Evogene Reports Fourth Quarter and Full Year 2020 Financial Results
REHOVOT,

Mr.
I would like to provide key information on our subsidiaries' main achievements in 2020 and lead on to their intended future plans for 2021-2022."
2020 main achievements
Biomica
-
Immuno -oncology program - positive results in pre-clinical study were achieved. -
Immuno -oncology program - initial scale-up and first GMP production of drug candidates, as preparation for first-in-man clinical trial, expected to be initiated in 2021.
Canonic
- MetaYield product family - identification of leading lines to be further developed into commercial varieties, towards expected commercial launch in
Israel in 2022. - Go-to-market strategy - signed an agreement with a commercial partner for cultivation and production of proprietary cannabis varieties, as part of the strategic goal to build an end-to-end value chain - from seed to product sale.
AgPlenus
- Herbicide program - entry into a strategic collaboration with
(NYSE: CTVA), to develop a novel herbicide, based on pre-lead candidates.Corteva Agriscience - Herbicide program - reaching a lead phase for lead candidate APH1, following the completion of field tests that demonstrated APH1's effective control over a broad panel of weeds, including ones known to have resistance to existing herbicides. These results were confirmed in independent field tests, conducted by
SynTech Research .
- Bio-pesticide program - LAV312 showed positive results in protecting grapes from Botritis, in a trial that took place in an Italian vineyard. Product is expected to reach the market in 2024.
- Bio-stimulant program - LAV211 was successfully combined with harvesting spring wheat in
North Dakota . Based on results gained during the last three years, product launch is expected in 2022.
Future expected milestones
Biomica
2021
- Inflammatory Bowel Disease (IBD) program - extend pre-clinical study.
-
Immuno -oncology program - initiate proof of concept, first-in-man study.
2022
- IBD program - initiate first GMP production of drug candidates for IBD.
-
Immuno -oncology program - readout from proof of concept, first-in-man study.
Canonic
2021
- MetaYield product family - reach first commercial variety; sign distribution agreements in anticipation for commercialization in 2022.
- Precise product family - identify specific lines that exhibit distinct effect in model systems for reducing pain or inflammation.
2022
- MetaYield product family- commercial launch and initial sales of first product in
Israel . - Precise product family - reach first commercial variety for reducing pain or inflammation as preparation for commercial launch in 2023.
AgPlenus
2021
- Herbicide program - reach a herbicide tolerance trait proof of concept for APH1.
- Herbicide program / insecticide program - sign a licensing agreement for a leading candidate.
2022
- Herbicide program - reach an 'Optimized Lead' phase for APH1.
- Herbicide program - sign a strategic agreement for the development of an 'Optimized Lead' compound.
2021
- Bio-pesticide program - complete LAV311/312 development towards regulation.
- Bio-stimulant program - conduct pre-commercial trials for LAV211 in spring wheat.
2022
- Bio-stimulant program - initial product sales of LAV211 for spring wheat.
- Bio-pesticide program - file for regulatory approval for leading product candidate LAV311 / LAV312.
Mr.
Haviv continued: "I hope you are as excited as I am about
- Developing products based on microbes to address various market needs in the aqua-culture industry, using MicroBoost AI;
- Drug optimization in human health, using ChemPass AI; and
- Developing high quality plant-based food based on genome editing, using GeneRator AI.
2020 was
Consolidated financial results for the fourth quarter and full year ended
Cash position: As of
The
During the fourth quarter of 2020, the company's consolidated net cash usage was approximately
For the year ending
For the year ending
We do not currently have any bank debt.
Pre-funded warrants: A new line item on the balance sheet this quarter relates to pre-funded warrants that were issued in conjunction with the
Research and Development ("
R&D") expenses: R&D expenses, which are reported net of grants received, were approximately
General and Administrative ("G&A") expenses: G&A expenses were approximately
Operating loss: Operating loss for the fourth quarter of 2020 was
Loss: For the fourth quarter of 2020, the company's loss was
***
Conference Call & Webcast Details:
Date: March 3, 2021
Time: 9:00am EST; 16:00
Dial-in number: 1-888-668-9141 toll free from
Webcast: Available at www.evogene.com.
