Evogene Ltd Aktie

Welcome to Evogene's Second Quarter 2026 Results Conference Call. As a reminder, this conference is being recorded August 18, 2026.

Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events, and Evogene LTD may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other measures regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, the PSLRA and other securities law as amended.

Statements that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, except, anticipate, should, plan, estimate, intend and potential or words of similar meaning. We are using forward-looking statements in this presentation when we discussed our value drivers, commercialization efforts and timing, product development and launches, estimated market size and milestones pipeline as well as our capabilities and technology. Such statements are based on current expectations, estimates, projections and assumptions describe opinions about future events involve certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance.

Readers are cautioned that certain important factors may affect the company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this presentation. Therefore, actual future results, performance or achievements and trends in the future may differ materially from what is expected or implied by such forward-looking statements due to a variety of factors, many of which are beyond our control, including without limitation, the aftermath of the recent war between Israel and each of the terrorist groups, Hamas and Hezbollah and Iran an other regional terrorist group supported by Iran and any destabilization in Israel, neighboring territories or the Middle East region, and those described in greater detail in Evogene's annual report on Form 20-F and in other information Evogene files and furnished with the Israel Securities authorities and the U.S. Securities and Exchange Commission, including those factors under the heading Risk Factors.

Except as required by applicable securities laws, we disclaim any obligation or commitment to update any information contained in this presentation or publicly release the results of any revisions to any statements that may be made to reflect future events or development or changes in expectations, estimates, projections and assumptions. The information contained herein does not constitute prospectus or other offering documents nor does it constitute or form part of any invitation or offer to sell or any solicitation of any invitation or offer to purchase or subscribe for any securities of Evogene or the company no for the information or any part of it or the fact that this distribution form the basis of or be relied on in connection with any action, contract commitment or relating thereto or to the securities of Evogene or the company. The trademarks include hearing, the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of our product or services. With us on the line will be Nir Nimrodi, Evogene's Chairman of the Board of Directors; Ofer Haviv, President and CEO of Evogene; and Polina Ravzin, VP Finance of Evogene.

Now I will turn the call over to Ofer Haviv. Mr. Haviv, please go ahead.

Thank you for joining Evogene's Second Quarter 2026 Analyst Call. Today's call will be somewhat different from our usual format. Joining me is Mr. Nir Nimrodi, Chairman of Evogene's Board of Directors. Nir will begin by presenting the Board's response to the recent demand by book of decedent shareholders seeking to replace the company's Board. Following Nir's remarks, I will discuss the company's achievement during the first half of the year and our new term expectation. We will conclude with review by Ms. Polina Ravzin, Evogene's VP Finance of our financial results, followed by a Q&A session. Nir. Please go ahead.

Thank you, Ofer. Good morning, everyone. As Chairman, my primary responsibility together with my fellow directors is to position Evogene for long-term sustainable value creation. We share your frustration with the historical share price, and we acted with urgency and determination to address it. Although the past 18 months, we haven't just talked about change, we have delivered it. We have fundamentally transformed Evogene into a lean AI-driven leader in computational chemistry for pharmaceuticals and crop protection. We have streamlined operations, reboost costs and optimize our portfolio.

The question today is not whether changes necessary. This change has already been executed. The question is how we accelerate the momentum we have created, interrupting this transformation precisely as it enters its most promising phase is a risk we cannot afford. Our strategy is already delivering tangible results. We established ChemPass as our coal platform, building a first-in-class generative small molecule foundation model and integrating autonomous AI agents in partnership with Google Cloud. We secured 6 key drug development agreements with leading biotechnology companies and premier academic institutions, validating the commercial value of our AI-driven platform, ChemPass AI.

We reduced headcount from 117 to 38, creating a highly focused agile organization. We lowered cash burn from approximately $20.5 million in 2024 and to an expected $8.5 million to $9.5 million in 2026, with further reductions anticipated in 2027. We raised approximately $11.1 million in new capital, securing the financial runway to execute our plans. And lastly, we monetized Lavie Bio, selling it to ICL for $15.25 million, licensed Biomica Phase 1 asset to Lishan Biotech, focused Casterra Brazil SAF market and advanced Aclannovel fungicides discovery.

Another strong indication of the confidence in Evogene's long-term potential comes from Mr. Leon Recanati a member of Evogene's Board of Directors and a highly respected investor. Mr. Recanati recently made a significant investment in Evogene,and today is one of the largest shareholders of the company. This recent investment reflects his strong belief in Evogene's strategy, technology and long-term value creation potential. His commitment demonstrates the confidence he has in the substantial potential of the company and further aligns his interest with those of all other Evogene shareholders.

As you may know, we were presented with the demand by a group of dissident investors who are seeking to replace the entire Board. Following this recent demand, we approach them openly and in good faith and engaged in a dialogue with them to understand their vision for Evogene. We even offered to collaborate and add representatives of their choosing to our Board. They rejected that proposal. More importantly, to date, this group has failed to present any comprehensive strategic alternative commercial road map or credible operating plan. Let me be clear, replacing most of the public technology company board is an extremely consequential decision. It should only be considered when there is a superior fully articulated road map on the table. Changing directors is not a strategy, it's a disruption. A vote for this group is a vote to hand the reins of your investment to individuals with no defined plan. The risks dismantling the very momentum derives our value creation today.

While we believe in continuity, we also believe in evolution. This September, assuming that we prevail in the contested election, we will proactively strengthen our board by adding 2 highly accomplished industry leaders. Dr. Yael Margolin, pharmaceutical innovation and commercialization expert; and Mr. [indiscernible], a veteran of International Biotechnology. These additions ensure our boat has the precise world-class expertise required for our next phase of growth, combining fresh perspectives with critical institutional knowledge. This upcoming vote is not about resisting change. On the contrary, it's about enhancing the future we are actively building. Removing a unified Board at this critical juncture would destroy the strategic plan we have been implementing and would be a profound disservice to our shareholders.

On a personal note, I want to emphasize that I deeply believe in open dialogue and constructive collaboration. My door is always open to all our shareholders. If you have thoughts, feedback or wish to discuss our path forward directly, I'm always ready and happy to listen. Our focus is singular, to ensure Evogene reaches its full potential and delivers the value you deserve. We ask for your continued trust and your support for the current Board and its enhanced slate of nominees, including the new board members nominees Dr. Margolin and Mr. [indiscernible] in the coming vote. Thank you. Ofer, back to you.

Thank you, Nir. I would like to echo Nir's comments. Our sharp strategic focus and streamlined organizational structure are already yielding outstanding operational results.

First, turning to our Pharma division. Since the beginning of this year, we have signed 4 new drug development agreements. This brings our total active collaboration to 6, as Nir noted earlier. I am highly encouraged to report that for 2 of these collaborations, we have already successfully completed the initial step, hit ID of our concessional platform, ChemPass AI process. The validation results we achieved exceeded our partner's expectations, and we are now actively promoting the next steps of these joint programs. In addition, we are rapidly advancing our internal drug discovery program, which not only holds significant value, but also serves as a powerful ongoing validation of our computational platform. In this program, we successfully completed step 2, hit to lead of the ChemPass AI process and progress to step 3 lead optimization, the generation of unique proprietary molecules that will serve as a drug candidate to initiate preclinical trials.

It is important to emphasize that all of these collaborations and internal programs target therapeutics areas addressing markets with multibillion dollar commercial potential. Importantly, Evogene retains significant commercial rights in the outputs of these joint activities. We anticipate generating revenues as these molecules advance through the development pipeline. Every new partnership we secure and every development milestone we achieve brings our programs closer to commercializations, increasing their value and expanding Evogene's future revenue potential.

In addition, we are seeing similar, highly encouraging momentum in our Ag Division, specifically in our crop protection program. We have made substantial progress in our program to develop a novel fungicide targeting Septoria. We are nearing the completion of step 3 lead optimization of the ChemPass AI process, and we are currently testing synthesized molecules in advanced biological assays ahead of launching greenhouse and field twice. None of this would be possible without the continuous exceptional growth of our core computational platform, which underwent a massive upgrade this year.

Following the signing of our second agreement with Google Cloud, we have already reached our first major project milestone. As a result, we have integrated advanced AI agent into our workflow. These agents automates highly complex, time-consuming taks that previously required highly specialized researchers weeks or months to complete. Today, we execute those tasks in a matter of minutes.

We have also added powerful new predictive models that identify winning candidate molecules. A key example is our recently announced APP, antifungal potency predictor, model, which predicts a molecule activity within the actual pathogen itself rather than just its interaction with the target protein. Furthermore, the size of our virtual chemical space has expanded dramatically from 36 billion molecules to 110 billion molecules that we can now rapidly scan.

Looking ahead, we continue to be laser focused on achieving the following key objectives. Progressing our existing research collaboration programs across both our pharma and agriculture pipelines. Securing new drug development collaboration with other leading biotechnology companies while simultaneously initiating discussions with the major pharmaceutical companies for joint activity. Advancing our high-value internal programs in both pharma and crop protection, which present tremendous commercial upside for our shareholders. Establishing strategic partnership with top-tier global ag chemical companies, continuously upgrading our competitional technology addressing towards increasing autonomous computational system designed to predict key success requirements at the earlier stage of development.

To conclude, I want to strongly reinforce Nir's message. The transformation of Evogene is not distant promise. It is happening right now, and the execution is undeniable. This level of rapid progress and technological breakthrough is only possible because we have a deeply aligned Board and management team working with a shared precise vision. I'm absolutely confident that our current Board strengthened by the world-class expertise of our newly nominated directors provides the stable strategic and highly capable leadership needed to maximize the value of our technology and drive this company to the significant commercial success we all anticipate. Now is the time for execution and continue to not disruption. We strongly ask for your vote to support the current Board and its nominees so we can keep this powerful momentum moving forward.

With that, I will hand the discussion over to Polina to review our financial results.

Thank you, Ofer. I would like to reinforce the points Nir made regarding the significant transformation Evogene has undergone, particularly the refocusing of our activities and decisive steps we have taken to implement our new strategy.

As we heard from Ofer and his update on our subsidiaries, we have moved quickly to align our operations and resources with our strategic priorities. From a financial perspective, this has meant significantly reducing our operating expenses, preserving maximizing the cash resources available across the group and focusing our investments on the areas where we believe Evogene can create the greatest long-term value.

The second quarter financial results provide an important foundation for the quarters ahead and reflect many of the actions we have already taken to create a more focused, disciplined and financial sustainable organization. I will start with the status of our noncore subsidiaries. Consistent with our revised strategy, we continue to manage the window on transition of our noncore business activities in a disciplined manner. Lavie Bio is no longer operational. Under the ICL transaction, 2 additional payments remain due to the company. The first payment was received in July 2026, and the second is expected in July 2027.

In addition, during the first quarter of 2026, Lavie Bio received court approval to distribute $4.25 million dividend to its shareholders, of which Evogene was entitled to approximately $2.9 million. The dividend distribution was completed during the second quarter of 2026.

Biomica, following the successful completion of its Phase I clinical trial and the licensing of its lead oncology candidate, BMC128, to Lishan Pharmaceuticals is no longer conducting ongoing operations. In April 2026, Biomica received court approval to distribute at $2.7 million dividend to its shareholders, of which Evogene was entitled to approximately $1.35 million. The dividend distribution was completed during the second quarter of 2026.

Casterra has significantly reduced and realigned its operations and is now focused exclusively on Brazil. Evogene raised approximately $0.8 million through its ATM program during the second quarter of 2026 and an additional amount of approximately $2.4 million during the third quarter.

Turning now to the financial results. I would like to highlight the key figures for the first half and second quarter of 2026. As of June 30, 2026, Evogene held consolidated cash and cash equivalents of approximately $9.3 million. Consolidated cash usage during the second quarter 2 was approximately $2.1 million. For the full year 2026, we expect cash usage to be in the range of approximately $8.5 million to $9.5 million. Managing our cash position remains a key priority, and we are taking disciplined actions to further reduce cash burn while preserving the capabilities needed to execute our strategic priorities and advance our most promising business opportunities.

