Welcome to Evogene's First Quarter 2025 Results Conference Call. All participants are present in listen-only mode. Following management's formal presentation, we will open 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 May 21st, 2025. Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events and Evogene 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 as defined in the US Private Securities Litigation Reform Act of 1995 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 may be identified by the use of such words as believe, expect, anticipate, should, planned, estimated, intend and potential or other words of similar meaning. We are using forward-looking statements in this presentation when we discuss our value drivers, commercialization efforts and timing, product development and launches, estimated market sizes and milestones, pipelines as well as our capabilities and technology. Such statements are based on current expectations, estimates, projections and assumptions described 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…

Good day, everyone. In today's conference call, I would like to begin with a review of the financial and business highlights for the first quarter of 2025 and up to date, followed by an overview of Evogene's current activities and the activities of its subsidiaries. After my remarks, Yaron Eldad, Evogene's CFO, will provide a financial update on the first quarter of the year. We will then open a Q&A session. Let's start with the financial and business highlights. In the first quarter of 2025, total revenues were approximately $2.4 million compared to approximately $4.2 million in the first quarter of 2024. The reason for the difference is that in the first quarter of 2024, revenues included license fee payment totaling of $3.5 million which were $2.5 million from the Lavie Bio licence fee under its collaboration with Corteva and $1 million from AgPlenus licence fee under its collaboration with Bayer. The primary driver of revenues in the first quarter of 2025 was an increase in seed sales by Casterra. During the fourth quarter of 2024 and the beginning of 2025, Evogene established an expense reduction plan, which will be completed by the second quarter of 2025. This reduction in expenses is already partially reflected in the financial results of the first quarter of 2025. In the first quarter of 2025, total R&D expenses were approximately $3.2 million compared to approximately $4.8 million in the first quarter of 2024. This decrease is mainly due to the decrease in Biomica's and Lavie Bio's R&D activity. In the first quarter of 2025, total sales and marketing expenses were approximately $0.6 million compared to approximately $1 million in the first quarter of 2024. This decrease is mainly due to the decrease in Lavie Bio's sales and marketing activity. In the first quarter of…

Thank you, Ofer. As of March 31, 2025 Evogene held consolidated cash, cash equivalents, and short-term bank deposits of approximately $9.8 million, compared to approximately $15.3 million as of December 31, 2024. This cash balance does not reflect approximately $2 million due from Casterra's outstanding customers, the majority of which were received in the second quarter of 2025. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $3 million in cash during the first quarter of 2025. Revenues for the first quarter of 2025 were approximately $2.4 million, a significant decrease from approximately $4.2 million in the same period of the previous year. This decline was primarily due to revenues recognized in 2024 from AgPlenus's license agreement with Bayer and Lavie Bio's license agreement with Corteva. In 2025, revenues were mainly driven by Casterra's increased seed sales. Research and development expenses for the first quarter of 2025 were approximately $3.2 million, a significant decrease from approximately $4.8 million in the same period of the previous year. The decrease in expenses was mainly due to lower research and development expenses in Biomica and Lavie Bio compared to the same period the previous year, as well as the closure of Canonic's operations during the first half of 2024. Sales and marketing expenses decreased to approximately $645,000 in the first quarter of 2025 compared to approximately $992,000 in the same period last year. The decrease was primarily driven by a reduction in Lavie Bio's sales and marketing activities. General and administrative expenses decreased to approximately $1.3 million in the first quarter of 2025 compared to approximately $1.7 million in the same period last year. The decrease was primarily attributable to reduced expenses related to Lavie Bio and Evogene as well as the closure of Canonic's operations during the first half…

Thank you. Ladies and gentlemen, at this time, we'll begin the question-and-answer session. [Operator Instructions] The first question is from Ben Klieve with Lake Street Capital Markets. With the 250 tons of castor seeds delivered in the first quarter, does this complete the initial order from any place in mid-2023 or do you expect additional sales from this order later this year? Question two, you noted a belief that you would receive additional orders at Casterra this year relative to the initial orders from 2023, which started at $11.1 million. Do you expect a follow on order to be an increase or decrease? And do you expect additional orders to be still delivered in 2025 or will this be the delivery in 2026 and beyond?

Hi, Ben. This is Ofer and thank you for this question and I will try to disclose as much as I can. So let's start with a short explanation that every year there are two sowing season in Africa. And in Brazil there is, in certain area, only one season, and there is in certain area that, two season, but the majority is only one season. And the orders that we receive are usually at least six months ahead of the sowing season and sometimes even more, because it take us time to produce the seeds. So the current shipment that we sent, it was still related to the -- was based on the same terms like the first -- the order that we received in 2013. But we are working now with our partners with respect to the second season this year and how much seed that they need for the next season. So, yes, we are still waiting to receive additional order for this year. Now we expect to when we are delivering the seed to our partners. Of course it's very important to deliver the seed until the specific season that this seed are expected to be sown in the different location. And the good news is that in the past, when we received the orders, then we started to produce the seed. So now in the stage is that when we have a nice quantity of inventory that in case that we will receive an orders during this year, for the next season, we will be able to deliver additional seed even this year. And what we are expecting from our partners to give us the forecast on how much they believe they will need for the future. Our expectation is that, again, I can't disclose…

An additional question from Ben. What is the net cash inflow Evogene will be receiving from the ICL for the Lavie Bio transaction?

