Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 176

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 176
---
4. Pre-funded warrants and warrants were classified as a liability on the consolidated statements of financial position, were initially recorded at fair value and subsequently remeasured at each reporting period using the Black-Scholes option pricing model. As a result, during 2024 we recorded financial income related to the remeasurement of warrants and pre-funded warrants of approximately $6.5 million.
Financing Expenses. Financing expenses increased by approximately $2.3 million, or 230%, to approximately $3.3 million for the year ended December 31, 2024 from $1.0 million for the year ended December 31, 2023. The increase was mainly associated with accounting treatment of pre-funded warrants and warrants issued in August 2024. As of the date of the offering in August 2024, the excess of the initial fair value of pre-funded warrants over the transaction proceeds at the amount of approximately $2.7 million was recorded as financial expenses. The excess of initial fair value over the transaction proceeds of Series A ordinary warrants and Series B ordinary warrants was deferred and amortized to financial expenses over the term of the warrants. As a result, during 2024 we recorded a financial expense due to the amortization of the deferred expenses of approximately $0.5 million.
Taxes on Income
 
For the years ended December 31, 2024 and 2023, we recorded insignificant amounts for taxes on income in Israel and an insignificant amount of taxes with respect to U.S. subsidiaries.
Loss
 
The amount of our overall loss decreased by approximately $7.9 million, or 30.4%, to approximately $18.1 million for the year ended December 31, 2024, from $26.0 million for the year ended December 31, 2023. This decrease reflected the cumulative effect of all of the above-described line items from our consolidated statements of comprehensive loss.
B.          Liquidity and Capital Resources
 
Our working capital requirements generally reflect the growth in our business and have historically been provided by cash raised from our investors, payments from our collaborators and government grants. As of December 31, 2024, we had cash, and cash equivalents and short-term bank deposits of approximately $15.3 million, and working capital of approximately $4.6 million, which is calculated by subtracting our current liabilities from our current assets. As of December 31, 2024, we had approximately $4.3 million of outstanding long-term indebtedness related to government grants