This disciplined approach is already reflected in our results. The second quarter net loss reduced approximately $1.8 million compared with approximately $4.7 million in the second quarter of 2025 and approximately $6 million in the second quarter of 2024. The revenues for the first half of 2026 totaled approximately $0.7 million compared to approximately $2.9 million in the first half of 2025, a decrease of approximately $2.2 million. The decrease has been really attributable to lower revenue from Casterra as the first half of 2025 included approximately $2 million in significant caster seed sales. Revenues for the second quarter of 2026 were approximately $0.3 million compared with approximately $0.5 million in the second quarter of 2025. The decrease was primarily attributable to the conclusion of our planes agreement with Bayer in May 2026. The Research and development expenses, net of nonrefundable amounts for the first half 2 were approximately $2.9 million compared with approximately $3.5 million in the corresponding period of 2025, a decrease of approximately $0.6 million. The decrease was primarily attributable to lower R&D expenses at Casterra and AgPlenus, partially offset by increased R&D expenses at Evogene as the company redirected its R&D efforts towards activities that are core to and support the execution of its new strategy. The decrease in R&D expenses was partially offset by the impact of exchange rate fluctuations between the U.S. dollar and the mix of approximately $0.4 million.

For the second quarter, R&D expenses were approximately $1.4 million compared with approximately $1.7 million in the second quarter of 2025. This decrease is mainly attributable to decreased expenses in Casterra, partially offset by increased expenses in Evogene as mentioned in both. In addition, the decrease was partially offset by the impact of exchange rate fluctuations between the U.S. dollar and the NIS of approximately $0.2 million. Sales and marketing expenses for the first half of 2026 were approximately $0.7 million, essentially unchanged from the corresponding period of 2025. For the second quarter, sales and marketing expenses were approximately $0.3 million compared to approximately $0.4 million in the second quarter of 2025.

General and administrative expenses for the first half of 2026 decreased slightly to approximately $2 million compared with approximately $2.1 million in the corresponding period of 2025. The decrease in G&A expenses at Evogene and its subsidiaries were substantially offset by approximately $0.2 million of transaction costs related to the warrant inducement transaction and other legal expenses as well as approximately $0.2 million resulting from exchange rate fluctuations between the U.S. dollar and the NIS. For the second quarter of 2026, G&A expenses were approximately $0.9 million compared with approximately $1 million in the corresponding period of 2025.

For the first half of 2026, financing expenses net were approximately $1.7 million compared with financing income net of approximately $0.8 million in the corresponding period of 2025. This change was primarily related to the accounting treatment and revaluation of warrants, including warrants issued in August 2024 fundraising ended February 2026 warrant inducement transaction. Importantly, this result of close significant noncash accounting impacts. In connection with the February 2026 warrant inducement transaction, the company recorded financial expenses of approximately $3.8 million during the first half of 2026 while also recording approximately $2.1 million of financing income related to the revaluation of the warrant liability as of June 30, 2026.

For the second quarter of 2026, we recorded financing income net of approximately $1 million compared with financing expenses net of approximately $0.3 million in the second quarter of 2025. The improvement was primarily related to the warrant accounting and revaluation of the warrant liability as described in the move. Loss from discontinued operations net for the first half of 2026 was approximately $0.5 million compared to approximately $3.6 million in the corresponding period of 2025.

For the second quarter of 2026, loss from discontinued operations was approximately $0.2 million compared with approximately $1.7 million in the second quarter of 2025. This amount primarily reflect the financial results of Lavie Bio and Biomica as well as expenses related to the development and maintenance of MicroBoost AI for ag, which are presented as a single line item on our consolidated statements of profit and loss. Following the sale of a majority of Lavie Bio's assets as well as Evogene MicroBoost AI for ag to ICL in July 2025, and the licensing of BMC128 to Lishan Pharmaceuticals in February 2026, the operating expense levels associated with Lavie Bio and Biomica have decreased significantly.

Finally, our net loss for the first half of 2026 was approximately $7.7 million, essentially unchanged from the corresponding period of 2025. However, the second quarter results show significant improvement. Net loss for the second quarter of 2026 was approximately $1.8 million compared to approximately $4.7 million in the second quarter of 2025, an improvement of approximately $2.9 million or nearly 62%. This improvement was primarily driven by lower operating expenses and significantly lower loss from discontinued operations and higher financing income net.

And with that, I have concluded my review of the second quarter financial results, and I will now hand the call back to Ofer.

Thank you, Polina. Let me close by emphasizing 1 important point. The transformation Nir described is not simply a strategic vision, it is already reflected in the way we operate and in our financial performance. We have taken decisive steps to streamline the company's substantial reduced activities in noncore business lower our operating expenses and deploy our capital with greater discipline. At the same time, we have protected the technological capabilities and strategic flexibility that we believe are essential to advancing Evogene's most promising operations and creating long-term value. The actions we have taken during 2025 and the first half of 2026 have created a stronger and more disciplined financial foundations for the company. We are entering the second half of the year with a clear focus, a leaner organization and a much more capital-efficient operating model. Most importantly, we believe this puts Evogene in a stronger position to execute with greater focus, greater discipline and greater ability to convert our technology and innovation into meaningful commercial opportunities.

With that, I would like to thank for your joining us today. We are now happy to open the call for your questions.

[Operator Instructions] The first question, when was the last time you used ATM? I noticed that the number of outstanding shares increased by approximately 2.5 million.

This is Ofer answering this question. So we are using the ATM cautiously. And according to the market condition, we decide when to use it or not. This is part of our strategy to raise money. And we find it is probably the most efficient and less expensive way to raise money, and we use reports on how we utilize the ATM on our -- every 6 months in our regular reporting system. And I'm sure that all of the information, as usual, will be available in this report.

The next question. Can you monetize your IP technologies with a major strategic partner in the near term, whether that would be a technology partner, Google, et cetera. One of our subsidiaries or the ChemPass engine.

So our -- when we are evaluating our technology and we did so. So we look at all the companies that are focusing on small molecule discovery for pharma and for the ag. In the ag, there are not many, if at all. I think that [indiscernible] is one of the major company in this field. In the pharma, there are additional companies in the same area of activity. And then we can divide them to a huge company, which usually they are working on their bond pipeline and less on -- in the table of other companies. There is a small company that are competing with what Evogene is doing.

I think the fact that actually Evogene is entering into this field after many, many years of experience in how to use technology to address chemical and biology challenges, I think, puts us in a very strong position. And the fact is that even though we are opening our activity in this area, less than a year, we already have a 6 collaboration agreement, and we are now talking with a traditional companies on additional collaboration. And what I'm very excited to see is that we announced [indiscernible] with a pharma company when we start to see initial interest in our technology and what we can offer them.

And the last is that today, when we're talking with on additional [indiscernible] agreement in the majority of our own well discussion, we are also talking about R&D fee to fund our activity. This is something that we haven't done at the beginning of our activity in this field. And I believe that it will also be reflected in our future revenue item, which makes me very excited and feeling that we are really offering something unique. Usually, I don't think that it's common to make comparison to other companies, but I feel that we are in a very, very good place in the field of small molecule discovery, targeting a specific protein.

The next question, how long do you expect the field trial to take for the Septoria agricultural program?

So currently, we still didn't initiate on the new targets that we are focusing the field trial. We are now in the stage of validating our most promising molecules or attach compound leads with the funding. And the next step will be at greenhouses. I'm really excited from where we are today because the concentration of the small molecules that we are evaluating now, it's very, very low, which this is very, very important, and we saw very strong response to when it was tested on pongilevel. And I really hope to start to see the indication also [indiscernible], which is the next step of our focus. And this is the step when we are going to approach all the big chemical companies. And the fact that we are focusing on Septoria is not a coincidence. Septoria is one of the main mainly unit all the big companies are looking for a solution for because what existed the market the already developed resistance. And everybody today is looking for [indiscernible]. This is the protein that we are focusing on. And of course, to find the chemistry that is working on this specific mode of action. And I think this is what we are -- we have now in our hands. So I'm really looking to see what we can build commercially around this program where we start to present those results to the world leading ag chemical companies.

The next question. When do you expect EBGR510 to enter the clinic?

So I don't have a part of me the table, but our -- in the near future, we are more focusing on entering into the preclinical trials. This is something that is a more closer milestone. And I really hope that in some of our program in the second half of next year, something that is would be reasonable to expect, at least, in the first program that we initiate. I think that in my pitch, I shared that we are very, very excited to see the 2 from our 6 ongoing program already moved from step 1 to step 2 in our workload scheme with a very, very promising result. It was better than what we expected including our partners. And we also are nicely advanced in our internal pipeline, which were finished step 2, and now we are moving to step 3 and assuming we'll end step 3 during next year, then we can start to talk about going into the present. The minute that Evogene will move to the stage of preclinical trial company, I think this will be an inflection point that I hope and expect that it will also have effect on our company valuation and perception in the pharma industry.

The next question, when does management plan to use an IR approach to bring investor outreach to new existing shareholders? In my opinion, management has shut itself in the foot by pigeonholing yourself to your single banker. I would like the C suite and others to do MDR across U.S. as the IMO ChemPass AI is worth multiples of the market cap today. But due to ATMs and structural investors, our shares have been held hostage. Let's change our ways and bring the true value out.

Honestly, I really I definitely agree to honest everything that was safe in this questions. I think that we definitely need to explore Evogene to a much product audience. I think that we need to meet with new investors and existing investors to tell the Evogene story. So when we haven't done it until now, if it's so clear. We are now in the position that if somebody told me a year ago that we will achieve all what we achieved already, I thought that maybe it's too good to mature because we started the new -- significant shift in our strategy 1.5 years ago. So 1.5 years ago, what we can tell in the Street is also just the expectation, what we are planning to do and what might happen.

A year and a half later, the reality is now our expectation, our plans became the reality. And now I feel very, very comfortable to start to meet with investors and with the family offices and with the institution, the financial institution and tell them not just the Evogene story, but also can show them the result and the list of the collaboration that we signed on and this list is going to increase. And I think -- I feel that we have today now not just a story, we have the reality that support our story. And this is now the time to start to meet with investors.

In June -- at the end of June, I participated in a conference in San Diego, and we met with pharma companies, meat and small biotech companies, and it was the first time that when we tell the Evogene stories or the results that we achieved and when we show the numbers from the program finished step 1, and I see the reaction on the face of people when we saw them the number of molecules that show positive results, this is where I heard that now we have what we need in order to make the difference when I'm meeting with investors. And I'm looking forward to finish the summer vacation and immediately to work with more than one investment banker to work with IR firm and really to start to meet with potential investors and make sure that the audience of the work whatever is going will increase. And when the results will come more and more frequently, I believe that they will -- it will also be reflected in our share price.

So I have a strong belief that, yes, we need to be more out there, and we are now in the process of to do so.

The next question, how long is the heat to lead stage of development typically take?

So the competition part, it's don't take too long. It's something around like 2 to 3 months. But before we are moving to step 2, which this is a hit to lead, this is the name of the second step, we are -- our partners -- or inside of Evogene, we order the predicted small molecule according to our conditional analysis and then we validate them in wet assay. And by doing so, we confirm the prediction, and we're using all of this information before we start the second round -- the second conditional round of analysis.

What really takes more time is to order the small melons the time until they come to the lab and the asset itself. This might take another few months. So in total, it might take something between like 4 to 5 months in order to see the results. When [indiscernible] institution, it might take longer because usually at [indiscernible] institution, they have having to do everything to be slower than what you expect. When we are working with a commercial partner, things are moving much faster. And when we are doing it by ourselves, so this is when you see the fastest evolution in the program. And as example, even though that we initiate our internal program after we already work -- we get to maybe even 3 collaboration agreements, the problem that is the most advanced and now we initiate Stage 3 is the internal program because we are moving much faster the academic institutions some of our partners.

So to summarize the answer to the question, it's between 4 to 5 months. it could be shorter if we are doing it internally, it might take longer. If it's an academic institution, but this is the range.

The next question, I'm a shareholder for a long time. Why the price drops down so much until now, you have to do something to solve it.

I'll take it. This is Nir. Thanks for the question. I'm also a shareholder, and I also share the frustration. We've done a very thorough strategic analysis of all of our assets already 1.5 years ago when I joined as Chairman. I've spent personally a lot of time and with my fellow Board members and the management team, we have decided to focus on very carefully but very intently on ChemPass. We feel that there is a differentiated asset that no one else has. Ofer was careful to say that, but I will say that after dozens of meetings with potential partners. It's a differentiated asset, and we believe that we will be able to evolve the 6 current collaborations into tangible products down the road that would be monetized. And we believe that even default these products evolve into preclinical and clinical studies, we will cement additional collaborations, hopefully, with larger companies, some of which are already spending significant amounts and resources on the use of AI for large molecules as well as small molecules. And we do believe that we have the data to show them to demonstrate the differentiated value of the product.

