Q4 2024 Evogene Ltd Earnings Call
<unk> interim CEO.
I am pleased to present to you our company and its unique value proposition.
He put them in the public.
Welcome to Evidence fourth quarter results conference call. All participants are present in listen-only mode. Following management's formal presentation, we will open the question-and-answer session. As a reminder, this conference is being recorded March 6th, 2025.
Sure.
<unk> and potential or words of similar meaning we are using forward looking statements. In this presentation. When we discuss our value drivers commercialization and production efforts and timing product development and launch it estimated market sizes and milestones pipelines as well as <unk>.
Our capabilities and technology.
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 companys 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 expected or implied by such forward looking statements due to a variety of factors many of which are beyond our control, including without limitation. The current war between Israel, and Hamas and hizbollah and any worsening of the situation in Israel such as far.
Other mobilizations or escalation in the northern border of Israel and those risks described in greater detail and Epogen. The annual report on form 20-F, and in other information Epogen files and furnishes with the Israel Securities authorities and 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 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 and the information contained herein does not constitute a prospectus or other offering document nor does it constitute or form part of any invitation or offer to sell or any solicitation of any invitation or offer.
Or to purchase or subsidized for any securities of epogen 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.
There too or to the securities of Epogen or the company. The trademarks included herein are property of the owners Europe and are used for reference purposes, only such use should not be construed as an endorsement of our products or services with us on the line.
Speaker Change: We'll be around El Dod CFO of <unk>, and <unk>, President and CEO of Epogen now I will turn the call over to overcome Vive. Mr. Levy. Please go ahead.
Speaker Change: Good day everyone.
Today's conference call I would like to begin by welcoming minimally.
<unk>, new chairman of the board.
Speaker Change: I will continue with a review of the <unk>.
Speaker Change: And business highlights for the fourth quarters, ending total yields.
Speaker Change: Followed by an overview of <unk> current FDA issues.
Speaker Change: Hughes.
Speaker Change: I will then conclude with our subsidiaries targets for 2025.
Speaker Change: After my remarks.
Speaker Change: Doug.
Speaker Change: CFO.
Speaker Change: It provides financial update on Q4 and the entire year 2024.
Speaker Change: We will then open.
Speaker Change: The Q&A session.
Speaker Change: Good day, Ampligen formally announced the change in the chair position in which new anymore.
Speaker Change: <unk> serves as a board member.
Two and a half years will now serve as some excuse chairperson.
Speaker Change: Replacing your own who will now.
Speaker Change: The board member.
Speaker Change: I won't be welcome new Nimrodi.
Speaker Change: <unk>, new chairman of the board and Im looking forward to closely working alongside him.
Speaker Change: I would like to use this opportunity.
Speaker Change: So thanks, so risky loan program, adding <unk> board and management over the last three and half years and Im looking food led to continued support of the company as a board member.
Speaker Change: Meaning what is here with us and they're asking to see some introductory words.
Speaker Change: Okay.
Ofer: Thank you Ofer I'm honored to assume the role of chairman and we'd like to thank serving for the valuable contributions I'm happy she will continuing overcapacity as a board member.
Ofer: I'm really excited about the opportunities that lie ahead for <unk>, we believe that the company holds several assets in subsidiaries with potential to generate significant value for both epogen and its shareholders I would like to emphasize this last remark again, we're committed to unlocking this value within this year and anticipate achieving it in a capital efficient manner.
Ofer: <unk>.
Ofer: <unk> has been at the forefront of leveraging advanced computational capabilities to drive product innovation for the past two decades.
Ofer: With the growing potential of AI, we plan to further expand our expertise to accelerate the drug discovery process and maximize the value we bring to this field.
Speaker Change: Lastly, I have spent the last 25 years in the life science space and was instrumental in generating significant shareholder value in both public and private companies I'm eager to get started to do the same with <unk> team. Thank.
Ofer: Thank you.
Ofer: Thank you.
Ofer: Great. Thanks, guys.
Ofer: I would now like to focus on the financial and business highlights of 2024 and the beginning of 2025.
Ofer: In 2024 total revenues reached approximately $8 $5 million.
Ofer: <unk> to $5 $6 million in year 2023.
Ofer: The increase in revenues in 'twenty 'twenty four is mainly due to an increase in <unk>.
Ofer: Revenues from its collaboration with buyer and an increase in <unk> seed sales.
Ofer: In Q4 of 2024 total revenues reached approximately $1 6 million.
Ofer: Compared to <unk> 6 million.
Ofer: In Q4 2023.
Ofer: The increase in revenues in Q4 2012 before is mainly due to the increase in <unk>.
The main reason for the lower revenue in Q4 2024 compared to expectation is the change in the delivery schedule.
Ofer: From 2024 to 2025.
