Evogene Ltd.

Welcome to Evagen's third quarter results conference call. All participants are present in listen-only mode. Following management's formal presentation, we will open the question and answer session. You may send questions via chat. Please type your name and company before your question. As a reminder, this conference is being recorded November 21st, 2024. This presentation contains forward-looking statements relating to future events and Evagen LTD may from time to time make other statements regarding our outlook or expectations of 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 and other securities laws as amended statements that are not statements of historical fact may be deemed to be forward-looking statements such faux 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 discuss Evagen's strategy and vision, Evagen's value proposition and ability to identify and optimize candidates, enhance the likelihood of achieving breakthrough products within competitive timelines and in a cost-effective way, Evagen's partnerships, and Evagen's ability to harness value and leverage, Kempass AI, the expected timing of and ability of Castera to supply purchase orders, the expected timing of LaVie Bio's sale, Agplanis pipeline, Biomica's BNC 128 future activity, and Evagen's projected cash usage for 2024, and Evagen anticipated continued revenue growth in for 2024. 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 current war between Israel, Hamas, and Hezbollah, and any worsening of the situation in Israel, such as further mobilizations or escalation in the northern border of Israel, those described in greater detail in Evagen's Annual Report on Form 20-F and in other information Evagen files and furnishes 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 securities 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 to offer to sell or any solicitation of any invitation or offer to purchase or subscribe for any securities of Evagen or the company. nor shall any information or any part of it or the fact of its distribution from the basis of or be relied on in connection with any connection, contract, commitment, or relating thereto or to the securities of Evogen or the company. With us on the line will be Yaron Eldad, CFO of Evogen, and Ofer Khabib, President and CEO of Evogen. Now, I will turn the call over to Ofer Khabib. Mr. Khabib, please go ahead.

