Evogene Ltd.

Welcome to Evergen's first quarter 2025 Results Conference Call. Our participants are present in listening only mode. Following management's formal presentation, we will open the question and answer session. You may send your questions via chat. Please type your name and company before your question. As a reminder, this conference is being recorded May 21, 2025. Before we begin, I would like to caution that certain statements made during this earnings conference call by Evergen's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events, and Evergen 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 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 other 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, estimated 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 in such forward-looking statements due to a variety of factors, many of which are beyond our control, including the exact limitation of the current war between Israel, Hamas, and Hezbollah, and any worsening of the situation in Israel, such as further mobilization or escalation in the northern border of Israel, and those described in greater detail in Evergen's annual report on Form 20F and in other information, Evergen 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 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 any part of any invitation or offer to sell or any solicitation of any invitation or offer to purchase or subscribe for any securities of Evergen or the company, nor shall the information or any part of it or the fact it is distributed from the basis of or be relied on in connection with any action, contract, commitment, or relating thereto or to the securities of Evergen or the company. The trademarks included 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 products or services. With us on the line will be Mr. Ofer Kaviv, President and CEO of Evergen, and Yohan Eldad, CFO of Evergen. Now we'll turn the call over to Mr. Ofer Kaviv. Mr. Kaviv, please go ahead.