Ofer: In the entire EUFOR Twinkies went before customer deliver only 76 stones, while in February 2025 alone. The company already delivered 250 tons of gastro seeds.
Ofer: In <unk> 'twenty 'twenty four for silver delivered approximately 250 million tons of cargo in total.
Ofer: Stay tuned just in February this year company delivered already 250 <unk>.
Ofer: Which reflects soybean bottleneck in seed production company previously faced.
Ofer: This caused a delay in the delivery schedule and consequent abreast adjustments.
Ofer: Considering the expected to continue delivery costs are mainly from its existing inventory, which currently consist of 422.
It's partnered threw up throughout 2025.
Ofer: Based on the new schedule and new orders to be received.
Ofer: Replacing previous 2023 orders following discussion with our partners.
Ofer: In June of 2020 for total R&D expenses were approximately $16 $6 million compared to $28 million in 2023.
Ofer: In Q4 of 2024.
R&D expenses were.
Ofer: Approximately $3 4 million compared to $5 5 million.
Ofer: In Q4 2023.
Ofer: These decreases are mainly due to the end of <unk> activity in Q2, 2024, and <unk> and a decrease in bromine and <unk> R&D activity, mainly in Q4 2024.
Ofer: During Q4, 2024, and the beginning of 2025.
Ofer: <unk> established an expense reduction plan.
Ofer: Led to a reduction in head count, which will be completed by Q1 2025.
Ofer: Approximately 30%.
Ofer: The effects of this plan will be reflected starting Q1 2025.
Ofer: Indeed, 2024 total G&A expenses were approximately $7 4 million compared to $6 1 million in year 2023.
Ofer: G&A expenses in 2024 included.
Ofer: One time expenses of approximately $1 $5 million, resulting from April June fundraising.
Ofer: And allow us to explore.
Ofer: Therefore that of one of the <unk>.
Ofer: Players.
Ofer: Operating expenses in 2024 includes other expenses totaling.
Zero point $5 million maturing in Q1 due to the edge of economic activity.
Ofer: Okay.
Ofer: Now I would like to highlight demand achievements made by the <unk> growth in 2024 and up to date.
Ofer: Starting with Imogen in October 2024.
Ofer: <unk> collaborated with Google cloud to pioneer a generative iPhone addition model for novel small molecule design.
Ofer: Is a reflection of our efforts to advance campus AI for drug discovery.
Ofer: Now, let's move to Cassandra.
Ofer: During 2024, just ever delivered to its partner approximately 215 tonnes of vessels to EBIT.
Ofer: 76.
Ofer: <unk> delivered in Q4 2024.
Speaker Change: In February 2025, as I mentioned to Sara already delivered to its partner approximately 250 ton of Castor seeds.
Ofer: <unk> expects to continue supply and cost of fees.
Speaker Change: During the coming months.
Speaker Change: For new orders received in 2025, replacing some of the orders from 2023, mainly from existing seed inventory.
Speaker Change: Currently amounting to approximately 400 tones.
Speaker Change: With regards to steel production in Africa.
Speaker Change: In October 2024, the company reported achieving a key milestone in its operational expansion.
Speaker Change: With the completion of third of third.
Speaker Change: Shipment of over 100 tone, both vessel seeds grown and processed in Kenya.
Speaker Change: In February 2025.
Is complete the current harvest season, supporting current and future demands.
Speaker Change: Continuing with seed production in Brazil.
Speaker Change: In July 2020 for.
Speaker Change: The growing and harvesting season was completed.
Speaker Change: The first shipment.
Speaker Change: From Brazil was initiated in 2024 and will continue into 2025.
Speaker Change: In Q1 2025.
Speaker Change: <unk> initiated proof of concept trial forecast of Green farming in Africa and Brazil.
Speaker Change: Using new commercial growth protocol.
Speaker Change: The grain will be used for oil production, which can open a new commercial horizon focused era as a provider of green to the castle oil industry.
Speaker Change: In addition to its current activity.
Speaker Change: Supplier.
Speaker Change: Continuing with the <unk>.
Speaker Change: In February 2024, <unk> signed a new collaboration agreement with Syngenta to discover and develop novel bio insecticides.
Speaker Change: In July 2024.
Speaker Change: <unk> achieved a significant milestone in their collaboration developing yield increasing bio stimulants for row crops.
Speaker Change: Under extreme weather conditions.
Speaker Change: The company reported on the commercial expansion of yellow.
Speaker Change: The window in July 2024, and two soybean in November 2024.
Speaker Change: Initial sales for soybean are expected in spring 2025.
Speaker Change: In November 2024, <unk> reported the advancement of <unk> to one <unk> side targeting downy mildew to brick commercialization followings.
Speaker Change: Following successful fleet wide results.
Speaker Change: Moving to Atlanta.
