Q1 2024 Evogene Ltd Earnings Call
Operator: Welcome to Evogen's first quarter results conference call. All participants are present in listen-only mode.
Welcome to <unk> first quarter results conference call. All participants are present in listen only mode. Following management's formal presentation. We will open the call for the question and answer session.
Operator: Following management's formal presentation, we will open the call for the question and answer session. You may send your questions via chat. Please type your name and company before your question. As a reminder, this conference is being recorded on May 23, 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. The presentation contains forward-looking statements relating to future events, and Evogen Ltd., the company, may from time to time make other statements regarding our outlook or expectations for future financial or operating results or other matters regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995 and other securities laws, as amended.
Speaker Change: You may send your questions via chat. Please type your name and company before your question. As a reminder, this conference is being recorded May 23, 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 really.
Operator: Statements that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, expect, anticipate, should, planned, estimated, intend, and potential or words of similar meaning. We're using forward-looking statements in this presentation when we discuss our value drivers, commercialization, efforts, and timing, product development, and launch, as well as our estimated market size and milestones pipeline as well as our capabilities and technology.
Operator: 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. Readers are cautioned that certain important factors may affect the company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this presentation. Therefore, actual future results, performance, or achievements, and trends in the future may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors. Except as required by applicable securities laws, we disclaim any obligation or commitment to update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to reflect future events or developments or changes in expectations, estimates, projections, and assumptions.
Speaker Change: Future events the.
Speaker Change: The presentation contains forward looking statements relating to future events and Epogen L. P. D. The company may from time to time make other statements regarding our outlook or expectations for future financial or operating results and or other matters regarding or affecting us that are considered forward looking statements.
Speaker Change: As defined in the U S. Private Securities Litigation Reform Act of 1095, and other securities laws as amended statements that are not statements of historical fact may be deemed to be forward looking statements such forward looking statements maybe identified by the use of such words as believe expect anticipate should planned.
Speaker Change: Estimated intend and potential or words of similar meaning we're using forward looking statements in this presentation. When we discuss our value drivers commercialization efforts and timing product development and launches estimated market size and milestones pipeline as well as.
Speaker Change: Our capabilities and technology.
Speaker Change: 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 readers are cautioned that certain important factors may affect the company's actual results and could cause.
Speaker Change: Such results to differ materially from any forward looking statements that may be made in this presentation. Therefore, actual future results performance or achievements and trends in the future may differ materially from what is expressed or implied by such forward looking statements due to a variety of factors many of which are <unk>.
Speaker Change: And our control, including without limitation, the current war between Israel come off in his Butler and any worsening of the situation is Ralph such as further mobilizations or escalation in the northern border of Israel and those described in greater detail in <unk> annual report on form 20-F and in other.
Speaker Change: Information evident files and furnishes with the Israel Securities Authority, and the U S Securities and Exchange Commission, including those factors under the heading risk factors, except as required by applicable securities laws, we disclaim any obligation or commitment to update any information contained in this presentation or to.
Speaker Change: We released the results of any revisions to any statements that may be made to reflect future events or developments or changes in expectations estimates projections and assumptions that information contained herein does not constitute a prospectus or other offering document.
Operator: The information contained herein does not constitute a prospectus or other offering documents, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Evogen or the company, nor shall the information or any part of it or the fact of its distribution form the basis of or be relied on in connection with any action, contract, commitment, or relating thereto or to the securities Trademarks included herein are the property of their owners and are used for reference purposes only.
Speaker Change: Or does it constitute or form part of any invitation or offer to sell or any solicitation of any invitation or offer to purchase or subscribe for any securities of epogen or the company nor shall the information.
Speaker Change: Or any part of it or the fact of its distribution form the basis of or be relied on in connection with any action contract commitment or relating thereto or to the securities of epogen or the company.
Speaker Change: Trademarks included herein are the property of the owners thereof, and are used for reference purposes, only such use should not be construed as an endorsement of our products or services.
Operator: Such use should not be construed as an endorsement of our products or services. On the call today will be Yaron Eldad, CFO of Evogen, and Yoash 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 the call over to Ofer Haviv, President and CEO of Evogen. Mr. Haviv, please go ahead. Hello and good day, everyone.
Speaker Change: On the call today will be Ron <unk> CFO of <unk>, and Youll ask Zohar CEO of cast era. 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 overcome the president and CEO of <unk>.
Speaker Change: <unk> Mr. <unk>. Please go ahead.
Ofer Haviv: Hello and good day, everyone. In today's conference call, I would like to start with Evogene Group's financial and business highlights from the beginning of the year, continue with an overview of Evogene's activity and achievements since the beginning of 2024, and conclude with the achievements of our subsidiaries during that period. Following my part, Ibogen's CFO, Yaron Eldad, will provide financial updates on Q1 2024 activities.
Speaker Change: Hello, everyone.
Speaker Change: To get both of those goals.
Speaker Change: I would like to start with.
Speaker Change: Vanessa and business highlights from the beginning of the year.
Speaker Change: When he was an overview.
Speaker Change: Key achievements since the beginning of <unk>.
Speaker Change: With the achievement of our subsidiaries during this period.
Speaker Change: Following me pause.
Speaker Change: Doug will provide financial update.
Speaker Change: Q1, when you bought it.
Speaker Change: After that we will open.
Speaker Change: The Q&A session.
Ofer Haviv: Let's start with Evergreen Group's financials and business highlights that took place since the beginning of this year. In Q1 2024, our total revenues reached approximately $4.2 million, compared to $0.6 million in Q1 2023. Looking ahead to the full year, 2024, we anticipate continued revenue growth compared to the previous year. In Q1 2024, our loss was approximately $3.8 million, compared to $7 million in Q1 2023, a decline of approximately 46%. Additionally, our projected cash use for 2024, excluding Biomita and Labib Bio, is approximately $8 million, compared to $12.5 million in 2023, demonstrating a notable 36% decrease year-over-year. In Q1 2024, averages closed down Canonics operations, resulting in an analyzed saving of $1.5 million.
Speaker Change: Let's start with the evident by now.
Speaker Change: In business highlights that took place from the beginning of the year.
Speaker Change: In Q1 when people are taking.
Speaker Change: Revenue reached approximately $4 2 million compared to zero point.
Speaker Change: Median.
Speaker Change: Q1 2023.
Speaker Change: Looking ahead to the full year.
Speaker Change: Before we anticipate continued revenue growth compared to the previous year.
Speaker Change: In Q1, 'twenty 'twenty four our loss was approximately $3 8 million.
Speaker Change: Compared to $7 million in Q1.
Speaker Change: Plan of approximately 46%.
Speaker Change: Additionally.
Speaker Change: Our positive cash uses were terrific went before.
Speaker Change: <unk> is approximately $8 million.
Speaker Change: Compared to $12 $5 million in 'twenty three.
Speaker Change: Demonstrating a notable 36% decrease year over year.
Speaker Change: In Q1, 'twenty 'twenty four.
Speaker Change: <unk> closed down.
Operation, resulting in an annualized savings of one 5 million.
Speaker Change: Median.
Ofer Haviv: On February 6th, Abragin and Verb Biotics entered into a collaboration agreement to advance probiotic innovation, aiming to produce sustainable microbial metabolites known to improve human health and vitality. On the other hand, every second, Evogene and the Kitchen Food Tech Hub by the Strauss Group established FinallyFoods, an AI-driven company aiming for sustainable and efficient protein production in plants for the food sector. Avogadro holds approximately a 40% stake in Fidelity Foods.
Speaker Change: On February six.
Speaker Change: And but yes.
Speaker Change: And so as a collaboration agreement with <unk>.
Speaker Change: This program to innovation.