Good day everyone. In today's conference call, I would like to begin with a review of the financial and business highlights for the first quarter of 2025 and up to date, followed by an overview of Evergen's current activities and activities of its subsidiaries. After my remarks, Yohan Eldad, Evergen CFO, will provide a financial update on the first quarter of the year. We will then open a Q&A session. Let's start with the financial and business highlights. In the first quarter of 2025, total revenues were approximately $2.4 million compared to approximately $4.2 million in the first quarter of 2024. The reason for the difference is that in the first quarter of 2024, revenues included license fee payment, totally, of $3.5 million, which were $2.5 million from the LaVie Biot license fee under its collaboration with Corteva, and $1 million from Act Planus license fee under its collaboration with Bayer. The primary driver of revenues in the first quarter of 2025 was an increase in seat sales by Castella. During the fourth quarter of 2024 and the beginning of 2025, Evergen established an expense reduction plan, which will be completed by the second quarter of 2025. This reduction in expenses is already partially reflected in the financial results of the first quarter of 2025. In the first quarter of 2025, total R&D expenses were approximately $3.2 million compared to approximately $4.8 million in the first quarter of 2024. This decrease is mainly due to the decrease in Biomica's and LaVie Biot's R&D activity. In the first quarter of 2025, total sales and marketing expenses were approximately $0.6 million compared to approximately $1 million in the first quarter of 2024. This decrease is mainly due to the decrease in LaVie Biot's sales and marketing activity. In the first quarter of 2025, total operating expenses net were approximately $5 million compared to approximately $8 million in the first quarter of 2024. This decrease is mainly due to the decrease in LaVie Biot's and Biomica's operating activity. As of the end of the first quarter of 2025, the company's cash and short-term bank deposit balance was approximately $9.8 million, including approximately $5.5 million attributed to Biomica. This cash balance does not reflect approximately $2 million due from Castera's outstanding customers, the majority of which were received in the second quarter of 2025. It also excluded the expected proceeds from the sale of LaVie Biot's assets and the Microboost AI for Act Tech engine to ICL, which we announced in April. This transaction is expected to close in the second quarter of 2025. I would now like to highlight key achievements of the Avogen Group in Q1 2025 and to date. Starting with Avogen itself. In relating to Campus AI for Pharma, I am pleased to report substantial advancement on the following areas. We have refined Campus AI value proposition, clearly articulating its distinct competitive advantages for the pharmaceutical and biotech sectors, the design of novel compounds that are both highly potent and meet multiple critical development criteria. Confidential progress has been made in developing the foundation model application as part of our collaboration with Google Cloud. This model constitutes the core of our Campus GPT lead optimization package. Moving on to our subsidiaries, starting with LaVie Biot. As I stated in our previous call, Avogen is focusing on creating exit events with respect to part of our subsidiaries. Such events will generate value and cash to Avogen and its shareholders. The transaction between LaVie Biot and ICL is the first result of such efforts. On April 21, 2025, we announced the acquisition of most of the activity of LaVie Biot by ICL for an aggregate value of $15.25 million. In addition, ICL will acquire Avogen's MicroBoost AI tech engine for the agriculture field for approximately $3.5 million. As part of the transaction, ICL's safe investment in LaVie Biot is being redeemed. The acquisition is expected to be completed during the second quarter of 2025 following the completion of certain customary and regulatory closing conditions. We can also envision long-term upside for Avogen from certain existing assets which remain with LaVie Biot and are not part of the transaction with ICL. More details on the transaction will be provided later in the presentation. Now, let's move to Castera. Since the beginning of the year, Castera has delivered 250 tons of cassero seeds to its partner in Africa, already surprising the 215 tons delivered through all of 2024. In Brazil, Castera strength itself teams and started the execution of a new marketing and sales strategy. I am pleased to report that Castera initiated -of-concept trials for grain, not seed, to be sold to Castor Crashing factories. In partnership with one collaborator in Kenya and one in Brazil. Trials are already underway in all locations and the company expected initial results in the third quarter of 2025. Moving to AgPlanus. In February 2025, AgPlanus announced the discovery of a new mode of action for fungicides against Septoria in wheat. The company made significant headway in the discovery phase with the identification of several promising candidate compounds targeting the new mode of action. AgPlanus intends to commence formal discussion with prospective licensing partners by year-end. I will end this part with Biomica's highlights. The phase one clinical study of BMC128 is progressing. New data has shown early signs of BMC128 monotherapy effectiveness through immune activation observed within 14 days of treatment. Regarding the newly launched obesity and longevity programs initial computational analysis indicates that microbiome-based solution can be effectively designed and developed to target those areas. Early stage discussions are currently underway to evaluate potential partnerships opportunities. It is important to highlight that additional funding is necessary to advance to phase two of the clinical study. Meanwhile, Biomica established an expense reduction plan which will be completed by the third quarter of 2025. This reduction in expenses is already reflected in Biomica's financial results of the first quarter of 2025. I will provide more details for each subsidiary later in the presentation. I will now continue with a short overview of Evogen and its growing focus on utilizing and improving its campus AI tech engine specifically for drug discovery based on small molecules. As you all know, our vision is to position Evogen as a pioneering company in the development of groundbreaking life science products rooted in myocardial cancer. We have focused on the development of the AI tech engine in the development of microbes, small molecules and genomics. To realize this vision, we have concentrated on integrating life science expertise with advanced big data and -the-art computational technologies. This approach led the development of our three proprietary AI tech engine. It is designed to drive the effective discovery and optimization of life science products. Our AI driven tech engines offer a strong value proposition by efficiently identifying and optimizing the most promising candidates. We believe that this enhances the likelihood of achieving innovative products within competitive timelines and in cost-effective ways. To capture the value of the tech engines offering, we established a business strategy designed to maximize potential while minimizing risk. This through a diverse network of collaborative partnerships for life science product development. We partner with experts in complementary fields forming licensing or collaboration agreements with companies that bring domain-specific knowledge. Through this strategic alliance, we aim to co-develop innovative products. The upside for Evogen stems from revenue sharing mechanisms of the end product or through equity hoarding in the company developing the end product. Here is a current snapshot of our business achievements to date. Evogen currently owns four subsidiary companies each focused on a specific market segment. As I previously presented, ICL, LaviBio and Evogen signed a definitive agreement in April under which ICL will acquire most of the activity of LaviBio Closing X is expected by the end of the second quarter of the year. In our last call, I presented this slide to clarify the guidelines directing Evogen's efforts in the near future to develop a more capital-efficient model to generate greater value. This by focusing further on the use of our campus AI in the field of AI-powered drug discovery and generating value and cash flow from our subsidiaries. In today's call, I would like to focus on the first items in each section highlighted in bold and elaborate on relevant achievement. Let's start with our increased focus on enhancing campus AI's value proposition for the former market segment. In recent months, we have refined and assessed the value proposition of campus AI highlighting its unique competitive advantage for the pharmaceutical and biotech industry. We aim to tackle a key challenge in small molecule drug development discovering and designing novel compounds that are not only highly potent but also met multiple critical parameters. Our solution empowers drug development companies to develop breakthrough therapies while securing robust and broad intellectual property protection. At