Good day, everyone. In today's conference call, I will begin with a review of the financial and business highlights for the third quarter, followed by an overview of Evogen's activities. I will then conclude with recent achievements by our subsidiaries since the last analyst call. After my remarks, Yaron and Dad, Evogen CFO will provide a financial update on Q3 activities. We will then open a Q&A session. Let us begin with the financial and business highlights. In the first nine months of 2024, total revenues reached approximately $6.9 million compared to approximately $5.1 million in the first nine months of 2023. In Q3 2024, total revenues reached approximately $1.8 million compared to approximately $3.8 million in Q3 2023. The revenues in Q3 2024 are mainly based on Tastera's seeds sell. The revenues in Q3 2023 included a license fee payment of $2.5 million received by Levy Bio. For the full year 2024, Evogen anticipates continued revenue growth compared to the previous year, mainly due to Castera's supply of existing seed orders. G&A expenses in Q3 2024 included expenses of approximately $1.4 million resulting from Evogen's fundraising and an allowance for debt from one of Castera's seed suppliers. The remaining G&A expenses in Q3 2024 amounted to approximately $1.5 million unchanged compared to Q3 2023. In the first nine months of 2024, operating loss was approximately $17.6 million, which included the G&A expenses of approximately of $1.5 million, due to Evergent fundraising and allowance for debt-for-debt mentioned above, and other expenses of approximately $0.5 million, compared to approximately $18.9 million in the first nine months of 2023. In the first nine months of 2024, financing expenses net were approximately $0.38 million compared to financing income of $2.3 million in the first nine months of 2023. The financing expenses in the first nine months of 2024 net included $0.88 million expenses related to accounting treatment of warrants issued as part of Evogen's fundraising. Projected cash users for 2024 without Biomeka and LaviBio is approximately $8 to $10 million, compared to $12.5 million in 2023. In August 2024, Evogen completed a fundraising totaling of $5.5 million in gross proceeds including ordinary shares and two shares of warrants. The company has taken measures to strengthen its cash position by reducing its expenses, including a reduction of 16% in its headcount, and is exploring additional business opportunities to inject funds into the company and its subsidiaries. Now, I would like to highlight the main achievements made by Evogen Groups this quarter and up to date. Starting with Evogen, in October, Evogen announced a unique collaboration with Google Cloud to pioneer a generative AI foundation model for novel small molecule design. This collaboration aim to positioning campus forefront of generating and optimizing novel small molecules structured with specific desired properties. I will elaborate on the collaboration later in the presentation. In addition, with respect to collaborations for product development with external parties, we received a grant approval from the Israel Innovation Authorities for the second year in the collaborations with Watershade and Ben-Gurion University to improve crustacean trait using CRISPR technology. This technology is embedded in our generator AI tech engine. Now let's move to Kassera. The third quarter marked a significant milestone for Castera with the solidification of a reliable seed production infrastructure in Kenya and Brazil. In July, Castera announced the completion of growing and harvesting season in Brazil and seed shipment have already been initiated. With respect to the seed production in Africa, Castera achieved a key milestone in its operational expansion and completed its first treatment of over 100 tons of its casserole seeds, which were growing and processed in Kenya. It is now harvesting season in Africa with completion expected by first quarter of 2025. This current season will support existing and future seed demands. Castera is expected to supply significant portion of its existing seed orders by the end of 2024. Castera and its business partner are currently discussing the supply schedule quantity and seed varieties of the remainder of the orders and future orders for 2025. Continue with LaviBio. In recent months, the company presented an impressive expansion with its first commercial product, Yalos, a bioinicolant used as seed treatment. In July, LaviBio announced the commercial expansion of Yalos to winter wheat, with initial sales this passing quarter, and in November to soybean, with initial sales expected in spring 2025. Additionally, LaviBio advanced LAV321, a biofungicide targeting downy medium, to a pre-commercialization following successful filtrate results. Moving to AgPlanus. The main achievement of the passing quarter was in the company's internal pipeline, which is separated from its collaboration with external parties, Piers and Corteva. Eclen was initiated a new fungicide program focusing on septoria, a fungi affecting crop worldwide. Three protein predicted by campus AI as target were verified to be essential in septoria. Additionally, Eclen was identified in silico around 1000 compounds that are predicted to be effective in the protein targets and are now being tested. I will end this part with Biomeka's highlights. The phase one clinical study for microbiome-based therapeutics, BMC128, is new completion with prolonged positive response of five