Sustainable microbial metabolized.
Speaker Change: No to improve human health.
Balance sheet.
Speaker Change: Or every second.
Speaker Change: In the kitchen, a foot to buy distressed.
Established primarily pools.
Speaker Change: Driven company.
Speaker Change: And for establishment sustainable and efficient booking production in plan.
Speaker Change: The foot vessel.
Speaker Change: That was it was approximately a 40% and finally food.
Ofer Haviv: The new company is funded by the Kitchen Hub and the Israeli Innovation Authority. These two new collaborations demonstrate the implementation of emergent business models, in which we leverage our technology and expertise in new life science sectors not covered by our subsidiaries, benefiting from our partner's expertise in this new field. Now, I would like to highlight the main achievements made by Epogen's subsidiaries since the beginning of this year. Caterra's recently announced agreement with African and Brazilian seed growers securing an addition of approximately 900 tons of seed is expected to fulfill all standing orders by the end of 2024. Biomica announced it will be presenting preliminary Phase 1 clinical trial results for its BMC-128 microbiome therapeutics in oncology in a poster presentation at the 2024 ASCO conference on June 3. Labibio received $2.5 million.
Speaker Change: The new company is funded by the kitchen hub in the Israeli innovation abilities.
Speaker Change: These two new collaborations demonstrate.
Speaker Change: Implementation of averages business model in which we leverage our technology in new life science sector not covered by our subsidiary <unk>.
Speaker Change: Benefiting from our partners' expertise in this new view.
Ofer Haviv: Dollar received the second half of an upfront payment from Corteva and announced a new collaboration agreement with Syngenta. Additionally, Lafibio announced an extension to its joint validation trial with Bayer for its Bayer Fungicide following successful laboratory and greenhouse testing. Marketing and sales efforts for YALOS, Labib Bio's first commercial microbiome-based bioniculant product, are expanding in the US and Canada, with additional crops being added for treatment. La Viva anticipates 2024 revenues for Yalop to increase compared to the previous year.
Speaker Change: Now I would like to highlight the main achievements made by subsidiaries.
Speaker Change: So at the beginning of this year.
Speaker Change: The recently announced agreement with Africa, and Brazilian growers to Julian and the addition of Brooklyn, ICD nine harvests owned or fee.
Speaker Change: Our expected to fulfill all standing orders by the end of 'twenty point before.
Speaker Change: But you only got announced it will be presenting preliminary phase one clinical trial results for <unk> 128 equal biodiesel in oncology.
Speaker Change: In a poster presentation at the 'twenty 'twenty four as for corporate.
Speaker Change: One third.
Speaker Change: <unk> received $2 5 million.
Speaker Change: Dollar the second half of an upfront payment bronckhorst timber.
Speaker Change: And now new collaboration agreement, we can tender.
Let's be better enough and extension joined Bel edition trial with buyer.
<unk> died following successful laboratory and greenhouse testing.
Speaker Change: Marketing and sales efforts for yellow <unk> first commercial microbial based biodiesel blend product.
Speaker Change: Spending in U S and Canada with additional growth being added or commitment.
Speaker Change: Let me keep it base wafer 24 revenue for you.
Speaker Change: Yellow to increase compared to the previous year.
Ofer Haviv: And now, a new collaboration agreement with Bayer. Our clients will be entitled to receive an upward payment, ongoing research funding, milestone payment, and royalties based on future product sales. Appel also achieved a milestone with Corteva under its existing collaboration agreement.
Speaker Change: Okay.
Speaker Change: A new collaboration agreement with buyer.
Speaker Change: That would be entitled to receive an upfront payment ongoing research funding milestone payments and royalties based on future products.
Speaker Change: <unk> also achieved the milestone with both Teva.
Speaker Change: Existing collaboration agreement.
I will provide more details on the achievement of each subsidiary later in the presentation.
Ofer Haviv: I will provide more details on the achievements of each subsidiary later in the presentation. Now, let us move to the Evogene overview. And I will start by briefing you, briefly reviewing our strategy and business model. The biggest challenge in developing life science-based products is at the beginning of the process, in the discovery and optimization phases. Finding the candidate that meets a long list of the required criteria from a huge quantity of potential candidates in order to reach a successful commercial product. It takes much time and resources, and the promise of success may be slim, like finding a needle in a haystack.
Let us now move to the average and overview and I will start by briefing briefly reviewing our strategy and business model.
Speaker Change: The biggest challenge in developing life science based products.
Speaker Change: The beginning of the process.
Speaker Change: In the discovery and optimization phases.
Speaker Change: Finding the candidates that meet our long list of the required criteria from huge quantity of potential candidates in order to reach a successful commercial product.
Speaker Change: It takes much time and resources and before we close the fifth Megabits Lee.
Speaker Change: Finding a needle in a hasty.
Ofer Haviv: Evogene is a pioneering company in the field of lifestyle-based products, and we are aiming to revolutionize the industry. Our mission is to leverage dedicated big data sets with cutting-edge computational technology and deep life science understanding to address the Discovery and Optimization Challenges to drive product innovation, securing our position as a leader in developing solutions that advance humanity's future. So how do we make it happen?
Speaker Change: <unk> pioneered a pioneering company in the field of lifestyle based products.
Speaker Change: He is aiming to revolutionize the industry.
Speaker Change: Our mission is to leverage dedicated big data fits with cutting edge computational technology and deploy.
Speaker Change: Lifetimes understanding.
Speaker Change: Dressing the discovery and optimization challenges.
To drive product innovation.
Speaker Change: During our position as a leader in developing solution.
<unk> future.
Speaker Change: So how do we make it happen.
Ofer Haviv: With an investment of tens of millions of dollars and over a decade of intense work, Evogen has created a groundbreaking platform called Computational Predictive Biology, the CPB platform, which integrates profound scientific knowledge with public and proprietary big data and AI technology. Back on this platform, during the past year, Evogene developed three innovative AI tech engines addressing the main development challenges of three product categories. Microboost AI directs and accelerates the development of micro-based products.
Speaker Change: With investment of tens of millions of dollars in over a decade.
Speaker Change: Intense work.
Speaker Change: <unk> has created a groundbreaking platform called computational predictive biology.
Speaker Change: Phebe platform, which integrates Brooke.
Speaker Change: Profound scientific knowledge with public and proprietary big data.
Speaker Change: <unk> AI technology.
Speaker Change: Based on this platform during past year epogen develop.
Speaker Change: Innovative AI engine.
Speaker Change: Addressing the main development challenges.
Product categories.
Speaker Change: Micro boost AI direct and accelerate the development of macro micro based product.
Ofer Haviv: Campus AI for small molecule-based products and Generatory AI for products based on genetic elements. The better proposition of our AI-driven tech engine stems from the efficient finding and optimization of the most promising candidates. Therefore, increasing the probability of success, reaching a breakthrough product, within a competitive timeframe and in a cost-efficient manner. Our three AI tech engines were structured to be compatible with the tremendous potential of various market segments, not limited to only one specific segment.
Speaker Change: <unk>.
Speaker Change: For small molecule based product.
Speaker Change: In general to AI for products based on genetic elements.
Speaker Change: The value proposition of our AI driven.
Speaker Change: Yes.
Speaker Change: <unk> from the efficient binding and optimization.
Speaker Change: The most promising candidates.
Speaker Change: Therefore, increasing the peripheral success, reaching a breakthrough product within a competitive timeframe and in a cost efficient manner.
Speaker Change: Our three AI engine were structured to be compatible.
Speaker Change: The tremendous potential of target market segments.
Speaker Change: Not limited to only one specific segment.
Ofer Haviv: This slide demonstrates the best varieties of market segments that can benefit from our technology. Each tech engine is at the center of the potential development of many product types addressing the needs of different lifetimes on the street.
