Exhibit No.
|
Description
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Interim Statements of Financial Position, (ii) Consolidated Interim Statements of Profit or Loss, (iii) Consolidated Interim
Statements of Changes in Equity; (iv) Consolidated Interim Statements of Cash Flows, and (v) Notes to Interim Consolidated Financial Statements
|
EVOGENE LTD.
|
|||
|
By:
|
/s/ Dorit Kreiner | |
Name: | Dorit Kreiner | ||
Title:
|
Chief Financial Officer | ||
Page
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5 - F-6
|
|
F-7 - F-15
|
June 30,
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Unaudited
|
Audited
|
|||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
31,074
|
$
|
34,748
|
||||
Marketable securities
|
-
|
2,128
|
||||||
Short-term bank deposits
|
7,000
|
10,000
|
||||||
Trade receivables
|
59
|
72
|
||||||
Other receivables and prepaid expenses
|
1,711
|
2,079
|
||||||
39,844
|
49,027
|
|||||||
LONG-TERM ASSETS:
|
||||||||
Long-term deposits
|
9
|
9
|
||||||
Operating lease right-of-use-assets
|
2,303
|
2,671
|
||||||
Property, plant and equipment, net
|
2,341
|
2,583
|
||||||
Intangible assets, net
|
16,609
|
17,074
|
||||||
21,262
|
22,337
|
|||||||
$
|
61,106
|
$
|
71,364
|
|||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
718
|
$
|
1,001
|
||||
Employees and payroll accruals
|
1,596
|
2,079
|
||||||
Operating lease liability
|
829
|
895
|
||||||
Liabilities in respect of government grants
|
52
|
37
|
||||||
Deferred revenues and other advances
|
558
|
386
|
||||||
Other payables
|
1,068
|
1,348
|
||||||
4,821
|
5,746
|
|||||||
LONG-TERM LIABILITIES:
|
||||||||
Operating lease liability
|
1,787
|
2,076
|
||||||
Liabilities in respect of government grants
|
3,524
|
3,325
|
||||||
5,311
|
5,401
|
|||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Ordinary shares of NIS 0.02 par value:
Authorized - 150,000,000 ordinary shares; Issued and outstanding - 25,754,297 at June 30, 2020 and December 31, 2019, respectively
|
142
|
142
|
||||||
Share premium and other capital reserve
|
205,990
|
205,904
|
||||||
Accumulated deficit
|
(166,370
|
)
|
(155,902
|
)
|
||||
Equity attributable to equity holders of the Company
|
39,762
|
50,144
|
||||||
Non-controlling interests
|
11,212
|
10,073
|
||||||
Total equity
|
50,974
|
60,217
|
||||||
$
|
61,106
|
$
|
71,364
|
Six months ended
June 30,
|
||||||||
2020
|
2019
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
373
|
$
|
540
|
||||
Cost of revenues
|
153
|
172
|
||||||
Gross profit
|
220
|
368
|
||||||
Operating expenses:
|
||||||||
Research and development, net
|
8,478
|
7,024
|
||||||
Business development
|
1,438
|
970
|
||||||
General and administrative
|
2,388
|
1,746
|
||||||
Total operating expenses
|
12,304
|
9,740
|
||||||
Operating loss
|
(12,084
|
)
|
(9,372
|
)
|
||||
Financing income
|
643
|
1,870
|
||||||
Financing expenses
|
(584
|
)
|
(390
|
)
|
||||
Financing income, net
|
59
|
1,480
|
||||||
Loss before taxes on income
|
(12,025
|
)
|
(7,892
|
)
|
||||
Taxes on income
|
7
|
3
|
||||||
Loss
|
$
|
(12,032
|
)
|
$
|
(7,895
|
)
|
||
Attributable to:
|
||||||||
Equity holders of the Company
|
$
|
(10,468
|
)
|
$
|
(7,803
|
)
|
||
Non-controlling interests
|
(1,564
|
)
|
(92
|
)
|
||||
$
|
(12,032
|
)
|
$
|
(7,895
|
)
|
|||
Basic and diluted loss per share, attributable to equity holders of the Company
|
$
|
(0.41
|
)
|
$
|
(0.31
|
)
|
||
Weighted average number of shares used in computing basic and diluted loss per share
|
25,754,297
|
25,754,297
|
Attributable to equity holders of the Company
|
||||||||||||||||||||||||
Share
capital
|
Share premium and other capital reserves
|
Accumulated deficit
|
Total
|
Non-controlling interests
|
Total equity
|
|||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||
Balance as of December 31, 2018 (audited)
|
$
|
142
|
$
|
187,701
|
$
|
(137,790
|
)
|
$
|
50,053
|
$
|
253
|
$
|
50,306
|
|||||||||||
Loss
|
-
|
-
|
(7,803
|
)
|
(7,803
|
)
|
(92
|
)
|
(7,895
|
)
|
||||||||||||||
Share-based compensation
|
-
|
338
|
-
|
338
|
109
|
447
|
||||||||||||||||||
Balance as of June 30, 2019
|
$
|
142
|
$
|
188,039
|
$
|
(145,593
|
)
|
$
|
42,588
|
$
|
270
|
$
|
42,858
|