patients. Biomeka had a pre-IND meeting earlier this year with positive feedback from the FDA and is continuing with the preparation for the IND submission. I will provide more details on the achievement of each subsidiary later in the presentation. Moving on to the review of Evogen. Our vision is to positioning Evogen as a pioneering company in the development of groundbreaking life science products rooted in microbes, small molecules, and genomics. To realize this vision, we have concentrated on integrating life science expertise with advanced big data and state-of-the-art computational technologies. This approach led to the development of our three proprietary AI tech engines, each designed to drive the effective discovery and optimization of life science products. MicroBoost AI directs and accelerates the development of microbe-based products, Canvas AI for small molecule-based products, and Generator AI for products based on genetic elements. Our AI-driven tech engines offer strong value proposition by efficiently identifying and optimizing the most promising candidates This enhance the likelihood of achieving breakthrough products within competitive timelines and in cost effective way. To maintain the competitive advantage of our AI tech engines, Avogen continuously invests in enhancement and the addition of new applications and capabilities. This commitment is exemplified by our recent collaboration with Google Cloud to develop an advanced generative AI foundation model for small molecules design. The collaborations leverage Evogen's deep expertise in computational predictive biology and chemistry alongside Google Cloud's leadership in AI and machine learning. Building on the successful integrating of campus AI into Google Cloud, this collaboration will now focus on expanding the value of our tech engine by creating a cutting-edge foundation model. This model will be designed to generate and optimize innovative small molecule structures with better specific desired properties by expanding the training set for the model from 6 million molecules to 40 billion molecules. The primary objective of this initiative is to improve and accelerate the discovery and development of new small molecules for drug developments, sustainable crop protection, and other innovative applications across various life science sectors. The significant expansion of the model training set will lead to the following key benefits. Innovative molecules more accurately addressing the specific product requirements, shorting development timelines, enhance cost efficiency. I want to emphasize that the foundation model which will be integrated into campus AI will remain the exclusive property of Evogen. Our proven track record in computational biology and chemistry, combining with Google Cloud's AI expertise, create compelling value proposition for companies aiming to improve their R&D and gain a competitive edge in the market. Our three AI tech engines were strategically designed to align with the first potential across multiple market segments, rather than being confined to a single area. While this technology holds exceptional promise, each market segment demands specialized expertise for product development alongside significant financial resources and advanced development and production infrastructure. To effectively harness the value embedded in our technology, considering the mentioned requirements, we have implemented a targeted business strategy tailored to address those needs. Our business strategy is designed to maximize potential while minimizing risk, this by establishing a diverse network of collaborative partnership for life science product development. We partner with experts in complementary fields, forming licensing or collaboration agreements with companies that bring domain-specific knowledge, such as in pharmaceuticals or agritech. Through this strategic alliance, we aim to co-develop innovative products. The upside for Evogen's teams from revenue sharing mechanism of the end product or through equity holding in the company developing the end product. Here is a current snapshot of our business model. Ibogaine currently owns four subsidiary companies, each focused on a specific market segment. In market segments not covered by our subsidiaries, we have established collaboration with external companies. Starting this past quarter, we have increased our efforts to establish partnership with companies specializing in small molecule drug development, leveraging the unique capabilities of campus AI. To support this strategic focus, we have strengthened the business development team with a dedicated business development manager with the clear objective of generating new business opportunities for Evogen in this segment. Additionally, as part of our collaborative initiatives in area behind the focus of our subsidiaries, we recently announced alongside Watershade AC, formerly Color Farm, and Ben Gurion University, the approval of a second year grant to advance our joint project aimed to enhancing transgression traits through gene editing technology. In the second year, the collaboration will focus on scanning up CRISPR technology for the industrial production of giant prawns with plans to extend this advancement to additional restoration species. This slide highlights the commercial and financial partners engaged with the Evogen group. We are proud of the progress and achievements we have made today. Now, I will review our subsidiary's activity and achievements. I would