Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 5

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 5
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ed crops that have high carbon-dioxide
assimilation and enhanced drought tolerance. The overall budget under the program is €2.5 million and Evogene’s other partners
in the project include the Max Planck Institute. In May 2023, Evogene received a pre-financing payment of approximately €1.0 million,
and in August 2024, Evogene received a second payment of €0.1 million from the grant mentioned above. The current project scope’s
timeline is expected to be 32 months.

C. Research
and Development, Patents and Licenses, etc.

We continuously invest and have for at least the last three years
historically invested, in maintaining the technological capabilities of our CPB platform, which includes tailored ‘big-data’
databases, interconnected data hubs and proprietary analysis and prediction algorithms. We also maintain laboratories, greenhouses and
fields for conducting biological validation activities for our computational predictions.

Our ongoing research and development activities are funded mainly
by internal resources, collaboration research and development payments and governmental grants. As of December 31, 2024, 75 of our employees,
representing approximately 64% of our entire work force, were engaged in research and development on a full-time basis. For more information
regarding our research and development activities, intellectual property and licenses, please see “ Item 4. B. Information on the
Company - Business Overview.”

D. Trend
Information

D& O insurance

Although in 2023 and 2024 there was a decrease in the cost of procuring
D& O liability insurance, in recent years we experienced an increase in such cost, resulting from a general increase in the cost of
D& O liability insurance for smaller, dual-listed public companies such as us. This general increase has been tied to perceived heightened
levels of risk for D& O insurers. Insurers have been increasing their level of compensation, in the form of premiums, which they believe
have not been commensurate with the risk being taken by them. In parallel, there has been an increase in the amounts of the deductibles
payable by public companies in situations in which an insurable event occurs. If this trend continues, it will increase our operational
expenses and have a negative effect on our financial results.

Market Risk

We are exposed to market risk from changes in exchange rates, interest
rates and inflation. We therefore continue to closely monitor the macro-economic conditions that result therefrom. We regularly assess
the