Speaker Change: In February 2020 for a new collaboration agreement was signed with buyer to develop a new sustainable weed control solution.
Speaker Change: In March 2024.
Speaker Change: <unk> achieved a milestone with port Teva.
Speaker Change: In an existing collaboration agreement for novel Herbicides.
Speaker Change: In February 2025, <unk> announced the discovery of a new mode of action for fully size against absorbed in weeks.
Speaker Change: I will end this path with biomarker the highlights.
Speaker Change: Phase one of the clinical study for microbes based therapeutics, BMC 128, which started with 11 patients.
Speaker Change: Is nearing completion with the prolonged positive.
Speaker Change: Bonds of five patient.
Speaker Change: Four of whom are still active in the Sun <unk> received positive feedback from the SBA following a pre IND meeting at the beginning of 2024.
Speaker Change: RMB submission is expected in Q3 2025.
Speaker Change: I will provide more details on the target for 2025 for each subsidiary later in the presentation.
Speaker Change: I would like now to focus on <unk> overview, and our main targets for 2025.
Speaker Change: Our vision is to position <unk> as a pioneering company in the development of groundbreaking lifestyles products rooted in micro small molecules and genomics.
Speaker Change: To realize this vision, we have concentrated on integrating life science expertise.
Speaker Change: Advanced Big data and state of the art conditional technologies.
Speaker Change: This approach led the development of our three proprietary tech engine.
Speaker Change: Each designed to drive effective discovery and optimization of lifestyle products.
Speaker Change: Our AI driven <unk> engines offer a strong value proposition by effectively identifying and optimizing the most promising candidates.
Speaker Change: This increases the potential for developing successful products within competitive timeline and in cost effective manner.
Speaker Change: Our fifth engine, we're strategically designed to align with the best potential across multiple market segments.
Speaker Change: Rather than being confined to a single area.
Speaker Change: While this technology Halden.
Speaker Change: Exceptional promise each market segment demand specialized expertise.
Speaker Change: For product development, alongside significant financial resources, and advanced development and production infrastructure.
Speaker Change: To effectively harness the value embedded in our technology.
Speaker Change: Considering the mentioned requirements, we have implemented a targeted business strategy tailored to address those needs.
Speaker Change: Our business strategy is designed to maximize potential while minimizing risks.
Speaker Change: By establishing a diverse network of collaborative partnership for life Science product development.
Speaker Change: We partner with experts in complementary fields.
Speaker Change: Forming licensing collaborations agreements with companies that bring domain specific knowledge.
Speaker Change: Some of those strategic alliance, we aim to co develop innovative products.
Speaker Change: The upside forgivable, Jim Steams from revenue sharing mechanism of the end product or through equity holding in the company developing the end product.
Speaker Change: He was at Cowen snapshot of our business model.
Speaker Change: <unk> currently owns four subsidiaries companies.
Speaker Change: Each focused on a specific market segment.
Speaker Change: In market segment not covered by our subsidiary we have established collaboration with external companies.
Speaker Change: This slide highlights the commercial and financial partners engaged with the <unk> group. We are very proud of the progress and achievements we have made to date.
Speaker Change: Okay.
Speaker Change: I would like to share with you epogen prospects.
Speaker Change: For the near future.
Speaker Change: As mentioned earlier by Neil we now intend to direct our efforts to develop a more capital efficient model to generate greater value by focusing further on the yield of our Tampa AI.
Speaker Change: In the field.
Speaker Change: AI powered drug discovery.
Speaker Change: Accordingly, we intend to.
Speaker Change: Focus on enhancing campus AI Tech engine competitive advantage for the pharma market segment.
Speaker Change: An example of such efforts is the development of the foundation model in collaboration with Google Cloud.
Speaker Change: In the near term, we expect those efforts to manifest in collaborations with mid sized biotech companies and academic institutions.
Speaker Change: For small molecule drug discovery I.
Speaker Change: I hope, we will be able to announce such collaboration later this year.
Speaker Change: With respect to macro boost AI and generator AI, we intend to continue to support and development of those tax engine based on the needs of our subsidiaries with their funding.
Speaker Change: With respect to epogen subsidiaries, our intention is to.
Speaker Change: Our focus on creating exit events for Amgen with respect to part of our subsidiaries.
Speaker Change: Such an event is expected to inject funds to support evidence activities.
Speaker Change: Strength <unk> position as the profitable world leader in the tougher oil market.
Speaker Change: Since epogen holds 100% of the company, we intend to use its profit.
Speaker Change: Appropriate to support evidence activities as well.
Speaker Change: <unk> will also support subsidiaries efforts in their strategic.
Speaker Change: <unk> activities.
Speaker Change: Out of the fund will be used by the subsidiaries to finalize the development of <unk> engine according to their needs.