Having said that, what would be the impact on the share price, if at all, and how soon is not something I can comment on, nor I'm willing to predict, but we believe the value will be there. It will be demonstrated very clearly. It will become tangible not only in our eyes, but also in the eyes of our partners and a growing list of them. And eventually, that would result in an increase of the share price. I also want to echo what Ofer said and repeat some of what I said. We're not just focusing on building value. We're also focusing on running a leaner, more agile and more operationally focused organization. Again, the organization today is about 1/4 in its size and even less so in terms of the burn. This is being done to preserve our are and to be able to actually demonstrate this value. So again, all in all, we sell the frustration, and we were acting very diligently to correct it.

The next question, is there any kind of plan to see if the Biomica candidates can be reduced to a single train and still retain most activity. The difference is huge in the regulatory world. I am talking about the difference between full drug path versus a dietary supplement.

So first, it's important not to emphasize that we start from our strategy to focus the company activity on multiple discovery. So we reduced the level of Biomica activity significantly starting from 2025, and we were mainly focusing on ABST128, which is what our lead candidate for cancer. And we finished Phase I successfully in the first quarter of 2026, and we also have initial positive result that makes us very, very excited. But because we were short in [indiscernible] and because of our decision to focus on small molecules and not on micro, we decided strategically to look for a partner that we can license those assets too, and we choose to work with a Chinese company that are focusing specifically on the area of drug based on immune microbiome, which this industry is supported nicely at China, which today is one of the leading companies in the biotech arena worldwide. And they are advancing the microbe forward. No doubt that if we will move from 4 microbes to 1 microbe, it will change significantly the regulation hurdle, but the reason that we choose this 4 is because we felt that the total effect of all the 4 together is quite important because each one of the microbe is operated on a different mechanism. And all together, it serves the maximum effect that we were looking for. And I think this is what also reflected in the result that we will see.

And what was also very nice what we thought is that the clinical indication supports the prediction on how those microbes are going to affect our value. So we are in direct contact with Lishan. Actually, today, we had a Board meeting of Biomica that I'm today leading these Board meetings, and we talk with our colleagues in China. And they are now starting validation of the consortium of microbes. They also validate each one of them separately. But now they are the one that isolating the commercial -- the research and the commercial process of these microbes. Of course, if we tend to -- if they will turn to the conclusion that you can reduce the number of microbes, it's something that we'll definitely be more than happy to do.

Maybe the last thing I want to add is that when you're talking about building an IP position, when you have a combination of microbes, it's put you in a much stronger IP position rather than only one microbes. So maybe another reason to have a product based on 2, 3 microbes is also from IP reasons. I hope that I address this question. If not, I will be more happy to do it offline.

The next question, can you add the value for Evogene in the verb biotics and finally, foods. Those 2 items are really under disclosed compared to the relatively short term.

So with respect to finally foods, it's one our subsidiary. We're holding this company more than 30 its equity. I hope this is correct because the company raised some many lately. The company is focusing on produced [indiscernible], which is a protein existing in milk in potato. The whole concept was developed in Evogene and the researcher that was leading the program they moved to -- at the beginning, it was part of the kitchen hub. They establish a company and the company name is [indiscernible]. I'm giving this information to not let everybody in the call knows about this activity. All the wet lab -- the majority of the wet lab, conduct by this company was taking place in Evogene facility, Evogene lab, and now the majority of the greenhouse activity is taking place in Evogene farm. And the company has a very nice and promising results, and we are very excited about it.

Due to our decision to focus on small molecules, we are not planning to invest directly in this company. I'm a Board member in this company. We are the major shareholder. But of course, if we come to the conclusion that from a financial perspective, it makes sense to keep our holding in the company. So in future round, we will consider to participate. But at least for now, it's not part from our core strategy, but you can imagine that I'm more than excited and pleased to see the progress of the company moving forward with the idea of producing a [indiscernible] protein and other proteins that's usually exist in milk in potato. And they had a very nice result based on the last update I received from them.

The next question, the APH1 and the APTH1, is this program dead? Or is it possible to license it to someone like [indiscernible].

[indiscernible] So APTH1 is a protein that was protein that we were focusing on for herbicides. We stopped -- and we have the collaboration is built with Bayer. And we announced that we stopped this collaboration in the first half of this year, and there is a good news and a bad news related to this announcement.

I will start with the bad news. The bad news was that what we turned out is that the protein itself, even when we start its activity, so a big -- and the idea was to develop an herbicide weed killer, okay? So it turned out that when we stopped the protein activity, the weed at the beginning showed that they are getting with and it looks like they are going to die. But after a while, they somehow recover, and the understanding is that this specific protein is not essential enough in order to kill the weed. And this is something that our partners saw only in very advanced stage. And the perception was the molecule that we discover, they were doing the job -- they were doing what we were expecting from them. They stopped the protein activity. This was the main expectation from Evogene to fund the molecule that are going to stop the protein activity. The program wasn't -- the molecule -- the problem was the protein itself, the protein that we are supposed to stop with activity was not [indiscernible] enough to the existing of the weed, and this is why both Bayer and Evogene decided to stop property on this target. So I'm not sure that we will succeed to generate enough interest in other partners with respect to this specific protein.

The good news came from this work is that I think that Bayer sells very positive and pleased from the Evogene work in this project because, as I said, our target was to find the right small molecules that are going to package proteins and target activity, and we succeed in doing so. And this is how both parties exposed, the protein is not essential enough to kill the weed.

So my believe and expectation is that this positive impression on Evogene technology, I hope that it will lead to new discussion with Bayer on new programs, new projects. And I believe that there is more to come in respect of the relationship between these 2 companies. I can't disclose much, but I really hope that the good impression, the great [indiscernible] between the 2 teams will be translated into expanding and continuation of the commercial relationship between the 2 parties.

There are no further questions at this time. Mr. Haviv , would you like to make a concluding statement?

Yes. I would like to thank everybody to participate in this analyst call, we highly tissue to time. I think the company is in a really great position to progress and prosper. We are in the right space, more molecules in pharma. It's a huge, huge [indiscernible]. I believe it's exactly the same in the ag industry. And I'm looking forward to continue to update you in future analyst call on additional achievement. And if you have any additional questions that maybe I didn't [indiscernible] to address in this call, don't hesitate, call me. I will be available to any additional questions. And I will be also very happy if needed to meet face to face to elaborate more about the company. Thank you very much and enjoy the rest of the week.

Thank you. This concludes Evogene's Second Quarter 2026 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

Welcome to Evogene's First Quarter 2026 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded May 20, 2026. Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events and Evogene Ltd., the company may, from time to time, make other statements regarding our outlook or expectation for future financial or operating results and/or other measures regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, the PSLRA and other securities laws as amended.

Statements that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, expect, anticipate, should, planned estimated, intend and potential or words of similar meaning. We are using forward-looking statements in this presentation when we discussed our value drivers commercialization effort and timing, product development and launches, estimated market size and milestones, pipeline as well as our capabilities and technology. Such statements are based on current expectations, estimates, projections and assumptions described opinions about future events involve certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance with a caution that certain important factors may affect the company's actual results and could cause such results to differ materially from any forward-looking statement that may be made in this presentation.

Therefore, actual future events, performance or achievements and trends in the future may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors many of which are beyond their control, including without limitation, the aftermath of the recent work between Israel and each of the terrorist groups amassable you run another original terrorist group supported by run. And any destabilization in Israel neighboring territories on the Middle East region, and those described in greater detail in Evogene's annual report on Form 20-F and in other information, Evogene files and furnished with the Israel Securities Authorities and the U.S. Securities and Exchange Commission, including those factors under the heading Risk Factors.

Except as required by applicable security laws, we disclaim any obligation or commitment to update any information contained in this presentation or to publicly release the results of any revisions to any statement that may be made to reflect future events or developments or changes in expectations, estimates, projections and assumptions. The information contained herein does not constitute a prospectus or other offering document nor does it constitute or form part of any invitation or offer to sell or any solicitation of any invitation or offer to purchase or subscribe for any securities of Evogene or the company. no shall the information or any part of it or the fact of its distribution from the basis of or be relied on in connection with any action, contract, commitment or relating thereto or the securities of Evogene or the company. The trademarks include hearing are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of our product or services. With us on the line will be Ofer Haviv, President and CEO of Evogene and Polina Ravzin, VP Finance of Evogene, now I would like to turn the call over to Ofer Haviv, Mr. Haviv, please go ahead.

Thank you for joining Evogene's First Quarter 2026 analyst call. In today's call, I will focus on the significant progress Evogene has made over the past quarter and outline the company's key objectives for this year. Joining me for this part of the presentation are Dr. Gabi Tarcic, the company's Chief Development Officer; and Dr. Dan Gelvan, CEO of our subsidiary, Atlas which focus on ag chemical development. Following our remarks, our VP Finance, Polina Ravzin will present the financial results. Then we will open the call for questions. As I stated in our previous call, Evogene's mission is clear and focused to design novel highly potent small molecules optimized across multiple parameters for drug development and chemicals by leveraging campus our computational generative AI engine.

This mission is guided by a strong objective to direct Evogene's resources toward are where we believe we can create the greatest substantial value. To execute this mission, we made Turkey strategic decision. The first one was to focus all of our technology efforts on our proprietary concessional engine, campus AI. In this context, I would like to emphasize that we strongly believe that technological collaboration are essential for advancing our core platform. This belief was clearly demonstrated in the partnership we announced with Google in 2025. In this collaboration, we successfully developed a breakthrough generative engine capable of designing entirely new molecules structure molecules that are not only highly novel, but also easier to synthesize and better align with multiple product development requirements.

The second strategic decision was to streamline our business activity to concentrate on 2 highly impact market where campus AI provides a strong competitive advantage, pharma focused on small molecule drug discovery and agriculture focused on next-generation ag-chemicals. To maximize the value of our technology, we adopt a clear and consist business model across both domains, which is built on 2 complementary channels. The first channel is establishing strategic collaborations with industry partners for early-stage product development, those collaboration helped reduce both our scientific and financial risk while accelerating innovation. The second channel is the advancement of our own internally funded product pipeline, in this channel, our goal is to mature those program further before entering partnership, allowing us to secure stronger commercial terms with leading industry players.

This slide highlights the collaboration and internal programs, Epogen was advancing at the end of 2025. In agriculture, we established 2 strategic collaborations for herbicide development, 1 with Bayer and another with Corteva. At the same time, we continue advancing our internal funded program focused on novel septoria fungicide. It is important to note that Evogene chemical activities began in 2018 and and are carried out to our subsidiary at lens. In parallel, our pharmaceutical activity focused on small molecule brand discovery were launched only at the beginning of 2025 as a division of Evogene. At the end of 2025, our first and only announced collaboration in this field, was with Tel Aviv University, targeting therapies for metabolic diseases linked to a protein aggregation in blood vessels.

Now I would like to present the company's achievement over the last quarter and to date across those 3 areas: our core technology platform, our pharma activities and our chemical activities. We will begin by reviewing the achievements in the area of our core technology platform, Campus AI. In February this year, we announced our second collaboration with Google aimed at integrating agents into Campus. The collaboration is expected to enable capabilities that currently do not exist in the global small molecule discovery process. Our second collaboration with Google focused on developing advanced AI agents to solve complex scientific challenges. Success in this project will enable Evogene to automatically extract valuable insights from scientific publications and create proprietary data sets.

These data sets will help us build highly accurated computational models for characterizing specific scientific parameters. We will then use those models to support the development of new molecules designed in accordance with the requirement of our target product profiles. Overall, these new capabilities are expected to significantly strength Evogene's technological leadership and competitive advantage. We will now proceed to reviewing the achievement and activities in the company's pharma division where the most significant growth secured this year. In the first quarter of the year, the company announced 3 new collaboration agreements, 2 with biotech companies and 1 with an academic institution. In the following slides, Dr. Gabi Tarcic, Evogene CDO will elaborate on each collaboration. Gabi?

Thank you, Ofer. I'm excited to share with you the progress in the Pharma division that has taken place since the beginning of the year. In February, we announced a new collaboration with Systasy Bioscience and Ludwig Maximilian University Hospital in Germany. This collaboration focuses on a novel biological target involved in neutrophil-driven hyperinflammatory diseases, such as inflammatory bowel disease, IBD, an area of significant unmet medical need. The collaborations supported by the prestigious Eureka grant brings together 3 complementary capabilities. Evogene Campus AI engine Systasy proprietary pathway profiler technology for high content, functional validation in patient-specific models and the clinical expertise of Ludwig Maximilian University Hospital.

