Q4 2023 Evogene Ltd Earnings Call

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Evogen's fourth quarter and full year 2023 results conference call. All participants are present in listen-only mode.

No.

Yeah.

You may begin.

Okay.

Thank you.

Thank you.

Okay.

[music] colleagues.

Ladies and gentlemen, thank you for standing by welcome to Epogen fourth quarter and full year 2023 results conference call. All participants are present in listen only mode. Following management's formal presentation instructions will be given for the question and answer session for <unk>.

Operator: Following management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded March 7, 2024. Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogen's management will constitute forward-looking statements that relate to future events. This investor call contains forward-looking statements relating to future events. These statements may be identified by words such as may, could, expect, hopes, intends, anticipates, plans, believes, scheduled, estimates, or words of similar meaning.

The later assistance during the conference. Please press Star Zero as a reminder, this conference is being recorded March 7th 2024, before we begin I would like to caution that certain statements made during this earnings conference call by evidence management will constitute forward looking statements that relate to future events.

This investor call contains forward looking statements relating to future events. These statements maybe identified by words, such as May could expect hopes intends anticipates plans believes scheduled estimates or words of similar meaning for example, epogen have using forward looking statement in this investor call when it discusses.

Operator: For example, Evogen is using forward-looking statement in this investor call when it discusses the further partnerships with industry leaders, increased sales of subsidiary products like Castera's Elite Castor varieties and Lavie Bio's Bio-Inoculant Yallows, expansion beyond its current sectors, continued revenue growth for the Evogen Group in 2024, potential transfer of Canonix operations to a third party, increased production of Castera, commercialization of AgPlanus and Lavie Bio's products, and the timing and results of the clinical trials and pre-clinical trials of Biomica's products. 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 Evogen 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 Evogen and its subsidiaries, including without limitation the current war between Israel and Hamas and any worsening of the situation in Israel, such as further mobilizations or escalation in the northern border of Israel, and those risk factors contained in Evogen's report filed with the Applicable Securities Authority.

Further partnerships with industry leaders increased sales of subsidiary products like US there is a weed castor varieties and Marie bio bio Nokia ones yellows expansion beyond its current sector continued revenue growth for the Epogen group in 2024 potential transfer of economics operations to a third.

Party increased production of cuts there a commercialization of Atlantis, and lovey bio's products and the timing and results of clinical trials and preclinical trials Bionicles products such statements are based on current expectations estimates projections and assumptions describe opinions about future events involved.

Certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance. Therefore.

Therefore, actual future results performance or achievements of allergen 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 epogen and its subsidiaries, including without limitation the car.

War between Israel and come off and any worsening of the situation in Israel, such as further mobilization or escalation in the northern border of Israel and those risk factors contained in <unk> reports filed with the applicable Securities Authority. In addition, epogen and <unk>.

Operator: In addition, Evogen and its subsidiaries rely and expect to continue to rely on third parties to conduct certain activities, such as their field trials and preclinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements, or meet expected deadlines, Evogen and its subsidiaries may experience significant delays in the conduct of their activities. Evogen 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. More detailed information about the risk factors potentially adversely impacting our performance can be found in our report filed with the U.S. Securities and Exchange Commission.

Subsidiaries rely and expect to continue to rely on third parties to conduct certain activities such as their field trial and preclinical studies and if these third parties do not successfully carry out their contractual duties comply with regulatory requirements while meat.

Expected deadlines epogen and its subsidiaries may experience significant delays and the conduct of their activities epogen 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 more detailed information about the risk factors potentially adversely impacting our performance can be found in our reports filed with the U S Securities and Exchange Commission todays call will feature over coffee, President and CEO of Epogen alongside Yarbrough no bag fees.

Operator: Today's call will feature Ofer Khabib, President and CEO of Evogen, alongside Yaron Elbad, CFO of Evogen, and Yawash Zohar, CEO of Castera. Additionally, a representative from each subsidiary will be present at the Q&A session. That said, I would now like to turn over the call to Ofer Haviv, President and CEO of Evogen. Mr. Haviv, please go ahead. Hi and good day, everyone.

Oh of allergen, and you'll watch throw our seal off cuts Dara. Additionally, a representative from each subsidiary will be present at the Q&A session.

That said I would now like to turn over the call to offer could be president and CEO of Apple chat Misspoke Aviv. Please go ahead.

Hi, and good day everyone.

Ofer Haviv: In today's conference call, I would like to start with a review of the Iboten Group's achievements during 2023 until today and provide you with an update on our activities, as well as potential catalysts during the next 12 months. Following my presentation, Castera's new CEO, Yoash Zohar, will introduce himself, provide an update on Castera's activities, and outline the company's goals for the coming year. Evogene's CFO, Yaron Eldad, will then provide a financial summary and update. After that, we will open the Q&A session.

Today's conference call.

Can you talk either you or Jim.

Achievements during 2023 until today.

And provide you with an update on our activities.

There's potential catalyst during the next 12 months, what do I mean, my review cause terrorist mute deal you asked.

We did introduce himself.

I get an update on Castilla <unk>.

And.

The company that was it for the coming years.

Hello, James CFO your own and Doug will then provide a financial summary and updates.

After that we will open the Q&A session.

Ofer Haviv: What a year it's been for the Evogen group since our last earnings call summarizing 2022. Despite the challenges we are facing collectively here in Israel, this year marked a significant shift in how the industry views our technology and products. This has led to growing collaborations with world-leading companies. The number and caliber of partnerships Evogene and our subsidiaries have formed speak volumes. Lavi Bayo, partnering with Corteva, ICL, and Syngenta. Ax Lamus, partnering with Bayo Pharma and Corteva. Castera partners with global oil and gas companies.

What a year, it's been for the Evo didn't rule out.

Our last earning call it somewhere around 2022.

Despite these challenges we are facing collectively.

Human use win this year marked a significant shift in how the industry views of our technology and products.

Translating into growing collaborations with world leading companies.

The number and probably bigger with partnerships ampligen and our subsidiaries have formed it speaks volumes.

By partnering with Turbo ICL and Syngenta.

Excellence partnering with a buyer in for Teva.

Cause terror partnered with global oil and gas company.

Ofer Haviv: Biomica, securing investment from Shanghai Healthcare Capital, and Evogene, collaborating with Dread Biotics and Colors, all highlight our growing presence and impact in the life science industry. This expanding collaboration momentum validates the value of InvoGen's AI tech engines, MicroBoost AI, Campus AI, and Generator AI, relying on our CPB platform, which we have been developing for over a decade. Looking ahead, we anticipate further collaboration with industry leaders directly or through our subsidiaries, an increase in the volume of sales of products by our subsidiaries, such as Kostera's Elite Cultural Varieties and Labib Bio's Bionickel and Tialos, and expanding Evogen's reach beyond its current sectors of activity. These efforts not only validate our contribution but also strengthen our financial position through non-dilutive funding and revenue streams from upfront payments, R&D fees, milestones, and direct product sales, as reflected in the revenue the company reports today, totaling approximately $5.6 million, compared to approximately $1.7 million in 2022. We expect to see

Oh maker, securing investment assumption Sykes has kept capital and epogen collaborating with everybody else and colors.

I'll highlight our growing presence and impact in the life science industry.

This expanding collaboration momentum validates the value people agenda.

And then Michael just AI shrimp, let's say in general.

Relying on our CPB platform, which we have been developing for over a decade.

Looking ahead, we anticipate further collaboration with industry either directly or through our subsidiaries.

An increase in the volume of sales of products by our subsidiaries such as sterile elite customer varieties and everybody goes by when England's yellow.

And expanding <unk> reach beyond its current six months worth of activity.

These efforts not only validates our contribution but also strengthen our financial position through non dilutive funding and revenue stream from upfront payments R&D fees milestones and direct product.

That's reflected in the revenue the company reports today.

Approximately $5 $6 million compared to approximately $1 $7 million in 2022.

We expect to see.

Ofer Haviv: Continued growth in the Evogen group revenue in 2024. As we have new listeners on today's call, I would like to briefly review Evogen's core technology and our value proposition. Evogene has been using its computational predictive biology platform, the CPB, to direct and accelerate the development of life science-based products. The CPB is at the foundation of our three AI tech engines. Microboost AI supports the development of microbe-

Growth in the Epogen group revenue in 'twenty 'twenty four.