Speaker Change: This strategic guidelines are expected to strengthen <unk> financial position.
Speaker Change: We're focused on a single tech engine and implementation of our expenses reduction plan, we expect to substantially lower expenses.
Speaker Change: And through exit events dividend and technology license payment, we anticipate enhancing epogen financials.
Speaker Change: As stated earlier in the near future, we intend to invest significant resources and efforts in developing campus AI for the drug discovery based on small molecule for the pharma industry.
Speaker Change: In the following slide.
Will elaborate on our motivation.
Speaker Change: We believe that now is the time to invest in small molecule drug discovery utilizing computational technology with a focus on AI for the following reason.
Speaker Change: First discovering derived small molecules that can serve as a drug.
Speaker Change: Is like finding a needle in Hastings.
Speaker Change: This has been a major challenge facing the pharmaceutical industry for decades.
Speaker Change: Second addressing this challenge has the potential for a significant financial impact on the company that offer.
Speaker Change: Offers a solution.
Speaker Change: Today, we are on the.
Speaker Change: At the brink of technological singularity.
Investments in computational technology enabled the discovery and optimization of small waterfalls candidates addressing multiple development requirement for a successful drug.
Speaker Change: The latest development in AI.
Speaker Change: Now for the generation of innovative small molecules that can address the urgent need for novel drugs in the pharmaceutical industry.
Speaker Change: The vast surgical industry is willing to invest in novel breakthrough technology that could potentially provide solution to its pinpoint.
Speaker Change: To summarize.
Speaker Change: From <unk> perspective, given its two vacates of computational biology expertise.
Speaker Change: It's natural evolutions due to its existing and new valuable competition level tool to impact the drug discovery field.
Speaker Change: Key represent just a few of the recent examples for multi millions agreements between competition companies and global pharma.
Speaker Change: We are now targeted to showcase our differentiated technology offering in this space to attract meaningful collaborations with biotech and pharma companies in the past we have shown our ability to partner with global leaders.
Speaker Change: Such as a buyer in Cordova, we will now turn our focus to the drug discovery space and we expect that the conversions of our existing campus AI engine and new competition, a tool will prove rewarding.
Speaker Change: If you ask yourself is evident can be a significant player in this market of AI for pharma.
Speaker Change: The answer is clearly yes.
Speaker Change: Over the years, we have established internal advanced AI capabilities to develop proprietary machine learning and deep learning algorithms, enabling us to create a cutting edge AI application the drive our tech engines.
Speaker Change: Our highly skilled aggregating steam.
Speaker Change: Insistently develop innovative and successful AI solution reinforcing our leadership in the field.
Speaker Change: Everything we develop for campus AI in the past years.
Speaker Change: Which until now was successfully implemented in agriculture alone is relevant and applicable for small molecule drug discovery.
Speaker Change: In this slide we listed the main capabilities and Differentiators of campus AI for drug discovery uniquely positioning epogen to initiate discussion with potential partners.
Speaker Change: I would like to focus on one of our exciting technology Differentiators. The foundation model, we are developing in collaboration with Google Cloud.
Speaker Change: This proprietary AI model, we provide a solution to the need for novel small molecules.
Speaker Change: As I mentioned earlier.
Speaker Change: After training on 40 billion data points. This model will generate brand new undiscovered chemical entities with broker fees that addressed product requirements.
Speaker Change: At present.
Speaker Change: <unk> has established an internal business development team focused on creating partnerships with biotech and pharma companies to support their development efforts of mobile phones based drugs.
<unk> points to origin countries of companies. We are currently in initial contact with.
Speaker Change: We expect some of these to materialize into collaborations agreements and I will be happy to disclose such information when it matures.
Speaker Change: Let's move on to review our subsidiaries main targets for 2025.
Speaker Change: I would like to begin with Castilla epogen wholly owned subsidiary focused on developing an integrated solution for the large scale commercial farming of Glassdoor.
Speaker Change: Leveraging its unique elite seed varieties.
Speaker Change: The <unk> solution is designed to meet the global demand for our stable cost of oil supply.
Speaker Change: Similarly for Biofuels and bio based products.
Speaker Change: The company is utilizing the generator AI tech engine to drive and accelerate the development of its distinct elite Castor seed varieties.
Speaker Change: The company's main target for 'twenty 'twenty five includes.
Speaker Change: Increase in <unk> revenue in Africa, and initial sales in Brazil, and other territories initiation of both of course soon trial for grain farming with a tier one partner in Kenya or Brazil.
Speaker Change: This trial will allow us terra to explore a new commercial horizon as a provider of brain to the Castor oil industry. In addition to its current activity a seat supplier.
Speaker Change: The steroid will develop new varieties and advanced at least two new lines to the pre commercial phase.
Speaker Change: It also aims to develop a solution for reducing rising quantity in mill to be U S organic fertilizer.