By integrating AI-driven molecular design, advanced functional biology and clinical insights from the earlier stages, we aim to accelerate the identification of high-quality drug candidates while building strong long-term therapeutic and commercial value. In January this year, we announced a collaboration with unravel Biosciences that focuses on a newly discovered target for demyelinating disorders such as multiple sclerosis, to develop brain penetrant therapies capable of restoring milling and improving neurological function. Here, by combining Evogene's ChemPass drug design engine with unravels patient-derived molecular profiling capabilities we are accelerating the identification of drug candidates and addressing a major unmet medical need in an ore generative market exceeding $26 billion, thereby creating significant long-term partnering and commercial opportunities.

This collaboration exemplifies the strategic partnerships we are pursuing by bringing together deep biological insight and Evogene's advanced computational chemistry platform to create a differentiated first-in-class therapeutic opportunities with strong pharmaceutical licensing potential. In mid-February, we announced an additional collaboration that focuses on addressing chemotherapy resistance, 1 of the major challenges that limits the effectiveness of current cancer treatments in collaboration with Dr. Mark Adams and the Queensland University of Technology in Australia.

Together, we are targeting a newly identified cellular detoxification pathway that enables tumors to resist cancer therapy. The collaboration integrates Evogene's ChemPass AI generative molecular design engine with advanced cancer genomic expertise to develop novel small molecule inhibitors designed to restore treatment sensitivity by addressing a key resistance mechanism across multiple cancer types, including non-small cell lung cancer. This program has the potential to generate differentiated oncology candidates with strong clinical and commercial value. I am very proud to present for the first time the small molecule pipelines of Evogene Pharma division, a growing and highly promising portfolio that reflects the strengths of our technology, innovation and strategic collaborations.

We are encouraged by the advancement of the molecules generated in collaboration with our partners, and we look forward to seeing these programs progress rapidly into more advanced preclinical and clinical stages. At the same time, we expect additional high potential projects to join this exciting pipeline further expanding the opportunities ahead of us. Looking ahead, I am excited to continue sharing updates on meaningful progress we are making across these programs. With that, I would like to conclude my remarks and hand over the call back to Ofer.

Thank you, Gabi. We will conclude the update on the corporate core business activities, the status in the field of a chemical development. Operating in this field are conducted through our subsidiary, a lens. I will ask Dr. Dan Gelvan, AgPlenus CEO, to elaborate on the company's activities.

Thank you, Ofer. I'm pleased to provide an update on the status of planes activities since the beginning of 2026. The main progress has been in our internal project aimed at developing a fungicide for Septoria and I will elaborate on this topic on the coming 2 slides. But first, I would like to focus on an update regarding our collaboration with Bayer. While planes collaboration with Bayer has yielded significant novel active compounds, thereby thoroughly validating our ability to optimize active molecules it has now become evident that these candidates cannot be further developed due to issues pertaining to the biology of the target protein. As a result of this inherent target problem, we have amicably together with Bayer, decided to terminate our research collaboration agreements.

Based on the strong professional relationships established during this collaboration, we are now exploring potential opportunities for future collaborations that would leverage AgPlenus' computational chemistry capabilities, discovery platforms and molecule optimization expertise as demonstrated throughout this collaboration. I will be happy to update on the outcomes of these discussions in future updates. Within our internal development pipeline, we are making good progress in developing a new fungicide for wheat blotch as a disease caused by Zymoseptoria. We are working to address a major problem representing an annual market value of over $1.2 billion. Approximately 70% of fungicides applied to wheat in Europe are aimed at fighting wheat bloods. Concurrently, many existing products such as struggle Lawrence are experiencing diminished efficacy as the disease develops resistance.

This underscores the critical need for a new and effective solution. Our initial assessment was not promising as no structural data was available for the target protein. -- a common challenge in ag chemistry research aimed at overcoming resistance. We use homology modeling and structure-based development to characterize the active site. Utilizing pointed the initial phase of molecule screening employing ChemPass AI, 440 candidates were selected for testing. Of these, only 11 met enzymatic inhibition thresholds and only 2 demonstrated antifungal activity. From these 2 in vitro and in vivo validated compounds and incorporating the negative results, utilizing active search the subsequent phase of molecule screening that leverage the data generated in the preceding stage, we selected 164 off-the-shelf molecules for purchase.

Subsequently, 38 of these showed in somatic inhibition and 5 demonstrated antifungal activity, demonstrating a clear improvement over the initial screen. Building on these insights, we moved to lead up GPT and generated 27 novel compounds, which were custom synthesized and tested over the past months. Of these 25 met enzymatic inhibition thresholds and 15 also showed the desired biological activity, which represents a dramatic improvement. This progression illustrates how the integration of iterative experimental validation with AI-driven molecular design can transform limited early signals into a focused, high-quality lead set. We have high expectations for this program, and I will be pleased to update you on the progress we make in the coming quarters. I'm pleased to present and add a Plenish pipeline to that of Evogene's Pharma division. I believe that consolidating these 2 activities under a single technological platform will create strong synergy and mutual enrichment thereby accelerating product development in both areas and strengthening our competitive advantage and value proposition across the 2 industries in which we operate. With that, I conclude my remarks and hand the presentation back to Ofer.

Thank you, Dan. Looking ahead, we anticipate meaningful progress across all 3 of the company's core areas of activity, reinforcing our growth trajectory and long-term value creation. With respect to our technology engine, we continue to strengthen our competitive edge through the expansion of additional technological collaborations, designated to further enhance our innovation capabilities and sustain our unique market advantage. Looking at our drug development activity for the pharmaceutical industry, we are expecting to advancing our existing pipeline towards key value-creating milestone. establishing new strategic collaborations with leading biotech companies and academic institution, deepening relationships with global pharmaceutical companies and actively evaluating new opportunities to establish our internal drug development pipeline.

With respect to our chemical development activity for the agriculture industry, we expect the continued advancement of our existing pipeline assets, forming new collaboration with leading ag chem companies and ongoing evaluation of opportunities to expand and strengthen our internal pipeline. Overall, we remain strongly focused on executing partnership expansion and pipeline development across all business areas, positioning the company for sustained growth and long-term success. With this, I conclude my part and hand over the discussion to Polina. This is her first time participating in quarterly call, and I would like to wish her great success as the lead Evogene Finance Department. Good luck, Polina.

Thank you, Ofer. Before I move on to the update regarding the first quarter financial statements, I would like to provide an update on the activities of Evogene's subsidiaries that in line with our biostrategy are no longer part of our core business for the companies fall into this cation, Lavie, Biomica and Costera. We will begin with an update regarding the company's with activities, we have decided to discontinue or significantly scale down Lavie Bio and Biomica. The Viva's activity, Evogene subsidiary in the field of logical was inquired by ICL in 2025. The ripios operations were discontinued at the end of the first quarter of 2026, we are distributing the Romanian cash balance accumulated in the company as a result of the sale for duration to.

The company expects to receive 2 additional payments under this transaction. With respect to Biomica, subsidiary in the field of therapeutics based on the human microbiome, and significant events have occurred in the beginning of the year. Biomica license is a lead oncology candidate, BMC128, collision pharmaceuticals in early 2026. is currently completing a Phase I clinical trial for BMC128. has received approval to distribute the company's remaining cash to its shareholders. We will continue to provide updates on these 3 metrics in the coming quarter. We will now move on to the update regarding Costera, our subsidiary in the caster cultivation sector for oil production for byproducts and alternative energy. As previously noted, although this activity is not part of our core business, its activity is ongoing, and we are evaluating the potential primarily in Brazil.

I would like to note that operations have also undergone a significant reduction in recent months in order to align its activities with Brazil only. As we noted in the previous quarter, we are evaluating the potential inherent in Coster's operations in Brazil. As part of this activity, we are pleased to report 2 significant events. In April, we reported strong results in terms of the economic performance of our varieties and commercial still trials in Brazil. In May, we reported that the company is conducting approximately field trials of our commercial immune varieties in 7 target regions in Brazil under different cultivation regimes. We expect that this activity will form the basis for the commencement of sales in tester seats for 2027 growing season. Now we will move on to present the company's financial statements for the first quarter of the year and we'll begin with the balance sheet.

Let's start with our cash position. As of March 31, 2026, Evogene held consolidated cash, cash equivalents and short-term bank deposits of approximately $13.1 million. The consolidated cash usage during the first quarter of was approximately $2.8 million. During the first quarter of 2026, Lavie received court approval for the distribution of $4.25 million dividend to its shareholders. In April 2026, Biomica received court approval for the distribution of $2.7 million dividend to its shareholders. Bonded distribution processes are expected to be completed in the second quarter of the year. In February 2026, Evogene entered into a warrant inducement agreement with an existing investor for the immediate exercise of all August 2024 Series A and Series B warrants resulted in a gross proceeds of approximately $3.4 million before fees and expenses.

As consideration for the exercise, investor received in a private placement, new unregistrated Series A1 and Series B-1 warrants to purchase up to an aggregate 6924 ordinary shares. The new warrants are immediately exercisable at an exercise price of $1.25 per share, the CRS A1 and Series B1 warrants were classified as a liability in the consolidated statements of financial position initially recorded at for value and subsequently were measured at each reporting date is in bestows option pricing model. As of March 31, 2026, the warrants liability totaled approximately $1.7 million. We will now focus on the income statement. Revenues for the first quarter of 2026 totaled approximately $0.3 million compared to approximately $2.3 million in the same period of 2025, representing a decrease of approximately $2 million. The decrease is mainly attributable to lower revenue recognized by, which in the first quarter of 2025 included significant seat sales of approximately $2 million.

Cost of revenues for the first quarter of 2026 was approximately $0.1 million compared to approximately $1.5 million in the corresponding period of 2025. I -- the decrease in cost of revenues is consistent with the decline in revenues during the quarter. Research and development expenses, net of nonrefundable brands for the first quarter were approximately $1.8 million compared to approximately $2.5 million in the corresponding period of 2025, representing a decrease of approximately $0.7 million. The decrease is mainly attributable to lower R&D expenses in Biomica, and net plans. Sales and marketing expenses for the first quarter of 2026 and 2025 were approximately $0.4 million with no material change between the periods. General and administrative expenses for the first quarter of 2026, remains stable at approximately $1.2 million compared to the corresponding period of 2025.

Although there was a material decrease in the company's G&A expenses, it was substantially offset by the impact of exchange rate for creations between the U.S. dollar and the need as well as transaction costs related to the warrant inducement transaction. Other income net of approximately $30,000 was recorded in the first quarter of 2026 mainly attributable to the sale of fixed assets compared to other income of approximately $191,000 recorded in the first quarter of 2020 filed which was mainly related to the accounting treatment associated with evident sublime. Operating loss for the first quarter of 2026 was approximately $3.2 million compared to approximately $3 million in the corresponding period of 2025. The increase in operating loss is mainly due to decreased revenues, partially offset by lower operating expenses as described the move.

Financing expenses net for the first quarter of 2026 were approximately $2.7 million compared to financing income net of approximately $1.1 million in the corresponding period of 2025. The change was primarily attributable to the accounting treatment of pre-funded warrants and warrants issued in August 2024 fund raising and warrants issued in February 2026 and transaction. As part of the February 2026 warned in Houston transaction, the company recorded financial expenses of approximately $3.8 million during the first quarter of 2026, partially offset by financial income of approximately $0.9 million related to the revaluation of on. Income from discontinued operations net for the first quarter was approximately $40,000 compared to a loss from discontinued operations net of approximately $1.1 million in the corresponding period of 2025.

This amount primarily reflect the financial results of the buyers operations as well as expenses related to the development and maintenance of AI for Ag which are presented in a single line item in the consolidated statement of profit and loss. Following the sale of majority of the bus assets as well as average and for up in July 2025, live by no longer maintains ease and its operating expense level has decreased significantly. Net loss for the first quarter of 2026 was approximately $5.9 million compared to approximately $3 million in the same period last year. The increase of approximately $22.9 million was mainly due to decrease in revenues and increase in net financing expenses. partially offset by a decrease in operating expenses and a reduced loss from discontinued operations net I'll now conclude my remarks, and we will open the call for questions.

[Operator Instructions] The first question, when can you sign a strategic deal via tech partner, pharma partner, a partner that would include an investment into the shares.