We've had a new listeners on todays call.

I'd like to briefly review Epogen core technology and our value proposition.

It wasn't it hasn't been using its computational predictive biology platform the CPD too.

Direct and accelerate the development of life science based products.

It could be either.

Foundation our street.

Engines.

Michael who say I support the development of Michael based product.

Ofer Haviv: Campus AI supports small-molecule-based products, and Generator AI supports products based on genetic elements. Our AI-driven tech engines aim to tackle the main challenges in life science product development. Candidate Discovery and Optimization, identifying winning candidates from a vast number of prospects and meeting complex criteria for successful commercial products, the value proposition of our AI-driven tech engines seems to be the efficient finding of the needle in the haystack. Therefore, increasing the probability of success, within a competitive timeframe and in a cost-efficient manner.

Sympathy.

Supports smart water based product.

In general it's very eye supports product based on genetic elements.

Our AI driven check engines.

And to tackling the main challenges in life science drug development.

The discovery and optimization.

Identifying winning candidate from a number of prospects and meeting public superior for a successful commercial products.

The value proposition of our AI driven pick engine as it seems.

Teams from the efficient finding the needle in the Hastings.

Therefore, increasing the probability of success within a competitive timeframe and in a cost efficient manner.

Ofer Haviv: After reviewing our technology, on to our business model. Our business model revolves around two main strategies for leveraging our AI technology, like Everton offering a time-limited license to third parties, such as our subsidiaries or related entities, allowing them to use our tech engine for product development within a specific commercial domain. This model typically generates revenue through license fees.

After reviewing the other technology onto our business model.

Our business model revolves around two main strategies for leveraging our AI technology.

Licensing.

Epogen authors time limited license to third parties.

Such as our subsidiaries all related entities.

Having them to use our tic engine.

So product development with a spin.

Terrific commercial domains.

This model typically generates revenue through license fee.

Ofer Haviv: R&D Reimbursement. But more importantly, dividends to Evogene as a shareholder or significant one-time payments upon an exit event, particularly if Evogene is a major shareholder. Collaboration. Evogene collaborates with industry leaders to jointly drive product development in these ventures.

R&D reimbursement.

But more importantly dividends keep people agenda is the shareholder or significant one time payments upon an exit event, but you can read is epogen is a major shareholder.

Collaboration.

You want to collaborate with industry leaders to junkie drive product development.

And these ventures, our partners often take the lead in later stage development and commercialization why.

Ofer Haviv: Our partners often take the lead in later stage development and commercialization, while we contribute our unique tech engine to identify and optimize product candidates. Revenue from this model usually comes from up-front payment, R&D fees, and royalty from sales of future-end products. And now, we are commercializing Microboost AI through licensing agreements with Labib Bio for ad Biological and with Biomika for human microbiome-based drug development.

Why do we contribute our unique picked engine.

Identify and optimize product candidates.

Revenue from this model, usually changed from upfront payments R&D fees, and well keep themselves for future products.

No.

We are commercializing.

Michael will stay I through licensing agreements.

Let me value AD biologicals, and you'll be close.

For human Microbiome reservoir development and.

Ofer Haviv: And Evogene is also collaborating with Verbiotics to develop probiotic products. Kempath AI is commercialized through a license agreement with our subsidiary, AgPlanus, for our chemical product development. Generator AI is commercialized through a license agreement with Castera for castor seed varieties and Canonics for medical cannabis products. Evogene is also collaborating with Colorform Ltd. on cross-plasticine gene editing technology through Generator AI. I would now like to review in more detail the collaboration that Evogene is engaged in with third parties and then briefly review the main achievements of our subsidiary. At the beginning of February 2024, we proudly announced a partnership between Evogen and Verbiotics and Innovative Probiotics Company. Our collaboration with Verbiotics allows us to tap into the growing probiotics market using Evogen's MicroBoost AI Tech N. Together, we are working on identifying and designing probiotic bacteria that produce highly sustainable quantities of Microbial Metabolites, known to improve human health and vitality.

Epogen is also collaborating with variable.

Hello Probiotic products.

10%.

These commercialized through a license agreement with our subsidiary excellence.

Kimi kind of product development.

Generally if commercialized through license agreements we cause Debra.

For customers seeking proactive.

And colonial for medical cannabis products.

It wasn't as also collaborating with culling from LCD Oneplus gesture in genome editing technology through January Victor.

I would like now to review in more detail.

Collaboration is epogen is engage in it with third parties and then briefly review the main achievements of our subsidiaries.

At the beginning of February 2024.

Proudly announced the partnership between Epogen and <unk>.

And in other Probiotics company.

I don't collaboration with Zipper allows us to tap into the growing robotics market using.

Macro boost AI engines.

Together, we are working on identifying and designing probiotic bacteria.

This produces a highly sustainable quantity as well.

Both my 12 years metabolites.

No one is to improve human health and vitality.

Ofer Haviv: With the probiotics market projected to double to around $114 billion by 2031, we are seizing the opportunity to revolutionize this industry and provide cutting-edge solutions for consumers worldwide. Earlier this year, we announced a collaboration with Colored Pharm and Ben Gurion University to pioneer Cascadian gene editing technology, aiming to enhance the Cascadian trait.

With the probiotics market projected.

To double to around $114 billion by 20 or 31.

Excusing the opportunity to revolutionize this industry and provide cutting edge solutions for consumer worldwide.

Earlier this year, we reported collaboration with colors some.

Ben Boonville University to pioneer or suggestion gene editing technology.

To enhance consistent trades.

Ofer Haviv: The collaboration is powered by a grant from the Israel Innovation Authority and utilizes Evogene's generator AI tech engine. Another milestone worth mentioning is that our AgSeed division secured a 1.2 million euro grant to develop oilseed crops with enhanced CO2 accumulation and drought tolerance. The program, known as the EIC 2022 Horizon Program, supports business addressing climate focus and sustainable crop development. In this program, we utilize the Evogene Generator AI tech engine's capabilities as well.

The collaboration is powered by a grant from the Israel Innovation Authority.

Utilizing epigenetic generates an AI engine.

Another milestone worth mentioning is that our exit division secured the $1 2 million Euro grant to develop oilseed crops.

The enhanced C O two accumulations.

Drought tolerance.

Program known as the <unk> 2022 horizon program supports the business addressing climate focus and sustainable development.

In this problem, we utilize the epogen generally through AI engine capabilities as well.

Ofer Haviv: This part is...exemplify our business approach and demonstrate how we use our tech engines to bring innovative products to market in sectors not covered by our subsidiaries. It's important for me to emphasize that all of these collaborations are generating revenue for Evogen. Now, let's review our subsidiary's achievements. I would like to start with Costera, Everton's fully owned subsidiary, which focuses on developing an integrated solution to enable large-scale commercial cultivation of castor beans, benefiting from its unique elicit varieties. Utilizing the Generator AI Tech Engine.

These partnerships.

Exemplify our business approach and demonstrate how we use our thick engines to bring innovative products.

Market in six days not covered by our subsidiaries.

It's important for me to emphasize that all of these collaborations are all generating revenue to imaging.

Now, let's review our subsidiaries achievements.

I would like to start with the stirrer.

But just fully owned subsidiary.

Which focuses on developing an integrated solution to enable large scale commercial cultivation of castle.

Benefiting from its unique elite seed varieties youth.

Utilizing generate your AI engine.

Ofer Haviv: Castera's solutions aim to address the global demand for a stable castor oil supply, mainly for the biodiesel industry. The past year was pivotal for Castera. Its vision of becoming a significant player in the biodiesel industry progressed with a cease order from a world-leading oil and gas company totaling $11.3 million for cattle cultivation in Africa. In September, Castera successfully delivered its first shipment of high-yield, high-oiled castor seeds from Brazil and Zambia to an African region, generating revenue of approximately $1 million. Established earlier this week, the company recently signed agreements with existing and new seed producers in Brazil and Africa to increase its production capabilities of castor seeds in 2024, which are expected to add approximately 400 tons. This new agreement will enable the company to support existing seed orders.

Because there are solutions aimed to address the global demand for stable custom all supply mainly for the biodiesel industry.

The past year with Pizza telephoto sterba.

It's a vision of becoming a significant player in the biodiesel industry.

