Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 127

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 4A
Chunk 127
---
 determine the interest rate implicit in our operating
lease for our principal facility in Rehovot, Israel. We therefore use our incremental borrowing rate, IBR, to measure lease liabilities.
The IBR is the rate of interest that we would have to pay to borrow over a similar term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what we
‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to
reflect the terms and conditions of the lease.

We estimate the IBR using observable inputs (such as market interest
rates) when available and we are required to make certain entity-specific estimates (such as the Company's stand-alone credit rating).

Fair
value of convertible SAFE

In August 2022, ICL and Lavie Bio entered a multi-year collaboration
agreement for developing novel bio-stimulant products to enrich fertilizer efficiency. As part of the collaboration, ICL (through an affiliated
company) invested in Lavie Bio $10 million under a SAFE. Per IFRS guidance on financial instruments, as conversion upon an equity financing
requires the delivery of variable number of shares, the SAFE is accounted for as a liability and measured at fair value. The fair value
of the SAFE will be remeasured at the end of each reporting period with any change to fair value recorded within financial expenses in
the statements of profit or loss. The fair value is based on the weighted average value of various scenarios assuming Lavie Bio's estimated
enterprise value at the valuation date. The enterprise value is calculated using the income approach, whereby the cash flows expected
to be generated are discounted to their present value equivalent using a rate of return that reflects the relative risk of the investment,
as well as the time value of money. The value of the SAFE assumes the probability of various possible scenarios to which an acceptable
option pricing model is applied. The inputs to the model include the enterprise value described above, the conversion price and assumptions
regarding the expected volatility and the expected life of each scenario. Financial expenses recorded in 2024 and 2023 due to revaluation
of the convertible SAFE were approximately $0.003 million and approximately $0.3 million, respectively.

76

Intangible
assets

On August 6, 2019, Corteva invested in the Company's agriculture
biologicals subsidiary, Lavie