This is Ofer. And I say that this question came from Patrick, which I'm really happy to hear from him. It's been 1 we were in contact Well, I think that trying to project when touched in a transaction could took place activity bank on the progress and results we achieved in the different earnings that you mentioned, AG, Pharma or the technology itself. I think that since Imogen is highly active in the ag sector. And we already have site and over there some very significant results. It was presented today by Don I intend to believe that this is one of the first pages where we can see a strategic transaction that might not necessarily, but might also include equity investment.

But definitely, it should be something that is meaningful for the plan and also, of course, definitely for Epogen. So this is 1 of the areas that I believe could represent a catalyst in the way that we described in the next in the future. The next area actually is technology. I believe that over there, since we are working with some big names, company strategy Google, and I can also maybe disclose that we are talking with some other companies in the same sites like Google where we are looking for earlier to elaborate with them and expand our technology advantage. I think that this type of companies or the miller to demand to Google could be another earlier that maybe after the could lead to a significant transaction.

In the pharma, once again, I was asked to emphasize the point that we initiated our activity there only at the beginning of 2025. And the fact that today, we have actually 4 ongoing collaboration this area and we are now talking with some other partners or additional collaboration, it's very, very impressive, and I'm really excited about it. Still in order to convince the big pharma or the big biotech companies to adopt our technology in a way that it will lead to a significant transaction and equity investment -- it will take a while. I'm not talking about many years, but I'm not talking about -- of course, it's not going to be in the next few quarters. The good news is that we have already started discussion with big pharma. Of course, I cannot disclose the name in this day -- there is an interest in what we are doing.

And I believe that when we start to see results coming from our ongoing collaboration in this market segment, it will be much easier for us to start to build a relationship with the big pharma company, which action hopefully, can lead to the type of strategic collaboration that will also involve involve equity investment. So I think that we are in the right direction. And actually, each segment is feed the proved of the test of the other segment. So a success in the ag, we see the potential success in the technology segment. And of course, both of them is going to feed the progression of success to -- for such an engagement with bipharma in the farm in the bitcoin in the pharma industry. I hope that addressed your question.

[Operator Instructions] There are no further questions at this time. Mr. Haviv, would you like to make your concluding statement?

Yes. Thank you, and I really appreciate the time of all the people that participate in this analyst call. And we are all looking forward to continue to update you on the progress, and I really hope is will continue with the same speed of new collaboration and agreement like we did at the beginning of this year. Thank you very much.

This concludes Evogene's First Quarter 2026 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

Welcome to Evogene's Fourth Quarter 2025 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, March 5, 2026.

Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events and Evogene Ltd, the company may from time to time, make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, the PSLRA and other securities laws as amended.

Statements that are not statements of historical fact may be deemed to forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, expect, anticipate, should, plan, estimate, intend and potential or words of similar meaning. We are using forward-looking statements in this presentation when we discuss our value drivers, commercialization efforts and timing, product development and launches, estimate market sizes and milestones, pipeline as well as our capabilities and technology. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance. Readers are cautioned that certain important factors may affect the company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this presentation.

Therefore, actual future results, performance or achievements and trends in the future may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond our control, including, without limitation, the aftermath of the recent war between Israel and each of the terrorist groups, Hamas and Hezbollah, Iran and other regional terrorist groups supported by Iran and any destabilizations in Israel, neighboring territories or the Middle East region and those described in greater detail in Evogene's annual report on Form 20-F and in other information Evogene files and furnished with the Israel Securities Authority and the U.S. Securities and Exchange Commission, including those factors under the heading Risk Factors.

Except as required by applicable security laws, we disclaim any obligation or commitment to update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to reflect future events or developments or changes in expectations, estimates, projections and assumptions. The information contained herein does not constitute a prospectus or other offering document nor does it constitute or form part of any invitation or offer to sell or any solicitation of any invitation or offer to purchase or subscribe for any securities of Evogene or the company nor shall the information or any part of it or the fact of its distribution from the basis of or be relied on in connection with any action, contract, commitment or relating thereto or the securities of Evogene or the company. The trademarks include herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of our product or services.

With us on the line will be Ofer Haviv, President and CEO of Evogene and Yaron Eldad, CFO of Evogene. Now I will turn the call over to Ofer Haviv. Mr. Haviv, please go ahead.

Thank you for joining Evogene's Fourth Quarter and Annual 2025 Analyst Call. In today's call, I would like to focus on the significant progress Evogene has made over the past year and to outline the strategic transformation we initiated to position the company for long-term value creation. Following my remarks, our CFO, Yaron Eldad, will present the financial results, and we will then open the call for questions.

During 2025, following a comprehensive review of our technology, markets and capital allocation, we made deliberate choice to sharpen our focus and execution. This transformation was guided by a strong objective to direct Evogene's resources where we believe we can create the greatest sustainable value. Today, our mission is clear and focused, to design novel, highly potent small molecules optimized across multiple parameters for drug development and ag chemicals by utilizing ChemPass AI, our computational generative AI engine. For this purpose, we implemented two core strategic decisions.

First, we focused our technology development on a single computational engine, ChemPass AI. Second, we streamlined our business activities to concentrate exclusively on two high-impact markets where ChemPass AI offers strong differentiation, Human Health centered on small molecule drugs and Agriculture focused on novel ag chemicals. These decisions led to determined actions across the company. We dedicated our computational capabilities to ChemPass AI, discontinued noncore activities, divested misaligned assets, resized the organization and established a business development team aligned with our refined strategy.

I would like to elaborate on ChemPass AI and emphasize its competitive advantage for small molecules generation. ChemPass AI is designed to generate novel, highly active molecules while meeting the complex parameters required to meaningfully increase the probability of downstream development success. ChemPass AI competitive advantage lies in the powerful combination of the following two capabilities. The first, generating novel molecules based on vast clinical territories and the second, ensuring they meet demanding multiple parameters requirement from day 1. Our platform goes far beyond the clinical space the industry traditionally explores. Based on 38 billion molecules universe, ChemPass AI foundational model navigates vast diverse chemical domains that others simply cannot access. This enables us to design truly original molecular structures with strong biological potential and highly defensible intellectual property, opening the door to breakthrough products and new IP landscape.

At the same time, precision is built into every molecules we create. Our AI engine simultaneously optimize a wide range of critical chemical, biological and physical parameters, tailoring each compound to the exact constraints and success criteria of the specific target product. The result is not just innovations, but synthesizable active molecules engineered from the outset, to meet real development requirements, dramatically increasing the probability of real-world commercial success. This differentiation is supported by proprietary technological advancements developed by our internal team, guided by world-class scientific advisers and reinforced through multiple collaborations with leading technology companies, including Google Cloud with whom we are currently engaged in our second collaboration.

Our first announced collaboration with Google Cloud was successfully completed in mid-2025 with a first-in-class foundation model for the generation of novel molecular product candidates, optimized for multiple parameters by processing a database of 38 billion structures. We tripled our benchmarks for accuracy, delivering 90% design precision. Building on this, we were pleased to announce our second collaboration with Google Cloud initiated this February. We are now integrating advanced AI agents into ChemPass AI using Google Cloud's Vertex AI to decrease manual errors and automate complex scientific workflows, aiming to improve our novel small molecule candidate's probability of development success. This move towards autonomous discovery is key to advancing and scaling our capabilities for the support of future partnerships across the pharma and agriculture industries.

To summarize the uniqueness of Evogene's offering, our product candidate combines three powerful capabilities: novel molecules generated based on vast and diverse chemical space, simultaneous optimizations for multi-parameter requirements from the outset, highly potent molecules optimized through targeted experimental validation. We don't just design novel chemistry. We generate novel chemistry that performs.

ChemPass AI is built on fully integrated partnership-driven workflow, forming our business model expressed in collaboration and in-house development towards proprietary product candidate. Our partners are engaged at every stage from joint strategic review through rigorous experimental validation and collaborative evaluation. Each project is custom designed to align precisely with each specific scientific and strategic objectives. I view this collaborative structure as a key strategic advantage for us, both in enhancing the likelihood of advancing proprietary candidate molecules with the highest potential to become successful products and in positioning Evogene as a true development partner, enabling participation in the product's future revenue stream.

That brings me to this slide, demonstrating the implementation of our business model, summarizing Evogene's current achievements of which I'm very proud. In Human Health, we are advancing multiple partnered drug discovery programs with biotechnology companies and academic institutions. In this partnership, ChemPass AI is driving discovery and optimization of candidates that are progressing into testing with our partners. To-date, we have publicly disclosed 4 such collaborations, and we expect such activity to scale with additional collaborations. These achievements were made within a very short time frame of several months, and we aim to present similar advancement during the remainder of 2026 and beyond. You are invited to visit Evogene's website and review our company's presentation for additional details on each of these collaborations.

In Agriculture, our subsidiary, AgPlenus, continues to apply ChemPass AI to development of novel herbicides and fungicides. The maturity and robustness of the platform are reflected through our strategic collaboration with Bayer and Corteva alongside a differentiated internal pipeline. We expect continued growth through the expansion of those collaborations and the formation of new partnerships. In our future quarterly analyst call, I expect to go deeper into these business engagements and update on new ones.

To complete my part in today's call, I would like to send a clear message. The generation of proprietary small molecule product candidates is our mission. With ChemPass AI, our well-differentiated generative AI engine, disciplined capital allocation focused on two high potential markets and a strong strategic partnerships, we believe Evogene is now positioned on a defined, more focused path towards sustainable value creation. Our business aim for short and midterm is to become the partner of choice for small molecule discovery and optimization with pharma and big biotech companies for drug development and with multinational agriculture companies for ag chemical development. For the long term, Evogene aims to develop its own product pipeline, benefiting from the competitive edge of our proprietary technology. This is Evogene, combining cutting-edge AI with deep scientific expertise to generate real-world innovation.

Thank you for your time and attention. With this, I conclude my part and will now hand the call to our CFO, Yaron Eldad, to present the financial results.

As part of the company's updated strategic plan, management implemented an organizational realignment and cost reduction initiatives. The effects of these measures are reflected in the significant decrease in operating expenses net, which declined to approximately $13.8 million for the year ended 2025 compared to approximately $22 million in 2024. The impact is also evident in the fourth quarter results with total operating expenses net of approximately $3.2 million compared to approximately $4.3 million in the corresponding period of 2024. The company expects this reduced expense level to be sustained in future periods.

In 2025, Lavie Bio LTD, a subsidiary of Evogene LTD focused on agriculture biologicals, completed the sale of the majority of its operations to ICL. As a result of this transaction, Lavie Bio no longer maintains employees and its operation expense level has decreased significantly. Lavie Bio anticipates distributing the majority of its remaining cash to its shareholders, including Evogene, during 2026.

During 2025, as part of the company's updated strategic plan, we scaled down Biomica's operations and research and development activities and reduced its personnel to a minimal level. In early 2026, Biomica entered into a license agreement with Lishan Pharmaceuticals for its lead oncology candidate, BMC128. Following this transaction, Biomica does not expect to conduct further material operational activities and anticipates distributing the majority of its remaining cash to its shareholders, including Evogene.

With respect to AgPlenus, we integrated AgPlenus, our ag chemical subsidiary into the core operations of Evogene with the objective of maximizing the value of our ChemPass AI platform for the development of novel ag chemical products. In alignment with the company's updated organizational structure, AgPlenus was resized and streamlined to reflect the revised operating model.

During 2025, due to a significant decline in demand for [indiscernible] seeds, Casterra AG ceased its operations in Kenya, reduced its headcount and overall expense level and is currently focusing its activities on the Brazilian market. As a result of these developments, Casterra recorded an impairment of approximately $2.2 million related to its seed inventory. This impairment is presented within cost of sales in the consolidated financial statements in a separate line item.

In February 2026, Evogene entered into a warrant inducement agreement with an existing investor, providing the immediate exercise in full of its August 2024 Series-A and Series-B warrants, resulting in gross proceeds to the company of approximately $3.4 million before deducting of placement agent fees and other offering expenses. In consideration for such exercise, the investor will receive in a private placement, new unregistered Series A1 and Series B1 warrants to purchase up to an aggregate of 5,076,924 ordinary shares. The new warrants are exercisable immediately at an exercise price of $1.25 per ordinary share.

Cash position. As of December 31, 2025, Evogene held consolidated cash, cash equivalents and short-term bank deposits of approximately $13 million. The consolidated cash usage during the fourth quarter of 2025 was approximately $3 million. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $2.4 million in cash during the fourth quarter of 2025. Revenues for 2025 totaled approximately $3.9 million compared to approximately $5.6 million in the same period the previous year, reflecting a decrease of approximately $1.7 million. The decrease was primarily driven by lower revenue recognized from AgPlenus' activity, which included onetime payment during the first quarter of 2024 and revenues recognized from the collaboration agreement with Corteva that was completed during 2024.