Consistent with seasonal order from a leading oil and gas company totaling $11 3 million dollar cost of cultivation in Africa.

In September because there was successfully delivered its first shipment of high yield high oil cut so season from Brazil ends up yet.

Africa region generating revenue of approximately $1 million.

Established earlier this week.

The company recently signed agreements with existing and new seeds producers in Brazil, and Africa to increase its production capabilities that will start to season in 'twenty 'twenty, four which are expected to add.

Approximately 420 <unk>.

This new agreement will enable the company to support the existing seed orders.

Ofer Haviv: Looking forward to 2024, Castera is committed to expanding its castor seed production capacity through securing agreements with additional subcontractors in Brazil and Africa, on which we expect to update you. Finally, on January 20, we welcomed Yoash Zohar as Castera's new CEO, who will later present himself. You have to bring a wealth of experience to global art projects, and I'm confident in his ability to propel the company forward. I wish him and the rest of Castera's team good luck.

Looking forward to 2020 full customer is committed to expanding its customer seed production capacity through securing agreement with additional sub contractors in Brazil, and Africa on which we expect to update.

Finally on January 2020, full we will come to us as well as customer as a new CEO, who will enter presenting cells.

U S Green there west of experience in global AD project.

And I am confident in his ability to propel the company forward.

I wish him and the rest of the service team good luck.

Now I would like to review our wholly owned subsidiary <unk> plans.

Thank you discovered next generation innovative crop protection product in.

Ofer Haviv: Now, I would like to review our wholly owned subsidiary, Agplanus, aiming to discover next-generation innovative crop protection products, including herbicide, insecticide, and fungicide, and commercialize them through collaboration with world-leading partners. At Planus, we utilize the Evogen Kemp AI tech engine to accelerate and direct its product development. Major agrochemical companies dominate today's crop protection industry. Still, they look to smaller companies to discover new target proteins and small molecules that inhibit such target proteins, serving as the active ingredient in commercial crop protection products. Plemmons is the company that addresses this need.

Including herbicide insecticide and fungicide.

Informational line them through collaboration with World leading partners.

Atlanta's utilize epogen temper AI engine.

To accelerate and direct its product development.

Mitchell Agrochemical companies domain in today's crop protection industry.

Steel.

They look to smaller companies to discover new targets proteins and small molecules that inhibit such started proteins.

Serving as the active ingredient in conventional crop protection products.

<unk> is the company that addresses this need.

I stated in the previous call.

There is a growing interest in Atlanta product pipeline.

Recently.

We were fortunate.

Ofer Haviv: As I stated in the previous call, there is a growing interest in ActPlan's product pipeline, and recently... We were fortunate to see that interest materialize. In February 2024, Act Plan was announced, signing a licensing and a collaboration agreement with Bioscope Science Division. Under the agreement, AgPlans will use its AI-driven computational modeling technology to design and optimize the molecules identified for their broad-spectrum herbicidal activity, targeting the APTH1 protein, a new mode of action identified by AgPlan.

To see that interest materialize.

In February 2024 X lens announced the signing of the licensing and collaboration agreement with virus crop Science Division.

Under the agreement <unk> will use AI, driven computational modeling technology to design and optimize the molecules.

Identified for their broad spectrum herbicide activity targeting the a P. H one protein.

A new mode of action identified by Act lens.

But we have the exclusive license for developing and commercializing products developed within the collaborations I.

Our plan was to be entitled to receive an upfront payment ongoing research funding milestone payment.

Ofer Haviv: Bayer will have the exclusive license for developing and commercializing products developed within the collaboration, and Planos will be entitled to receive an upfront payment, ongoing research funding, milestone payment, and royalty based on future product sales. Another impressive and important announcement was the milestone achievement in the ongoing collaboration with Corteva for the development of novel herbicides. The milestone mark, the successful identification, of A New Family of Molecules Exhibiting Herbicidal Effects Through a Novel Mode of Action, APCO-12, Discovered by AgPlan.

Royalty based on future product sales.

Another impressive and important announcements.

Was the milestone achievement in the ongoing collaboration with Teva for the development of novel Herbicides.

The mark to Mark <unk>.

Successful identification.

A new family of molecules.

Exhibiting that hurt the cycle effect through a novel mode of action.

Oh 12 discovered by Atlanta.

In the next phase the collaboration will optimize the identified molecules.

Commercial level products Ute.

Utilizing cutting.

Cutting edge competition technology powered by evil, Jim campus AI engine.

These two collaborations.

Excellent financial position.

Ofer Haviv: In the next phase, the collaboration will optimize the identified molecules toward commercial-level products, utilizing ActPlan's cutting-edge computational technology powered by EvoGen's Campus AI tech engine. These two collaborations strengthen AgPlanus' financial position and overall perceptions in the agriculture market. Last, but not least, we introduced Dr. Dan Jacob-Gelbarn as X-Planet's new CEO. Their extensive experience and proven track record well position him to guide ACT planners through its next phase of growth and innovation. Axlan's former CEO, Dr. Brian Ember, has transitioned to chief business officer.

And overall perception in the agriculture markets.

Last but not least.

We introduced Doctor then Jacob Gulf Island is excellent as new CEO.

<unk> extensive experience and proven track record well positioned him to guide to act lens through its next phase of growth and innovation.

Excellent with former CEO, Dr. Brian Amber has transitioned to chief business Officer.

I would like to thank Brian for his contribution and leadership to Atlanta, and I look forward to continuing our work together in his new role.

Excellent.

He is looking towards an exciting year with.

With new management in place.

The collaborative agreements signed with a buyer in February and the.

Ofer Haviv: I would like to thank Brian for his contribution and leadership to ACT-Lanus, and I look forward to continuing our work together in his new role. Akhil Arul is looking towards an exciting year with new management in place. The collaborative agreement signed with Bayer in February and the milestone reached in the Corteva collaboration in March 2024 is looking bright for the company. Alongside those, ACT Planus will continue to advance its pipeline based on the campus AI tech engine and seek additional collaboration with existing and new partners. I would like now to continue with the two subsidiaries using MicroBoost AI to accelerate and direct their product development, Biomica and Labibio. Biomica specializes in developing microbiome-based therapeutics for human health, utilizing Evogen's MicroBoost AI tech engine to discover and optimize microbes with therapeutic potential.

<unk> reached in the course ever collaboration in March.

2024.

He is looking bright for the company.

Alongside those.

Lenders will continue to advance its pipeline based on the campus.

Jim.

And six additional collaboration with existing and new partners.

I would like now to continue with the two subsidiaries using macro boost AI to.

To extend it within direct their product development biomarker and luxury buyer.

But only time specializing in developing microbiome based therapeutics for human health.

Epogen Michael Booth.

Engine to discover and Optimizes microbe, we still have potential.

In FY 2023, we always have completed a 20 million dollar financing round.

Hi, guys.

Total investment of $10 million.

This investment is made.

It's a post money valuation of $50 million.

It's an external validation of long term potential.

<unk> flagship product candidate <unk> 128 targeting in European <unk> patients.

He is currently undergoing phase one clinical trials.

Ofer Haviv: In April 2023, Biomica completed a $20 million financing round, with Shanghai Healthcare Capital investing $10 million. This investment, made at a post-money valuation of $50 million, serves as an external validation of Biomica's long-term potential. Biontech's flagship product candidate, BMC128, targeting immune oncology patients, is currently undergoing phase one clinical trial. The trial initiated at the Rambam Health Care Campus in Israel aims to assess whether BMC 128

The trial initiated at the ramp up of health care kind of boosting Israel aims.

Aims to assess it.

128.

Safety and Tolerability.

Combination with Bristol Myers, Squibb's Opdivo immune therapy.

In August 2023.

Expanded its operation by opening a second site ended the VITAS cancer Center.

Israel to facilitate additional patient recruitment for the clinical trial in January 2024, but you only kind of reached a significant milestone by completing phase one trial enrolment for weeks mutual bank best immuno oncology drug.