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
About
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", "intends", "anticipates", "plans", "believes", "scheduled", "estimates" or words of similar meaning. For example,
Evogene Investor Contact : |
US Investor Relations: |
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Aviva Banczewski / Investor Relations and Public Relations Manager T: +972-8-931-1900 |
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T: +1 646-653-7035 |
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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2020 |
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2019 |
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(Unaudited) |
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(Audited) |
CURRENT ASSETS: |
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Cash and cash equivalents |
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$ 46,229 |
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$ 34,748 |
Marketable securities |
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- |
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2,128 |
Short-term bank deposits |
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2,000 |
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10,000 |
Trade receivables |
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222 |
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72 |
Other receivables and prepaid expenses |
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3,372 |
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2,079 |
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51,823 |
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49,027 |
LONG-TERM ASSETS: |
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Long-term deposits |
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9 |
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9 |
Operating lease right-of-use-assets |
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1,872 |
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2,671 |
Property, plant and equipment, net |
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2,072 |
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2,583 |
Intangible assets, net |
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16,139 |
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17,074 |
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20,092 |
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22,337 |
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$ 71,915 |
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$ 71,364 |
CURRENT LIABILITIES: |
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Trade payables |
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$ 863 |
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$ 1,001 |
Employees and payroll accruals |
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2,535 |
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2,079 |
Operating lease liability |
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777 |
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895 |
Liabilities in respect of government grants |
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72 |
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37 |
Pre-funded warrants |
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4,144 |
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- |
Deferred revenues and other advances |
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47 |
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386 |
Other payables |
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1,238 |
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1,348 |
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9,676 |
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5,746 |
LONG-TERM LIABILITIES: |
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Operating lease liability |
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1,663 |
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2,076 |
Liabilities in respect of government grants |
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3,694 |
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3,325 |
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5,357 |
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5,401 |
SHAREHOLDERS' EQUITY: |
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Ordinary shares of |
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200 |
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142 |
Share premium and other capital reserve |
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225,121 |
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205,904 |
Accumulated deficit |
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(179,276) |
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(155,902) |
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Equity attributable to equity holders of the Company |
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46,045 |
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50,144 |
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Non-controlling interests |
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10,837 |
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10,073 |
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Total equity |
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56,882 |
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60,217 |
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$ 71,915 |
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$ 71,364 |
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CONSOLIDATED STATEMENTS OF PROFIT OR LOSS |
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Year ended |
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Three months ended |
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2020 |
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2019 |
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2020 |
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2019 |
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(Unaudited) |
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(Audited) |
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(Unaudited) |
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Revenues |
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$ 1,040 |
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$ 753 |
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$ 351 |
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$ 116 |
Cost of revenues |
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574 |
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334 |
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346 |
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81 |
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Gross profit |
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466 |
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419 |
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5 |
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35 |
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Operating expenses: |
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Research and development, net |
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17,287 |
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15,791 |
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4,811 |
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5,164 |
Business development |
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2,672 |
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2,029 |
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670 |
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609 |
General and administrative |
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5,321 |
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3,765 |
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1,701 |
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1,143 |
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Total operating expenses |
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25,280 |
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21,585 |
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7,182 |
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6,916 |
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Operating loss |
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(24,814) |
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(21,166) |
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(7,177) |
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(6,881) |
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Financing income |
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1,591 |
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2,630 |
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733 |
|
499 |
Financing expenses |
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(2,951) |
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(555) |
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(2,294) |
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(286) |
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Financing income (expenses), net |
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(1,360) |
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2,075 |
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(1,561) |
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213 |
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Loss before taxes on income |
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(26,174) |
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(19,091) |
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(8,738) |
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(6,668) |
Taxes on income |
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32 |
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24 |
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25 |
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24 |
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Loss |
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$ (26,206) |
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$ (19,115) |
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$ (8,763) |
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$ (6,692) |
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Attributable to: |
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Equity holders of the Company |
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(23,374) |
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(18,112) |
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(8,122) |
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(6,078) |
Non-controlling interests |
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(2,832) |
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(1,003) |
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(641) |
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(614) |
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$ (26,206) |
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$ (19,115) |
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$ (8,763) |
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$ (6,692) |
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Basic and diluted loss per share, |
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$ (0.83) |
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$ (0.70) |
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$ (0.25) |
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$ (0.24) |
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Weighted average number of shares |
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28,158,779 |
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25,754,297 |
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34,111,012 |
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25,754,297 |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Year ended |
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Three months ended |
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2020 |
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2019 |
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2020 |
