Evogene Ltd. (NASDAQ:EVGN) Q4 2022 Earnings Call Transcript

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Brett Reiss: Alright. I appreciate that. Just circling back because I didn’t frame the question in the best way. The two independent contractors in Brazil and Zambia that you have the relationship where they grow out the seed. Have you, in fact shipped some of the mother line of seed to them? And if so, when did you ship it? When has the clock ticking on the development of these seeds?

Ofer Haviv: They €“ each one of those partners already received the original, what is called the €“ I don’t know what is the name of it, but the regional seeds in order to start to produce the seed themselves and both of them already produced during 2022, actually, they already produced seeds that some of them or a bit imported from them, we sold to this world lead energy company as we disclosed at the end of 2022.

Brett Reiss: Okay. Great. Thank you for taking my questions.

Operator: The next question is from Brian Wright of ROTH Capital. Please go ahead.

Brian Wright: Thanks. Good afternoon. Just a real quick question and I apologize if I missed this, but I was wondering if you could help with kind of sizing the sequential growth between the payment from Canonic, if you could kind of give us some help with understanding the scale of the drivers.

Ofer Haviv: Can you repeat your question because it wasn’t very clear.

Brian Wright: Sure. So, I wanted to understand, when you look at the sequential growth in revenue, if you want to kind of wait €“ kind of what was the bigger driver of that sequential growth? Was it the key mix there or was it the growth from just Canonic?

Ofer Haviv: Okay. So, it’s 3.5%, and it’s completely in a separate line. If you look at the operating expenses, you will see that there is one line that actually is an income, and this is the $3.5 million. And this is separate from the revenue. The revenue is coming mainly from Canonic activity and from ex licensing agreement. Only a small portion is from Lavie Bio. And this is why I said that this year, it will reach our forecast. This year, it will be a material number for Lavie Bio. So, it was the modest number last year, this year it’s going to be much more significant.

Brian Wright: Great. Thanks so much for the clarifications. Thank you.

Ofer Haviv: Thank you.

Operator: There are no further questions at this time. Before I ask Mr. Ofer Haviv to go ahead with his closing statement, I would like to remind participants that a replay of this call is scheduled to begin two hours after the conference. In the U.S., please call 1-888-326-9310. In Israel, please call 03-925-5901. Internationally, please call 9-723-925-5901. Mr. Haviv, would you like to make your concluding statements?

Ofer Haviv: Yes. Thank you all for joining the call today. We look forward to updating you with our progress in our next call. Thank you very much.

Operator: Thank you. This concludes Evogene’s fourth quarter 2022 results conference call. Thank you for your participation. You may go ahead and disconnect.

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