Ofer Haviv: Safety and Durability, in combination with Bristol Myers Squibb's Optivo Immune Therapy. In August 2023, Biomica expanded its operations by opening a second site at the Davidoff Cancer Center in Israel to facilitate additional patient recruitment for the clinical trial. In January 2024, Biomechan reached a significant milestone by completing phase one trial enrollment for its microbiome-based immune oncology drug, with preliminary results showing promising outcomes. Initial data point readout is anticipated during 2024. In July 2023, Biomica reported positive twin results from Preclinical Studies on its IDF program, conducted in collaboration with Professor Kira Gross Margolis-Ladd at New York University. These results demonstrate the efficacy of Bionica's live bacterial consortia, DMC 426 and DMC 427, alleviating visceral pain, a major symptom of IBS, presenting promising new treatment avenues.

Preliminary results showing promising outcomes.

Michelle Datapoint readout.

Dissipated during 2024.

In July 2023.

<unk> reported positive interim results.

From preclinical studies.

S program.

In collaboration with Professor here out in growth from our College lab at New York University.

This result demonstrates the efficacy biomarkers bacterial consortia BMC.

M C. Four two peaks and BMC four to seven.

Alleviating Vista.

Visceral pain.

A major symptom of ideas.

Presenting promising new treatments Avenue.

But let me say intend to conduct.

Further preclinical studies on BMC four to six and BNP for two seven.

To prepare for clinical trials.

Looking ahead, but let me kind of remains committed to investing in airports and aim to submit an IND.

Application for BMC 128.

Targeting immuno oncology patients during the first quarter of 2024, 3%.

In preparing for phase two clinical trial.

Ofer Haviv: Biomica intends to conduct further preclinical studies on BMC 4.2.6 and BMC 4.2.7 to prepare for clinical trials. Looking ahead, Biomica remains committed to adjusting its efforts and aims to submit an IND application for BMC 128, targeting immunology patients, during the third quarter of 2024. A Pivotal Step in Preparing for Phase II Clinical Trials in the U.S. In addition, the company will continue to advance its candidates in the IBS and IBD programs. 2031 Clinical Trial Now to Lavi Bayo, who leverages Evogen's MicroBoost AI tech engine to develop next-generation agri-biological products. In addition to Evogene's majority ownership, Lavie Bio has two additional major shareholders, Corteva, a New York-listed multinational ag-tech giant, and ICL, a neoclipid global mineral and an ag-tech company. In July 2023, Labibio entered a licensing agreement with Corteva, conferring exclusive rights to Corteva for advancing and commercializing Labib Bio's lead biofungicides, Lab 311 and Lab 312.

The U S.

In addition, the.

The company will continue to advance these candidates in the Ibs and IBD program.

Towards say one clinical trials.

Now to luxury buyer will leverages epogen as macro boost AI engine to develop next generation I'd biological products.

In addition for Epigenesis majority ownership.

Everybody else has two additional major shareholders cooked Tampa and New York listed multinational I could take a giant.

And the ICL in Europe, you said global minerals.

And I can take the company.

In July 2023, let me Battle entered.

Licensing agreement with Teva conferring exclusive rights to put together.

For advancing and commercializing <unk> lead at Vodafone beside last 311312.

Packaging fruitful.

This agreement follows two years of independent field validation.

<unk> conducted by both companies.

Under the agreement <unk> received an.

An initial payment of $5 million.

We will also be eligible for additional future milestone payments.

Royalties from Teva future settlement of the product.

Another major step for La <unk> was the recent announcements in February 'twenty 'twenty four of the agreements with Syngenta for the discovery and development of new biological 60 cycle.

Lucian <expletive>.

The collaboration will leverage <unk> unique technology platform to rapidly identify and optimize bio insecticides candidates.

These two collaborations.

Strengthened <unk> financial position and overall perception in the agriculture market.

Ofer Haviv: This agreement followed two years of independent field validation trials conducted by both companies. Under the agreement, Lavie Bio received an initial payment of $5 million and will also be eligible for additional future milestone payments and royalties from Corteva's future sales of the product. Another major step for LaviBio was the recent announcement in February 2024 of the agreement with Syngenta for the discovery and development of new biological insecticidal solutions. The collaboration will leverage LabibBio's unique technology platform to rapidly identify and optimize bioinsecticide candidates.

Now, let's move from collaborations to product sales.

Let me first via independent products yellow.

Several impressive milestones.

In May 2023.

Obtained regulatory approval from the Canadian food inspection agency <unk>.

Expanding it says territory significantly and tripling its reach.

In November 2023 gallon expanded its scope to include dual and bar leaf varieties across the U S and Canada.

This expansion following successful field trials in 2020 to be demonstrating an average of approximately 7% of yield increase and do them in Bali.

Ofer Haviv: These two collaborations strengthen Lafitte Bio's financial position and overall perception in the agriculture market. Now, let's move from collaborations to product sales. Labib Bio's first bioinipolant product, YALO, achieved several impressive milestones.

In December 2023 <unk>.

<unk> secured an exclusive distribution agreement with Winfield, United Canada, So yellow aiming to drive sales growth in key Canadian agriculture regions.

Ofer Haviv: In May 2023, YALS obtained regulatory approval from the Canadian Food Inspection Agency, expanding its territory significantly and tripling its reach. In November 2023, YALOS expanded its scope to include Durham and Barley varieties across the U.S. and Canada. This expansion followed successful field trials in 2023, demonstrating an average of approximately 7% yield increase in Durham and Bali. In December 2023, Lavie Byers secured an exclusive distribution agreement with Winfield United Canada for Yalow, aiming to drive sales growth in key Canadian agricultural regions, including Saskatchewan, Alberta, and Manitoba. The focus of the distribution agreement is on spring wheat, Durham wheat, and barley crops.

Including Saskatchewan, Alberta, and Manitoba.

The focus of the distribution agreement is on spring wheat and.

And barley crops.

Overall yellows made significant strides in.

The removal product expansion and distribution partnership positioning U S. A valuable tool for enhancing crop productions and addressing environmental challenges in the agriculture industry.

Looking forward to 2024, let me borrow will continue to focus on three main pillars.

The first will be to grow the says and distribution of the companies that buy with equal and product yellow in the U S and Canada.

The second is to continue driving the company's pipeline of innovative product towards commercialization, including.

<unk> focus on the company's strategic partnership with Potempa ICL and the recent one with Syngenta.

The last pillar will be to continue advancing the company's unique technology platform. The <unk> powered by <unk> micro boost AI engine with new tools and capabilities.

Ofer Haviv: Overall, Yalot made significant strides in regulatory approval, product expansion, and distribution partnership, positioning it as a valuable tool for enhancing crop production and addressing environmental challenges in the agriculture industry. Looking forward to 2024, Labibio will continue to focus on three main pillars. The first will be to grow the sales and distribution of the company's bio-inequal and product yellows in the U.S. and Canada. The second is to continue driving the company's pipeline of innovative products towards commercialization, including special focus on the company's strategic partnership with Corteva, ICL, and the recent one with Syngenta. The last pillar will be to continue advancing the company's unique technology platform, the BDD, powered by Evogen MicroBoost AI tech engine with new tools and capabilities, while finalizing my review of our subsidiaries. I would like to update you on Canonic, which provides tailored medical cannabis products.

Finalizing my review of our subsidiaries.

I have two I believe on colonial which provides tailored medical cannabis products.

Following my previous update in Q3 2023.

Which we noted that we have decided to reduce our investment in colonial.

The challenging market conditions of the medical cannabis sector.

We have recently engaged in advanced discussions relating to the potential transfer to a third party of colonial operations.

There is no assurance that such transfer will be completed or on what terms.

We will continue to update you on these better.

No doubt 2023 was an exciting year for the Aboriginal groups.

Achievements.

Looking forward to 2024, we expected to see.

Continued growth and additional collaborations benefiting from Epogen Threet AI engine.

We ended 2023 with a solid cash balance.

At least $31 1 million dollar and are expecting additional cash injection from collaborations and product sales.

This concludes my review of the Epogen group activities No you asked Zoe hub customers New C. O. We think the leader.

Ofer Haviv: Following my previous update in Q3 2023, in which we noted that we had decided to reduce our investment in Kanoni. Due to the challenging market conditions of the medical cannabis sector, we have recently engaged in advanced discussions relating to the potential transfer to a third party of Canonic's operations. However, there is no assurance that such transfer will be completed, or on what terms.

And good day, everyone I would like to start by thanking the exceptional team at Christina Lake.

So when these people for the moment for the company and expressing my sincere gratitude to the energy management for their support.

