Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 103

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 4A
Chunk 103
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 a decrease in certain development expenses in Biomica, Evogene and Lavie
Bio as compared to the same period the previous year.

Sales
and Marketing Expenses. Sales and marketing expenses slightly decreased by approximately $0.2 million, or 5.6%, to approximately
$3.4 million for the year ended December 31, 2024 from approximately $3.6 million for the year ended December 31, 2023. The
decrease is mainly due to the cessation of Canonic’s activities, partially offset by increased sales and marketing expenses recorded
in Casterra.

General and Administrative Expenses.
General and administrative expenses increased by approximately $1.3 million, or 21.3%, to approximately $7.4 million for the year ended
December 31, 2024 from approximately $6.1 million for the year ended December 31, 2023. The increase was mainly attributed to
expenses recorded in Casterra due to a provision on a doubtful debt of a seed supplier and transaction costs related to Evogene’s
fundraising that occurred in August 2024, totaling approximately $1.5 million.

Other Expenses. The decision
to cease Canonic’s operations in the first half of 2024 resulted in other expenses of approximately $0.5 million, mainly due to
impairment of fixed assets in the first quarter of 2024.

65

Financing Income and Expenses

Foreign currency and exchange
risk

A significant portion of our expenses is denominated in currencies
other than the U. S. dollar. The Company is therefore subject to non-U. S. currency risks and non-U. S. exchange exposure, especially the
NIS. A significant portion of our operating costs are in Israel, consisting principally of salaries and related personnel expenses, and
facility expenses, which are denominated in NIS. This foreign currency exposure gives rise to market risk associated with exchange rate
movements of the U. S. dollar against the NIS and other currencies. Furthermore, we anticipate that a significant portion of our expenses
will continue to be denominated in NIS. We do not hedge against currency risk through the use of forward currency contracts or other financial
instruments. See “ Risk factors - RisksRelating to Our Incorporation and Location
in Israel-Exchange rate fluctuations between the U. S. dollar and the NIS may negatively affect
our financial results.” Exchange rates can be volatile and a substantial change of foreign currencies against the U