Attributable to equity holders of the Company
|
||||||||||||||||||||||||
Share
capital
|
Share premium and other capital reserves
|
Accumulated deficit
|
Total
|
Non-controlling interests
|
Total equity
|
|||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||
Balance as of December 31, 2019 (audited)
|
$
|
142
|
$
|
205,904
|
$
|
(155,902
|
)
|
$
|
50,144
|
$
|
10,073
|
$
|
60,217
|
|||||||||||
Loss
|
-
|
-
|
(10,468
|
)
|
(10,468
|
)
|
(1,564
|
)
|
(12,032
|
)
|
||||||||||||||
Benefit to non-controlling interests regarding share-based compensation
|
-
|
(6
|
)
|
-
|
(6
|
)
|
6
|
-
|
||||||||||||||||
Share-based compensation
|
92
|
92
|
2,697
|
2,789
|
||||||||||||||||||||
Balance as of June 30, 2020
|
$
|
142
|
$
|
205,990
|
$
|
(166,370
|
)
|
$
|
39,762
|
$
|
11,212
|
$
|
50,974
|
Six months ended
June 30,
|
||||||||
2020
|
2019
|
|||||||
Unaudited
|
||||||||
Cash flows from operating activities
|
||||||||
Loss
|
$
|
(12,032
|
)
|
$
|
(7,895
|
)
|
||
Adjustments to reconcile loss to net cash used in operating activities:
|
||||||||
Adjustments to the profit or loss items:
|
||||||||
Depreciation
|
916
|
1,315
|
||||||
Amortization of intangible assets
|
465
|
-
|
||||||
Share-based compensation
|
2,789
|
447
|
||||||
Net financing income
|
(66
|
)
|
(1,619
|
)
|
||||
Taxes on income
|
7
|
3
|
||||||
4,111
|
146
|
|||||||
Changes in asset and liability items:
|
||||||||
Decrease in trade receivables
|
13
|
13
|
||||||
Decrease (increase) in other receivables
|
390
|
(656
|
)
|
|||||
Decrease in trade payables
|
(234
|
)
|
(261
|
)
|
||||
Decrease in employees and payroll accruals
|
(483
|
)
|
(364
|
)
|
||||
Decrease in other payables
|
(229
|
)
|
(80
|
)
|
||||
Increase (decrease) in deferred revenues and other advances
|
172
|
(193
|
)
|
|||||
(371
|
)
|
(1,541
|
)
|
|||||
Cash received (paid) during the period for:
|
||||||||
Interest received
|
166
|
55
|
||||||
Interest paid
|
(118
|
)
|
(138
|
)
|
||||
Taxes paid
|
(7
|
)
|
(3
|
)
|
||||
Net cash used in operating activities
|
$
|
(8,251
|
)
|
$
|
(9,376
|
)
|
Six months ended
June 30,
|
||||||||
2020
|
2019
|
|||||||
Unaudited
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
$
|
(415
|
)
|
$
|
(197
|
)
|
||
Proceeds from sale of marketable securities
|
2,097
|
19,994
|
||||||
Purchase of marketable securities
|
-
|
(1,637
|
)
|
|||||
Proceeds from bank deposits, net
|
3,000
|
-
|
||||||
Net cash provided by investing activities
|
4,682
|
18,160
|
||||||
Cash flows from financing activities:
|
||||||||
Proceeds from government grants
|
175
|
287
|
||||||
Repayment of operating lease liability
|
(329
|
)
|
(366
|
)
|
||||
Repayment of government grants
|
(11
|
)
|
(575
|
)
|
||||
Net cash used in financing activities
|
(165
|
)
|
(654
|
)
|
||||
Exchange rate differences - cash and cash equivalent balances
|
60
|
157
|
||||||
Increase (decrease) in cash and cash equivalents
|
(3,674
|
)
|
8,287
|
|||||
Cash and cash equivalents, beginning of the period
|
34,748
|
5,810
|
||||||
Cash and cash equivalents, end of the period
|
$
|
31,074
|
$
|
14,097
|
||||
Significant non-cash activities
|
||||||||
Acquisition of property, plant and equipment
|
$
|
117
|
$
|
52
|
|
a. |
Evogene Ltd. together with its subsidiaries (the "Company" or "Evogene") is a leading computational biology company focused on revolutionizing product discovery and development in multiple life-science based
industries, including human health, and agriculture through the use of its broadly applicable Computational Predictive Biology (“CPB”) platform. The CPB platform, incorporating a deep understanding of biology leveraged through the power of
Big Data and Artificial Intelligence, has been designed to computationally discover and uniquely guide the development of life-science products based on microbes, small molecules and genetic elements. Utilizing the CPB platform, Evogene
and its subsidiaries are now advancing product pipelines for human microbiome-based therapeutics through Biomica Ltd., medical cannabis through Canonic Ltd., ag-biologicals through Lavie Bio Ltd., ag-chemicals through AgPlenus Ltd., and
ag-solutions for castor oil production through Casterra Ltd.
