Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 128

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 4A
Chunk 128
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 Bio, by way of a contribution of all Corteva’s holdings in its wholly owned subsidiary Taxon Biosciences,
which included several intangible assets, and payment of an amount of $10 million in cash.

The fair value of intangible assets received through the Corteva
investment is determined upon initial recognition by either one of three traditional methods in valuating an asset. These methods include
the market approach, the income approach and the cost approach. The pipeline products and potential products were valued by applying the
income approach and the Microorganisms collection was valued using the cost approach.

The Company’s significant estimates in this analysis included,
but were not limited to, future cash flow projections, the weighted average cost of capital, the terminal growth rate, and the tax rate.
The Company believes the current assumptions and estimates utilized were both reasonable and appropriate. Future cash flow estimates
are, by their nature, subjective and actual results may differ materially from the Company’s estimates. If the Company’s
ongoing estimates of future cash flows are not met, the Company may have to record impairment charges in future periods. The Company’s
estimates of future cash flows are based on current regulatory and economic climates, recent operating results, and planned business strategy.
These estimates could be negatively affected by changes in federal, state, or local regulations or economic downturns.

The useful economic life of the intangible assets acquired by
us in this transaction was determined through years of development until final year of projected sales. When applying the income approach,
the cash flows expected to be generated by intangible assets are discounted to their present value equivalent using a rate of return that
reflects the relative risk of the investment, as well as the time value of money. For each intangible asset, a specific discount rate
was valuated using “ Modified CAPM Build-Up Method”.

The Company evaluates the need to record an impairment of non-financial
assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial
assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair
value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount
rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is
determined for the cash-generating unit to which the asset belongs. Impairment losses