Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 12

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 12
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 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 are recognized in profit or loss.

Impact of Israeli Tax Policies and Government Programs on Our Operating
Results

Tax regulations have a material impact on our business, particularly
in Israel where we have our headquarters. The following summary describes the current tax structure applicable to companies in Israel,
with special reference to its effect on us.

General Corporate Tax Structure in Israel

Israeli companies are generally subject to corporate tax on their
taxable income. In 2024, the corporate tax rate was 23%. Capital gains derived by an Israeli company are generally subject to tax at the
prevailing regular corporate tax rate.

Law for the Encouragement of Industry (Taxes),
5729-1969

The Law for the Encouragement of Industry (Taxes), 5729-1969, generally
referred to as the Industry Encouragement Law, provides several tax benefits for an “ Industrial Company”.

The Industry Encouragement Law defines an “ Industrial Company”
as an Israeli resident company which was incorporated in Israel, of which 90% or more of its income in any tax year, other than income
from certain government loans, is derived from an “ Industrial Enterprise” owned by it and located in Israel. An “ Industrial
Enterprise”