|
|
b. |
The Company principally derives its revenues from collaboration arrangements (see Note 3).
|
|
c. |
The Company subsidiaries: AgPlenus Ltd., Biomica Ltd., Lavie Bio Ltd., Lavie Bio Inc., Lavie Tech Inc., Taxon Biosciences Inc., Canonic Ltd., Casterra Ag Ltd. (formerly Evofuel Ltd.) and Evogene Inc.
|
|
d. |
The Company’s subsidiaries and divisions are split into three operating segments: Agriculture - Evogene seed traits division, Lavie Bio, Ag Planus; Human - Biomica, Canonic; Industry - Casterra (see Note 7).
|
|
a. |
Basis of preparation of the interim consolidated financial statements:
|
|
b. |
IFRS 3, "Business Combinations":
|
|
1. |
Clarification that to meet the definition of a business, an integrated set of activities and assets must include, as a minimum, an input and a substantive process that together significantly contribute to the ability to create output.
|
|
2. |
Removal of the reference to the assessment whether market participants are capable of acquiring the business and continuing to operate it and produce outputs by integrating the business with their own inputs and processes.
|
|
3. |
Introduction of additional guidance and examples to assist entities in assessing whether the acquired processes are substantive.
|
|
4. |
Narrowing the definitions of "outputs" and "business" by focusing on goods and services provided to customers.
|
|
5. |
Introducing an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business.
|
NOTE 3: - |
COLLABORATION AND RESEARCH AGREEMENTS-
|
|
a. |
In February 2020, the Company entered into a collaboration agreement for computational analysis of a lead compound including wet validation.
|
NOTE 3: - |
COLLABORATION AND RESEARCH AGREEMENTS- (Cont.)
|
|
b. |
In March 2020, the Company entered into a multi-year collaboration with Corteva for the discovery and development of novel herbicides. Under the terms of the collaboration agreement, the Company and Corteva will work together to optimize
herbicide product candidates originating from the Company’s pipeline. Successful candidates from this collaboration are expected to be further developed by Corteva.
|
June 30,
2020
|
December 31,
2019
|
|||||||
Unaudited
|
Audited
|
|||||||
Financial assets measured at fair value through profit or loss:
|
||||||||
Participation certificates in trust funds – Level 1
|
$
|
-
|
$
|
1,042
|
||||
Corporate bonds and government treasury notes – Level 2
|
-
|
1,086
|
||||||
$
|
-
|
$
|
2,128
|
June 30,
2020
|
December 31,
2019
|
|||||||
Unaudited
|
Audited
|
|||||||
Balance at January 1,
|
$
|
3,362
|
$
|
3,886
|
||||
Grants received
|
175
|
493
|
||||||
Royalties paid
|
(11
|
)
|
(44
|
)
|
||||
Binational Industrial Research and Development Foundation (“BIRD”) repayment
|
-
|
(546
|
)
|
|||||
Amounts recorded in profit or loss
|
50
|
(427
|
)
|
|||||
$
|
3,576
|
$
|
3,362
|
|
a. |
Expenses recognized in the financial statements:
|
Six months ended June 30,
|
||||||||
2020
|
2019
|
|||||||
Unaudited
|
||||||||
Share-based compensation – Attributable to equity holders of the Company
|
$
|
68
|
$
|
338
|
||||
Share-based compensation – Attributable to non-controlling interests
|
2,721
|
109
|
||||||
$
|
2,789
|
$
|
447
|
|
b. |
Evogene Ltd. share-based payment plan for employees, directors and consultants:
|
|
c. |
Evogene Ltd. share options activity:
|
2020
|
||||||||
Number of options
|
Weighted average exercise prices ($)
|
|||||||
Unaudited
|
||||||||
Outstanding on January 1
|
4,335,017
|
7.08
|
||||||
Grants
|
790,000
|
1.10
|
||||||
Forfeited
|
(807,468
|
)
|
6.95
|
|||||
Outstanding on June 30
|
4,317,549
|
5.99
|
||||||
Exercisable on June 30
|
2,511,019
|
8.74
|
|
d. |
The Company's subsidiaries maintain share option and incentive plans with similar terms and conditions. During the six months ended June 30, 2020 and 2019, the Company's subsidiaries approved to grant their
employees, directors and consultants 775,848 and 61,250 options, respectively. The fair value of the options determined at their grant date using the binomial model was approximately $4,068 and $398, respectively. The fair value was
estimated using the binomial model with assumptions consistent with those used in the previous year.
