Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 11

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 11
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requires the delivery of variable number of shares, the SAFE is accounted for as a liability and measured at fair value. The fair value
of the SAFE will be remeasured at the end of each reporting period with any change to fair value recorded within financial expenses in
the statements of profit or loss. The fair value is based on the weighted average value of various scenarios assuming Lavie Bio's estimated
enterprise value at the valuation date. The enterprise value is calculated using the income approach, whereby the cash flows expected
to be generated 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. The value of the SAFE assumes the probability of various possible scenarios to which an acceptable
option pricing model is applied. The inputs to the model include the enterprise value described above, the conversion price and assumptions
regarding the expected volatility and the expected life of each scenario. Financial expenses recorded in 2024 and 2023 due to revaluation
of the convertible SAFE were approximately $0.003 million and approximately $0.3 million, respectively.

76

Intangible
assets

On August 6, 2019, Corteva invested in the Company's agriculture
biologicals subsidiary, Lavie 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