So when these people for the moment for the company and expressing my sincere gratitude to the energy management for their support.

As we face the challenges ahead.

With optimism driven by degree potentially seen Cassandra.

Ensuring a reliable stable.

Ofer Haviv: We will continue to update you on this matter. No doubt, 2023 was an exciting year for the Evogen group, filled with achievements. Looking forward to 2024.

Software suites is crucial in meeting our customers' demands.

Contributing positively to local economies.

Simply signed agreements with shippers and searching after cutting Brazil strengthened our supply chain and Mark a strategic change towards diversifying.

Ofer Haviv: We expect it to stink, continued growth, and additional collaborations benefiting from EvoGen3 AI tech engine. We end 2023 with a solid cash balance of approximately $31.1 million and are expecting additional cash injections from collaborations and product sales. This concludes my review of the Evogene group activities. Now, you ask Zohar, Castera's new CEO will take the lead. Thank you, Ofer, and good day, everyone.

Production sources.

As of June innovative AI technology.

Play a crucial role in shaping the future of customer seats, solidifying <unk> position as a world leader in defeat.

Together I'm quite confident that we can live with just stick one in just to maintain a stable competitive edge and achievement and success in the global market.

Thank you Josh.

At December 31, 2023.

<unk> had consolidated cash cash equivalents and short term bank deposit.

Approximately $31 $1 billion.

Yoash Zohar: I would like to start by thanking the exceptional team at Castera for welcoming me during this pivotal moment for the company and expressing my sincere gratitude to the Evergene management for their support. As we face the challenges ahead, I'm filled with optimism, driven by the great potential I see in Costera. Ensuring a reliable and stable supply of customer seeds is crucial in meeting our customers' demands while contributing positively to local economies; our recently signed agreements with seed producers in Africa and Brazil strengthen our supply chain and mark a strategic change towards diversifying our production sources. I believe Evogene's innovative AI technology will play a crucial role in shaping the future of cluster seeds, solidifying Castera's position as a world leader in the field. Together, I'm confident that we will leverage this technology to maintain Castera's competitive edge and achieve unparalleled success in the global market. Thank you, y'all.

Epogen together with a form of colonial and AG lenders persistent aggregate of $12 $4 million in cash.

$12 7 million.

Vital 6 million bottles.

In July 2023, the company entered into securities purchase agreements with institutional investors in a registered direct offering of shares only.

The gross proceeds from the offering were approximately eight and a half million dollars.

Looking ahead to 'twenty to 'twenty four we expect an approximate cash usage of $8 million.

<unk>.

Uh huh.

Which is a significant decline compared to $12 $5 million in 2023.

This decline is mainly attributable to an expected increase in revenue in 2024, and a decrease in expenses due to the decline in economic activity.

The total consolidated burn rate is expected to decline in 2023, as well to $21 million compared to $23 1 million in 2023.

We do not have any bank debt.

I would like now to highlight some specific items on the P&L.

Revenues for 2023.

Ultimately five 6 million bundled in comparison to approximately $1 $7 million in 2022.

The increase in revenues was primarily due to two and a half million dollars generated by a few bio as well.

Licensing fee in the frame of this collaboration with Scorpion.

Well a great revenue.

We will recognize.

Of coastal <unk>.

R&D expenses for the fourth quarter of 2020, which are reported net of nonrefundable granting fee.

Were approximately $5 $5 million.

Yaron Eldad: As of December 31, 2023, Evergen had consolidated cash, cash equivalents, and short-term bank deposits of approximately $31.1 million. Evogene, together with Caspera, Kanonic, and Act Planners, possessed an aggregate of $12.4 million in cash. Biomica $12.7 million, and Lafitte Bio $6 million. In July 2023, the company entered into securities purchase agreements with institutional investors in a registered direct offering of shares only. The gross profits from the offering were approximately $8.5 million.

On page one.

Box will be for the St.

Same period in the previous year.

R&D expenses for the full year 2023 were approximately $28 million and remained stable compared to 2022.

The main contributors to R&D expenses due two.

2023 we'll have <unk> activity and biomarker development excellence.

Sales and marketing expenses for the fourth quarter of 2023 were approximately $1 million.

Reflecting a slight decrease compared to approximately $1 2 million downloads.

The same period the previous year.

For the full year 2023 sales and marketing expenses were approximately $3 6 million.

In comparison to approximately $2 $9 million in 2022.

General and administrative expenses for the fourth quarter of 2023 were approximately $1 $2 million in comparison to approximately $1 $7 million in the <unk>.

Same period in the previous year.

For the full year 2020 general administrative expenses were approximately $6 $1 million in comparison to approximately $6 $5 million in 2022.

The decrease was mainly attributable to the decrease in the cost of directors and officers insurance.

Other income in the fourth quarter of <unk> to.

The company received three and a half million bundled homebuyer under the collaboration agreement.

As part of our restructuring and release of the patent filing prosecution and maintenance obligation under the collaboration.

Operating loss for the fourth quarter of 2020 was approximately $76 million.

<unk> operating loss of approximately $3 8 million below the same period the previous year.

The increase in the operating loss was mainly due to the other income recorded in the fourth quarter of 2022 as mentioned above.

Yaron Eldad: Looking ahead to 2024, we expect an approximate cash usage of $8 million, including VBio and Bionica, which is a significant decline compared to $12.5 million in 2023. This decline is mainly attributable to an expected increase in revenue in 2024 and a decrease in expenses due to the decline in economic activity. The total consolidated burn rate is expected to decline in 2023 as well to $21 million compared to $23.1 million in 2025. However, we do not have any bank data.

Operating loss for the full year 2023 was approximately $26 $5 million in comparison to $26 $9 million in 2022.

Mainly due to the significant increase of revenues in 2023.

Income recorded in 2022.

Financing income net for the fourth quarter of 2023 was approximately $297000.

Compared to approximately $6000 in the same period in the previous year.

Financing income net for the full year 2023.

<unk> $521000 compared to financing expenses.

Approximately $2 $8 million in the same period in the previous year.

The difference between periods was mainly due to the U S dollar and the new Israeli shekel exchange rate.

The change in the value of marketable securities and interest income compared to the same period in the previous year.

Yaron Eldad: I would now like to highlight some specific items on the P&L. Revenues for 2023 were approximately $5.6 million, in comparison to approximately $1.7 million in 2022. The increase in revenues was primarily due to $2.5 million generated by Lavie Bio as a licensing fee in the framework of its collaboration with Corteva, as well as revenues recognized from Castera's sale of Castelfi.

Net loss for the fourth quarter of 2023.

Seven 3 million bottles in comparison to a net loss of approximately $3 $8 million.

Same period in the previous year.

The increase in net loss during the fourth quarter of 2023 is mainly due to other income received in 2022 as mentioned above.

Net loss for the full year 2023.

Ultimately $26 million.

Comparison.

Loss of approximately $29 $8 million for 2022.

With law, both offer and I would now like to open the call.

For any questions you may have.

Thank you.

Ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment content with the handset before pressing the numbers questions will be pulled in the order. They are received we standby while we poll for your questions.

Yaron Eldad: R&D expenses for the fourth quarter of 2023, which are reported net of non-refundable grants received, were approximately $5.5 million in comparison to approximately $4.8 million in the same period in the previous year. R&D expenses for the full year 2023 were approximately $20.8 million and remained stable compared to 2022. The main contributors to IMD expenses during 2023 were L'Avi Bio's activities and Pariyomika's development efforts. Sales and marketing expenses for the fourth quarter of 2023 were approximately $1 million, reflecting a slight decrease compared to approximately $1.2 million in the same period the previous year. For the full year 2023, Sales and marketing expenses were approximately $3.6 million in comparison to approximately $3.9 million in 2020. General and administrative expenses for the fourth quarter of 2023 were approximately $1.2 million in comparison to approximately $1.7 million in the same period in the previous year.

Yeah.

The first question is from Baton Cleave of Lake Street Capital. Please go ahead.

Alright. Thank you for taking my question a few questions. The first couple regarding cascara you talked about the increased.

Access to farmer supplying you with Castor seed.

I'm wondering if you can characterize if you feel confident that you have enough inventory to fill the entirety of the initial $1 3 million dollar order in 2024 do you guys feel comfortable with the inventory that youre going to have to do that on where you think they're going to be variability there.