|
2020
|
||||||||
Number of options
|
Weighted average exercise prices ($)
|
|||||||
Unaudited
|
||||||||
Outstanding on January 1,
|
460,038
|
0.13
|
||||||
Grants
|
775,848
|
1.94
|
||||||
Forfeited
|
(40,484
|
)
|
0.20
|
|||||
Outstanding on June 30,
|
1,195,402
|
1.31
|
||||||
Exercisable on June 30,
|
502,257
|
0.17
|
|
e. |
The total compensation cost related to all of the Company's equity-based awards, recognized during the presented periods was comprised as follows:
|
Six months ended June 30,
|
||||||||
2020
|
2019
|
|||||||
Unaudited
|
||||||||
Research and development, net
|
$
|
1,404
|
$
|
214
|
||||
Business development
|
897
|
123
|
||||||
General and administrative
|
488
|
110
|
||||||
$
|
2,789
|
$
|
447
|
Agriculture segment
|
-
|
Develops seed traits, ag-chemical products, and ag-biological products to improve plant performance.
|
Human segment
|
-
|
Discovery and development of human microbiome-based therapeutics.
|
Industry segment
|
-
|
Develops improved castor bean seeds to serve as a feedstock source for biofuel and other industrial uses.
|
Unallocated
|
-
|
Other corporate expenses and general development of enabling technologies for optimization.
|
|
a. |
The following table presents the Company’s revenues and operating loss by segments:
|
Agriculture
|
Industry
|
Human
|
Unallocated
|
Total
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
For the six months ended June 30, 2020
|
||||||||||||||||||||
Revenues
|
$
|
354
|
$
|
-
|
$
|
-
|
$
|
19
|
$
|
373
|
||||||||||
Operating loss
|
$
|
(4,392
|
)
|
$
|
(147
|
)
|
$
|
(1,861
|
)
|
$
|
(5,684
|
)
|
$
|
(12,084
|
)
|
|||||
Net financing income
|
$
|
59
|
||||||||||||||||||
Loss before taxes on income
|
$
|
(12,025
|
)
|
|
b. |
The following table presents the Company’s revenues and operating loss by segments:
|
Agriculture
|
Industry
|
Human
|
Unallocated
|
Total
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
For the six months ended June 30, 2019
|
||||||||||||||||||||
Revenues
|
$
|
497
|
$
|
20
|
$
|
-
|
$
|
23
|
$
|
540
|
||||||||||
Operating loss
|
$
|
(4,724
|
)
|
$
|
(219
|
)
|
$
|
(1,090
|
)
|
$
|
(3,339
|
)
|
$
|
(9,372
|
)
|
|||||
Net financing income
|
$
|
1,480
|
||||||||||||||||||
Loss before taxes on income
|
$
|
(7,892
|
)
|
|
c. |
Major customers:
|
Six months ended June 30,
|
||||||||
2020
|
2019
|
|||||||
Unaudited
|
||||||||
Customer A
|
12
|
%
|
-
|
|||||
Customer B (subsidiary shareholder)
|
67
|
%
|
46
|
%
|
||||
Customer C
|
-
|
25
|
%
|
|||||
Customer D
|
12
|
%
|
-
|
|||||
Customer E
|
-
|
18
|
%
|
|
d. |
Geographical information:
|
Six months ended June 30,
|
||||||||
2020
|
2019
|
|||||||
Unaudited
|
||||||||
United States
|
67
|
%
|
46
|
%
|
||||
Israel
|
17
|
%
|
29
|
%
|
||||
Brazil
|
12
|
%
|
18
|
%
|
||||
Other
|
4
|
%
|
7
|
%
|
||||
100
|
%
|
100
|
%
|
June 30,
2020
|
December 31,
2019
|
|||||||
Unaudited
|
Audited | |||||||
United States
|
89
|
%
|
88
|
%
|
||||
Israel
|
11
|
%
|
12
|
%
|
||||
100
|
%
|
100
|
%
|
Six Months Ended June 30,
|
||||||||
|
2020
|
2019
|
||||||
|
(U.S. dollars, in thousands)
|
|||||||
Net cash used in operating activities
|
$
|
(8,251
|
)
|
$
|
(9,376
|
)
|
||
Net cash provided by investing activities
|
4,682
|
18,160
|
||||||
Net cash used in financing activities
|
(165
|
)
|
(654
|
)
|
||||
Exchange rate differences - cash and cash equivalents
|
60
|
157
|
||||||
Net increase (decrease) in cash and cash equivalents
|
$
|
(3,674
|
)
|
$
|
8,287
|