like to begin with Castera, Evergen's wholly-owned subsidiary focused on developing an integrated solution for the large-scale commercial cultivation of castor, leveraging its unique elite seed varieties. Castera's solution is designed to meet the global demand for a stable castor oil supply, mainly for the biofuels and biobased products. The company has utilized the generator AI tech engine to drive and accelerate the development of its distinct elite castor seed varieties. The third quarter marked a significant milestone for Castera, as its investment and efforts to establish a reliable seed production infrastructure in Kenya and Brazil began to show positive results. In July, the company successfully completed the growing and harvesting season in Brazil. More recently, Castera finalized the establishment of a seed production facility in Kenya, which now supports the processing of seeds grown and harvested in Africa to meet the company's needs. Castera is now in a mid harvesting season in Africa. Due to the extended rain season, the company expected the harvest to be completed by early next year. The seed being produced during this cycle will support both current and future demand. Castera is expected to supply a significant portion of its existing seed orders by the end of 2024, mainly through the seed production operations in Kenya. Currently, Castera and its business partners are discussing the supply schedule, quantity and seed varieties of the remainder of the orders and future orders for 2025. Continuing with LaviBio, a global leader in developing next-generation agri-biological products powered by the MicroBoost AI tech engine. Since our last call, LaviBio has achieved two significant milestones with its first commercial product, Yalos, a bio-equivalent for raw crops. First, the product has expanded to winter wheat with initial sales to growers starting this past quarter. More notably, recent positive results have been obtained for Yalos, as a seed treatment for soybean, one of the most important crops in agriculture. Initial sales to soybean growers in North America are expected to begin in the spring of 2025. Another key development in LAVI-Bio's product pipeline is the advancement of LAV321, a biofungicide targeting downy medium, which has now reached the pre-commercialization stage following successful field trial results, this for the third constitutive year. I was also very pleased when LAVI-Bio announced in July a major milestone in the collaboration with ICL, Within just 12 months, the team identified over a dozen novel microbes aimed at developing a biostimulant solution to help crops withstand extreme weather conditions. These microbes are currently undergoing validation in diverse field trials. This is a strong example of the power and efficiency of LaVie Biotechnology to deliver promising candidates in a relatively short timeframe. Finally, LaviBio has received a grant from Israel Innovation Authority to advance the development of Microfermentor, a groundbreaking technology with the potential to transform the economics of agri-biologicals. This grant underscores the value and uniqueness of LaviBio's offering and innovative culture. Next, I would like to discuss ActPlanus, a company specializing in the development of novel and sustainable crop protection products utilizing Evogen campus AI tech engines. As previously presented, ActPlanus is engaged in two key collaborations with Bayer and Corteva. I am pleased to report that both collaborations are progressing as planned, according to the agreed work schedule. Regarding ActPlanus pipeline, which is independent of the mentioned collaborations, the company's primary focus is on developing fungicide to address Septoria fungi, a significant threat to crop worldwide. I would like to highlight two important achievements that took place in the past quarter. Three proteins predicted by Campus AI as potential target for septoria treatment have been confirmed as essential in the fungus life cycle. The second milestone, Using campus AI, the company identified approximately 1000 small molecule compounds predicted to be effective against these three protein targets. These compounds are currently undergoing testing with at least one target already showing high rates of in vitro hits. This advancement marked significant progress in ACK Planus missions to develop innovative solutions for global crop protection. Now, turning to Biomica, which specialized in developing microbiome-based therapeutics for human health, powered by the MicroBoost AI tech engine. At present, Biomica is primarily focused on advancing its immune oncology program with its lead candidate, PMC-128. The phase one clinical study is nearing completion, with positive results observed in five patients showing prolonged response. Earlier this year, the company conducted a pre-IND meeting with the FDA, receiving positive feedback. Biomica is now continuing with the preparation for the IND submission. In preparation for the phase two IND clinical study, Biomica is also in the process of manufacturing additional clinical batch of BMC128. Additionally, following extensive evaluation of numerous potential indications, Biomica has initiated two new programs focused on obesity and longevity. The company has obtained and partially analyzed relevant datasets to support these new programs, making an exciting expansion of its therapeutic pipeline. Now, Evogen CFO Yaron Eldad will provide a review of the financial results for the third quarter.

