Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 99

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 4A
Chunk 99
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 improvement of our computational, scientific and validation technologies, know-how and capabilities used by our subsidiaries and product
divisions. Research and development costs include: salaries and related personnel costs (including share-based compensation); payments
to third party suppliers and subcontractors, field-trials and pre-clinical studies carried out by third parties; cost of disposable materials;
expenses associated with participation in professional conferences; operational overhead costs, which include costs related to leasing
and operating our office, laboratory facilities and greenhouses; depreciation of property, plant and equipment; and amortization of intangible
assets. Expenses related to our intellectual property, such as legal and other costs associated with patent applications, are also included
as research and development expenses. We expect that our research and developments expenses will decrease during 2025 due to our intention
to focus our efforts on the use of our ChemPass AItech-engine in the field of AI powered drug
discovery in the pharma market segment, and due to the implementation of certain expense reduction measures on our and our
subsidiaries’ level.

Sales and Marketing Expenses: Sales and marketing
expenses consist of costs primarily related to commercialization activities of our subsidiaries for product launch and maintaining our
relationships with our collaborators and establishing new collaborations. These costs include salaries and related personnel costs (including
share-based compensation), travel expenses and expenses related to legal and professional services. We expect that our sales and marketing
expenses will be decreased during 2025 due to the implementation of certain expense reduction measures on our and our subsidiaries’
level.

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General and Administrative Expenses:
General and administrative expenses mainly consist of salaries and related personnel costs (including share-based compensation) for our
general and administrative employees; legal, D& O liability insurance, and professional services; expenses related to HR activities
and employee benefits and welfare; expenses for consulting; and other expenses associated with being a U. S. publicly listed company. We
expect that our general and administrative expenses will be decreased during 2025 due to the implementation of certain expense reduction
measures on our and our subsidiaries’ level.

Financing Income and Expenses

Financing income primarily consists of interest income on our cash
bank deposits, income related to a remeasurement of warrants and pre-funded warrants and foreign currency exchange income.

Financing expenses primarily consist of expenses related to excess
of initial fair value of pre-funded warrants over transaction proceeds; expenses related to amortization of deferred expenses related
to issuance of warrants; foreign currency exchange expense; expenses related to