Hi, Ben this is ofer.

And are.

Yeah. She's also online and you asked the CEO of circa stirrer.

We believe that we would be able to supply.

The orders to be received in 2023.

In 2024.

Uh huh.

Traction will come from seeds production that was initiated during 2023 and now it's on its way.

The rest will come from the production that we are going to conducted during this year, which sparkling.

Yaron Eldad: For the full year 2023, general and administrative expenses were approximately $6.1 million in comparison to approximately $6.5 million in 2022. The decrease was mainly attributed to a decrease in the cost of directors' and officers' insurance and other income in the fourth quarter of 2022. The company received three and a half million dollars from Bayer under the Joint Seed Trade Collaboration Agreement as part of the restructuring and release of the patent filing, prosecution, and maintenance obligations under the Corporation. Operating loss for the fourth quarter of 2023 was approximately 7.6 million dollars in comparison to an operating loss of approximately 3.8 million dollars in the same period in the previous year. The increase in the operating loss was mainly due to the other income recorded in the fourth quarter of 2022, as mentioned above.

But from what we announced today and during the last quarter. So the answer to your question is yes.

Great that's great. Thank you and so on.

So a follow up question to that then is regarding a follow on order from the unnamed energy partner can you characterize what is needed.

Order for a follow on order to be received so do you guys need to know.

Deliver fully before you think they will commence will follow on or is there ongoing discussions about a follow on order currently what's what can you help us understand about expectations and timing around that.

And so yeah, we are already starting to talk with our partners with respect to orders.

The year 2025.

I believe that the the main challenge.

Jamie.

To be able to produce the needed quantity for 2025.

So in the way our plans for the year 2024.

To reduce the cost of food not just in order to supply the existing purchase order we did in 2020.

Yaron Eldad: Operating loss for the full year of 2023 was approximately $26.5 million in comparison to $26.9 million in 2022, mainly due to the significant increase in revenues in 2023 offset by the other income recorded in 2022. Financing income achieved for the fourth quarter of 2023 was approximately $297,000 compared to approximately $6,000 in the same period in the previous year. Financing income net for the full year 2023 was approximately $521,000 compared to financing expenses of approximately $2.8 million in the same period the previous year.

The <unk>.

See our targets is also too and they are here we are.

Inventory.

And the seed production in the field.

To support the demand for 2025.

So.

And bottom line.

From our event and progressing in supplying the theme for this year. We are expecting also to receive order for next year and we started production.

During 2024 is progression for 2025.

Great Great. That's very helpful. Thank you ofer.

Yes.

<unk> 10.

Over to you canonic.

You in your prepared remarks off where you talk about kind of a strategic review that's going on there.

Looking at your at your options.

Yaron Eldad: The difference between periods was mainly due to the U.S. dollar and the new Israeli shekel exchange rate, a change in the value of marketable securities, and interest income compared to the same period in the previous year. The net loss for the fourth quarter of 2023 was approximately $7.3 million in comparison to a net loss of approximately $3.8 million in the same period in the previous year. The increase in net loss during the fourth quarter of 2023 is mainly due to other income received in 2022, as mentioned above. Net loss for the full year 2023 was approximately $26 million in comparison to a net loss of approximately $29.8 million for 2022.

Is.

It is your hope for canonic that this is something that that Ivo gene will still retain ownership of but maybe.

In a different structure than it is today or is this an operation that you'd think is one that is.

So we're gonna be noncore or something that would be outside of Bubba gene.

Here in the coming quarters.

So I'd say, that's our final targets is it and starting from this year economic activity won't be material in our P&L.

And the way that we are planning to achieve it is buy and integrate a canonical activity.

And two are there certain property that we are talking with and we still under discussion but eh.

We will stay.

Hmm.

And minority shareholder in our company.

The game, but we won't continue to invest in user activity.

Operator: With that, both Ofer and I would now like to open the call to any questions you may have. Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. If you have a question, please press star one. If you wish to cancel your request, please press star two. If you're using speaker equipment, kindly lift the handset before pressing the numbers.

The way that we did in the previous.

In previous years, so bottom line.

We might do with some a you know right so equity or through other mechanisms.

The field, but we will stop investing.

Investing.

In the end economics, and they cannot be seen history.

Operator: Your questions will be polled in the order they are received. Please stand by while we poll for your questions. The first question is from Ben Klieve of Lake Street Capital. Please go ahead. All right, thank you for taking my question. I have a few questions, the first couple regarding Castora.

Great Great. Thank you and then one last one for me and then I'll get back in queue as it pertains to lobby by al.

I had to hop in and off the call here. When you were talking about this so if I'm, making you repeat yourself I apologize, but can you talk about the supply chain a lobby by al.

And then.

But I know how it has been some challenges last year I believe you have that supply chain really secure it's really enable a more material commercial launch of yellows here in <unk>.

Ofer Haviv: You talked about the increased access to farmers supplying you with castor seed. I'm wondering if you can characterize how confident you are that you have enough inventory to fill the entirety of the initial $11.3 million order in 2024. Do you guys feel comfortable with the inventory that you're going to have to do that? Do you think there's any variability there? Hi Ben, this is Ofer, and Yoash is also online.

2024, but can you can you just confirm that that's really the inventory.

Build in support of a commercial launch of <unk> in place are there any supply chain challenges that you're still working through.

And so I think that's exactly right.

Good news, so Uh huh.

Ofer Haviv: Yoash is the CEO of Castera. We believe that we will be able to supply the order to be received in 2023 during 2024. A fraction will come from seed production that was initiated in 2023, and now it's on its way. The rest will come from production that we are going to conduct this year, which is part of what we announced during the last quarter. So the answer to your question is yes. Great. That's great!

Nice to see that you remember that we had some challenges in producing a loss in 2023 eight in 2022.

But.

I'm very happy to report that the.

We successfully produce the quantity that we were targeting getting even a little bit more than what we were targeting for the for the selling season of 2024. So we're in a good shape, we changed the toll manufacturer and we are very happy with its performance and the quality of.

Ofer Haviv: Thank you. So a follow-up question to this thing is, you know, regarding a follow-on order from this unnamed energy partner, can you characterize what is needed in order for a follow-on order to be received? So do you guys need to, you know, deliver fully before you think they will commit to a follow-on order? Are there ongoing discussions about a follow-on order currently? What can you help us understand about expectations and timing around that?

The product.

Great Alright, very good.

Well I appreciate you taking my questions plenty more to talk about that's a good place to leave it I'll get back in queue.

Thank you.

The next question is from Ben Hayner of Alliance Global Partners. Please go ahead.

Hi, gentlemen, thanks for thanks for taking the questions all wonder what's on eggs.

Ofer Haviv: And so we are already starting to talk with our partners with respect to orders for the year 2025. I believe that the main challenge is still to be able to produce the needed quantity in the year 2025. So in a way, our plans for the year 2024 are to produce cash flow fast, not just in order to supply the existing purchase order we received in 2023. Our target is also to end the year with inventory and seed production in the field that will support the demand for 2025. Bottom line, as part of our progress in supplying the seed for this year, we are expecting also to receive orders for next year, and we will start production during 2024 as preparation for 2025. Great, great. That's very helpful. Thank you, Ofer.

Hum.

Uh huh.

Agreements that you have there.

They're in for Chad.

Well, if I may for th, one what do we expect China from a development timeline there.

And how large do that's something you can discuss some of these upfront milestone payments royalties et cetera.

As part of the equation not sure.

Mhm.

Yeah.

And thank you for the questions first I was actually to use this question.

And to share with the people participating school, how broad how proud we are that the.

You know we are in a position that they love.

We value our subsidiary and do it in the industry in the world of asthma allergy cough and cold.

Operating and working with third.

Monster within the industry.

Ofer Haviv: Pivoting over to Canonic, in your prepared remarks, Ofer, you talked about kind of a strategic review that's going on there and, you know, looking at your options. Is your hope for Canonic that this is something that Evogene will still, you know, retain ownership of, but maybe in a different structure than it is today? Or is this an operation that you think is one that is, you know, potentially going to be non-core and something that would be outside of Evogene here in the coming quarters? So, I think that our final target is that, starting from this year, canonical activity won't be material in our P&L. And the way that we are planning to achieve it is by integrating canonical activity into other third parties that we are talking with. Still, it's under discussion. But the idea is that we will stay as a minority shareholder in a company, but we won't continue to invest in this activity the way that we did in previous years.

