Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 7

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 7
---
 specifically dictated by accounting principles and does not require management’s judgment in its application,
while in other cases, management’s judgment is required in the selection of the most appropriate alternative among the available
accounting principles, that allow different accounting treatment for similar transactions.

We believe that the accounting policies discussed below are
critical to our financial results and to the understanding of our past and future performance as these policies relate to the more significant
areas involving management’s estimates and assumptions. We consider an accounting estimate to be critical if: (1) it requires
us to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time
we were making our estimate; and (2) changes in the estimate or different estimates that we could have selected may have had a material
impact on our financial condition or results of operations.

Going Concern Assessment

Our management identified there were conditions that raised
substantial doubt about our ability to continue as a going concern for a period of one-year from the date this Annual Report. 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;              
 ───────────────────────────────────────────────────────────────────────────────────────

  Net operating cash outflows of approximately $19,700 thousand and $21,577 thousand in 2024 and 2023,  
  respectively; and                                                                                     
  Net operating cash outflows of approximately $19,700 thousand and $21,577 thousand in 2024 and 2023,  
  respectively; and                                                                                     
 ────────────────────────────────────────────────────────────────────────────────────────────────────────

  Our accumulated deficit balance as of December 31, 2024, is approximately $274,071 thousand.  

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 of this Annual Report,
as follows:

  Reducing non-essential expenses and implement headcount reductions to conserve cash  

  Deferral and reprioritization of certain research and development programs that would  

We have a history of operating losses and negative cash flows
from operations. However, despite these conditions,