the heart of our offering is campus AI, our proprietary computational platform built on in-house developed generative AI. Designed to explore uncharted chemical space, campus AI produces precisely optimized molecules that meet complex product requirement with high potency. In the following three slides, I will review campus AI offering for the pharma industry. This is a typical drug discovery and development pipeline starting with identification of a protein target, continuing with the small molecule screening and optimization phases, then validation in preclinical essays, and ending with clinical studies. Campus AI uniquely enable the discovery and design of highly potent, novel compounds optimized across multiple parameters and tailored to a specific target protein, boosting the likelihood of success in preclinical and clinical studies and holding strong commercial value. In each of the screening and optimization phases, campus AI offers unique computational capabilities developed by the Evogen team that support the researchers' efforts to discover and optimize the most promising candidates. In the next slides, I would like to present how our foundation model, which is being developed in collaboration with Google Cloud, announced in October 2024, enhance both novelty and the ability to address multi-parameter optimization challenges. This foundation model is at the core of our campus GPT lead optimization package. Traditional generative AI models in drug discovery often struggle with small training data set which frequently results in the generations of molecules lacking the desired properties. Evogen's proprietary campus GPT foundation model trained on extensive chemical space of 38 billion molecules in designed to overcome these limitations dramatically expanding the boundaries of molecular discovery. By exploring previously untapped chemical territories, our model enabled us to generate novel, diverse and valid molecular structures and hence predictions of efficacy, optimize complex multi-parameter profiles with greater precision and flexibility. This unprecedented scale and depth of chemical understanding will uniquely position Evogen at the forefront of next generation AI driven drug discovery. We expect to update on our progress in the near future. I will now move on to the second item, our efforts to create meaningful exit event for Evogen through certain subsidiaries. As mentioned earlier, in April of this year, we announced the acquisition of the majority of LaVigbio's activity and assets by ICL. This transaction is expected to generate value for Evogen in two ways, directly through the sales of Microboost AI for Ag and indirectly through future dividends as Evogen remains a major shareholders in LaVigbio. In addition, more value may be generated from assets that are keep with LaVigbio after the transaction. I will provide additional details in my overview of Evogen subsidiaries. We remain committed to pursuing and updating you on further milestones that unlock value or generate cash from Evogen's subsidiaries. We will now continue with an overview of Evogen's subsidiaries. I would like to begin with LaVigbio, a global leader in developing next generation and biological products powered by Microboost AI for ag tech engines. On April 21, 2025, we announced the acquisition of most of the activity of LaVigbio by ICL for an aggregate value of $15.25 million. In addition, ICL will acquire Evogen's Microboost AI tech engine for the agriculture field for approximately $3.5 million. As part of the transaction, ICL's safe investment in LaVigbio is being redeemed. Key assets to be transferred to ICL include LaVigbio's core team and selected Evogen's employees, the BDD technology platform, LaVigbio's microbial bank and data assets, and most of its development programs. As I noted earlier, LaVigbio's existing agreements with its current partners, Corteva and Syngenta, will not be transferred to ICL and may generate future revenue for LaVigbio and indirectly to Evogen. The acquisition is expected to be completed during the second quarter of 2025 following the satisfactory completion of certain customary closing conditions. I would like to emphasize that this transaction followed more than two years of close collaboration between ICL and LaVigbio for developing innovative biostimulant solutions for raw crops facing various abiotic stresses. The integration of LaVigbio's activities into ICL and to significantly advance the global agri-logical field and drive impactful innovation in agriculture. This transaction reflects Evogen's ongoing strategy to unlock the value of its assets for the benefit of its shareholders. Continuing with Castera, Evogen wholly owns subsidiary dedicated to developing an integrated solution for large-scale commercial castor farming leveraging its unique elite seed varieties. Castera's comprehensive approach is designed to address the growing global demand for stable and sustainable castor oil supply preliminary for use in bio-based products and biofuels. The company is utilizing Evogen Generator AI Tech Engine to drive and accelerate the development of its proprietary elite castor seed varieties. Castera began, 2025, with strong momentum, achieving meaningful progress toward all of its annual targets. Today, I would like to highlight achievements related to the first three. Increase in Castor Seed Revenue in Africa Since the beginning of the year, Castera has delivered 250 tons of Castor Seed to its partner in Africa, already suppressing the 215 tons delivered through all of 2024. We anticipate receiving additional orders for delivery later this year. In Brazil, we have strengthened our sales teams and launched the execution of a new marketing and sales strategy. Initiating of -of-concept trials for grain cultivation in Kenya and Brazil. I am pleased to report that we have initiated POC trials for grain not seeds to be sold to Castor Crashing factories in partnership with one collaborator in Kenya and one in Brazil. Trials are already underway in all locations and we expect initial results in the third quarter of 2025. With respect to development of new varieties, Castera's third target, currently significant multi-location field trials are taking place in Kenya and Brazil. I look forward to providing further updates on these initiatives and additional milestones as the year progresses. Next is Act Planus, a company dedicated to developing innovative and sustainable crop protection solutions powered by Evogen's Campus AI tech engine. Since the start of 2025, Act Planus has focused primarily on advancing its strategic collaboration with Bayer and on progressing its Saptoria program. The collaboration with Bayer, targeting the development of broad spectrum herbicide, is progressing according to plan and remains aligned with the agreed work plan. Meanwhile, in its Saptoria program, in February 2025, Act Planus announced the discovery of new mode of action of fungicide against Saptoria in wheat. Additionally, Act Planus has made significant headway in the discovery phase, identifying several promising candidate compounds targeting the new mode of action. In addition, the company plans to initiate engagement with potential licensing partners by year end. Importantly, we expect that Act Planus activity will be funded primarily through strategic collaboration with leading tier one companies. This objective is the focal point for Act Planus management and a key area of support from Evogen. We believe that Evogen's substantial investment in its campus AI or pharma will significantly enhance and accelerate these efforts. Now, turning to Biomica, a company focused on developing microbiome-based therapeutics for human hands, leveraging Evogen's Microboost AI tech engine. As discussed in previous calls, Biomica's primary focus remains on advancing its immune oncology program led by its lead candidate, BMC 128. The ongoing phase one clinical study is progressing toward completion with the majority of enrolled patients demonstrating prolonged clinical benefits. Since the beginning of the year, Biomica has shown progress toward both in its first and third annual targets. The phase one study is advancing in accordance with the clinical protocol. Importantly, new data collected this year have provided additional mechanistic insights. Clinical response outcomes are now reinforced by immune oncological analysis, which show activations of multiple immune cell types following administrations of BMC 128. These findings serve as early proof of the candidate effectiveness observed as soon as 14 days after initiating BMC 128 monotherapy. Regarding the newly launched obesity and longevity program, initial finding from computational analysis suggested that microbiome-based solution could be effectively designed to address these areas. Early state discussion are underway to explore potential partnership. I would like to emphasize that in order to proceed to phase two of the clinical study for BMC 128, additional funding will be required. This will require substantial effort from Biomica's management with evidence support. Additionally, Biomica established an expense reduction plan, which will be completed by the third quarter of 2025. This concludes my section of the call and I will now hand it over to Yaron for the CFO update. Thank you.