Phil Cortez and the Syngenta and and we also have Atlanta was welcome news.

No of course and also with buyer.

It's really incredible that you know today, we endeavor gym group, we are working with almost all the first year's type of companies I think that the only BSF is the only company that if you are not working yet and probably this is the only Christian of time. So I'm assuming that this is something that's worth to note.

Well with respect to your question I think that the bolt.

Ongoing collaboration with Teva and the.

Buyer.

An important part from funding of academic activity for the next few years are there is a reason why we report on the buyers collaboration agreement.

In our 6K.

Ofer Haviv: So bottom line, we might stay with some rights to equity or to other mechanisms in this field, but we will stop investing in the cannabis industry. Great, great. Thank you. And then one last one for me, and then I'll get back in queue as it pertains to LobbyBio.

Four months okay.

Disclose of course, the numbers, but as we mentioned disagreements include upfront payment and R&D fee.

And then of course milestone payments and royalty.

What is important in these two announcements the first.

Ofer Haviv: And I had to hop on and off of a call here when you were talking about this, so if I'm making you repeat yourself, I apologize. But can you talk about the supply chain at LobbyBio, which I know had some challenges last year? I believe you have that supply chain, you know, really secure to really enable a more material commercial launch of yellows here in 2024. But can you just confirm that the inventory build in support of a commercial launch is in place? Are there any supply chain challenges that you're still working through?

Another first gear company choosing.

Explain as to what we used to develop one of the most important product that can be kind of industry herbicide and the second announcement you should think about it. This is the first time that we are we have confirmation from a third party that I. Our tech engine. It came fast and they act levels.

<unk> achieved a milestone but I think this is very important to us now as I said.

We expect that the significant portion from bandwidth there.

Expenses budget will be covered by these two collaboration and I and I hope and believe that there will be more in the future.

Ofer Haviv: So, I think that in this case, I have good news. So, it's really nice to see that you remember that we had some challenges in producing yellows in 2023 and in 2022, but I'm very happy to report that we successfully produced the quantity that we were targeting and even a little bit more than what we were targeting for the sale season of 2024. So, we are in good shape. We changed the sole manufacturer, and we are very happy with his performance and the quality of the product.

And then I think that what we should expect in the near future is achieving additional milestones that will present the progress.

Of this the collaboration.

With respect to royalty it still will take some time.

But you know like in the oncology Arena, what is important is that midterm.

Advancing in the pipeline because the value creation of scheme is in <unk>.

Benjamin David Klieve: Great, great, very good. Well, I appreciate you taking my questions. There's plenty more to talk about, but it's a good place to leave it. I'll get back to you.

Quickly increase when you are moving from a heat to lead it to optimize lead et cetera, et cetera et cetera. So.

This is a great deal for <unk> that we achieve first milestone in our in the collaboration with whatever and no. We are looking at book to the next day challenges and milestones, which we believe will achieve them.

Operator: Thank you. The next question is from Ben Haynor of Alliance Global Partners. Please go ahead. Good day, gentlemen.

Operator: Thanks for taking the questions. I wanted to focus on X, Y, and Z, and the... Agreements we have here, and there, and Corteva on the APCO 12 and APTH 1. What do we expect kind of from a development timeline there, and when and how large today's company you can discuss some of these, you know, upfront milestone payments, etc. be as part of these agreements here? And, And thank you, Ben, for this question. First, I would like to use this question and share with people participating in this call how proud we are that, you know, we are in a position that Labib Bio, our subsidiary in the world of ag biologicals, is collaborating and working with third-monsters in the ag industry, ICL, Corteva, and Syngenta.

Okay great.

Maybe just to follow up on.

The near term milestones.

Hello perspective.

This year.

Can you repeat what you said just now.

Sure.

I think you said that our near term milestones milestone payments.

At our upcoming milestone payments or any loan perspective.

To be recognized this year.

So there are some milestones that we are trying to reach during this year not necessarily in Atlanta.

The other agreements in the group just say we are targeting for.

But you know milestones it also depends on on research activity.

So yes, we are.

And looking forward to see the progress and in some cases, we hope and believe that we will be able to achieve them. Some of it's you know there was always a challenge with respect to R&D activities might take a little bit longer but the we are excited to see the progress in all fronts with respect to our.

Ofer Haviv: And we also have AgPlan who's working with, you know, Corteva and also with Bayer. It's really incredible that, you know, today in the Evogen group, we are working with almost all the first-year type of companies. I think that BSF is the only company that we are not working with yet, and probably this is just a question of time. So I think that this is something that's worth noting.

Activities in our subsidiaries.

Okay.

Fair enough.

Apologize if I missed this earlier on the call.

Under terms of the cap.

Is that sufficient but I felt like at the end of it.

Ofer Haviv: Well, with respect to your question, I think that both the ongoing collaboration with Corteva and with Bayer are an important part of the funding of AgPlan's activity for the next few years. There is a reason why we report on the Bayer collaboration agreement in a six-day format. I can't disclose, of course, the numbers, but as we mentioned, this agreement includes up-front payment, an R&D fee, and then, of course, milestone payment and royalty.

The response to one of the earlier question is that enough to meet the.

The current order.

The beginning of supply for 2025 or can you clarify what that 400 tons of production.

Our capacity gives you.

Okay. So our target is that in order to support.

The demand.

I am from the purchase order received in 2023.

Coming from three Avenue. The first one is from production too.

Ofer Haviv: I think what is important in these two announcements is that the first, that another first-year company choosing AgPlan to work with to develop one of the most important products in the chemical industry, herbicide. And the second announcement, if you think about it, this is the first time that we have confirmation from a third party that our tech engine can pass, and the X-Planus succeeds in achieving a milestone. So I think this is very important news. Now, as I said, we expect that the technical portion of X-Planus expenses and budget will be covered by these two collaborations. And I hope and believe that there will be more in the future. And I think that what we should expect in the near future is achieving additional milestones that will show the progress of this collaboration. With respect to royalty, it still will take some time, but like in the archeological arena, what is important is advancing in the pipeline because the value creation scheme is rapidly increased when you are moving from heat to lead, to optimize lead, et cetera, et cetera, et cetera.

Place last year and now we are harvesting there.

The field.

Packaging, the seed and shipping them to our partners.

Additionally Avenue is from the M D.

M C.

Seed production agreement that we announced this quarter and there is additional ongoing discussion that we are now.

I'm planning to close the agreement are not just fuel supply the existing.

Demand, but also to start to build any inventory for 2025. So it's.

It's S respond earlier according to our plan, we believe and expect it to be able to deliver not just the quantity, we and obligate last year, but we are also planning to build an inventory for expectations for the future of purchase order for 2025.

Okay. That's helpful. Thank you for that.

I'll leave it there thanks for taking my questions gentlemen.

Congrats on all the validation from third party services.

Thank you.

The next question is from Brett Reiss Janney Montgomery Scott. Please go ahead.

Operator: So this is great news for X-Planus that we achieved the first milestone in the collaboration with Corteva, and we are looking forward to the next challenges and milestones, which we believe will be achieved. Okay, great. And maybe just to follow up on the near-term milestones, are any of those expected to hit this year? Can you repeat what you said just now?

Sure.

Ohio for.

Right.

First question.

Based on the crop rotation cycle one one.

No.

The new group of Brazilian and Kenyan farmers, you have been able to successfully grow and deliver the seats. So we can consummate a sale.

So.

Operator: Sure. I think you said near-term milestones and milestone payments. Is that, or upcoming milestone payments, are any of those expected to be recognized this year?

One of the reasons that we are growing in different.

The region is.

To be able to capture more than one you know Susan.

Ofer Haviv: So, there are some milestones that we are trying to reach during this year, not necessarily in ACT plans. There are other agreements in the group that we are targeting. But, you know, milestones also depend on research activity. So, yes, we are looking forward to seeing the progress. In some cases, we hope and believe that we will be able to achieve them.

And to grow at any cost or in.

In addition in all the areas that we are.

How engaged they are either irrigation system.

In order to be.

Address the game.

The issue of.

Look there for the customer.

I think that the egg.

We are planning to.

Hopefully, we will have a better understanding during the second quarter.