Speaker Change: This slide demonstrates the best variety of market segments that can benefit from our technology.
Speaker Change: <unk> engine.
Speaker Change: Center of potential development of many product types addressing the needs of different life science industry.
Ofer Haviv: In order to capture the value of our AI tech engine, our business strategy is to establish diverse collaborative partnerships for life science product development. The partners we collaborate with are experts in specific fields that complement our technology. We adopted this approach to maximize the potential of our tech engine while reducing financial and development risk.
Speaker Change: In order to capture the value of our AI engine, our business strategy is to establish the birth collaborative partnership for life Science product development.
Speaker Change: The funds as we collaborate with our expert in specific field.
Speaker Change: <unk> complements our technology.
Speaker Change: We adopted this approach to maximize the potential of our tech engine.
Speaker Change: While reducing financial and development risks.
Speaker Change: Therefore.
Ofer Haviv: [inaudible] We form partnerships through licensing or collaboration with companies, positioning domain specific knowledge such as pharmaceuticals or AgriTech. Together, we will develop novel products aiming for full or partial ownership upon project completion. We believe this strategy holds the potential for groundbreaking innovations and significant financial gains for Evojet. This is a current snapshot of the status of our business model.
Speaker Change: We formed partnerships.
Speaker Change: Licensing collaboration with companies.
Speaker Change: Positioning domain specific knowledge.
Such Ed.
Speaker Change: From a pharmaceutical or ugly pik.
Speaker Change: Together, we will develop novel products aiming to full or partial ownership upon project completion.
Speaker Change: We believe this strategy.
Speaker Change: The potential for groundbreaking innovation and significant financial gain gains for epogen.
Speaker Change: This is a current snapshot of the status of our business model with Epogen owning four subsidiaries companies and in additional market segments not covered by our subsidiary <unk>.
Ofer Haviv: With Evergen owning four subsidiary companies and an additional market segment not covered by our subsidiaries, we have collaborations with leading companies all working on developing innovative life science products. More specifically, we have two license agreements utilizing Microboost AI, one with our subsidiary Labibio to develop art biological, and the second with our subsidiary Biomica to develop drugs based on the human microbiome. In addition, we established a collaboration with Verbiotics to develop probiotic products, which we announced this quarter and which I will elaborate on shortly.
We have collaborations with leading companies are working on developing innovative life science products.
Speaker Change: More specifically, we have two license agreement utilizing micro boost AI, one with our subsidiary <unk> to develop a biological and the second with our subsidiary biomarker to develop drugs based on the human <unk>.
Speaker Change: In addition, we established a collaboration with whereby optics to develop probiotics products on which we announced this quarter and I will elaborate on shortly.
Ofer Haviv: With respect to campus AI, we have a license agreement with our subsidiary, ActPlanus, to develop actinides, and a collaboration agreement with our subsidiary Biomica to develop drugs based on small molecules. Last but not least, with respect to generator AI, we have a license agreement with our subsidiary Catera for the development of elite castor seed varieties, a license agreement we finally put for project productions in plants, which we announced this quarter.
Speaker Change: With respect to act with respect to Tampa AI, we have a license agreement with our subsidiary <unk> to develop a cubicle.
Speaker Change: And the collaboration agreement with our subsidiary biomarker to develop web based on small molecules.
Last but not least with respect to generate through AI, we have a license agreement with our subsidiaries to Sarah for the development of elite Castoffs Pittsboro asking.
Speaker Change: The license agreement, we finally boots for protein production in plant on which we announced this quarter.
Ofer Haviv: And I will elaborate on a short and two collaboration agreements with colored farms for improving protection trade and with the Horizon EU Consortium for Improving Trade in Canola. I would now like to provide additional details on the decision concerning our subsidiary Canonics and the new engagement with verbiotics and finally food. In Q1 2024, Evogene decided to seize operations of Canonics, which specializes in developing medical cannabis products, due to the challenging market conditions in the medical cannabis sector. This decision results in analyzed savings of approximately $1.5 million, resources we intend to allocate to areas with greater growth potential, such as funding caterers' needs for ongoing capital.
Speaker Change: And I will elaborate on shortly.
Speaker Change: And so collaborations agreement with Colorado.
Speaker Change: Four improving conditions race.
Speaker Change: And with the Horizon EU consortium for improving three in canola.
Speaker Change: I would now like to provide additional detail on the decision concerning our subsidiary companies.
Speaker Change: And the new engagement with very Biotics and finally foods.
In Q1 in Q1, 2024 Epogen decided.
To seize operation.
Speaker Change: Colonial.
Speaker Change: Which specialized in developing medical cannabis products.
Speaker Change: Due to the challenging market condition in the medical cannabis sector.
Speaker Change: This decision resulted in annualized savings of approximately $1 5 million.
Speaker Change: Sources, we intend to allocate to areas with greater growth potential such as funding cost tariff deep for ongoing topic does.
Ofer Haviv: This decision highlights Evogene's commitment to present Resources Management and Strategic Focus in Response to Evolving Market Conditions. At the beginning of February, Agrogen and Verbiotics entered into a collaboration agreement to advance probiotic innovation. The parties will identify and design probiotic bacteria that produce highly sustainable quantities of microbial metabolites known to improve human health and vitality. The collaboration generates excellent synergy by combining evidence knowledge in bacterial-based product development, utilizing its tech engine, Microboost AI, with Verbiotics access to the genomes of virus microbial strains that support the production of microbial metabolites with Vital and Human Health.
Speaker Change: This decision highlights evidence commitment.
Speaker Change: To present resources management and strategic focus in response to an evolving.
Speaker Change: The evolving market conditions.
Speaker Change: At the beginning of February Epogen, and thereby ethics entered a collaboration agreement to advance probiotic innovation.
Speaker Change: The parties will identify and designing probiotic bacteria. This produce highly sustainable quantity of microbial metabolites no to improve human health and metallurgy.
Speaker Change: The collaboration generates excellent synergy by combining evidence knowledge in bacteria based product developed bend utilizing expect engine micro bus AI.
Speaker Change: With verify your optics access to the genomes of values microbial strain the support the production of microbial metabolites.
Speaker Change: Digital and human health.
Ofer Haviv: This is a great example of the implementation of the Evogen business model, in which we leverage our technology in a new life sector not covered by the activity of our subsidiaries. We expect the collaboration to demonstrate the contributions of our unique technology to the fast-growing field of human microbiotics, a sector estimated at $55 billion in 2022 and expected to reach $114 billion in 2031. We consider this collaboration as our first step in this lucrative market segment.
Speaker Change: This is a great example of the implementation of emergent business model in which we leverage our technology in a new lifestyle store not covered by the activity of our subsidiaries.
Speaker Change: We expect the collaboration to demonstrate the contributions of our unique technology to the fast growing field of human Mitchell.
Speaker Change: <unk> a sector estimated at $55 billion in 2022 and expect it to reach 114 million billion dollars. In 2031, we consider this collaboration is our first step in this lucrative market segment.
Ofer Haviv: At the beginning of April, AvroGen and the Kitchen Food Tech Hub by the Strout Group teamed up to establish FinallyFood, an AI-driven company focused on sustainable protein production in plants for the food sector. Finally, Food will leverage Evergen Generator AI tech engines to modify plants for efficient protein production. This is another example of the implementation of the Evogen business model of entering into a new life sector, new life science sector, which our subsidiaries do not cover.
Speaker Change: At the beginning of actual Appalachian and the kitchen put the Cobb.
Speaker Change: The Strauss group.
Speaker Change: Up to established finally, food and AI driven company.