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2019 |
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(Unaudited) |
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(Audited) |
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(Unaudited) |
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Cash flows from operating activities |
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Loss |
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$ (26,206) |
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$ (19,115) |
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$ (8,763) |
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$ (6,692) |
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Adjustments to reconcile loss to net cash used in |
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Adjustments to the profit or loss items: |
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Depreciation |
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1,792 |
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2,395 |
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392 |
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489 |
Amortization of Intangible assets |
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935 |
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374 |
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236 |
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180 |
Share-based compensation |
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4,097 |
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1,578 |
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617 |
|
776 |
Pre-funded warrants issuance expenses |
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211 |
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- |
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211 |
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- |
Net financing expenses (income) |
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1,031 |
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(2,414) |
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1,251 |
|
232 |
Loss from sale of property, plant & equipment |
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- |
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12 |
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- |
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- |
Taxes on income |
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13 |
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24 |
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6 |
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24 |
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|
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8,079 |
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1,969 |
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2,713 |
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1,701 |
Changes in asset and liability items: |
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Decrease (increase) in trade receivables |
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(150) |
|
88 |
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(188) |
|
75 |
Increase in other receivables |
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(1,300) |
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(1,250) |
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(1,441) |
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(650) |
Increase in long-term deposits |
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- |
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(10) |
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- |
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(10) |
Increase (decrease) in trade payables |
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(29) |
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(122) |
|
122 |
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68 |
Increase (decrease) in employees and payroll accruals |
|
456 |
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(33) |
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805 |
|
217 |
Increase (decrease) in other payables |
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(68) |
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375 |
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25 |
|
378 |
Increase (decrease) in deferred revenues and other |
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(339) |
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(45) |
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(85) |
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268 |
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(1,430) |
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(997) |
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(762) |
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346 |
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Cash received (paid) during the period for: |
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Interest received |
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294 |
|
803 |
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3 |
|
111 |
Interest paid |
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(238) |
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(302) |
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(56) |
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(78) |
Taxes paid |
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(13) |
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(24) |
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(6) |
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(24) |
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Net cash used in operating activities |
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$ (19,514) |
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$ (17,666) |
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$ (6,871) |
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$ (4,636) |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Year ended |
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Three months ended |
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2020 |
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2019 |
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2020 |
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2019 |
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(Unaudited) |
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(Audited) |
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(Unaudited) |
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Cash flows from investing activities |
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Purchase of property, plant and equipment |
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$ (682) |
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$ (900) |
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$ (103) |
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$ (382) |
Proceeds from sale of marketable securities |
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2,097 |
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27,084 |
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- |
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4,257 |
Purchase of marketable securities |
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- |
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(1,637) |
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- |
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- |
Proceeds from bank deposits |
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8,000 |
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12,592 |
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- |
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19,267 |
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Net cash provided by (used in) investing activities |
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9,415 |
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37,139 |
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(103) |
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23,142 |
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Cash flows from financing activities |
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Issuance of ordinary shares |
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18,658 |
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- |
|
8,857 |
|
- |
Issuance of pre-funded warrants |
|
1,989 |
|
- |
|
1,989 |
|
- |
Issuance of subsidiary ordinary shares |
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- |
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10,000 |
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- |
|
- |
Proceeds from advances for pre-funded warrants |
|
9 |
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- |
|
9 |
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- |
Proceeds from exercise of options |
|
59 |
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- |
|
46 |
|
- |
Repayment of operating lease liability |
|
(639) |
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(597) |
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(155) |
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(87) |
Proceeds from government grants |
|
320 |
|
493 |
|
- |
|
87 |
Repayment of government grants |
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(22) |
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(590) |
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- |
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(4) |
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Net cash provided by (used in) financing activities |
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20,374 |
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9,306 |
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10,746 |
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(4) |
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Exchange rate differences - cash and cash equivalent |
|
1,206 |
|
159 |
|
963 |
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(221) |
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Increase in cash and cash equivalents |
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11,481 |
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28,938 |
|
4,735 |
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18,281 |
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Cash and cash equivalents, beginning of the period |
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34,748 |
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5,810 |
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41,494 |
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16,467 |
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Cash and cash equivalents, end of the period |
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$ 46,229 |
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$ 34,748 |
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$ 46,229 |
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$ 34,748 |
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Significant non-cash activities |
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Acquisition of property, plant and equipment |
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$ 57 |
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$ 216 |
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$ 57 |
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$ 216 |
Increase (decrease) of operating lease right-of-use- |
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$ (41) |
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$ 3,437 |
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$ (18) |
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$ 88 |
Acquisition of intangible assets |
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$ - |
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$ 17,448 |
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$ - |
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$ - |
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View original content:http://www.prnewswire.com/news-releases/evogene-reports-fourth-quarter-and-full-year-2020-financial-results-301239537.html
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