Speaker Change: Because there are also expects to strength and improve production facility in Kenya and Brazil.
It is clear this year 2024 was very significant focused era, and we are looking with anticipation to its continued expansion in 2025.
Speaker Change: Continue with <unk>, a global leader in developing next generation <unk> product powered by the macro boost AI ASIC engine, let me buy your main targets for 2025 include.
Speaker Change: A new collaboration agreement for <unk>.
Speaker Change: An increase in the set of yellow is commercial <unk>.
Speaker Change: And in its existing collaborations with ICL for bio stimulant and with Teva for bio pesticides. The company is expected to reach RMB milestones.
Speaker Change: Next I would like to review the main targets for 2025 of <unk> a company specializing in the development of novel and sustainable crop protection products utilizing epogen campus the AI engine target.
Speaker Change: Including <unk>.
Speaker Change: <unk> achievement in the collaboration with Teva or herbicide execution of the war plane in the collaboration with bio.
Speaker Change: Discovery of small molecules with new modes of action in the <unk> program.
Speaker Change: And a new collaboration agreement portfolio side in same program.
Speaker Change: <unk> is benefiting from the progress <unk> made in 2024 and its campus AI Tech engine and we'll continue to leverage epogen investment in its engine in the future to accelerate company growth.
Speaker Change: Now.
Speaker Change: Turning to biomarker, which specialized in developing microbiome based therapeutics for human health.
Speaker Change: Powered by the micro boost AI engine.
Speaker Change: As president as already stated Biometer is primarily focused on advanced is immuno oncology program with its lead candidate BMC 128.
Speaker Change: The phase one clinical study is nearing completion with positive results.
Speaker Change: In the five patients showing prolonged response.
Speaker Change: The main target for biomarker for 2025.
Speaker Change: To complete phase one study in the oncology program opt in for our results and additional supporting clinical data submit the application to the U S. FDA and obtained FDA approval for the phase II study.
Speaker Change: In addition, the company initiated in 2020 for two new programs obesity and longevity longevity. The main target for this program is to complete discovery and in vitro validation and seek partners for collaboration.
Speaker Change: This concludes my part in this call and now your own will continue with the CFO update your own.
Speaker Change: As of December 31, 2024, Epogen help consolidated cash cash equivalents and short term bank deposits were approximately $15 $3 million.
Speaker Change: The consolidated cash usage during the fourth quarter of 2024.
Speaker Change: Proximately $4 6 million.
Speaker Change: Excluding the Hebron umbrella omnicom epogen and it's over.
Speaker Change: Subsidiaries.
Speaker Change: Approximately $1 $5 million in cash during the fourth quarter of 2024.
Speaker Change: Cash usage for 2024, excluding revenue by line by Omi was approximately $10 $4 million.
Speaker Change: Marking a notable 17% decrease from approximately $12 $5 million in 2023.
Speaker Change: Revenues for the 12 months of 2012 before were approximately $8 $5 million, an increase from approximately $5 6 million in the same period the previous year.
Speaker Change: This growth was primarily driven by revenues recognized from Genesis, new collaboration with Bayer and increased <unk> revenues for the supply of cash proceeds during the period.
Speaker Change: Revenues for the fourth quarter of 2024 were approximately $1 $6 million compared to approximately zero point $6 million in the same period the previous year.
Speaker Change: The increase was mainly attributable to the increase in cost of sales and the collaboration with Bayer as mentioned above.
Speaker Change: Research and development expenses net of non refundable grant for the 12 months of 2024 were approximately $16 $6 million.
Speaker Change: A significant decrease from approximately $28 million in the 12 months of 2023.
Speaker Change: The decrease in expenses is mainly due to the scene of genomics activities and a decrease in certain development expenses in bringing omnicom ever Jim and Brian.
Speaker Change: As compared to the same period the previous year.
Speaker Change: Research and development expenses net of non refundable grant for the fourth quarter of 2024 were approximately $3 $4 million and decreased as compared to approximately $5 5 million barrels in the same period in the previous year.
Speaker Change: The decrease is mainly attributable to decreased expenses in <unk> and the sea of economics operations as mentioned above.
Speaker Change: Okay.
Speaker Change: Sales and marketing expenses for the 12 months of 2024 were approximately $3 4 million a slight decrease of approximately $3 6 million in the same period in the previous year.
Speaker Change: Sales and marketing expenses for the fourth quarter of 2024 were approximately zero point $7 million.
Speaker Change: Slight decrease from approximately $1 million in the same period in the previous year.
Speaker Change: The decrease is mainly due to the seats of <unk> activities.
Speaker Change: General and administrative expenses for the 12 months of 2024 increased to approximately $7 $4 million from approximately $6 $1 million in the same period of the previous year.