Speaker Change: On sustainable protein production implants for the food sector.
Speaker Change: Finally, food, we leverage ampligen generous or AI engine to multi site plans for efficient broken production.
Speaker Change: This is another example of being human facial epogen business model of entering into a new lifestyle.
Speaker Change: New life.
Science sector, our subsidiaries do not cover.
Ofer Haviv: Finally, Foods has secured press fee funding from the Kitchen Hub and the Israel Innovation Authority. Evogene holds approximately 40% of the equity in the company. This agreement will not require any financial contribution from Evogen.
Speaker Change: Finally, food has secured prestige funding from the kitchen hub and the Israel Innovation authority.
Speaker Change: Ampligen holds approximately 40%.
Speaker Change: In the company.
Speaker Change: This agreement will not require any financial contribution from imaging, rather we expect that the agreement will generate future revenue for religion.
Ofer Haviv: Rather, we expect that the agreement will generate future revenues for Evogen. We believe the collaboration will demonstrate the potential of our technology to support the alternative protein market, estimated at $17.6 billion in 2022 and expected to reach $55 billion in 2032. We wish Finally Food the best of success.
Speaker Change: We believe the controversial we demonstrate the potential of our technology to support the alternative protein market.
Speaker Change: The method.
Speaker Change: $17 $6 billion in 2022.
Speaker Change: And expect it to reach 50 $55 billion in 'twenty 32.
Speaker Change: We reached finally food the best auspices.
Ofer Haviv: I will conclude my update with a review of the main achievements made by our subsidiaries from the beginning of 2024. I would like to start with Castera, an EpoGen fully owned subsidiary, which will focus on developing an integrated solution to enable large-scale commercial cultivation of gastro. The third solution aims to address the global demand for stable crude oil supply, mainly for the biodiesel industry.
Speaker Change: I will conclude my obligation with a review of the main achievements made by our subsidiaries from the beginning of 'twenty 'twenty four.
Speaker Change: I would like to start with Gustavo Epogen fully owned subsidiary.
Speaker Change: We are focused on developing an integrated solution will enable us commercial cultivation of gaslog.
Speaker Change: The <unk> solution aimed to address the global demand for stable capital or supply mainly for the biodiesel industry.
Ofer Haviv: As I mentioned, the company is utilizing an AI tech engine to direct and accelerate the development of its unique elite customer feed variety. In early 2023, Tastera entered into a frame supply agreement with E&I, a leading oil and gas company. Under the agreement, E&I gave Castera a purchase order last year totaling $11.2 million. To date, Katerra has supplied only a small portion of the orders, mainly due to initial production challenges under the supervision of Castera's new CEO.
Speaker Change: As I mentioned the company is utilizing general theory, AI engine to direct and accelerate the development of its unique elite customer feedback.
Speaker Change: In early 2023.
Speaker Change: <unk> entered into a spring supply agreement with Eni and leading oil and gas company.
Under the agreement Eni has given to stare a purchase order last year totaling.
Speaker Change: $11 $2 million.
Speaker Change: To date customer has supplied only a small portion.
Speaker Change: The order mainly due to initial production challenges.
Speaker Change: Under the supervision of customer a new CEO.
Ofer Haviv: The company's recent engagement with seed growers in Africa and Brazil is expected to provide approximately 900 tons in 2024, which is expected to fulfill all existing purchase orders and provide additional inventory later this year. It is anticipated that the balance of the existing purchase order will be delivered in the second half of 2024.
Speaker Change: The company's recent engagement with FID Gore in Africa, and Brazil are.
Speaker Change: Are expected to provide approximately nine harvest one in 2024, which is expected to fulfill all existing purchase order.
Speaker Change: Provide additional inventory later this year.
Speaker Change: It is anticipated that the balance of the existing purchase order will be believer in the second half of 'twenty 'twenty four.
Ofer Haviv: I am happy to share with you that Katerra is now building its backlog ordered for 2025. Castera remains at the forefront of developing superior caster seed varieties with high yield, even under difficult growth conditions, and with traceability, suitable for mechanized farming operations. Now, I would like to review our subsidiary, AgPlanus, aiming to discover next-generation innovative crop protection products, including herbicides, insecticides, and fungicides, and commercialize them through a collaboration with world-leading partners. AgPlanus utilizes Evogene's Campus AI tech engine to direct and accelerate its product development. Major agrochemical companies dominate today's crop protection industry.
Speaker Change: I am happy to share with you that the center is now building its backlog orders for 2025.
Speaker Change: <unk> remains at the forefront of developing superior Castor seeds varieties with high yield even under difficult growth conditions and we trace.
Speaker Change: Suitable for mechanized farming operations.
Ofer Haviv: Still, they look to ag tech companies to discover new target proteins and small molecules that inhibit such target proteins, serving as the active ingredient in commercial prop protection products. Axplanus is the company that addresses this need, as shown by the two announcements made this past quarter. On February 21, 2024, AgClaims announced entering into a licensing and collaboration agreement with Bayer to develop a novel mode of action, broad spectrum herbicide for farmers targeting the APTH1 protein discovered by AdPlanet.
Speaker Change: Now I would like to review our subsidiary <unk> plans aiming to discover next generation innovative crop protection products.
Speaker Change: Including herbicide insecticide and fungicide and.
Speaker Change: And commercialize them through collaboration with World leading partners.
Speaker Change: Atlanta's utilize epogen campus Isaac engine to direct and accelerate its product development.
Speaker Change: Major agro chemical companies.
Speaker Change: Dominant today's crop protection industry.
Speaker Change: Still.
Speaker Change: They look to ask the companies to discover new target proteins and small molecules that inhibit such stomach protein serving as the active ingredient in.
Speaker Change: In conventional crop protection products.
Speaker Change: <unk> is the company address this need.
Speaker Change: As shown by the two announcements made this past quarter.
Speaker Change: On February 21.
Speaker Change: 'twenty 'twenty four act plans announced entering into licensing and collaboration agreement with buyer. So.
Speaker Change: To develop a novel mode of action broad spectrum herbicide.
Speaker Change: Farmer targeting the APC H one protein.
Speaker Change: I discovered by <unk>.
Ofer Haviv: Under the agreement, Excellence will be entitled to receive an upfront payment, ongoing research funding, milestone payments, and royalties based on future product sales. I will have the exclusive license for the development and commercialization of products under their collaboration. On March 6, 2024, AgPlanus announced it had reached a milestone under its existing collaboration agreement with Porteba to develop new herbicides through a novel mode of action, HPCO-12, which was discovered by AgPlanus as well.
Under the agreement.
Speaker Change: This will be entitled to receive an upfront payment.
Speaker Change: The research funding.
Speaker Change: Total payments and royalties.
Speaker Change: Based on future product sales.
Speaker Change: <unk> will have the exclusive license for the development and commercialization of products.
Speaker Change: The collaboration.
Speaker Change: Or 2024.
Speaker Change: <unk> announced it has reached a milestone as it is existing collaboration agreements with Teva to develop new herbicide through a novel mode of action <unk> B C. All twill.
Which was discovered by <unk> as well.
Ofer Haviv: In the next phase, the collaboration will focus on optimizing the herbicide candidate toward a commercial-level product. These two collaboration agreements, Strength at Planuses, Financial Stability, and Overall Positioning in the Agriculture Box. I would now like to continue with the two subsidiaries using MicroBoost AI to accelerate and direct their product development, Labibio and Biome. Lafitte BioLeverage and Evogen Microboost AI Tech Engine to develop next generation biological products On February 20th,
Speaker Change: In the next phase the collaboration we focused on optimizing the herbicide candidates toward a commercial level product.
Speaker Change: This two collaboration agreement.