Thank you, Ofer. As of September 30, 2024, Evogen had held consolidated cash, cash equivalents, and short-term bank deposits of approximately $20 million. This amount does not include approximately $1.4 million of payments due from customers regarding deliveries made in September 2024. The consolidated cash usage during the third quarter of 2024 was approximately $5.7 million, excluding La Vie Bio and Biomica. Evogen and its other subsidiaries used approximately $3.1 million in cash during the third quarter of 2024. Projected cash usage for 2024, excluding Navibio and Biomica, is expected to be around $8 to $10 million, marking a notable 20% to 36% decrease from approximately $12.5 million in 2023. Revenues for the first nine months of 2024 were approximately $6.9 million, an increase from approximately $5.1 million in the same period the previous year. This growth was primarily driven by revenues recognized from Agplanus' new collaboration with Bayer and increased Castera's revenues from the supply of castor seeds during the period. Revenues for the third quarter of 2024 compared to approximately $3.8 million in the same period in the previous year. The decrease was mainly attributable to revenue of $2.5 million recognized in Navibayo in the third quarter of 2023 by the licensing agreement with Corteva, partially offset by the increased revenues recognized in Castera and Agplenus during the third quarter of 2024. Evergen anticipates continued growth in the fourth quarter of 2024 compared to the previous year, mainly based on Castera's forecast for seed order supply. Research and development expenses net of non-refundable grants for the nine months of 2024 were approximately $13.2 million. a significant decrease from approximately $15.2 million in the first nine months of 2023. The decrease in expenses is mainly due to the cessation of Canonics activity and a decrease in certain development expenses in Biomeka as compared to the same period the previous year. Research and development expenses net of non-refundable grants for the third quarter of 2024 were approximately $4.4 million and decreased as compared to approximately $5.1 million in the same period in the previous year. The decrease is mainly attributable to decreased expenses in Canonic and Biomica, as mentioned above. Sales and marketing expenses for the first nine months of 2024 were approximately $2.8 million, a slight increase from approximately $2.6 million in the same period in the previous year. The increase is mainly attributable to increased sales and marketing activities in Castera during the first nine months of 2024 as compared to the same period in 2023. Sales and marketing expenses for the third quarter of 2024 were approximately $0.9 million and remained stable as compared to approximately $0.9 million in the same period in the previous year. General and administrative expenses for the first nine months of 2024 increased to approximately $6.1 million from approximately $4.8 million in the same period of the previous year. General and administrative expenses for the third quarter of 2024 increased to approximately $2.9 million compared to approximately $1.5 million in the same period of the previous year. The increase during the first nine months period and the third quarter of 2024 were mainly attributable to expenses recorded in Castera due to a provision on doubtful debt of one seed supplier and transaction costs related to the Evogenz fundraising that occurred in August 2024, totaling approximately $1.4 million. Total other G&A expenses in Q3 2024 amounted to approximately $1.5 million unchanged compared to Q3 2023. The decision to cease Canonix operations in the first half of 2024 resulted in other expenses of approximately half a million dollars for the nine months period ended September 30, 2024, mainly due to impairment of fixed assets in the first quarter of 2024. The operating loss for the first nine months of 2024 was approximately $17.6 million, a decrease from approximately $18.9 million in the same period of the previous year, mainly due to increased revenues as mentioned above. The operating loss for the third quarter of 2024 was approximately $7.5 million, an increase from approximately $4.2 million in the same period of the previous year, mainly due to decreased revenues and increased G&A expenses as mentioned above. Financing expenses net for the first nine months of 2024 was $378,000 compared to financing income net of $234,000 in the same period of the previous year. Financing expenses net for the third quarter of 2024 was $757,000 compared to financing income net of $320,000 in the same period of the previous year. The increase in financial expenses net during the nine months period and the third quarter of 2024 as compared to the respective periods of 2023 was mainly associated with accounting treatment of previous for fundraising. Prefunded warrants and warrants were classified as a liability on the consolidated statement of financial position, were initially recorded at fair value and subsequently remeasured at each reporting period using the Black and Schultz option pricing model. As a result, during the third quarter of 2024, the company recorded net financial expenses related to warrants of approximately $882,000. The net loss for the first nine months of 2024 was approximately $18 million compared to approximately $18.6 million in the same period of the previous year. The net loss for the third quarter of 2024 was approximately $8.2 million compared to approximately $3.9 million in the same period of the previous year. The $4.3 million increase in net loss for the third quarter of 2024 as compared to the third quarter of 2023 was primarily due to decreased revenues, increased general and administrative expenses, and increased financial expenses as mentioned above. This decrease in net loss was impacted by an amount of approximately $1.5 million due to transaction costs and the financial expenses related to warrants issued in that transaction.