Thank you, Ofer. Thank you, Yaron. As of March 31, 2025, Evergen held consolidated cash, cash equivalents and short-term bank deposits of approximately $9.8 million compared to approximately $15.3 million as of December 31, 2024. This cash balance does not reflect approximately $2 million due from Castera's outstanding customers, the majority of which were received in the second quarter of 2025. Excluding the VBio and Biomica, Evergen and its other subsidiaries used approximately $3 million in cash during the first quarter of 2025. Revenues for the first quarter of 2025 were approximately $2.4 million, a significant decrease from approximately $4.2 million in the same period of the previous year. This decline was primarily due to revenues recognized in 2024 from AgPlanet's licensing agreement with Bayer and NaviBio's licensing agreement with Corteva. In 2025, revenues were mainly driven by Castera's increased seed sales. Research and development expenses for the first quarter of 2025 were approximately $3.2 million, a significant decrease from approximately $4.8 million in the same period the previous year. The decrease in expenses was mainly due to lower research and development expenses in Biomica and NaviBio compared to the same period the previous year, as well as a closure of Canonics operation during the first half of 2024. Sales and marketing expenses decreased to approximately $645,000 in the first quarter of 2025, compared to approximately $992,000 in the same period last year. The decrease was primarily driven by a reduction in NaviBio's sales and marketing activities. General and administrative expenses decreased to approximately $1.3 million in the first quarter of 2025, compared to approximately $1.7 million in the same period last year. The decrease was primarily attributable to reduced expenses related to NaviBio and Evogen, as well as a closure of Canonics operation during the first half of 2024. Other income of approximately $191,000 was recorded in the first quarter of 2025 as part of the accounting treatment relating to a sub-lease agreement. The decision to cease Canonics operations in the first half of 2024 resulted in other expenses of approximately half a million dollars primarily due to the impairment of fixed assets recorded in the first quarter of 2024. Operating loss for the first quarter of 2025 remained stable at approximately $4.1 million, similar to the operating loss reported in the first quarter of 2024. Net financing expense income for the first quarter of 2025 was approximately $1.1 million, compared to net financing income of approximately $241,000 in the same period last year. The increase was primarily due to the accounting treatment of pre-funded warrants and warrants issued in the August 2024 fundraising. These instruments were classified as liabilities on the consolidated statements of financial position, initially recorded at fair value and subsequently remeasured at each reporting period using the Black & Schultz option pricing model. As a result, in the first quarter of 2025 the company recorded net financing income of approximately $1.5 million related to the remeasurement of these pre-funded warrants and warrants. The net loss for the first quarter of 2025 was approximately $3 million, compared to approximately $3.8 million in the same period last year. The $0.8 million decrease in net loss was primarily due to reduced operating expenses and increased net financing income partially offset by decreased revenues as noted above.