Speaker Change: Strength atlantis's financial stability and overall positioning in the agriculture market.
Speaker Change: I would like now to continue with the two subsidiaries using micro boost AI to accelerate indirect product development.
Speaker Change: Email and Bianca.
Speaker Change: Let me borrow leverage epogen macro boost AI engine to develop next generation of eligible products.
Speaker Change: On February <unk>.
Speaker Change: 20.
Ofer Haviv: In 2024, Labibio signed an agreement with Syngenta for the discovery and development of new biological insecticidal solutions. The collaboration will leverage Labibio's unique technology platform to rapidly identify and optimize bioinsecticide candidates. On February 28, 2024, Labibio also announced meeting Corteva's licensing agreement requirement, enabling the successful receipt of the second half advance payment of $2.5 billion from Corteva, totaling $5 billion. Additionally, LaviBio extended its joint validation trial with Bayer for its biofungicides following successful laboratory and greenhouse tests.
Speaker Change: 2024, <unk> signed an agreement with Syngenta for the discovery and development of New biologic dollar insecticides.
Speaker Change: Loosen.
Speaker Change: The collaboration will leverage <unk> unique technology platform to rapidly identify and optimize borrowing 65 candidates.
Speaker Change: On February 28.
Speaker Change: 2024, <unk> also announced.
Speaker Change: Meeting Cortez bus licensing agreement requirement, enabling the successful receipt of the second half advanced payment of $2 5 million dollar 12 quarters ever totaling $5 billion.
Speaker Change: Additionally, let.
Speaker Change: <unk> extended its John validation trial with buyer for its <unk>.
Speaker Change: Knowing successful laboratory and greenhouse testing.
Ofer Haviv: The collaboration aims to address disease-affecting fruits and vegetables worldwide. With positive results from the first year, Bayer proceeded to field experiments for further validation, also announced this quarter on March 13th. Labib Bario partnered with Service Global AdCorp to integrate its bionic plant, Yarroth, into... Regenerative Agriculture Programs Across North America. These collaborations aim to enhance growing practice and offer tailored solutions to support productivity and sustainability goals in the agriculture industry, particularly in segments like spring wheat, Durham, and oats.
Speaker Change: The collaboration aims to address diseases affecting fruit and vegetable oil worldwide.
Speaker Change: With positive results from the first year buyer precision for physician to field experiments bulk further validation.
Speaker Change: Also announced this quarter on March 13.
Speaker Change: <unk>.
Speaker Change: <unk> partnered with service global AD cool to integrate its bio nipple and yellows into <unk>.
Speaker Change: Regenerative agriculture programs across the North America.
Speaker Change: This collaboration aims to enhance growing breadth practice and offered tailored solution to support productivity and sustainability goals in the agriculture industry, particularly in segments like St Louise zero harm and bowls.
Ofer Haviv: This announcement and other marketing and sales efforts for YALO, Labibio's first commercial microbiome-based product, support the penetration of gallus in the United States and Canada markets, with additional crops being added for treatment. Based on initial orders and sales projections, we anticipated 2024 revenues for Yalop to increase compared to the previous year.
Speaker Change: These announcements.
Speaker Change: Other marketing and sales efforts for yellow, let me buy a first commercial mutual biobased products support the penetration of yellow.
Speaker Change: United States, and Canada markets with additional crops being added for treatments.
Speaker Change: Based on initial orders and sales projections, we anticipated 2024 revenues for yalof to increase compared to the previous year.
Ofer Haviv: Now, to evidence its subsidiary biomarker, which specializes in developing microbiome-based therapeutics for human health. On January 17, 2024, Biomica reached a significant milestone by completing phase one trial enrollment for its microbiome-based immune oncology drug, PMC128, a rationally designed consortia of four bacteria. Biomica recently announced that it will be presenting preliminary phase one study data for BFC 128 in a poster presentation at the ASCO 2024 annual conference on June 3. Biomica is now preparing to advance to phase two of the clinical trial for BMC128 and has already conducted a PRE-IND meeting with the FDA, aiming to initiate phase two in 2025. In addition, results from a biomedical preclinical study in the IBS program, conducted in collaboration with New York University's Medical School, represented at the Digestive Disease Week 2024 Annual Conference in May 2024.
Speaker Change: Now to efforts to the subsidiary biomarker.
Speaker Change: Which specialized specializes in developing microbiome based therapeutics for humans has.
Speaker Change: On January 17 2024.
Speaker Change: <unk> reached a significant milestone by completing phase one trial enrollment for <unk> immuno oncology drug <unk> 128, a rationally designed consortia both for bacteria.
Speaker Change: <unk> recently announced that it will be presenting preliminary phase one study data.
Speaker Change: <unk> 128 in a poster presenting at the ethical 2024 annual conference.
Speaker Change: <unk> third.
Speaker Change: Biomarker is now preparing for advancing to phase II.
Speaker Change: The clinical.
Speaker Change: Of the clinical trials for PMT 128, and already conducted a <unk> meeting with the FDA aiming to initiate phase II in 2025.
Speaker Change: In addition, with that <unk> bionics as bread clinical study in the Ibs program for.
Speaker Change: Conducted in collaboration with New York University's Medical School were presented.
Speaker Change: At the digestive disease week 2024 annual conference in May 2024.
Ofer Haviv: To summarize my part in this call, I would like to emphasize how proud I am of the achievements of Evogen and its subsidiaries to date, reflected by the growing list of commercial and financial partners the Evogen Group is engaged with. During the last quarter, Labibio announced partnerships with two additional world-leading ad companies, Syngenta and Bio. Castera disclosed its engagement with E&I, a world-leading oil and gas company. Ackplanut announced partnering with Bayer.
Speaker Change: To summarize my follow ups in this call.
Speaker Change: I would like to emphasize how brother in of the achievements of Imogen and its subsidiaries to today's reflected by the growing list of commercial and financial partners. The evident group is engaged with.
Speaker Change: During the last quarter, <unk> announced partnering with two additional world, leading our company's Syngenta and buyer.
Costello: Costello disclosed its engagement with Eni award, leading oil and gas company.
Costello: <unk> been now partnering with buyer.
Ofer Haviv: And Evogene itself announced a new collaboration with Verbiotics to advance human probiotic innovation and also established, together with the Kitchen Hub by Starr Group, Finally Foods, a new company focused on protein production in plants. No doubt these are great achievements to start the year. I will now hand over the call to Yaron, Evogen's CFO, who will review our financial results for the first quarter of 2024.
Costello: And it will turn itself announced a new collaboration with robotics to advance human Probiotic innovation and also established together with the kitchen have by staff group Finally foods, a new company focused on protein production plant.
No doubt these are great achievement to start the year with.
Yaron Eldad: As of March 31st, 2024, Evergen had consolidated cash, cash equivalents, and short-term bank deposits of approximately $26.6 million, compared to approximately $31.1 million on December 31, 2023. During the first quarter, consolidated cash usage was approximately $4.5 million. Excluding our two self-funding subsidiaries, Lavie Bio with a positive cash flow of approximately 0.3 million dollars, and Biomica with a cash usage of approximately 1.4 million dollars, the cash usage of Evogene and the other subsidiaries was approximately $3.4 million.
Epogen: I will now hand over the call to your own Epogen, CFO, who will review our financial results for the first quarter of 'twenty 'twenty four.
Epogen: As of March 31st 124.
Jim had consolidated cash cash equivalents and short term bank deposits were approximately $26 $6 million compared to approximately $71 $1 million from December 31 2023.
Speaker Change: During the first quarter.
Epogen: Consolidated cash usage was approximately $4 $5 million.
Epogen: Excluding our two self funding subsidiaries <unk> with a positive cash flow of approximately zero point $3 million and biomarker, that's a cash usage of approximately $1 $4 million.