Revenues for the fourth quarter of 2025 were approximately $0.3 million, a decrease compared to approximately $1.5 million in the same period last year. The decrease was mainly due to reduced seed sales generated by Casterra during the fourth quarter of 2025. Cost of revenues for the year ending 2025 was approximately $4.1 million compared to approximately $2.4 million in the previous year. The increase was primarily attributable to an inventory impairment of approximately $2.2 million recorded by Casterra during the fourth quarter of 2025, mainly due to its decision to cease its operations in Kenya, as noted above. Cost of revenues for the fourth quarter of 2025 was $2.3 million compared to $0.7 million in the fourth quarter of the previous year. The increase in quarterly cost of revenues was mainly driven by the same inventory impairment of Casterra as noted above.

R&D expenses net of nonrefundable grants for the year 2025 were approximately $8 million, a decrease of approximately $4.5 million compared to $12.5 million in the year 2024. The decrease was primarily due to reduced R&D expenses in Biomica, Casterra and AgPlenus. In the fourth quarter of 2025, R&D expenses were approximately $1.8 million, down from approximately $2.7 million in the same period of 2024. This decrease is mainly attributed to decreased expenses in Biomica.

Sales and marketing expenses for the year 2025 were approximately $1.5 million, a decrease of approximately $0.5 million compared to approximately $2 million in the same period last year. The decrease was mainly due to reductions in Evogene and Biomica's personnel costs. Sales and marketing expenses for the fourth quarter of 2025 and 2024 were approximately $0.3 million and $0.4 million, respectively. General and administrative expenses for the year 2025 decreased to approximately $4.3 million from approximately $7 million in the same period last year. This decrease is mainly attributable to expenses recorded during the year 2024 related to a provision for [indiscernible] debt for one of Casterra's seed suppliers as well as transaction costs associated with Evogene's fundraising in August 2024. Additional decrease is attributable to a reduction in Biomica's activity and personnel costs during 2025.

General and administrative expenses for the fourth quarter of 2025 decreased to approximately $0.9 million compared to approximately $1.3 million in the same period of the previous year, primarily due to decreased expenses in Evogene and Biomica, as mentioned above.

Operating loss for 2025 was approximately $14 million, a significant decrease from approximately $18.8 million in the same period of the previous year, mainly due to decreased operating expenses, partially offset by the decreased revenues, as mentioned above, and the higher cost of revenues, mainly due to an inventory impairment of approximately $2.2 million recorded by Casterra in the fourth quarter of 2025. The operating loss for the fourth quarter of 2025 was approximately $5.2 million, an increase from approximately $3.5 million in the same period of the previous year primarily due to the decreased revenues and increased cost of revenues mentioned above, partially offset by decreased operating expenses.

Financing income net for the year 2025 was approximately $0.6 million compared to approximately $4 million in the previous year. The decrease in financing income net, was mainly associated with accounting treatment of prefunded warrants and warrants issued in August 2024 fundraising. As a result, during the 12 months of 2025, the company recorded financial income net, related to prefunded warrants and warrants of approximately $458,000 as compared to a financial income of approximately $3.4 million in the same period of 2024.

Financing expenses net for the fourth quarter of 2025 were approximately $0.2 million compared to financing income net of approximately $4.5 million in the same period of the previous year. The decrease in financing income is mainly associated with accounting treatment of prefunded warrants and warrants issued in the August 2024 fundraising as mentioned above.

Income from discontinued operations net, for the 12 months of 2025 was approximately $5.7 million compared to a loss of approximately $3.2 million in the same period of 2024. For the fourth quarter of 2025, loss from discontinued operations net was approximately $16,000 compared to a loss of approximately $1 million in the fourth quarter of the previous year. These amounts primarily reflect the financial results of Lavie Bio's operations as well as expenses related to the development and maintenance of MicroBoost AI for Ag, which are presented as a single line item in the consolidated statements of profit and loss. Following the sale of the majority of Lavie Bio's assets as well as Evogene's MicroBoost AI for Ag to ICL, the company recognized a gain on sale of approximately $6.4 million which is also included in the income from discontinued operations net for the year of 2025. All prior period amounts have been reclassified to confirm to this presentation.

Net loss for the 12 months of 2025 was approximately $7.8 million compared to approximately $18.1 million in the same period last year. The $10.3 million decrease in net loss was primarily due to decreased operating expenses and an income derived from discontinued operations due to the asset sale to ICL net, partially offset by reduced revenues, higher cost of revenues and a decreased financing income net. The net loss for the fourth quarter of 2025 was approximately $5.4 million compared to net loss of approximately $5,000 in the same period last year. This increase in net loss was primarily due to decreased financial income, decreased revenues and increased cost of revenues, partially offset by decreased operating expenses as mentioned above. Operator?

[Operator Instructions] The first question, can you speak to the terms of the BMC128 license agreement with Lishan pharmaceuticals?

Sorry for asking you to wait. It's not a regular time here in Israel, we are -- everybody that participated in the call is in the same place at Evogene office. With respect to this question, what I can disclose is that the agreement with Lishan include a milestone payment, which is expected based on advancing the BMC128 in the pipeline or if there will be any commercial transaction that will generate value for Lishan, so we will participate in this amount.

And of course, revenue sharing from revenue the end product will generate. So this is what we can disclose. And in pharma, the numbers will be quite significant. So when this [indiscernible] it will be quite significant for Evogene. It could be quite significant for Biomica and Evogene as a major shareholders in Biomica is expected to benefit from it. We can move to the next question.

Can you speak to the magnitude of cash potentially coming in from Lavie Bio and Biomica? To summarize, can you highlight investor catalysts over the coming 12 months?

So with respect to the cash expected from Biomica and Lavie Bio. So we disclosed the financial terms of the acquisition of the majority of Lavie Bio [indiscernible] and we are selling MicroBoost AI to ICL and what we expect is that the cash that Evogene will have after this [indiscernible] distribution will satisfy our need for at least mid-next year, maybe even more. But the current operation, the expectation is that even without additional financial transaction, we have sufficient cash for a little bit more than 1.5 years.

And with respect to the catalyst that might took place. So I think that I tried to describe it in my part. So you can envision three type of catalysts. The first one, additional technology collaboration with companies such as Google. What I can share is that we are talking with some other company in the same size like Google, where we are looking for a different opportunity to work together and leverage their assets and knowledge to the where we [indiscernible]. And each time that such a thing happen, it really pushed the limitation that we are addressing with our technology to further and further. So this is quite important. And of course, it [indiscernible] attention of potential partners because it increased the evidence that what we are offering is something very unique, if all of this mega company is working with us. So this is one type of catalyst.

The second type of catalyst is additional collaboration agreement with pharma companies or with biotech companies where we are going to use ChemPass AI to identify small molecules which bind to the protein of interest, addressing [indiscernible] criteria, novel chemical structure and with high potency. The first set of collaboration that we are engaged with small biotech companies and institution. Now we are targeting for more -- and bigger type of companies. And we are also expecting that at least some of those transactions will inject cash to the company to Evogene even in the early stage to cover our expenses. So this is the first type of catalyst that you can think of.

And the second type of catalyst you can think of. And the third is, again, collaboration agreement, but this time with other chemical companies. We are talking with some companies in this field. The Ag industry in the last few years didn't have a positive performance the market. And this has had a negative effect on their willingness and appetite to enter into a collaboration. But things start to change now and understanding that there is a clear need for innovation increase. And also I think that the performance that AgPlenus achieved in the last year, hopefully will help us to engage in some collaboration agreements with potential partners in this industry.

So to summarize, three type of catalyst. Technology collaboration with companies like Google and others, then collaboration with midsized biotech and pharma companies and collaboration with other chemical companies. This is the main catalyst I'm expecting to share coming from the core business of Evogene as we see today. We also have some other activities such as Casterra and some other legacy activity. But I prefer not to refer to refer to them today because it's very important for me to make sure that it's very clear that what is the strategic avenue Evogene decided to go through, and we truly believe this represents the highest potential for our shareholders for the next few years.

There are no further questions at this time. Mr. Haviv, would you like to make a concluding statement?

Yes. I would like to thank everybody to participate in today's conference call. We are here in Evogene committed to achieve our targets. I can assure you that all of Evogene employees are working from home or even coming to our offices. And I'm looking forward to continue to update you and share with you additional great announcement like in the last quarter. Thank you.

Thank you. This concludes Evogene's Fourth Quarter 2025 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

Welcome to Evogene's Third Quarter 2025 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded in November 20, 2025.

Before we begin, we'd like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events.

This presentation contains forward-looking statements relating to future events and Evogene Ltd, the company may from time to time make other statements regarding our outlook or expectation for future financial or operating results and/or other matters regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, the PSLRA, and other securities laws as demand. Statements that are not statements or historical fact may be deemed to be forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, expect, anticipate, should, plan, estimate, intend and potential or words of similar meaning. We are using forward-looking statements in this presentation when we discuss our value drivers, commercializations, efforts and timing, product development and launches, estimate market sizes and milestones pipeline as well as our capabilities and technology.

Such statements are based on current expectations, estimates, projections and assumptions described opinions about future events, involve certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance. Readers are cautioned that certain important factors may affect the company's actual results and could cause such results to differ materially from any forward-looking statement that may be made in this presentation. Therefore, actual future results, performance or achievements, and trends in the future may differ materially from what is expressed or implied by such forward-looking statements, due to a variety of factors, many of which are beyond our control, including without limitation, the current war between Israel and Hamas and any other adverse impact that it may have on economic activity in Israel, due to the calling up of a large number of reserve soldiers or the incurrence of debt to pay for the high cost of the war and any accompanying future uncertainties for the security of the company's operations in Southern Israel, as well as those additional factors described in greater detail in Evogene's annual report on Form 20-F and in other reports Evogene files with and furnishes to the Israel Securities Authorities and the U.S. Securities and Exchange Commission, including those factors under the heading, Risk Factors.

Expect as required by applicable securities law, we disclaim any obligation or commitment to update any information contained in this presentation or to publicly release the results of any revisions to any statement that may be made to reflect future events and developments or changes in expectations, estimates, projections and assumptions.

The information contained herein does not constitute a prospectus or other offering documents, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of the company, nor shall the information or any part of it or the fact of its distribution from the basis of, or be relied on in connection with, any action, contract or commitment relating thereto or to securities of the company.

The trademarks include herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of our product or services.

With us on the line will be Ofer Haviv, President and CEO of Evogene; and Yaron Eldad, CFO of Evogene. Now I will turn the call over to Ofer Haviv. Mr. Haviv, please go ahead.

Thank you for joining Evogene's Third Quarter 2025 Analyst Call. In today's call, I'd like to focus on the company's new strategy. which I partly shared at our previous quarterly calls and its current implementation. I will also provide an update on our expectation to start breaking the business benefits of the strategic shift over the coming year. Following my remarks, our CFO, Yaron Eldad will present the financial results, and we will then open the call for questions. But as usual, I will start with the financial highlights.

During the first 9 months ending September 30, 2025, Evogene advanced its strategic transition towards establishing itself as a leader in computational chemistry, with a focus on the generative design of small molecules for the pharmaceutical and agriculture industries. As part of this new strategy, the company executed an organizational change and cost reduction plan, most of which was completed by the end of the second quarter. The impact of these measures is reflected in the third quarter results, with total operating expenses, net, of approximately $2.9 million compared to $6.6 million in the same period of 2024. This new expense level is expected to be maintained going forward.

The financial results of Lavie Bio, Evogene's subsidiary, for the 9- and 3-month ending September 30, 2025, are presented as a single-line item in Evogene's consolidated P&L statement for 2025. Its results are including under the line titled: income or loss from discontinued operations net, this accounting presentation includes the sale of the majority of Lavie Bio's activities to ICL, which was completed in July 2025, and together with the sale of MicroBoost for Ag, generated income of approximately $7.9 million in the third quarter of 2025.

In the 9 months ending September 30, 2025, revenues amounted to approximately $3.5 million, compared to $4 million in the same period last year. The decrease was primarily driven by lower revenue from AgPlenus' activity, which included a onetime payment from Bayer during the first quarter of 2024, partially offset by an increase in seed sales generated by Casterra.

Total research and development expenses in the 9 months ending September 30, 2025, were approximately $5.9 million, compared to approximately $9.8 million in the same period of 2024. The decrease is primarily attributed to a reduction in Biomica's and Evogene R&D activities and the discontinuation of Canonic's operations.

