Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 175

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 175
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 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.
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—Risks Relating 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.S. dollar could increase or reduce the Company’s expenses and net loss and impact the comparability of results from period to period. The appreciation (devaluation) of the NIS in relation to the U.S. dollar amounted to (3.1%) and (0.6%)  as of December 31, 2023, and 2024, respectively.
 Financing Income. Financing income increased by approximately $6.0 million, or 400%, to approximately $7.5 million for the year ended December 31, 2024 from approximately $1.5 million for the year ended December 31, 2023. This increase was mainly associated with accounting treatment of pre-funded warrants and warrants issued in August 202