Epogen: The cash usage of ever Jim and the other subsidiaries was approximately $3 $4 million.
Epogen: Yeah.
Yaron Eldad: As Ofer already stated, our projected cash usage for 2024, excluding Biomica and Lavie Bio, is approximately $8 million compared to $12.5 million in 2023, demonstrating a notable 36% decrease year over year. Additionally, revenues for the first quarter of 2024 were approximately $4.2 million compared to approximately $0.6 million in the same period the previous year. The revenue increase was primarily due to revenues recognized by Labibayo for the license agreement with Coteva and due to revenues recognized by ACT Planners for the new collaboration with Bayer in the first quarter of 2024. As Ofer stated, we anticipate continued revenue growth in 2024 compared to the previous year, mainly in the second half of 2024, based on Castera's forecast for seed order supply.
Speaker Change: And offer already stated our projected cash usage for 2024, excluding by Omnicom and everybody else.
Speaker Change: Is approximately $8 million compared to $12 $5 million in 2020.
Demonstrating a notable 36% decrease year over year.
Speaker Change: Revenues for the first quarter of 2024 were approximately $4 $2 million compared to approximately zero point $6 million in the same period the previous year.
Speaker Change: The revenue increase was primarily due to revenues recognized from <unk>. That's a license agreement with Teva and due to revenues recognized by <unk> with a new collaboration with buyer during the first quarter of 2024.
Speaker Change: Yeah.
Speaker Change: As also stated we anticipate continued revenue growth in 2024 compared to the previous year, mainly in the second half of 2024 based on past steroids forecast.
Speaker Change: <unk> order.
Speaker Change: <unk>.
Speaker Change: Yeah.
Yaron Eldad: R&D expenses for the first quarter of 2024, which are reported net of non-refundable grants received, were approximately $4.8 million and remained stable as compared to approximately $4.8 million in the same period in the previous year. Sales and marketing expenses were approximately $992,000 for the first quarter of 2024 compared to approximately $800,000 in the same period in the previous year. The increase is mainly due to increased sales and marketing activities in Castella, promoting its elite seed varieties, and Lavibayo promoting the sales of its first commercial product, Yaro.
Speaker Change: R&D expenses for the first quarter of 2024, which are reported net of nonrefundable grants received were approximately $4 $8 million and remained stable as compared to approximately $4 8 million in the same period in the previous year.
Speaker Change: Sales and marketing expenses were approximately $992000 for the <unk>.
Speaker Change: First quarter of 2024 compared to approximately $800000 in the same period the previous year.
Speaker Change: The increase is mainly due to increased sales and marketing activities in perceval promoting its indeed seed varieties.
Speaker Change: And the ZIP by promoting the sales of its first commercial product yes.
Yaron Eldad: General and administrative expenses were approximately $1.7 million in the first quarter of 2024 compared to approximately $1.5 million in the same period of the previous year, mainly due to non-cash compensation to the subsidiary CEO. Following the decision to cease economic operations, we recorded other expenses of approximately half a million dollars in the first quarter of 2024, mainly due to impairment of fixed assets. Operating loss for the first quarter of 2024 was approximately $4.1 million compared to approximately $6.8 million in the same period the previous year.
General and administrative expenses were approximately $1 $7 million in the first quarter of 2024 compared to approximately $1 $5 million in the same period in the previous year.
Speaker Change: Mainly due to noncash compensation to the subsidiary and Ceos.
Speaker Change: Following the decision to cease economic operations, we have recorded in other expense of approximately half a million.
Speaker Change: Helps a million dollars in the first quarter of 2024.
Speaker Change: Mainly due to impairment of fixed assets.
Speaker Change: Operating loss for the first quarter of 2024 or approximately $4 $1 million compared to approximately $6 8 million in the same period in the previous year.
Yaron Eldad: The decrease in operating loss is mainly due to increased revenues. Financing income net for the first quarter of 2024 was approximately $241,000 compared to financing expenses net of approximately $230,000 for the same period in the previous year. This difference was mainly due to an increase in interest income and revaluation of convertible sales during the first quarter of 2024 as compared to the same period in the previous year. The net loss for the first quarter of 2024 was approximately 3.8 million dollars compared to approximately 7 million dollars for the same period in the previous year.
Speaker Change: The decrease in operating loss is mainly due to the increased revenues.
Speaker Change: Financing income net for the first part of 'twenty 'twenty four was approximately $241000 compared to financing expenses net of approximately $230000 in the same period the previous year.
Speaker Change: This difference was mainly due to an increase in interest income and revaluation of convertible things during the first quarter of 2024 as compared to the same period in the previous year.
Speaker Change: Net loss for the first quarter of 2024 was approximately $3 $8 million compared to approximately $7 million in the same period in the previous year.
Yaron Eldad: The $3.2 million decrease in the net loss is mainly due to increased revenues in the first quarter of 2024 and financial income, as mentioned above, which was partially offset by the one-time $519,000 of other expenses created by ceasing economics operations.
Speaker Change: The $3 $2 million decrease in the net loss is mainly due to the increased revenues in the first quarter of 2024 and financial income as mentioned above which was partially offset by the one time items.
Speaker Change: 19000 Donovan.
Speaker Change: Other expenses.
Speaker Change: Weighted by seizing economics operation.
Speaker Change: Okay.
Operator: I would now like to hand over the call to the operator for the Q&A session. Thank you.
Speaker Change: I would now like to hand over the call to the operator for the Q&A session.
Operator: Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. In order to send a question, use the chat button located at the bottom of your screen. Please type your full name and your company's name before the question. The first question is:
Speaker Change: Thank you ladies and gentlemen at this time, we will begin the question and answer session.
Speaker Change: In order to send a question use the chat button located at the bottom of your screen.
Speaker Change: Please type your full name and your company's name before the question.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: The first question is.
Operator: Are there any updates on Evogen's CRISPR capability?
Speaker Change: Are there any updates on epogen CRISPR capabilities.
Ofer Haviv: Hi, good morning. Good day, everyone.
Speaker Change: Hi, Good morning, Good day, everyone.
Speaker Change: This is <unk> speaking.
Speaker Change: As you know we.
Speaker Change: <unk> seen a very important consortium.
Speaker Change: Once focusing on developing a CRISPR technology.
Speaker Change: And we took a major role in this consortium.
Ofer Haviv: This is Ofer speaking. As you know, we participate in a very important consortium that is focusing on developing CRISPR technology, and we play a major role in this consortium. The technology that we established in this consortium was the basis for our collaboration announced late last year with Collar in developing genome editing technology for Crustaceans. We also have internal activity here in Abidjan with respect to CRISPR technology for plants. So yes, we are active in this area. And yes, we are also looking for opportunities to leverage the technology that we have developed there. And when there is specific news, we will be more than happy to disclose it to our investors.
Speaker Change: But the good news that we establish in this consortium was the base for our collaboration announced late last year with color.
Speaker Change: In name developing.
Speaker Change: Genome editing technology for Prestea.
Speaker Change: <unk>.
Speaker Change: That's right.
Speaker Change: We also have internal activity human epogen.
Speaker Change: With respect to the CRISPR.
Speaker Change: Technology for plant.
Speaker Change: So yes, we are active in this area.
Speaker Change: Yes, we are also looking for opportunities to leverage technology that we develop there.
Speaker Change: And when there will be a specific news, we will be more than happy to disclose it to.
Speaker Change: To our investors.
Speaker Change: Okay.
Operator: The next question: how are your castera seed suppliers preparing today for harvest, which can support follow-on orders to ENI in 2025?
Speaker Change: The next question.