Operator? Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. In order to send a question, use the chat button located at the bottom of your screen. Please type your full name and your company's name before the question. The first question from Ben Cleave of Lake Street Capital Markets. On the second quarter call, you said you expected a material update on a follow-on order for 2025 deliveries at Castera by today's call. This did not happen. Why did this not materialize?

Hi, this is Ofer speaking. Thank you, Ben, for joining this call. Yes, in previous analyst calls, we were expected to receive orders from our partners, but to our server, we still didn't receive it, not because there is a complication, it's mainly because there are still internal discussion based on the performance that they are receiving in their bills. So since we didn't receive the final decision, which we hope that it will receive it almost every day for now, so this is the reason that we couldn't give such an update for today's meetings. But it's not because there is any specific complication in the discussion or the ongoing relationship with our partners.

Another question from Ben Cleave. Have Castera's continued delayed deliveries of the initial order placed in mid-2023 compromised its ability to secure a follow-on order?

So, with respect to this question, I'm just returning from the first three days in Kenya, where I visit our seed production sites, together with Yoash, the CEO of Passera, As we published, we reached a stage that I think that we solved the seed production issue in Africa. Our partners are quite happy about it. Actually, we are planning to bring some of them to our site so they can see and impress from what we achieved there. And I believe that we will continue to stay an important seed supplier to our partners in Africa. As we disclosed, there was some delays in the harvesting season because of the extension of the rain in Kenya. But now we are moving very fast. Probably we'll put some nice pictures and short movies from our visit in Kenya, which in my opinion are quite impressive. And we are reaching to the stage that we can generate tens and even close to hundreds of tons of seeds every month. So I think that we are in a good position with future seed supplies to our partners. So yes, there was some delays, and yes, some seed producers that we engaged in 2023 disappoint us from their performance, but the thing that now we are, or I am, behind this complication and we are looking forward to a much better performance futures with respect to seed production.

Another question from Ben Cleave. Is Evogen contributing any cash to the collaborations announced with Google and Ben Gurion University? If so, how much?

So with respect to the Ben Mourion University collaboration, actually we are covering through the grant all of our expenses. So there is no additional cost for Imogen in participating in this collaboration. With respect to Google, so each side is covering its own expenses. From our perspective, this is part from our ongoing product development process. So it's already part of the budget. And Google were very excited to join forces with us. And they have contributed to this collaboration. It's a significant amount of resources and employee to help us to build this amazing fundamental model So as I said, it don't have an effect on our budget compared to what we plan, while actually the end product is worth much more than what we contribute due to Google's involvement in this project.

The next question, how much cash at parent company level as of the 30th of September 2024 What is the remaining cash usage for the balance of 2024? Why do you carve out Biomica and La Vie Bio in saying what your cash usage will be if you deliver the seeds? How long does the customer have to pay? Could you give us more detail on what additional opportunities to inject funds are available?

Yaron, can you take this answer? Yeah, sure.

So, hi, Brett. Thanks for the question. Evergen and the home-owned subsidiaries had $8 million in cash as of September 30. We had another $2 million of seeds that were delivered during the end of September and beginning of October. A part of the statement is already in and the rest should arrive shortly. In addition to that, we expect to deliver by the end of the current quarter, seeds and amounts of a few million dollars. So I feel comfortable to say that we have enough cash going forward for a year and more.

And with respect to the second part of the question, So first I hope that you get the answer to your question. So in a way we have close to $10 million just for Evogen and we are expecting to receive additional fund in the next few months. So I think that we are in quite a stable financial position. And I think that probably from here on we will start to put more information on how much money we have for Evogen and for Bionica and Castera and, sorry, and Labibio. Please remember that apart from the money that these two companies hold, it's going to be used in the future to pay for Evogen for the use of our technology and for receiving different types of services. So apart from the money that you see, which belongs to Labi and to Biomica, Evergen is going to use it to cover its own expenses. And usually when we deliver seeds, the amount of money that we receive, Yoash, it's around... from the time we send the seeds until we receive the money, it's up to 45 days. So it's not that we need to wait for too long, even though we're talking about big numbers. And what additional opportunity to generate revenue for the company? So I think I mentioned in the past that one of the options is fundraising to our subsidiary level. This is something that we are working on it now and much more intensively. And in addition, we're also exploring opportunities to sell part from our holding in our subsidiaries or even maybe to sell completely one of our subsidiaries to potential strategic partners or companies that show interest in what those companies are doing. So I think that there is few avenues that we can bring additional cash to strengthen our financial position. And if this event will happen, so then I think that this would be a really nice addition to our cash balance and to the stability of the company. So I hope that they address these questions.

