Evogene reports fourth quarter and full year 2024 financial results

Financial Highlights:

• In the year 2024, total revenues reached approximately $8.5 million compared to approximately $5.6 million in the year 2023. The increase in revenues is mainly due to increase in AgPlenus' revenues from its collaboration with Bayer and an increase in Casterra's seed sales.

• In Q4 2024, total revenues reached approximately $1.6 million compared to approximately $0.6 million in Q4 2023. The increase in revenues is mainly due to the increase in Casterra's seed sales.

• Revenues in Q4 2024 were originally expected to be higher, however, there was a change in delivery schedule of Casterra's seeds from 2024 to 2025. In Q4 2024, Casterra delivered ~76 tons, while in February 2025 alone, the company already delivered ~250 tons of castor seeds.

• During 2024, Casterra delivered to its partner a total of ~215 tons of castor seeds, while in February 2025, Casterra already delivered ~250 tons. This reflects solving the bottle neck in seed production Casterra previously faced, that caused a delay in the delivery schedule and consequent price adjustments. Casterra expects to continue delivering castor seeds mainly from its existing inventory (~400 tons) to its partners throughout 2025, based on a new schedule and new orders to be received – some replacing previous 2023 orders.

• In the year 2024, total R&D expenses were approximately $16.6 million compared to $20.8 million in the previous year. In Q4 2024 total R&D expenses were approximately $3.4 million compared to $5.5 million in Q4 2023. These decreases are mainly due to the end of Canonic's activity in Q2 2024 and decrease in Lavie Bio's, Biomica's and Evogene's R&D activity mainly in Q4 2024.

• During Q4 2024 and the beginning of 2025, Evogene established an expense reduction plan, to better align with its strategic goals, leading to a reduction of ~30% in headcount, to be completed by the end of Q1 2025.

• In the year 2024, total G&A expenses were approximately $7.4 million compared to $6.1 million in the previous year. G&A expenses in the year 2024 included one-time expenses of $1.5 million resulting from Evogene's fundraising and an allowance for a doubtful debt of one of Casterra's seed suppliers.

• Cash usage for 2024, without Biomica and Lavie Bio, was approximately $10.4 million compared to $12.5 million in 2023.

Evogene Ltd. (NASDAQ: EVGN) (TASE: EVGN), a leading computational biology company aiming to revolutionize the development of life-science-based products, announced its financial results for the fourth quarter and full year period ended December 31, 2024.

Mr. Ofer Haviv, Evogene's President and CEO, stated: "Today Evogene announced a change in the Chair position of its Board. I am pleased to welcome Mr. Nir Nimrodi as the new Chairperson of the Board and would like to express my gratitude to Ms. Sarit Firon for her invaluable contributions as Chairperson, I am pleased that she will continue to support Evogene in her role as a board member."

"2024 was a year of topline growth, reduction in cash use and value creation. We expect this trend to continue. I would like to share with you Evogene's prospects for the near future," Mr. Haviv continued. "Evogene intends to direct its efforts by focusing further on the use of our ChemPass AI tech-engine in the field of AI powered drug discovery. We plan to enhance ChemPass AI tech-engine's competitive advantage for the pharma market segment and expect these efforts to manifest in collaborations for small-molecule drug discovery, with bio-tech companies and academic institutions. I hope we'll be able to announce such collaborations later this year. With respect to MicroBoost AI and GeneRator AI we intend to continue the support and development of these tech-engines based on the needs of our subsidiaries, with their funding."

"With regard to Evogene's subsidiaries our intention is to focus on creating exit events for part of our subsidiaries. An exit event is expected to inject funds to further support Evogene's activities. In addition, we plan to strengthen Casterra's position as a profitable world leader in the castor oil market. Since Evogene holds 100% of Casterra we intend to use its profits to support Evogene's activities, as well. Last, Evogene will also support subsidiaries' efforts in their strategic fundraising activities. Part of the funds will be used by the subsidiaries to finance the development of Evogene's tech-engines according to their needs."

 "These strategic guidelines are expected to strengthen Evogene's financial position. Through focus on a single engine and implementation of our expense reduction plan, we expect to substantially lower expenses, and through exit events, dividends, and technology license payments, we anticipate enhancing Evogene's financials," Mr. Haviv concluded.

Subsidiaries' 2025 Targets:

Casterra Ag Ltd. – focuses on developing integrated solutions for large-scale castor bean farming, utilizing GeneRator AI tech-engine.

• Increase castor seeds revenue in Africa with initial sales in Brazil and additional territories.

• Initiate PoC trials for grain farming for oil production, with a tier 1 partner in Kenya or Brazil.

• Develop new varieties addressing market needs; advance at least 2 new lines to the pre-commercial phase.

• Develop a solution for reducing ricin quantity in meal, to be used as organic fertilizer.

• Strengthen and improve seed production facilities in Kenya and Brazil.

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

• Engage in a new collaboration agreement for fungicides (LAV311, LAV321).

