Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 194

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 194
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 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;      
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-   Net operating cash outflows of approximately $19,700 thousand and $21,577 thousand in 2024 and 2023,
                                             respectively; and                                          
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-   Our accumulated deficit balance as of December 31, 2024, is approximately $274,071 thousand.
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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
                          and improve its liquidity position; and                      
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•   Deferral and reprioritization of certain research and development programs that would
                         involve reduced program and headcount spend.                    
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We have a history of operating losses and negative cash flows from operations. However, despite these conditions, we believe that the management’s plans, as described more fully above, will provide sufficient liquidity to meet our financial obligations and maintain levels of liquidity over the twelve-month period from the date of this Annual Report. Therefore, management concluded this plan alleviate the substantial doubt that was raised about our ability to continue as a going concern for at least twelve months from the date of this Annual Report.
 
Revenue Recognition
 
 We recognize revenues when the control over the goods or services is transferred to the customer. The transaction price is the amount of consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). We don’t grant a right of return to our customers.
 
 If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations such as licenses, services, royalties and milestone events require an allocation of the transaction price to each performance obligation based on a relative standalone selling price, or SSP. To determine SSP, we maximize the use of observable standalone sales