The next question from Brett Reese of Jenny Montgomery Scott. Where do you think the sales level for Yalos can be in two years? What is your base case target? I'm not looking for quarters guidance, but what is realistic sales run rate a few years out?

Amit, the CEO of LaviBio, will take this answer, please. Name this question, please.

Yeah, thanks, Brett, for the question. What makes us optimistic about Yaro sales are two factors that happened this year. One is, even though we're still in penetration mode, we received very good feedback from the farmers using the product, which came back and they are planning to expand next year. And this is one of the biggest KPIs we put to ourselves as returning customers that are actually growing. And the second is the proof that we did that Yalos works on soybean. Soybean is a much more prime crop for biostimulants. of soybean seeds are treated. And the acres are four times the acres of what we do currently in terms of wheat. So soybean is a very, very big win for us and a very big potential. And we anticipate that in two years, sales will start being significant and you'll see them as material in Evergen's revenues that will be

The next question from Scott Henry of AGP. How has the early feedback been on the YALOs launch? How should we think about peak annual revenues for YALOs? Thanks.

So as I said, the feedback has been good. wheat is a more challenging crop, soybean is a much more relevant crop, but also in the wheat growers we see very good results and very satisfied growers that are planning to expand their use of the product. So this is in terms of the feedback. In terms of sales, as I said, significant. In the big sales, we're looking at significant double-digit millions of dollars of sales for YAMLs.

A further question from Scott Henry of AGP. How should we think about Castera revenues in 2025? Any color relative to 2024? Thanks.

As I mentioned earlier, we can't disclose much information about the focus for 2025, because we are still discussing these matters with our partners. In addition, there is some significant opportunity that we are evaluating that the materials can have a relatively significant effect on our, on Castera revenue for next year. So I believe that next year will looks better than this year. And the fact that we solved the issue of seed production capacity in Kenya, and we also showed a very nice performance in Brazil with respect to seed production this year. I think this is a very important method. Think about it, we are the only seed producer of castor in Africa. This has put us in a very strong competitive position compared to other companies that are located in other places. There are not many, by the way, there are only few, and they are located outside of Africa. So shipping and delivery time is a major issue while we solve this challenge by locating our seed production facility in the heart of Africa, in Kenya.

The next question is from Stefano Deora Razio, an investor. Could you provide insight into the current level of insider ownership in the company and how management is aligned with shareholders' interests?

Thank you, Stefano, for joining to this analyst call. I don't have to hear the information in front of me with respect to insider ownership. We can deliver this information after this analyst call. You can contact me directly. But with respect to management, a significant portion from a ErgoGen management compensation is based on equity through an option. This is the same thing also with Evergen Group CEOs in our subsidiary. Usually, the average salary in our group is lower than what you might expect for companies in our size and where we are. And we compensate on this through an equity holding company in an option mechanism. So for us, there is a very, and I think that this mechanism is really create a strong link between management interest and shareholder interest. And we put a lot of thinking how we can generate value to our shareholders because at the end of the day, we, in a personal level, will benefit as well.

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

Yes, thank you. I would like to thank everybody for joining to this analyst call. And we're looking forward to continue to update you on the progress of e-modeling subsidiaries. I believe that next year is going to be a very promising year for Evogen, and we're looking forward to achieving our targets. Thank you very much.

Thank you. This concludes Evogen's third quarter 2024 quarterly results conference call. Thank you for your participation. You may go ahead and disconnect.