Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 9

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 9
---
 the shipment or delivery
terms.

Future milestone payments are considered variable consideration
and are subject to the variable consideration constraint (i. e. will be recognized once concluded that it is “probable” that
a significant reversal of the cumulative revenues recognized under the contract will not occur in future periods when the uncertainty
related to the variable consideration is resolved). Therefore, as the milestone payments are not probable, revenue was not recognized
in respect to such milestone payments prior to achievement of such milestone.

In instances of contracts where revenue recognition differs from
timing of invoicing, we generally determined that those contracts do not include a significant financing component. We use the practical
expedient and do not assess the existence of a significant financing component when the difference between payment and revenue recognition
is a year or less.

Share-Based Compensation

We account for share-based compensation in accordance with the
fair value recognition provision of IFRS guidance on share-based compensation. Under these provisions, share-based compensation is measured
at the grant date based on the fair value of the award and is recognized as an expense, net of estimated forfeitures, over the requisite
service period, which is generally the vesting period of the respective award. Share-based compensation expense was approximately $1.8
million, $1.9 million and $1.2 million in 2024, 2023 and 2022, respectively. We selected the binomial option-pricing model as the most
appropriate method for determining the estimated fair value of our share-based compensation. The determination of the grant date fair
value of options using an option-pricing model is affected by estimates and assumptions regarding a number of complex and subjective variables.
These variables include the estimated period of time that we expect employees to hold their options, the expected volatility of our share
price over the expected term of the options (estimated using historical data from prior years, including historical forfeiture rates),
share option exercise and cancellation behaviors, risk-free interest rates, expected dividend yields (assumed to be zero as we have historically
not paid and do not intend to pay dividends on our ordinary shares) and the price of our ordinary shares. In addition, our compensation
expense is affected by our estimate of the number of awards that will ultimately vest. In the future, if the number of equity awards that
are forfeited by employees is lower than expected, the expense recognized in future periods will be higher.

Government Grants

Government grants received from the IIA are recognized as a liability
if future economic benefits are