Sales and marketing expenses in the 9 months ending September 30, 2025, totaled approximately $1.1 million, compared to approximately $1.6 million in the same period of 2024. The decrease is mainly due to reduction in headcount across the subsidiaries.

In the 9 months ending September 30, 2025, total operating loss was approximately $8.8 million, compared to approximately $15.3 million in the same period of 2024. This decrease is mainly due to the decrease in the subsidiaries' and Evogene's activity.

As of the end of the third quarter of 2025, the company's cash and short-term bank deposit balance was approximately $16 million. This cash balance reflects the proceeds from the sale of Lavie Bio's assets and the MicroBoost AI for Ag tech-engine to ICL.

The following are the business highlights of our subsidiary and related parties in the past quarter. Lavie Bio completed the transfer of its team and the majority of its activity to ICL. Its collaboration agreement with an existing partner continues with positive results. The distribution of funds to its shareholders with Evogene as the majority holder is advancing. No additional activities are expected.

Biomica's clinical trial continues according to plan and is expected to be completed in early 2026. Currently, only one patient is in the trial and the efforts to secure partners to lead Biomica's current development program continue. No additional activity are expected.

Last week, Casterra partnered with Fantini to advance agricultural mechanization for scalable commercial castor farming. The collaboration focus on integrating high-yield castor varieties with advanced mechanized solutions, including harvesting and threshing technologies. In addition, the company is investing efforts in strengthening its position in Brazil's castor farming ecosystem.

AgPlenus underwent organizational restructuring, including the completion of workforce reductions. Evogene's related party, Finally Food, which drove the casein in protein in potatoes, announced raising $1.2 million led by CBC Group and signed a commercial agreement with it.

Now I would like to continue with Evogene new strategy and its implementation, which includes AgPlenus' activity for the agriculture industry. The following slides reflect Evogene's new messaging and appearance supporting its new strategy.

At Evogene, we are on an ongoing mission to redefine the future of science and business. By harnessing the power of our proprietary generative AI tech-engine, ChemPass AI, we designed novel groundbreaking small molecules, highly potent and precisely optimized across multiple parameters to transform the pharmaceutical and ag-chemical industries. Our goal is not just innovation, but meaningful beneficial impact for our world.

Headlining this slide is the phrase real-world innovation. What do we mean by it? One of the greatest challenges in developing product in life sciences, from pharmaceuticals to ag-chemicals is the gap between real-word challenges and innovative scientific discovery. Anyone involved in life science product development knows this challenge well. It's reflected in the high failure rate of product that start full of innovative promise, but ultimately fall short of one or more critical criteria that often emerge only in later stages of development. We believe now is the time for change, for bridging the gap between innovation and real-world impact.

The key lies in harnessing the possibilities of the computational revolution, transforming our word and above all, in unlocking the power of AI. Today's computational capabilities allows for simultaneous analysis of countless parameters, achieving a level of scientific depth that was once behind reach. They empower us to design solutions that integrate scientific innovation with commercial viabilities, pushing beyond the limits of traditional trial-and-error product development.

Computational technology serve as the bridge connecting scientific discovery to commercial success. And this is exactly what we focus on. We call our approach real-world innovation.

Evogene is structured on three interconnected pillars: our groundbreaking Gen AI best technology, ChemPass AI, which serve as the competitive advantage for our offering in the pharmaceutical and agriculture industries; second, our established activity in agriculture through our subsidiary, AgPlenus, where we have already achieved results in collaboration with leading global companies in the development of ag-chemical product; and our recent expansion into the pharma industry where ChemPass AI significantly increased the likelihood of the discovery of novel molecules with the highest potential to become breakthrough commercial drugs.

I will begin with brief introduction to ChemPass AI, which is at the core of our operations. To understand the unique value of ChemPass AI, it is essential to consider the background of the product development process and its inherent challenges. Here is a simplified overview of how a small molecule product such as drug or pesticides is developed. It started with identifying the target protein we aim to inhibit, followed by searching for a chemical molecules capable of binding to it from an almost infinite number of possibilities.

During the discovery and optimization phase, the objective is to design the most promising candidate for advancement into the next stage of development. These later stages are time consuming and costly, so choosing wisely early on is crucial. It's also worth noting that once these advanced stages are reached, the chemical structure of the molecules is basically set. This is the version that hopefully will eventually make it all the way to market. Therefore, very early in the process right after optimization, we commit to the molecule, we believe has the highest probability of becoming the final product.

The outcome of this process is often frustrating. Statistically, only a small fraction of promising molecules that make it into advanced development actually reach the market. Success rates are usually somewhere between 3% and 10%, depending on the industry. This naturally raised the question what caused the success rate to be so low? And major reasons for low success rate is that a product must meet many often conflicting parameters to reach commercialization. Traditional methods for selecting molecules and addressing multiple parameters are very limited as a result early development usually optimize only a few parameters, one parameter at a time, creating a major bottleneck to commercial success. Overcoming this challenge present a significant strategic opportunity. Today, advancing computational technologies allowed for the simultaneous optimization of multiple parameters with the potential to greatly improve development efficiency and success rate.

That brings us to ChemPass AI, the cutting-edge tech-engine developed here at Evogene, built to transform the way we design small molecules that are precisely tailored to specific target proteins. What makes our approach truly unique is not just the molecules we design, but the intelligence behind them, each molecule must overcome a complex web of scientific, regulatory and commercial challenges. To become real product, a molecule has to do more than just work, it must excel across multiple dimensions simultaneously.

And that's exactly what ChemPass AI was built to achieve. Our engine designed molecules that meet three critical requirements: high potency, molecules that strongly and effectively modulate their target protein; novelty, expanding into novel chemical space, ensuring the creation of strong, defensible intellectual property; and multiparameter excellence, molecules that perform across the many requirements needed for the real-world commercial success.

With ChemPass AI, we are not just designing molecules, we are designing the next generation of breakthrough products, closing the gap between innovation and market impact. That's the power and the promise of ChemPass AI.

We are advancing a multiyear development program continuously adding new capabilities to our generative AI tech-engine. As a result, the number of parameters we can address keeps growing and the precision of the molecules designed to meet the required criteria continues to improve. The more the system is used, the smarter and more accurate it becomes.

To accelerate ChemPass AI development process, we are collaborating with major technology companies such as Google Cloud as disclosed in May this year, and we intend to continue doing so. Additionally, we intend to explore the possibility of making certain parts of our technology accessible to researchers through such companies, which have a broad market reach. Of course, we will be happy to update you on these developments in the future. Our vision comes to life through the technology we have developed.

Now I'd like to present the implementation of our technology through our agriculture and pharma activities. Starting with agriculture, a field we entered back in 2018 through the establishment of our subsidiary, AgPlenus. Since then, AgPlenus has achieved significant milestones, including strategic collaborations with leading industry players such as Bayer and Corteva.

Agriculture is a huge global market valued in 2024 at $79 billion, including three main segments: herbicides, insecticides and fungicides. A single product in this space can generate anywhere from hundreds of millions to billions of dollars in sales annually. The industry is in great need of new products, yet developing them comes with significant challenges, an increase in pest resistance and regulatory requirements, an urgent need for new mode of action and the decreased rate in discovery of new pesticides due to lack of innovation.

To address the challenges of developing new products in ag-chemistry, revolutionary technologies are needed. Computational chemistry can drive real-world impact in agriculture. And this is the mission of AgPlenus, Evogene's wholly owned subsidiary. AgPlenus discovered and optimized candidate for crop-protection products and has a robust product development pipeline through collaborations with leading global agriculture companies as well as internally founded programs.

We are very proud of AgPlenus' achievements reflected in its strategic collaboration with two world-leading companies, Bayer and Corteva. Both collaborations focused on developing new herbicides, each targeting a different protein that represent a novel mode of action. This innovation is essential to addressing the growing resistance of pest to existing solutions. The plant images shown in this slide clearly demonstrates the effect of the small molecules being advanced through those collaborations.

AgPlenus is also advancing independent projects within its internal pipeline. Its main focus today is on developing fungicide candidates against Septoria, a fungus causing major damage to field crops, especially wheat. AgPlenus already has several small molecules showing very promising results in lab test, which are now moving to greenhouse trials to test their performance on plants. Looking ahead, AgPlenus plans to further strengthen and expand its collaboration with existing partners, establish new partnerships, leveraging AgPlenus' pipeline innovations and broaden the scope of programs within its internal development portfolio.

These initiatives are expected to generate cash inflows for the company through upfront payment, R&D reimbursement and as our products advance through development, milestone payment and potential royalties. We look forward to providing further update on both collaborative efforts and internal pipeline progress.

Now I will continue with our efforts to capture the value of our tech engine, ChemPass AI, in the pharma industry, focusing on the market segment of drugs based on small molecules. While small molecules-based drugs such a lucrative opportunity, and why do we believe now is the right time to leverage our technology for it. Small molecule-based drugs represent nearly 60% of the global pharmaceutical market, valued at approximately $780 billion. Even more exciting is the current momentum of AI designed small molecules that are advancing through various companies' pipelines. More than 60 new candidates with an expected annual growth rate exceeding 150%. This rapid expansion is expected to drive the AI drug discovery market to nearly $190 billion by 2034.

As I previously mentioned, the traditional process of developing drug based on a small molecule is expensive, lengthy and has a low success rate. This slide illustrates the high numbers of failure that occur during the transition from one stage of clinical trial to the next.

We expect that the smart use of our tech engines, ChemPass AI, will lead to the initiation of clinical trials for a highly active, innovative small molecules, which most importantly, meet the maximum number of the defined drugs key parameters. As a result, we expect the probability of successfully progressing from one development stage to the next to improve, and the number of candidates that complete the development process and became successful commercial product will increase significantly.

To capture the value of ChemPass AI offering in pharma, our business strategy is designed to maximize potential while minimizing risk. We hope to partner with leaders in pharma, biotech companies and academia that bring domain-specific knowledge, forming collaboration agreements. Through this strategic alliance, we aim to co-develop innovative products. The expected upside for Evogene stems from R&D fees, milestone payment and revenue sharing mechanism of the end product.

In August, our Pharma division announced a collaboration with Professor Ehud Gazit of Tel Aviv University to develop new therapeutics for metabolic disease linked to the self-assembly of small metabolites such as tyrosinemia and gout. The partnership combines Evogene's ChemPass AI generative design platform with Professor Gazit expertise in molecular self-assembly to discover and optimize novel small molecules that can inhibit harmful metabolite aggregation. This collaboration aims to accelerate the development of first-in-class therapies that addresses the underlying molecular causes of accumulated metabolic disease offering new hope to patients worldwide.

This collaboration exemplifies the type of strategic partnership we are pursuing, leveraging Evogene's advanced computational capabilities alongside existing scientific knowledge to create meaningful synergies that can drive breakthrough discoveries in drug development. Over the coming year, we expect to announce additional collaborations of this nature, further strengthening Evogene's position in this field and enhancing recognition of our unique technological edge. We believe such partnership will provide the validation and visibility needed to enable broader and more complex collaboration with leading biotech and pharmaceutical companies, opening new growth opportunities for Evogene. We look forward to providing future updates on our collaborative efforts.

To summarize Evogene's strategy, we are using ChemPass AI, which is at the core of our offering and our main competitive advantage to drive real-world innovation for two strategic markets. Pharma for the development of small molecule-based drugs, agriculture for the development of crop protection chemicals. To realize this vision, we operate through Pharma division focused on pharmaceutical applications and through our wholly owned subsidiaries, AgPlenus, focused on ag-chemical solutions. Each develops its product either in collaboration with leading global companies or independently.

In the near future, we expect the following: Continuing to strengthen and expand ChemPass AI and maintaining our technological edge, signing additional collaboration agreement with biotech and later on with pharma partners for small molecule drug development, and expanding collaboration with existing and new leading ag-chem companies while growing AgPlenus' internal crop protection pipeline.

With this, I conclude my part, and I will now hand the call to our CFO, Yaron Eldad, to present the financial results.

Thank you, Ofer. The financial results for the first 9 months of 2025 and the capital gain of Lavie Bio, a subsidiary of Evogene, are presented as a single line item in Evogene's consolidated P&L statement for the first 9 months of 2025. Its results are included under the line titled: income or loss from discontinued operations. This accounting treatment reflects the classification of Lavie Bio's operations and its capital gain as discontinued following the sale of the majority of its activities to ICL which was completed in July 2025.