Speaker Change: How are your costs there is seed suppliers preparing today for harvest, which can support follow on orders to Eni in 2025.
Yoash Zohar: I will ask Yoash, the CEO of Castera, to answer this question. Who is Yoash?
Speaker Change: I wanted to ask you as the CEO of pickup stirrer.
Speaker Change: To answer this question you asked.
Yoash Zohar: Yes. Hi everyone. Good afternoon or good morning, wherever you are.
Speaker Change: Yes, hi, everyone. Good afternoon, good morning, and thank all of you are.
Yoash Zohar: So in Brazil, our seed suppliers are doing this for the second year, and they all have the right equipment, and everything is streamlined, and we visit there periodically. One of our agronomists just came back last week, and another one is going next week. I visited there personally about a month and a half ago to make sure that everything is ready for the. In Kenya, which is turning to be our major food supplying operation, we purchased a castor header from Nardi in Italy. It is being shipped next week out of Italy and will arrive in time for harvest in Kenya.
Speaker Change: Yeah.
Speaker Change: In Brazil, our seed suppliers are doing this for the second year.
Speaker Change: They all have the right equipment and everything is streamlined.
Speaker Change: We are visiting their period.
Speaker Change: Clearly when if we're gonna Miss just came back last week and the other one is going next week I visited personally.
Speaker Change: About two months ago, so make sure that everything is ready for harvest.
Speaker Change: In Kenya, which is turning to be our major skip supplying operation.
Speaker Change: We purchased <unk> from Nordea in Italy.
Speaker Change: Is being shaped next week out of Italy.
Speaker Change: A rising tide for harvest in Kenya.
Yoash Zohar: We're also shipping de-hulling and feed processing equipment from India and China to set up our own Logistical Center, where we will de-hull, clean, sort, and pack the seeds, all under Castera. We're in the process of registering a local entity in Kenya, which will operate, Bob mentioned. [inaudible] Okay, we are there. I personally visited each and every one of our growers and the location for the seed processing. And at this point in time, we see no, we anticipate no problems in seed processing in our
Speaker Change: We also shipped in D C.
Speaker Change: Testing equipment from India and China.
Speaker Change: To set up our own.
Speaker Change: Yeah.
Speaker Change: Logistical center.
Speaker Change: We will do that.
Speaker Change: Clean SOR.
Speaker Change: <unk>.
Speaker Change: Or.
Speaker Change: Stirrer.
Speaker Change: In the process of registering and a local entity in Kenya.
Which will operate.
Speaker Change: Bob mentioned.
Speaker Change: Yes.
Speaker Change: Again, we are there I personally visited each of our growers.
Speaker Change: Relocation core seed processing.
Speaker Change: At this point in time, we see no.
Speaker Change: We envision no problems in the suit processing and harvest procedures.
Speaker Change: Okay.
Operator: What considerations do you believe remain outstanding before E&I can place a follow-on order for castor seed to be delivered in 2025?
Speaker Change: What considerations do you believe remain outstanding before Eni can place a follow on order for Castor seed to be delivered in 2025.
Yoash Zohar: You ask, can you take this question as well? Sure.
Speaker Change: You're asking you take this question as well.
Speaker Change: Sure.
Yoash Zohar: So, you know, we cannot comment at this point in time about 2025 orders. I will only say that we are deep into negotiations with clients, foremost E&I, of course, on the different territories, which means Kenya and other African territories, and some of the orders are going directly to ENI in specific locations; others are going through their main headquarters in Italy. We are negotiating with both, and as soon as we have clear orders, we will, of course, notify ENI.
Speaker Change: So we cannot comment at this point in time.
Speaker Change: About.
Speaker Change: 2025 orders I would only say that we are deep into negotiation.
Speaker Change: When clients.
Speaker Change: Foremost nine scores on the different.
Speaker Change: Territories, which means.
Speaker Change: Kenya and other African territories.
Speaker Change: Some of the orders going directly.
Speaker Change: Eni and specific location and others are going through and.
Speaker Change: Their main headquarters in Italy, we are negotiating with both and as soon as we are clear.
Speaker Change: The orders, we will of course notify everybody.
Operator: Were 100% of the upfront payment from buyer to AgPlanets realized in the first quarter? And do you expect the ongoing R&D funding milestone payments and royalties to allow AgPlanets to be profitable on a go forward basis?
Speaker Change: We're 100% of the upfront payment from buyer to AG planets realized in the first quarter.
Speaker Change: Do you expect the ongoing R&D funding milestone payments and royalties to allow add planets to be a profitable.
Speaker Change: On a go forward basis.
Dan Gelben: Here with us, we also have Dan Gelben, the new CEO of ACT Planus, and I'm very happy that he joined us at the beginning of this year. And I will ask him to take the lead and answer this question. So Dan, please. Thank you very much.
Speaker Change: He always asks we have also Dan Gilligan, the new CEO of <unk>, which I'm very happy to join US at the beginning of this year and I will ask him to take the lead.
Speaker Change: Sure.
Dan Gilligan: These questions. So Dan. Please so thank you very much as Johan said.
Dan Gelben: So thank you very much. As Yaron said, the full amount of the upfront payment was recognized by Evogene in this quarter. And to the second part of the question, the payments that we are receiving are a significant contribution to our revenues, and they are in addition to other revenue streams that we have from other collaborations. However, we are not yet cash positive from these. Evidently, as we go along and we start to receive from these multiple collaborations, both milestone payments and royalties in the future, we will be cash positive. We continue to expand our collaborations in order to be self-sustainable in the short term, even before we start to receive significant revenue payments.
Dan Gilligan: The full amount of the upfront payment were recognized by Amgen in this quarter and to the second part of the question.
Dan Gilligan: The debt payments that we are receiving are a significant contribution to our revenues and they are in addition to other revenue streams that we have from other collaborations we have not yet cash processes from these evidently as we go along and we start to receive from these multiple collaborations.
Dan Gilligan: Both the milestone payments and royalties in the future we will be cash positive we continue to expand our collaboration in order to each you'll be self sustainable in the short term even before we start to receive significant revenue payments.
Thank you.
Operator: The next question, what is your confidence level in filling the 10 million caster seed order by year end? And what will be the pace of filling this order?
Speaker Change: The next question what is your confidence level and filling the 10 million Castor seed order by year end and what will be the cadence of the filling of this order.
Yoash Zohar: Yoash, can you take this question as well?
Speaker Change: Can you take this question as well.
Yoash Zohar: Yes, as we notified you, we anticipate production of at least 900 tons of seeds in 2024. So we will be able to fill all the open orders for 2024, 2023, and 2024. The cadence will be the major supply will start in August, all the way through December, and we'll probably peak around October.
Speaker Change: Yes, so as we notified.
Speaker Change: We envision production of at least 900 tons will change.
Speaker Change: In 2024.
Speaker Change: So we will be able.
Speaker Change: To feel all the open orders.
Speaker Change: For 2020 for 2023 and 2024.
Speaker Change: <unk> will be the major supply will start.
Speaker Change: In August.
Speaker Change: All the way.
Speaker Change: Through December.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: And we'll probably peak around October.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: The next question.
Operator: The next question, a cash question. What amount of cash have you front-end invested in it to line up capacity for the 900 tons per caster? What amount of future investment will be needed?
Speaker Change: Our cash question what amount of cash have you front and invested in it to line up capacity for the 900 tonnes for caster, what amount of future investment will be needed.
Speaker Change: So I wouldn't take this question.
Uh huh.
Ofer Haviv: So I will take this question. No, this is something that Kosteva is responsible for, but I will still answer it. So there is a need, of course, when you build an inventory for ongoing capital. And as I mentioned earlier, one of the things that we are doing in Evogen is investing our money in places where we see a high probability of success. So one of the reasons why we are planning to do this is that part of the money that we are going to save from closing the canonic activity will be invested in funding the ongoing capital needs of Kosteva.
