Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 125

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 4A
Chunk 125
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 other observable inputs or use the expected cost-plus margin approach to estimate
the price we would charge if the products and services were sold separately. Revenue is recognized at the time the related performance
obligation is satisfied by transferring the promised product or delivery of service to the customer. Revenue is recognized in an amount
that reflects the consideration we expect to receive in exchange for those products or services.

75

Revenues from research and development services as part of our
collaboration agreements are recognized over time, during the period the customer simultaneously receives and consumes the benefits provided.
Recognition of the service is throughout the services period using the input method in order to measure the progress of the services,
based on the actual internal and external costs incurred, relative to total internal and external costs expected to be incurred to satisfy
the performance obligation. We determined that the input method is the best measure of progress towards satisfying the performance obligation
as incurred labor effort represents work performed that corresponds with, and thereby best depicts the transfer of goods and services.
Revenues from the sale of castor seeds, medical cannabis products and license agreements are recognized when the control of our product
is transferred to the customer, generally upon delivery of the goods or products to the customer, according to 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.