Speaker Change: The increase is mainly attributable to expenses recorded in <unk> due to a provision on the doubtful debt from our seat supplier.
Speaker Change: Transaction costs related to evidence fundraising that occurred in August 2024.
Speaker Change: Totaling approximately $1 $5 million.
Speaker Change: General and administrative expenses for the fourth quarter of 2024 increased slightly to approximately $1 $4 million.
Speaker Change: Compared to approximately $1 2 million in the same period of the previous year.
Speaker Change: The decision to cease economics operation in the first half of 2024 resulted in other expenses of approximately zero point $5 million, mainly due to impairment of fixed assets in the first quarter of 2024.
Speaker Change: The operating loss for the 12 months of 2044 was approximately $22 $2 million a decrease from approximately $26 $5 million in the same period of the previous year mainly.
Speaker Change: Mainly due to increased revenues and decreased research and development expenses.
Speaker Change: Offset by increased general and administrative expenses and other expenses as mentioned above.
Speaker Change: The operating loss for the fourth quarter of 2024 was approximately $4 6 million dominance.
Speaker Change: A decrease of approximately $7 $6 million in the same period of the previous year.
Speaker Change: Mainly due to increased revenues and decreased research and development expenses as mentioned above.
Speaker Change: Yeah.
Speaker Change: Financing income net for the 12 months of 2024 was approximately $4 $2 million.
Speaker Change: Compared to approximately half a million dollars in the same period.
Over the previous year.
Speaker Change: Financing income net for the fourth quarter of 2024 was approximately $4 $6 million compared to approximately zero point $3 million in the same period of the previous year.
Speaker Change: The increase in financial income net during the 12 months period and the fourth quarter of 2024.
Speaker Change: Compared to the respective period of 2023.
Speaker Change: It was mainly associated with the accounting treatment of pre funded warrants and warrants issued in August 2020 for fundraising.
Speaker Change: Pre funded warrants and warrants were classified as a liability on the consolidated statements of financial position, where initially recorded at fair value and subsequently re measured at each reporting period, using the black and Scholes option pricing model.
Speaker Change: As a result.
Speaker Change: During 2024, the company recorded a net financial income related to pre funded warrants and warrants of approximately $3 $4 million.
Speaker Change: The net loss for the 12 months of 2024 was approximately $18 $1 million compared to approximately $46 million in the same period of the previous year.
Speaker Change: The net loss for the fourth quarter of 2024 was approximately $5000.
Speaker Change: Third to approximately $7 $3 million in the same period of the previous year.
Speaker Change: The $7 $9 million decreased net loss for the 12 months of 2024 as compared to the 12 months of 2023 was primarily due to increased revenue decreased research and development expenses and increased financial income net.
Speaker Change: It related to Orleans.
Speaker Change: Offset by increased general and administrative expenses as mentioned above.
The $7 $3 million decrease in net loss for the fourth quarter of 2024 as compared to the fourth quarter of 2023.
Speaker Change: It was primarily due to increased revenues decreased research and development expenses and increased financial income net related to warrants.
Speaker Change: Mentioned above.
Speaker Change: Operator.
Speaker Change: Yeah.
Speaker Change: Thank you Les.
Speaker Change: Ladies and gentlemen at this time, we will begin the question and answer session.
Speaker Change: If you have a question. Please use the chat button located at the bottom of your screen. Please type your full name and your company's name before the question.
Speaker Change: Okay.
Speaker Change: The first question is from Ben Cleave of Lake Street Capital markets, you typically release cash burn guidance, but did not do so today what is your expected cash burn for 2025, and if you are not able to disclose can you. Please explain why.
Speaker Change: I've been since Youre wrong and.
Speaker Change: We're happy to have you on this.
Speaker Change: Okay.
Speaker Change: And thank you for your question.
Speaker Change: Our expected cash burn for 2025 from operation is it.
Speaker Change: Second to be between $67 million.
Speaker Change: This amount does not include any cash that will come in.
Speaker Change: To state.
Speaker Change: Theories.
Speaker Change: The next question also from van Cleef.
Speaker Change: You describe exit efforts for your subsidiaries more today than you commonly do.
Speaker Change: How advanced are these efforts.
Speaker Change: And how many subsidiaries are under consideration for an exit.
Ofer: And then hi, this is ofer and Boston.
Speaker Change: Don.
Speaker Change: We are very happy to help you with that.
Speaker Change: I can't talk much about it.
Speaker Change: And the profit.
Speaker Change: But I think from the fact that both neon and broadening our chairman Chairman and me.
Speaker Change: Looking at all of our focus on this aspect.
Speaker Change: You'll find the company in the future.
Speaker Change: Clear that we are putting a lot of effort and emphasis.
Speaker Change: In advancing.
Speaker Change: And to achieve those targets.
