  
$
(22,361
)
  
$
(7,163
)
  
$
(8,343
)
  
$
(30,445
)
                                         
Adjustments to reconcile loss to net cash used in operating activities:
                                        
                                         
Adjustments to the profit or loss items:
                                        
                                         
Depreciation
    
1,117
      
985
      
400
      
313
      
1,302
  
Amortization of intangible assets
    
822
      
697
      
245
      
235
      
932
  
Share-based compensation
    
895
      
1,872
      
65
      
783
      
2,609
  
Pre-funded warrants issuance expenses
    
-
      
212
      
-
      
-
      
-
  
Net financing expenses (income)
    
3,128
      
(363
)
    
(11
)
    
(346
)
    
(884
)
Decrease in accrued bank interest
    
7
      
15
      
-
      
5
      
11
  
Loss from derecognition of property, plant and equipment
    
-
      
-
      
-
      
-
      
121
  
Taxes on income
    
45
      
19
      
5
      
8
      
13
  
                                         
     
6,014
      
3,437
      
704
      
998
      
4,104
  
Changes in asset and liability items:
                                        
                                         
Decrease (increase) in trade receivables
    
(171
)
    
71
      
(341
)
    
57
      
(59
)
Decrease (increase) in other receivables
    
443
      
1,428
      
(20
)
    
421
      
637
  
Increase in inventories
    
(73
)
    
-
      
(3
)
    
-
      
(92
)
                                         
Increase (decrease) in trade payables
    
(600
)
    
987
      
(428
)
    
632
      
625
  
Increase (decrease) in employees and payroll accruals
    
(338
)
    
(174
)
    
(60
)
    
144
      
127
  
Increase (decrease) in other payables
    
(586
)
    
24
      
7
      
302
      
290
  
Increase (decrease) in deferred revenues and other advances
    
185
      
(47
)
    
344
      
(26
)
    
128
  
                                         
     
(1,140
)
    
2,289
      
(501
)
    
1,530
      
1,656
  
                                         
Cash received (paid) during the period for:
                                        
                                         
Interest received
    
118
      
245
      
38
      
100
      
297
  
Interest paid
    
(356
)
    
(225
)
    
(129
)
    
(87
)
    
(315
)
Tax paid
    
(34
)
    
(19
)
    
(5
)
    
(8
)
    
(13
)
                                         
Net cash used in operating activities
  
$
(21,421
)
  
$
(16,634
)
  
$
(7,056
)
  
$
(5,810
)
  
$
(24,716
)


CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Nine months ended
September 30,
    
Three months ended
September 30,
    
Year ended December 31,
  
   
2022
    
2021
    
2022
    
2021
    
2021
  
   
Unaudited
    
Audited
  
Cash flows from investing activities:
                              
                               
Purchase of property, plant and equipment
  
$
(972
)
  
$
(587
)
  
$
(225
)
  
$
(180
)
  
$
(847
)
Proceeds from sale of marketable securities
    
12,352
      
1,017
      
203
      
611
      
4,395
  
Purchase of marketable securities
    
(659
)
    
(21,404
)
    
-
      
(414
)
    
(23,114
)
Withdrawal from (investment in)  bank deposits
    
3,000
      
(1,600
)
    
-
      
(1,600
)
    
(1,000
)
                                         
Net cash provided by (used in) investing activities
    
13,721
      
(22,574
)
    
(22
)
    
(1,583
)
    
(20,566
)
                                         
Cash flows from financing activities:
                                        
                                         
Proceeds from issuance of ordinary shares, net of issuance expenses
    
-
      
29,582
      
-
      
1,660
      
29,582
  
Proceeds from exercise of options
    
7
      
476
      
-
      
16
      
484
  
Repayment of lease liability
    
(366
)
    
(437
)
    
126
      
(121
)
    
(580
)
Proceeds from government grants
    
89
      
792
      
59
      
412
      
824
  
Repayment of government grants
    
(31
)
    
(34
)
    
(17
)
    
(14
)
    
(34
)
Convertible SAFE
    
10,000
      
-
      
10,000
      
-
      
-
  
                                         
Net cash provided by financing activities
    
9,699
      
30,379
      
10,168
      
1,953
      
30,276
  
                                         
Exchange rate differences - cash and cash equivalent balances
    
(2,464
)
    
233
      
(97
)
    
318
      
1,102
  
                                         
Increase (decrease) in cash and cash equivalents
    
(465
)
    
(8,596
)
    
2,993
      
(5,122
)
    
(13,904
)
                                         
Cash and cash equivalents, beginning of the period
    
32,325
      
46,229
      
28,867
      
42,755
      
46,229
  
                                         
Cash and cash equivalents, end of the period
  
$
31,860
    
$
37,633
    
$
31,860
    
$
37,633
    
$
32,325
  
                                         
Significant non-cash activities
                                        
                                         
Acquisition of property, plant and equipment
  
$
146
    
$
59
    
$
80
    
$
17
    
$
32
  
Increase (decrease) of right-of-use asset recognized with corresponding lease liability
  
$
19
    
$
775
    
$
(11
)
  
$
775
    
$
841
  
                                         
Exercise of pre-funded warrants
    
-
      
-
      
-
      
-
    
$
4,365