Operator Thank you. Ladies and gentlemen, at this time we will begin the question and answer session. In order to send a question, please use the chat button located at the bottom of your screen. Please type your full name and your company's name before the question. Please stand by while we poll for some questions. The first question is from Ben Cleve with Lake City, Lake Street Capital Markets. With the 250 tonnes of castor seeds delivered in the first quarter, does this complete the initial order from any place in mid 2023? Or do you expect additional sales from the next quarter? Do you expect a follow-on order to be an increase or decrease? And do you expect an increase or do you expect additional orders to be still delivered in 2025? Or will this be the delivery in 2026 and beyond?

Hi Ben, this is Ofer and thank you for this question and I will try to disclose as much as I can. So let's start with a short explanation that every year there are two stowing season in Africa and in Brazil there is in certain areas only one season and in certain areas the majority is only one season. The orders that we receive are usually at least six months ahead of the sowing season sometimes even more because it takes us time to produce the seeds. So the current shipment that we send was still related to the was based on the same terms like the order that we received in 2013 but we are talking now with our partners with respect to the second season this year and how much seed they need for the next season. So yes we are still waiting to receive additional orders for this year. Now with respect to when we are delivering the seed to our partners of course it's very important to deliver the seed until the specific season that these seeds are expected to be sown in a different location and the good news is that in the past when we received the orders then we started to produce the seed so now in the state is that when we have a nice quantity of inventory that in case that we receive orders during this year for the next season we will be able to deliver additional seeds even this year and what we are expecting from our partners is to give us a forecut on how much they believe they will need for the future. Our expectation is that again I can't disclose much because I also regret what's going on in our partner activity in this area but I believe that the interest in Castor is growing and I'm talking about Castor oil for bio-polymers and for bio-fuel we see a nice increase activity actually more in Brazil these days rather than Africa and we are now and I think I mentioned this in my presentation that we are expanding our marketing activity in Brazil in addition to what we have what we built already in Canada. I also would like to track your attention and I think that I discussed it in the past and we started to put more emphasis on it what we see is that the demand for Castor oil is huge actually we hear from more and more companies that are willing to put fresh Castor grains into oil that they are willing to buy almost every quantity available because the demand for oil is much more than what does the factory supply and the main problem is to find a farmers which can really grow the variety that we develop in a way that can really capture the value of our genetics. What we are doing now is actually we are conducting a field trial in a commercial level both in Kenya and also in Brazil to demonstrate and bring farmers, big farmers to see how we are really capturing the value and utilizing our seed variety and this is what we are expecting to see as a significant growth rider to ourselves in the future. So I think that yes we continue to see growing interest in Castor oil which led to increasing demand for Castor grain which can lead to increase in the demand of Castor seed. Still the bottleneck is really to educate farmers how to benefit from the genetics that we develop and by the way it's not just with the EvoGen there are not too many companies that sell Castor seeds but even in other cases I think that education is a very important piece in this story. And now we are putting more emphasis on this area and I am expecting to see a nice growth definitely maybe in the second half of this year and even more in the year 2026 where more and more farmers hopefully will be impressed from the performance of our variety and using the growth protocol that we develop and it can really generate a nice margin and a nice revenue from growing Castor grain using our variety.

An additional question from Ben what is the net cash inflow EvoGen will be receiving from the ICO for the levy bio transaction?