• Increase Yalos^® revenue with initial sales in soybean.

• Achieve R&D milestones in ICL collaboration toward commercial agreement.

• Achieve R&D milestones in Corteva collaboration toward licensing agreement.

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

• Achieve second milestone in Corteva collaboration agreement.

• Execute Bayer herbicide collaboration according to workplan.

• Discover and advance 2-3 small molecules (hits) with new MoAs in Zymoseptoria program.

• Engage in a new collaboration agreement for fungicide (Zymoseptoria).

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

• Complete Phase 1 study in oncology program; obtain full results and additional supporting clinical data.

• Submit an IND application to the US FDA and obtain FDA approval for the Phase 2 study.

• Obesity and Longevity programs: complete discovery and in-vitro validations; seek partners for both programs.

Financial Highlights:

Cash Position: As of December 31, 2024, Evogene held consolidated cash, cash equivalents, and short-term bank deposits of approximately $15.3 million. The consolidated cash usage during the fourth quarter of 2024 was approximately $4.6 million. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $1.5 million in cash during the fourth quarter of 2024. Cash usage for 2024, excluding Lavie Bio and Biomica, was approximately $10.4 million, marking a notable 17% decrease from approximately $12.5 million in 2023.

Revenue: Revenues for the 12 months of 2024 were approximately $8.5 million, an increase from approximately $5.6 million in the same period the previous year. This growth was primarily driven by revenues recognized from AgPlenus's new collaboration with Bayer and increased Casterra's revenues from the supply of castor seeds during the period. Revenues for the fourth quarter of 2024 were approximately $1.6 million, compared to approximately $0.6 million in the same period the previous year. The increase was mainly attributable to the increase in Casterra's seed sales and the collaboration with Bayer, as mentioned above.

R&D Expenses: Research and development expenses, net of non-refundable grants, for the 12 months of 2024 were approximately $16.6 million, a significant decrease from approximately $20.8 million in the 12 months of 2023. The decrease in expenses is mainly due to the cease of Canonic's activities and a decrease in certain development expenses in Biomica, Evogene and Lavie Bio as compared to the same period the previous year. Research and development expenses, net of non-refundable grants, for the fourth quarter of 2024 were approximately $3.4 million, and decreased as compared to approximately $5.5 million in the same period in the previous year. The decrease is mainly attributable to decreased expenses in Lavie Bio, Biomica, Evogene and the cease of Canonic's operations as mentioned above.

Sales and Marketing Expenses: Sales and Marketing expenses for the 12 months of 2024 were approximately $3.4 million, a slight decrease from approximately $3.6 million in the same period in the previous year. Sales and Marketing expenses for the fourth quarter of 2024 were approximately $0.7 million, a slight decrease from approximately $1.0 million in the same period in the previous year. The decrease is mainly due to the cease of Canonic's activities.

General and Administrative Expenses: General and administrative expenses for the 12 months of 2024 increased to approximately $7.4 million from approximately $6.1 million in the same period of the previous year. The increase is mainly attributable to expenses recorded in Casterra due to a provision on a doubtful debt of a seed supplier and transaction costs related to Evogene's fundraising that occurred in August 2024, totaling approximately $1.5 million. General and administrative expenses for the fourth quarter of 2024 increased slightly to approximately $1.4 million compared to approximately $1.2 million in the same period of the previous year.

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

Operating Loss: The operating loss for the 12 months of 2024 was approximately $22.2 million, a decrease from approximately $26.5 million in the same period of the previous year, mainly due to increased revenues and decreased research and development expenses, offset by increased general and administrative expenses and other expenses, as mentioned above. The operating loss for the fourth quarter of 2024 was approximately $4.6 million, a decrease from approximately $7.6 million in the same period of the previous year, mainly due to increased revenues and decreased research and development expenses as mentioned above.

Financing Income / Expenses: Financing income, net for the 12 months of 2024 was approximately $4.2 million, compared to approximately $0.5 million in the same period of the previous year. Financing income, net for the fourth quarter of 2024 was approximately $4.6 million, compared to approximately $0.3 million in the same period of the previous year. The increase in financial income, net, during the 12-month period and the fourth 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 2024 the Company recorded net financial income, related to pre-funded warrants and warrants of approximately $3.4 million. 

Net Loss: The net loss for the 12 months of 2024 was approximately $18.1 million, compared to approximately $26.0 million in the same period of the previous year. The net loss for the fourth quarter of 2024 was approximately $5 thousand, compared to approximately $7.3 million in the same period of the previous year. The $7.9 million decrease in net loss for the 12 months of 2024 as compared to the 12 months of 2023 was primarily due to increased revenues, decreased research and development expenses and increased financial income, net related to warrants, offset by increased general and administrative expenses as mentioned above.  The $7.3 million decrease in net loss for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was primarily due to increased revenues, decreased research and development expenses and increased financial income, net related to warrants as mentioned above.

For the financial tables click here.