Speaker Change: I'm very happy that our subsidiary <unk> and we are interested in the RV industry concentration.
Speaker Change: Concentration in the industry. It is not great, but still because of the quality of our subsidiaries.
Speaker Change: A nice level of interest in what we are doing differently for collaboration but also maybe for more strategic opportunities. So again again, it's both bunch left.
Speaker Change: Accordingly, we Werent mentioned it the way we mentioned if we didnt feel that something might happen.
Speaker Change: In the reasonable future.
Speaker Change: A further question from Banco <unk>.
Speaker Change: You noted an expectation for initial sales in Brazil at <unk> in 2025. Please elaborate on one this expected to be from sale of seed for oil and two what line of business your potential customers and.
Speaker Change: Refiner grain processor either.
Speaker Change: So with respect to introduced Westin.
Speaker Change: Uh huh.
Speaker Change: As we disclosed in the past.
Speaker Change: We have.
Speaker Change: Two things.
Speaker Change: <unk> production in fact, one in Brazil, and one <unk>.
Speaker Change: In EMEA in Kenya, No doubt in June 2025, multiple of our effort to focus them on Kenya, and because of the work today, we own the majority of our inventory and when we are doing most of the activity steels. We have two production sites in Brazil, and we also have seen.
Speaker Change: Our inventory currently located in Brazil, and what we are planning for 2025 in both T cell and.
Speaker Change: We have it.
Speaker Change: <unk> been.
Speaker Change: In fact, and but we also.
Speaker Change: We are planning to conduct a POC.
Speaker Change: First one to demonstrate the quality of our variety in there.
Speaker Change: Advanced growth protocol, and we believe that this could generate.
Speaker Change: This year, but definitely next year insurance revenue from selling of grain.
Speaker Change: Currently the market in Brazil, and also in Kenya.
Speaker Change: There is a huge demand for capital grain.
Speaker Change: So almost everything that you can grow you can sell it but of course. The question is are you going to compare the amount of bunge, we need to invest in growing the growth compared to the price of the grain and this is the challenge we believe that our variety with the gross protocol as we develop and generate a nice margin for everybody in this process.
Speaker Change: So to make.
Speaker Change: To answer your question this year, yes.
Speaker Change: We are focusing on T cell, but.
Speaker Change: Also we thought the activity with respect to our Greenfield and here we are talking with.
Crashing factory there are a few of them in Brazil, and we are in a relationship with all of them.
Speaker Change: The next question from Brett Reece of Janney Montgomery, Scott what is the base case sales call or a gallows spring wheat and soybeans.
Speaker Change: We didn't disclose this information.
Speaker Change: What I can say that we see.
Speaker Change: Growing interests from previous year with respect to spring.
Speaker Change: But what we are even more.
Speaker Change: Feeling positive about that.
Speaker Change: Selling yellow for soybean grower it seems to be an easier from selling into the wheat grower, mainly because the margin on soybean is much higher compared to lead and.
Speaker Change: And together with the grower to use them in different type of product to increase unit is higher compared to the two weeks. So I cannot disclose more because we are really in the penetration and purion and we feel that if need be.
Speaker Change: It's hard to predict but it can be better than previous year.
Speaker Change: The next question from Scott Henry of AGP, how.
Scott Henry: How should we think about the magnitude of caster sales in 2025 would.
Speaker Change: Would you expect.
Speaker Change: Q1, 25 to be the largest quarter, how long is the shelf life of Castor seeds.
Speaker Change: Yes, I will start with the last question.
Speaker Change: <unk> excuse me.
Speaker Change: And the.
Speaker Change: This is why we feel comfortable.
Speaker Change: To produce <unk>.
Speaker Change: The inventory.
Speaker Change: So.
Speaker Change: The 400 a tonne.
Speaker Change: And we can give them for quite a while but of course, we are looking to sell most of it.
Speaker Change: During this year or at the beginning of next year.
Speaker Change: And with respect to how should we expect to cure.
Speaker Change: Q1 2025.
Speaker Change: Again, there's always the question are we are and we Barry just to Cassandra.
Speaker Change: I'm, referring to all of the Neupogen group, but we have other subsidiaries to generate revenue.
Elizabeth: And this is Elizabeth hard too.
Elizabeth: And to address because it could be.
Elizabeth: We are targeting and generate additional revenue for the other subsidiaries, but we expect to Castilla in first quarter it would be definitely.
Elizabeth: <unk> already disclosed that we deliver to $150. So we can be a nice quarter.
Elizabeth: And focused era, but no I'm not.
Elizabeth: I'm not expecting this to be the strongest quarter for the company till the end of the year. So.
Elizabeth: And knowing more and more to aim for.
Elizabeth: We expect.
Elizabeth: For <unk> coming from Europe.
Elizabeth: 2025.