So what I can share is the following. The amount of funding we're going to receive directly is $3.5 million from selling Evogene MicroBoost for Ag. In addition, Lavie Bio is going to receive $15.25 million. From this we need to deduct the investment of ICL through SAFE. You need to add also the fund already exist in Lavie Bio. And then we are going to get our share from this portion while the only shareholder is the Evogene, Casterra and just a little bit also employee. In addition, we are expecting to see revenue coming from our two collaboration agreement in -- apart from Lavie Bio. One with Syngenta and the other one with Corteva. We have at least for one of them we have high expectation that it's related to a commercial product that can generate a nice value for Evogene. By the way, in addition, maybe we need to add and this is why I can't give you the exact number. Any [indiscernible] that will be conduct till the closing date -- also we'll added to the cash that Lavie Bio will be able to distribute the dividend to its shareholders. So most of the money that will stay in Lavie Bio after the exit will be delivered to Evogene which definitely is bringing our financial position and can help us to continue our operation according to plan through the whole year and definitely next year as well.

The next question is from Scott Henry at AGP. Casterra sales were strong in the first quarter of 2025. How should we think about the rest of 2025 and what should the cadence look like?

So I can't give a projection because, it also depends on the performance of our partners that are buying from us the seeds. And I'm not talking about the quality of the seed. What I'm talking is also about the success in growing grain in the different territory and this is exactly what we are talking with them. As I said I see a continue -- a growing interest. And actually, and as I said, we are quite excited from what we see also not just in Africa but also in Brazil. And what I'm also feel comfortable that assuming we will get additional orders. So we also already have the inventory to supply those specific orders. So we will be able to deliver the seeds till the end of this year.

The next question is, at close of asset sale, how much cash will you receive?

So I think that I already answered this question that was asked by Ben Klieve.

The next question is what are the customary closing condition for the ICL deal? Is there any danger for not closing the agreement?

So usually what you will expect is the approval from the antitrust user, another approval you need is from the Israeli Innovation Center and the other technical closing condition. At least for now, we don't see any reason why we won't be able to close the deal. In some cases, we already received the needed approval, and we are advancing in discussion with the other governmental agency in this respect. So we hope to be able to close the deal as we stated till the end of this quarter.

Additional question from Scott Henry of AGP. The sale of Lavie Bio should solidify the balance sheet. Combining this with reduced expenses, how should we be how should we think how should we be thinking about the strength of the balance sheet for the foreseeable future in terms of duration?

So of course and I think that we also disclosed and we disclosed this information is that we are not just transferring Lavie Bio activity to ICL, but also three few employee moving from Evogene to ICL. And I also mentioned that we are going through some expense reduction plan. So I believe that we are safe from a financial perspective till the end of 2026, assuming a very, very conservative analysis, assuming good things will happen, which, this is exactly what we are working on. I believe that we can see a significant improvement. And, again, we've always decided to cut our expenses even more than what we are doing now. But, definitely, it's really put us in a very much better position compared to where we were before this transaction.

The next question is from Brett Reiss of Janney Montgomery Scott. Of the $18.75 million consideration in selling Lavie Bio assets, what net cash to the parent was realized? What happened to the narrative that there would be multiple oil companies lining up to buy castor seeds to replace palm oil as the biodegradable component in diesel fuel?

So with respect to the first question, I already answered the answered it in response to Ben Klieve question. And with respect to the second question I think and I must I think that I already discussed it in one of my previous analyst call, but if not, it's also connected to what I mentioned earlier. What we see is that the demand for oil is there and the demand for castor oil is there. But the willingness of additional big oil company to adapt the E&I model where they bind seed, distribute it to farmers, helping them to grow the castor and produce grain, then to take the grain and crush it. And they built a crushing factory in Africa and they are also in the processing to build a refinery factory in Africa. Currently, we don't see this approach adopted by additional oil company. So if we will if there will be a more oil crushing factory, they will be able to sell more additional oil because the demand in there. And I'm returning to the same statement, where we see today the bottleneck is more in the cultivation moving from seed to grain. And we need to educate the farmer how to do it. As I said and I will repeat it again we hear more and more from one company that has a crushing factory. We are willing to buy, actually, a very nice price. Almost every quantity you will bring us of grain because -- there is a demand for it. And we are there now to start to work hard in order to bring more and more farmers to use our variety and to start to grow castor for grain. I think it's a process that I hope that we'll start to see it generate fruits in the next year or two.

Final question also from Brett Reiss. With your reduced expenses, how long will the cash last for you?

So I think I answered this question earlier. I feel quite -- we feel very comfortable till the end of 2026 assuming a conservative a very conservative approach, which we hope, first, that there will be additional revenue or cash injection to the company from a company sales or strategic collaboration agreement. And it's something like this won't happen, so we can always decide to cut our expenses even more to increase the length of the company life without needing to raise additional money.

There are no further questions at this time. Mr. Haviv, would you like to make your concluding statement?

Yes. Thank you, everybody for participating in our analyst call. We continue to move forward in almost all front. Yes, we had to cut our expenses. It's not an easy period for a company in life science industry. But I think that the plan that we built and including with all the growth engines that we have, I'm really looking forward to continue to update you and to see the company prosper. It's about time. Thank you, everybody.

Thank you. This concludes Evogene's first quarter 2025 results conference call. Thank you for your participation. You may now go ahead and disconnect. End of Q&A: