Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 182

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 182
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 productivity and environmental sustainability.
Outlook
 
We expect that our sources of liquidity for 2025 will include cash on hand, proceeds from collaboration and licensing agreements, revenues from the selling of castor seeds, cash held in our bank accounts, including bank deposits, proceeds from grants and other financing transactions, including by our subsidiaries.
 
 In the future, cash may serve us in effecting M&A transactions for achieving inorganic growth in our different segments of operations.

We concluded that the following conditions raised substantial doubt about our ability to continue as a going concern:
 

 
-   History of reporting operating losses of approximately $22,210 thousand and $26,508 thousand for the years
                                 ended December 31, 2024, and 2023, respectively;                             
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-   Net operating cash outflows of approximately $19,700 thousand and $21,577 thousand in 2024 and 2023, respectively;
                                                           and                                                        
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-   Our accumulated deficit balance as of December 31, 2024, was approximately $274,071 thousand.
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We have approved a plan to improve our available cash balances, liquidity and cash flows generated from operations. We have identified several potential actions including cost preservation measures that would be initiated in a timely manner to address our liquidity needs over the twelve-month period from the date this Annual report, as follows:
 
 
•   Reducing non-essential expenses and implement headcount reductions to conserve cash
                          and improve its liquidity position; and                      
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•   Deferral and reprioritization of certain research and development programs that would
                         involve reduced program and headcount spend.                    
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We have a history of operating losses and negative cash flows from operations. However, despite these conditions, we believe management’s plans, as described more fully above, will provide sufficient liquidity to meet our financial obligations and maintain levels of liquidity over the twelve-month period from the date of this Annual Report. Therefore, management concluded this plan alleviates the substantial doubt that was raised about our ability to continue as a going concern for at least twelve months from the date this Annual Report.
 
Although not considered for purposes of our assessment of whether substantial doubt was alleviated, we have plans to improve operating cash flows by entering other collaborations, strategic alliances or licensing arrangements with third parties. We are also exploring exit opportunities for certain subsidiaries. We may seek to raise additional funds through public or private equity or debt financings or other sources.
 
Our plans are subject to inherent risks and uncertainties