Oregon panel are close to the end of the second quarter with respect to this question.

Ofer Haviv: Some, you know, there is always a challenge with respect to R&D activity. It might take a little bit longer, but we are excited to see the current progress on all fronts with respect to our activities in our subsidiaries. Okay, that's fair enough. And then I apologize if I missed this earlier on the 400 tons of cancer, Steve. Is that sufficient? I thought I caught the end of the response to one of the earlier questions.

And in any event I mean, we.

Our plan a.

We are going to engage with much more than what we need for this year.

To supply so as I said, perhaps from it it will be.

For the inventory for next year, but I think that during the.

In the second half to the second day today. This is.

Second quarter this year, we'd have a better clarity.

Operator: Is that enough to meet the current order and the beginning of supply for 2025? Or can you clarify on what that 400 tons of production capacity gives you? Okay, so our target is that in order to support the demands from the purchase order received in 2023, it's coming from three avenue. The first one is from production, took place last year, and now we are harvesting the field, packaging the seed and shipping them to our partners. The additional avenue is from the... Zzzzzzzzzzzzzzzz, feed production agreement that we announced this quarter, and there is additional ongoing discussion that we are now planning to close the agreement, not just to supply the existing demand, but also to start to build an inventory for 2025. So as I responded earlier, according to our plan, we believe and expect it to be able to deliver not just the quantity we obligate last year, but we are also planning to build an inventory for the future purchase order for 2025. Okay, that's helpful.

But at least from what we are doing now I assume that we'd be able to achieve these targets.

Okay. Thank you for that.

You know if somebody you know one of the prior caller asked about the 400 tons of production.

I'm going to ask it a different way.

We are able to generate 400 tons of production.

What capacity.

Dollar revenues.

Ken can result.

If you were able to successfully come in with 400 tons of production.

I cannot disclose this information because then you know our competitors. So we know what is the price that we have.

Our product so I prefer to keep this commercial information.

Confidential and this as you know we were hesitating, we were hesitating what information we can disclose I think it was important for us to send the message that.

We are taking care on the production issue. So this is why we can with express relief.

We prefer not.

To share more information because its not for the many people at the company.

Okay and last one.

Operator: Thank you for readjusting that. I'll leave it there. Thanks for taking the questions, gentlemen, and congratulations on all the validation you've seen from third parties here recently. Thank you. The next question is from Brett Reiss of Jenny Montgomery Scott. Please go ahead. Hi, Ofer.

So much depends on you're selecting.

White farmers in Brazil, and Kenya.

And monitor them monitoring them.

Have you no marinated yourself and your team.

Have they marinated themselves.

Operator: All right. First question. Based on the crop rotation cycle, when will we definitively know that the new group of Brazilian and Kenyan farmers have been able to successfully grow and deliver the seed so we can consummate the sale? So, first, one of the reasons that we are growing in different regions is to be able to capture more than one season to grow castor.

In Brazilian and Kenyan.

Business culture, so that we.

We're sure we're selecting the right farmers in.

Yeah.

What are the current.

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This is a very good question and we are trying to tackle this.

The challenge in different ways. The first one is that we own.

If in the past we work only with two seats producer currently we are working with more than five and the numbers will continue to grow and it's in different regions.

Ofer Haviv: In addition, in all the areas that we are now engaged in, there is an irrigation system in order to address the issue of water for the cattle. We are planning to, Probably we will have a better understanding during the second quarter, or close to the end of the second quarter, with respect to this question. And in any event, according to our plan, we are going to engage with much more than what we need for this year to supply. So, as I said, this will be for the inventory for next year. But I think that during the second half, the second quarter this year, we'll have better clarity.

In addition, we expand significantly the number of <unk> and cause temporary employee all of them are granted me have experienced growing castor and a significant portion of that from the time, they are and export our seed the grower in Africa and.

In the game.

Jim.

Brazil as an example, you ash.

It is currently and.

In the call, but he's located now in Kenya.

He is conducting set of meetings with our existing seed produced there and additional uses that we are planning to engage with them.

Ofer Haviv: But at least from what we are doing now, I think that we'll be able to achieve this target. Okay, I thank you for that. You know, somebody, one of the prior callers, asked about 400 tons of production. I'm going to ask it a different way. If you're able to generate 400 tons of production, what capacity of Dollar Revenue would result if you're able to, you know, successfully come in with 400 tons of production?

For a growing for us the additional cost of steel.

And we have one Brazilian employee.

This is located in Brazil, and we are planning to open an subsidiary in Kenya.

And there will be local people that didn't work and focus there are and it would be on the ground and you know through the.

The years and all the time.

So.

In addition.

Ofer Haviv: I can't disclose this information because then, you know, our competitors will know what the price is that we are selling our product for. So, I prefer to keep this commercial information confidential. And this is why we were hesitating. We were hesitating about what information we could disclose.

I think that today when they are choosing.

You could use there are we are.

Visiting his farm we are getting.

The facility he has and we are doing a lot of.

Walk and before we engage with them.

But maybe the most important thing is that we are not choosing one super users and give him you know all day and built our expectation on him like maybe we did in the past today, we are prepared to work with many people use there in order to make sure that even if one of them won't.

Ofer Haviv: I think it was important for us to send the message that we are taking care of the production issues. So, this is why we came out with this press release. We prefer not to share more information because it's not for the benefit of the company. Okay, and last one. Um, since so much depends on you selecting, you know, the right farmers in Brazil and Kenya and monitoring them, monitoring them. Have you, you know, bonded yourself and your team, you know, have they bonded themselves in Brazil and Kenya?

T. His target still we will get there.

Overall performance will cover I our expectation.

Great. Thank you for taking my questions.

There are no further questions at this time before I ask Mr. Ultra hobbies to go ahead with his closing statement I would like to remind participants that a replay of this call is scheduled to begin two hours. After the conference in the U S. Please call 18883 to 690 310 in Israel.

Ofer Haviv: You know, business, and culture, so that we're sure we're selecting the right farmers and, you know, they, you know, deliver what they're contracted to do. This is a very good question, and we are trying to tackle this challenge in different ways. The first one is that if in the past we worked only with two feed producers, currently, we are working with more than five, and the numbers will continue to grow. And they are in different regions.

Call 039 to 55901 internationally. Please call nine seven to three nine to 55901, Mr. Bobby would you like to make your concluding statement.

Yes. Thank you once again for your ongoing support together, we will continue to drive our company forward and create long term value for all stakeholders. Thank you and goodbye.

Ofer Haviv: In addition, we have increased significantly the number of Castera employees. All of them are agronomists that have experience growing castor, and a significant portion of the time they are an escort, our feed grower in Africa and in Brazil. As an example, Yoash is currently on the call, but he's located now in Kenya, where he is conducting a set of meetings with our existing feed producer, an additional feed producer that we are planning to engage with them to grow for us additional castor seeds. And we have one Brazilian employee that is located in Brazil, and we are planning to open a subsidiary in Kenya where there will be local people that will work for Castera, and they will be on So in addition, I think that today, when we are choosing a feed producer, we visit his farm, we check the facility he has, and we do a lot of work before we engage with them. But maybe the most important thing is that we are not choosing one in the lead.

Thank you. This concludes <unk> fourth quarter and full year 2023 results conference call. Thank you for your participation you May go ahead and disconnect.

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Ofer Haviv: Great, thank you for taking my question. There are no further questions at this time. Before I ask Mr. Ofer Haviv to go ahead with his closing statement, I would like to remind participants that a replay of this call is scheduled to begin two hours after the conference. In the U.S., please call 1-888-326-9310. In Israel, please call 03-9255-901. Internationally, please call 9723-9255-901.

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Operator: Mr. Haviv, would you like to make your concluding statement? Yes. Thank you once again for your ongoing support. Together, we will continue to drive our company forward and create long-term value for all stakeholders. Thank you and goodbye. Thank you. This concludes EvoGen's fourth quarter and full year 2023 results conference call. Thank you for your participation. You may go ahead and disconnect, and Benjamin Klieve. Thank you. Thank you. Eyal Ronen, Amit Noam, Ryan Mayer, Elran Haber, Yaron Eldad, Elran Haviv, Yaron Eldad, Yaron Eldad, Elran Haviv, Elran Haviv, Yaron Eldad, Elran Haviv, Elran Haviv. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

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