During the first half of 2025, Evogene implemented a cost reduction plan, most of which was completed by the end of the second quarter. The impact of these reductions is reflected in the first 9 months results. As of September 30, 2025, Evogene held cash, cash equivalents and short-term bank deposits of approximately $16 million. The consolidated cash usage during the third quarter of 2025, excluding the cash generated from the sale of the majority of Lavie Bio's assets and the sale of MicroBoost AI for Ag to ICL was approximately $3.5 million. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $2.3 million in cash during the third quarter of 2025.

Revenues for the 9 months of 2025 were approximately $3.5 million, compared to approximately $4 million on the same period the previous year, reflecting a decrease of approximately $0.5 million. The decrease was primarily driven by lower revenue recognized from AgPlenus' activity, which included onetime payment from Bayer during the first quarter of 2024. And revenues recognized from the collaboration agreement with Corteva, partially offset by an increase in seed sales generated by Casterra during the first quarter of 2025. Revenues for the third quarter of 2025 were approximately $300,000, a decrease compared to approximately $1.7 million in the same period last year. The decrease was mainly due to reduced seed sales generated by Casterra during the third quarter of 2025.

Research and development expenses, net of non-refundable grants, for the 9 months of 2025 were approximately $6.2 million, a decrease of approximately $3.6 million compared to $9.8 million in the 9 months of 2024. The decrease was primarily due to reduced R&D expenses in Biomica, and the cessation of Canonic's operation at the beginning of 2024. In the third quarter of 2025, R&D expenses were approximately $1.4 million, down from approximately $3.3 million in the same period of 2024. This decrease is mainly attributed to decreased expenses in Biomica.

Sales and marketing expenses for the 9 months of 2025 were approximately $1.2 million, a decrease of approximately $400,000 compared to approximately $1.6 million in the same period last year. The decrease was mainly due to reduction in Evogene, AgPlenus and Biomica personnel costs. Sales and marketing expenses for the third quarter of 2025 were approximately $400,000, reflecting a slight decrease of approximately $100,000 compared to approximately $500,000 in the third quarter of 2024.

General and administrative expenses for the 9 months of 2025, decreased to approximately $3.4 million from approximately $5.7 million in the same period last year. This decrease is mainly attributable to expenses recorded during the 9 months period of 2024, and related to a provision for doubtful debt for one of Casterra's seed suppliers as well as transaction costs associated with Evogene's fundraising in August 2024. General and administrative expenses for the third quarter of 2025 decreased to approximately $1.1 million compared to approximately $2.8 million in the same period of the previous year, primarily due to decreased expenses in Casterra and Evogene as mentioned above.

Other income of approximately $200,000 was recorded in the first quarter of 2025 as part of the accounting treatment related to a sublease agreement. The decision to cease Canonic's operation in the first half of 2024 resulted in other expenses of approximately $500,000, primarily due to impairment of fixed assets recorded in the first quarter of 2024.

The operating loss for the 9 months of 2025 was approximately $8.8 million, a significant decrease from approximately $15.3 million in the same period of the previous year, mainly due to the decreased operating expenses, partially offset by the decreased revenues as mentioned above. The operating loss for the third quarter of 2025 was approximately $2.7 million, a decrease from approximately $5.9 million in the same period of the previous year, primarily due to the decreased operating expenses, partially offset by decreased revenues as mentioned above.

Financing income net for the 9 months of 2025 was approximately $744,000 compared to financing expenses net, of $448,000 in the same period of the previous year. The increase in financing income is mainly associated with accounting treatment of pre-funded warrants and warrants issued in August 2024 fundraising. As a result, during the 9 months of 2025, the company recorded financial income, net, related to pre-funded warrants and warrants of approximately $674,000, as compared to financing expenses, net, of approximately $881,000 in the same period of 2024.

Financing income net, for the third quarter of 2025 was approximately $12,000, compared to financing expenses net of approximately $821,000 in the same period of the previous year. The increase in financing income is mainly associated with accounting treatment of pre-funded warrants and warrants issued in August '24, fundraising as mentioned above.

Income from discontinued operations net, for the 9 months of 2025, was approximately $5.7 million, compared to a loss of approximately $2.2 million in the same period of 2024. For the third quarter of 2025, income from discontinued operations net, was approximately $7.9 million, compared to a loss of approximately $1.5 million in the quarter of the previous year. This amount primarily reflect the financial results of Lavie Bio and expenses related to the development and maintenance of MicroBoost AI for Ag, which are presented as a single-line item in the consolidated statement of profit and loss.

Following the sale of the majority of Lavie Bio's assets as well as Evogene's MicroBoost AI for Ag to ICL, the company recognized a gain on sale of approximately $6.4 million which is also included in the income or loss from discontinued operations net, for the 9 months and 3 months period ended September 2025. All prior period amounts have been reclassified to conform to this presentation.

The net loss for the 9 months of 2025 was approximately $2.5 million, compared to approximately $18 million in the same period last year. The $15.5 million decrease in net loss was primarily due to decreased operating expenses, income derived from discontinued operations due to the asset sale to ICL net, and increased financial income net, partially offset by reduced revenues. The net income for the third quarter of 2025 was approximately $5.2 million, compared to a net loss of approximately $8.2 million in the same period last year. This improvement was primarily due to income derived from discontinued operations net, due to the asset sale to ICL, decreased operating expenses and increased financing income net, partially offset by reduced revenues net, as mentioned above.

Operator?

[Operator Instructions] The first question, has the levels of interest in AI ChemPass increased post the recent NVIDIA and Eli Lilly AI drug discovery partnership. Also, could you please elaborate why Evogene's proprietary database should garner similar interest from others in pharma and technology industries?

Thank you for this question. This is Ofer. So I think that the announcement coming from NVIDIA and Eli Lilly definitely increase the interest and the traffic in shares in companies that are related to AI activity for the pharma industry. But I have to say that, I think that we didn't need even this announcement to generate interest. I think this is one of the hottest areas these days in the pharma world. And I think that this is really just the beginning of this new area of activity, and it's here to stay.

With respect to Evogene, and I think that we are operating something very unique. I can share with you that we participate in a conference in Europe last month, and we see increased interest in what we are presenting to potential partners. It's -- I think we are already 1 year in this area of presenting our ChemPass technology for the pharma industry, and we see increasing interest in what we are doing. And we shouldn't forget that in the ag industry, we already have a significant collaboration agreement with Bio and Corteva, which you can imagine that they validate our technology before they engage in this collaboration agreement.

What is unique about Evogene, from my perspective, this multiparameter approach, it's one. Then the second is that in Evogene, the people that are working in the computational -- ag part -- in computational division, they have a PhD degree in genomics. And this is the type of people that can design for scratch an AI tech-engine, and this is what is called foundation model. And we did it together with the Google team and we succeed to create a very unique dedicated AI engine that from the beginning, it was designed for a small molecule discovery and optimization. This is something that is not existing in other places.

And in addition, the way that we are utilizing our technology, while we integrate every piece of information coming from our partners, it also puts us in a very different position compared to other companies because we don't believe in a one-size-fit-all approach, where you're developing the specific technology and you are using it for all the company, the same way.

In our case, we modified the technology for each partner according to the specific need of the specific -in a program we are engaged. So yes, it might take a little bit longer, but the performance of what we deliver is expected to be much higher than the approach of one-size-fit-all. So I think that our technology is offering something different. And as time is going by, and we have more and more meetings with potential partners, our belief is getting stronger and stronger that we are coming with something which other company is not offering these days.

The next question, how close are you to unlocking partners with AI ChemPass?

So as I mentioned, we see an increase of interest in what we are offering. If the meetings that we participate -- in the conference, we participate in the early years and the beginning of the year, we returned with a small number of potential candidates. Now it's much -- the list of potential candidates has increased significantly. And based on this, I believe that we hopefully will start to announce on more additional collaboration agreement with biotech companies at beginning of next year.

And we'll start to hear more and more on new collaborations. And hopefully, with -- starting with small biotech companies, maybe even some -- or maybe academic institution, but later on, it will be midsized biotech companies. And in our target at the end of the day is also to engage with pharma company with a significant collaboration agreement. But this will take a little bit more time. But as I said, small biotech companies will start to -- hopefully to be able to announce such collaboration at the beginning of next year.

The next question. Last quarter, you spoke to doing more IR to drive awareness to the company, but very little seems to be done. What's the IR strategy going forward? And can we rely on it being implemented in short order?

It's an interesting question because we just now discuss here this -- our approach in presenting the company strategy in this analyst call was the right one because it's taken a little bit longer than what we expected. But I think that -- but we all agree that the answer to this question is yes. And how is connected to the question that was just now raised.

I think from this analyst call, now we present the first time, our -- the new presentation in an analyst call, where we are describing Evogene in the new structure, focusing on ChemPass AI, the utilization of this technology in the ag and in the pharma and the collaboration that we engaged. And from here on, this will be the main messaging the company would like to share with investors. Yes, we, of course, we will continue to talk about our subsidiary, Casterra, but the main focus will be on what I just now described.

And we are now -- and we are planning to initiate roadshows and participate in conferences next year, not necessarily just IR meeting with investors, but also meeting with -- in professional event. And I think that starting from -- actually from -- even from December, we are planning that Evogene and the new story of Evogene will be out there. And hopefully, we'll start to see more and more events, IR events that we will be involved.

The next question, could you highlight upcoming catalysts over the coming 6 to 12 months? Specifically, when could we expect the first partnership?

So I think, I partially addressed this question. From my perspective, we can envision three type of press releases related to the Evogene new strategy, new collaborations in the Pharma division, meaning that additional biotech companies will use our technology to discover and optimize small molecules for the specific targets. Then expansion of the existing collaboration or new collaboration in the Ag division. I'm talking here, of course, about AgPlenus. And third, and this is something that I think is quite important for us to mention, exactly as we engage with Google in building an important piece in our tech engine, I'm expecting and hoping that there will be additional announcements like this one with companies like Google, the same size of Google or also maybe with Google.

And I think that our belief is that we definitely should accelerate the development of ChemPass AI through collaboration with company like Google, in order to keep our competitive advantage in the future as well.

The next question. What type of revenue level can we expect for castor seeds in Q4 and for 2026?

We can't disclose this information. What I can say is that about Casterra, they are now talking with companies, strategic companies in the field of castor oil, companies that can really have a significant effect on the company revenue in the future. When this discussion will materialize, of course, we will share this information with our investors. But I think this is a good news that even in the past, we were talking about specifically one partner that we already disclosed its name, ENI. But I think that today, we believe that there is additional opportunity for companies that can have the same effect on Casterra that we are now talking with them. And there is more than one like this.

So when this discussion will materialize into agreement, of course, we'll be more than happy to share this information with our investors.

The next question. How excited are you about AI ChemPass compared to all your other times at Evogene?

I think that this is a very interesting question. I think that for many, many years, Evogene was focusing mainly on the ag sector. And I think that we succeed to go through some significant technology breakthrough. But from different reasons, and I don't want to get into it, the ag sector don't give you a financial trend to such an achievement from different reasons.

I think the pharma, the situation is different, and I think that, first, the fact that we are focusing on the pharma industry, yes, we are still in the ag industry with respect to AgPlenus, but our main focus is going to be on the pharma industry. So I think this is the right decision for Evogene.

In addition, the type of people that are working here in Evogene is people that hold a PhD degree. And this is very important, when you're talking about AI, because if you really want to be a player in AI, with all the respect to first degree or second degree, it's not enough. You need to have a much broader understanding in computational science in order to be -- to act as a player in AI industry. So I truly believe that we have the right people for the right challenge.

And again, based on initial validation we conduct here in Evogene, based on the discussion we conduct now in the last bio conference. I would like to say the following, if we will succeed to mimic the same success Evogene demonstrate in the ag industry. If we succeed to do so in the pharma industry, our company will be something that everybody will be proud to participate in our journey. We have been there. We succeed to work with all the world -- all the big companies in the pharma industry -- in the Ag industry. I hope that we'll be able to do exactly the same, but this time, the financial rewards will come after the efforts that we are going to invest.

There are no further questions at this time. Mr. Haviv, would you like to make a concluding statement?

Yes, I would like to thank everybody in participating in this analyst call. For me, it was a very unique presentation, where we present for the first time, the new Evogene story, with the new presentation. And I really hope that in the next analyst call, we will have much more to share with you, along the guidelines that I just now described.

Thank you. This concludes Evogene's Second -- Third Quarter 2025 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.