Speaker Change: No. This is something that the.
Speaker Change: Because there is a.
Speaker Change: I'm responsible for but still I would.
Speaker Change: I'll answer it.
Speaker Change: So there is a need.
Speaker Change: Of course, when you build in inventory for our ongoing capital.
Speaker Change: And as I mentioned earlier, one of the things that we're doing in Abilene.
Speaker Change: Is the investing our money in the places where we see high probability of success. So one of the reason.
Speaker Change: What's left to do is it far from the money that we're going to save from.
Speaker Change: Clothing.
Speaker Change: <unk> activity is to invest in funding the ongoing capital.
Speaker Change: Neither.
Speaker Change: The stirrer. So this is arne already take into account and it and we built it in a way that we can fund the needs for the inventory.
Ofer Haviv: So this is already all taken into account, and we built it in a way that we can fund the needs of the inventory. And when we start to receive revenue from our partners, we are going to use it to build the inventory for next year. And since we are expecting to start to receive significant amounts of money during the 3rd quarter of this year, we are going to build the inventory for 2025, actually starting in 2024.
Speaker Change: And when we will start to receive revenue from our partners, we are going to use it to build the inventory for it next year.
Speaker Change: And then as soon as we are expecting to start to receive significant amounts of money going into the third quarter of this year. So we're going to build up the inventory for 2025 actually starting in 2024. So this is how we're going to fund our ongoing.
Ofer Haviv: So this is how we are going to fund our ongoing needs for ongoing capital. At the beginning of the 1st half of 2024, it's going to be from Evergene Resources, part of which is coming from Closing Economics. The second half, it will start also to be funded from revenue we are going to generate from our existing partners because what we are trying to do is to start 2024 with a 9th level of inventory to supply the demand that we expect in 2025.
The needs for ongoing capital.
Speaker Change: At the beginning for this at the beginning of the first is that fair.
Speaker Change: First half of 2024 was going to be from Epogen resources Basel III, it's coming from clothing economic second half. It will start also to be in.
Speaker Change: Funded from revenue, we are going to generate from me.
Speaker Change: Then our existing partners.
Speaker Change: Because what we are trying to do is to start 2024.
Speaker Change: A nice level of.
Speaker Change: Inventory to supply.
Speaker Change: And the demand that we expected in 2025.
Operator: The next question, is the 900 tons of castor seed supply in addition to the 400 ton expansion you reported on your Q1 earnings call? Or is the total supply now 900 tons?
Speaker Change: The next question are the 900 tonnes of Castor seed supply. In addition to the 400 ton expansion you reported on your Q1 earnings call or is the total supply now 900 times.
Yoash Zohar: So the total supply is 900 tons.
Speaker Change: So the total supply is 900 tons.
Operator: The next question is how much, if any, of the $4.2 million in revenues were from sales, such as seed sales.
Speaker Change: The next question how much if any of the 4.2 million in revenues.
Speaker Change: We're from sales seed sales.
Ofer Haviv: As I mentioned in my part, only a small portion of the orders we received in 2023 were delivered. So from this, you can understand that only a small portion of the revenue from this quarter is the attribute from Casera Activity. There is some revenue coming from Casera Activity, but it's very modest compared to what we are expecting to see in the second half of 2025, as we have already disclosed.
Speaker Change: As I mentioned in my part a only a small portion from the orders we received in 2023.
Speaker Change: We're delivered so from this you can understand that only a small portion from the revenue from this quarter.
Is it attributes from.
Speaker Change: Cassandra activity. There is there are some revenue coming from customer activity, but it's a very modest compared to what we are expecting to see in the second half of 2025 as we already disclosed.
Operator: Next question. Please address competition based on your CBP platform.
Speaker Change: Next question.
Speaker Change: Please address competition faced.
Speaker Change: By your C B P platform.
Speaker Change: Yeah.
Ofer Haviv: So I would like to refer in general to why we think that our technology is unique. I think that what we are doing in Evogen is that we are not just building a computational technology. It's all guided, and we build it together with a group of biologists and chemists that actually are coming up with the problems they are facing.
Speaker Change: So I would like to refer in general.
Speaker Change: What why do we think that our technology is unique I think that the what.
Speaker Change: What we are doing in ever Jan is that we're not just building a conditional technology.
Speaker Change: All guided and.
Speaker Change: And we build it together with a group of biologists and K missed that actually are coming with the programs. There are facing and they know about which is the industry is facing and we are really trying to address these type of problems in using our technology.
Ofer Haviv: And they know about the problems that the industry is facing. And we are really trying to address this type of problem by using our technology. And then when we are working with our partners, I think, and also with our subsidiaries, this is bringing additional validation to the technology and also helps us to improve the technology all the time. And I think that the fact that in our company, which is very rare to see in other places, the fact that we have three tech engines, one for the genomics type of product, then microbials, and then chemistry, and we are all managing it under the same umbrella This has put us in a very, very unique position because in biology and in life science in general, it's all connected. It's all related, and you can just focus on one fragment from the big story.
Speaker Change: And then when we are working with our partners.
Speaker Change: And also with our subsidiaries.
Speaker Change: Will bring additional value and validation are too.
Speaker Change: The technology and also it also help us to improve the technology all the time.
Speaker Change: And I think that the fact that fit in our company and this is very rare to see it in other places. The fact that we had three engine one for genomics and any type of product.
Speaker Change: The micro guys and then chemistry and we are all managing it under the same umbrella. This is puts us in a very very unique position because in biology and.
Speaker Change: In life Science in general it's all connected it's all connected and you can just focus on one fragment from from the Big story.
Ofer Haviv: So I think this is what's unique at Evogene Technology, and you know what makes our partners to be the proof. I mean, the number of partners that we are working with is getting bigger and bigger. Actually, it's really the first tier type of company, such as Corteva, Bayer, Syngenta, ICL, and I think this is just the beginning. I believe that there will be more that our subsidiary, or even Evogen Direct, is going to work with. So I truly believe that we are offering something different from what exists today in the market.
Speaker Change: This is what's unique epogen technology, and you know what let's our partners to be the proof and the number of partners that we are working with is getting bigger and bigger it's actually it's really that.
Speaker Change: Our first tier type of company such as for Teva.
Speaker Change: Buyer of Syngenta a ICL.
Speaker Change: I think because just the beginning I'm believed that there would be more that we our subsidiary or even Emerson will direct it is going to work with so I truly believe that we are offering something different from what exists today in the market.
Ofer Haviv: There are no further questions at this time. Mr. Haviv, would you like to make your concluding statement?
Speaker Change: There are no further questions at this time, Mr. Javier <unk> would you like to make your concluding statement.
Ofer Haviv: Yeah, I would like to say thank you to everybody for participating in this analyst call. I think that we had a great first quarter this year. We are looking forward to continuing and to updating you on the next achievement of our company and subsidiaries at the next analyst call. Thank you very much, and have a great day.
Mr. Javier: Yes, I would like to say thank you for everybody for participating in this analyst call I think that we had a great.
Mr. Javier: My first quarter in this year, we are looking forward to continue and to update you on the next.
Mr. Javier: Achievement of our company and our subsidiaries at the next analyst call. Thank you very much and have a great day.
Operator: Thank you. This concludes Evogen's first quarter 2024 results investor webinar. Thank you for your participation. You may go ahead and disconnect.
Speaker Change: Thank you. This concludes ever Jens first quarter 2024 results Investor Webinar. Thank you for your participation you May go ahead and disconnect.
Mr. Javier: Goodbye.