Scott Henry: A further question from Scott Henry for the Agriculture line.
Scott Henry: What should we expect for milestones in 2025 can you add color to the magnitude of the timing.
Scott Henry: So I think that I was trying to disclose and asked US a question through a very detailed.
Scott Henry: The target for each subsidiary for $20 25.
Scott Henry: I think that the and we tried to emphasize what we expecting from Cassandra for 2025.
Scott Henry: And we already talked to.
Scott Henry: Sure.
Scott Henry: <unk> disclosed parts on the achievement in the first quarter, we just finished.
Scott Henry: February.
Scott Henry: Which is really at the beginning of the year, but still.
Speaker Change: We started we started here in a positive way and with Coursera and where we have some expectation also from the other subsidiaries and in the field segment in the aspect Vin, Let me bio and <unk> I think that we have a very strong pipeline and as I mentioned earlier, the 60 to create a very nice interest.
Scott Henry: Based on their performance.
Scott Henry: And during 2024, and I think that they are ongoing discussion already on potential future collaborations.
David: And I think David.
David: David you can see almost everything in the very detailed targets for 2025, and we released today.
Speaker Change: The next question a follow up from Brett Reece.
Speaker Change: What do you think the structure of the relationship between your possible joint venture partner and producing oil 50, 50 or do they take the risk of financing and execution and we take back a royalty.
Speaker Change: So.
Speaker Change: Currently when we are talking about.
Speaker Change: And growing using our speed in order to grow capital for grain. So we are taking.
Speaker Change: Taking the responsibility on the production and the computation, we set up the farming et cetera, and then and we are selling the grain.
Speaker Change: And we grow under an offtake agreement, we are not growing just because we already know to whom we announced the sale of the Green and we also agreed on was going to be the price. So we know exactly how much we are going to get for every ton of cost of grain that we are going to get a read on.
Speaker Change: Take any obligation or responsibility on the field.
Speaker Change: On the crushing of the grain into oil.
Speaker Change: Inorganic during 2025.
Speaker Change: So.
Speaker Change: So the and this year, it's going to be a proof of concept.
Speaker Change: We are targeting we already initiated SPD.
Speaker Change: As we disclosed.
Speaker Change: The first season in Kenya and the.
Speaker Change: And we.
Speaker Change: Mike and based on data with us that we have and again, we might expand the activity in the second season started in September this year.
Speaker Change: So I hope it <unk> disclosed.
Speaker Change: And I think it's more about.
Speaker Change: About this structure, we are targeting but this is just the beginning.
Speaker Change: Can imagine.
Speaker Change: And I can imagine in the future many different doctor, but.
Speaker Change: The name.
Speaker Change: Our risk on.
Speaker Change: There are less evident is very limited.
Scott Henry: The next question a further question from Scott Henry.
Scott Henry: Expense items, SG&A and R&D were lower in Q4 2024.
Scott Henry: Are these levels reflective for what we should expect in 2025 or is there another step down.
Scott Henry: Thursday.
Scott Henry: That contained in.
Scott Henry: And just maybe focusing on answering the question. So that's the thing to think about too.
Speaker Change: Scott and address and joining us for this call.
Speaker Change: And once again, thank you for your interest in Epogen, we inspected and to the following questions. So I would like to state. The following putting aside biomarker that this company because of the structure of activity.
Speaker Change: If they are and start to empower and initiate the cleaning costs why are the startup reviews and their product for clinical trial, which then gets a quite significant effects on the P&L. The consolidated P&L. So I think that the what we saw in <unk>.
Speaker Change: Paul.
Speaker Change: He's going to present, what we are going to see also in 2025 and might even be a additional.
Speaker Change: Additionally, the decline in the company expenses, so yeah, and I think that we also disclosed this information in our branches in our press release today that we thought.
Speaker Change: Uh huh.
Speaker Change: <unk> will start the process of reducing our head count as it can be completed in the U S.
Dan: Dan if you want so we are going to see a continual in ne.
Speaker Change: <unk> expense reduction.
Speaker Change: In Q1, compared to Q4, 2024, and maybe even more than you saw in 2024 and $1 75.
Speaker Change: There are no further questions at this time, Mr. <unk> would you like to make your concluding statement.
Speaker Change: Yes, yes, that's the things that everybody for joining today's call.
Speaker Change: When we finish our year 2025, it can be spent before it wasn't an easy year, but the thing that there is still the numbers that show that the company continued with its progress you can see it in the increase in the revenue you can see that in the claims and the expenses I think that our subsidiary is now in a great position.
Speaker Change: Uh huh.
Speaker Change: So we can you can allow us to do the next step and capture the value.
Speaker Change: Our investment in UK subsidiary and I'm looking forward to continue our discussion and continue to share with you our progress in the upcoming data analytics.