So what I can share is that the amount of money we are going to receive directly is 3.5 concerning the EvoGen micro boost crack in addition levy bio is going to receive 15.25 million dollars from this we need to deduct the investment of ITL through SAFE you need to add also the fund already exists in levy bio and then we are going to get our share from this portion while the only share holder is the EvoGen Castor and just a little bit also employee in addition we are expecting to see revenue coming from our two collaboration agreement that are saved as part from levy bio one with Syngenta and the other one with Corteva we have high expectation that it will lead to a commercial product that can generate a nice value for EvoGen by the way in addition maybe we need to add and this is why I can't give you the exact number any terms of EALOS that will be contacted until the closing date also we add to the cash that levy bio will be able to distribute as a dividend to its shareholders so most of the money that will stay in levy bio after the exit will be delivered to EvoGen which differently strength our financial position and can help us to continue our operation according to plan through the long year and definitely next year as well

the next question is from Scott Henry at AGP Castor sales were strong in the first quarter of 2025 how should we think about the rest of 2025 and what should the cadence look like

I can't give a projection because it also depends on the performance of our partners that are buying from us the seeds and I'm not talking about the quality of the seeds I'm talking about the success in growing grain in the different territory and this is exactly what we are talking with them as I said I see a continue growing interest and actually as I said we are quite excited from what we see not just in Africa but also in Brazil and I'm also feeling comfortable that assuming we will get additional orders so we already have the inventory to supply those specific orders so we will be able to deliver the seeds until the end of this year

the next question is at close of asset sale how much cash will you receive

so I think that I already answered this question that was asked by Ben Fly

the next question is what are the customary closing conditions for the ICL deal is there any danger for not closing the agreement

so usually what you would expect is the approval from the antitrust in Israel and other approval you need is from the Israel Innovation Center and other technical condition at least for now we don't see any reason why we won't be able to close the deal in some cases we already received the needed approval and we are advancing in discussion with the other government agencies in this respect so we hope to be able to close the deal as we stated until the end of this quarter

additional question from Scott Henry of AGP the sale of LaviBio should solidify the balance sheet combining this with reduced expenses how should we be how should we think how should we be thinking about the strength of the balance sheet for the foreseeable future in terms of duration

so of course and I think that we also disclose and we disclose this information is that we are not just transferring LaviBio activity to ICL but also few employee moving from LaviBogen to ICL and I also mentioned that we are going through some expense reduction blend so I believe that we are safe from a financial perspective until the end of 2026 assuming a very very conservative analysis assuming good things will happen which you know this is exactly what we are working on I believe that we can see a significant improvement and again we can always decided to cut our expenses even more than what we are doing now but definitely it really puts us in a very much better position compared to where we were before this transaction

The next question is from Brett Reyes of Jany Montgomery Scott of the 18.75 consideration selling LaviBio assets what net cash to the parent was realized what happened to the narrative that there would be multiple oil companies lining up to buy Castor Seeds to replace palm oil as the biodegradable component in diesel fuel

So with respect to the first question I already answered as response to Ben Clive question and with respect to the second question I think I think that I already discussed it in one of my previous analysis but if not it's also connected to what I mentioned earlier what we see is that the demand for oil is there but the willingness of additional big oil companies to adapt the E&I model where they are buying seeds distributed to farmers helping them to grow the castor and produce grain then to take the grain and crash it and they build a crashing factory in Africa and they are also in the processing to build a refinery factory in Africa currently we don't see this approach adapted by additional oil companies so if there will be more oil crashing factory they will be able to sell more additional oil because of the demand in there and as I am referring to the same statement where we see today the bottleneck is more in the cultivation moving from seed to grain and we need to educate the farmers how to do it as I said and I will repeat it again we hear more and more from one company that has a crashing factory we are willing to buy a very nice stack of tracks almost every quantity you will bring us of grain because there is a demand for it and we are there now to start to work hard in order to bring more and more farmers to use our variety and to start to grow a cast of grain I think it is a process that I hope we will start to see generate fruits in the next year or two

final question also from Brett Rice with your reduced expenses how long will the cash last you?

I think I answered this question earlier I feel very comfortable at the end of 2026 assuming a very conservative approach which we hope first that there will be additional revenue or cash injection to the company from a company sales and strategic collaboration agreement and if something like this won't happen we can always decide to cut our expenses even more to increase the length of the company life without raising additional money

there are no further questions at this time Mr. Kaviv would you like to make your concluding statement?

Thank you everybody for participating in our analyst call we are continuing to move forward in almost all fronts yes we had to cut our expenses it's not an easy period for a company in the life science industry but I think the plan that we built including all the growth engines that we have I'm really looking forward to continue to update you and to see the company prosper it's about time Thank you everybody

This concludes Evergen's first quarter 2025 results conference call Thank you for your participation you may now go ahead and disconnect