Welcome to Evergen's second quarter 2026 results conference call. All participants are at 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 August 18, 2026. Before we begin, I would like to caution that certain statements made during this earning 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 Ltd. 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 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, accept, anticipate, should, planned, estimated, intent and potential or words of similar meaning. We are using forward-looking statement 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 guaranteed of future performance. Riddles 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 made different 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 and other regional terrorist groups supported by Iran, and any destabilization in Israel, neighboring territories or the Middle East region. And those described in greater detail in Avogen's annual report on Form 20-F and in other information Avogen files and furnished with the Israel Securities Authorities and the US Securities and Exchange Commissions, 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 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 Avigen or the company, nor shall the information, or any part of it, or the fact of its distribution form, the basis of or be relied on in connection with any action, contract, commitment or relating thereto or to the securities of Avigen 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 Nir Nimrodi, Evogen's Chairman of the Board of Directors, Ofer Haviv, President and CEO of Evogen, and Polina Ravzin, VP Finance of Evogen. Now I will turn the call over to Ofer Haviv. Mr. Haviv, please go ahead.

Thank you for joining Evogen'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 Evogen's board of directors. Nir will begin by presenting the board's response to the recent demand by a group of dissident 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 terms expectation. We will conclude with review by Mrs. Polina Ravzin, Evogen'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 Evogen 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. Over the past 18 months, we haven't just talked about change, we have delivered it. We have fundamentally transformed Evogen into a lean, AI-driven leader in computational chemistry for pharmaceuticals and crop protection. We have streamlined operations, reduced costs, and optimized our portfolio. The question today is not whether change is necessary, as 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 Kempass as our core platform, building a first-in-class generative small molecule foundation model and integrating autonomous AI agents in partnership with Google Cloud. We secured six key drug development agreements with leading biotechnology companies and premier academic institutions, validating the commercial value of our AI-driven platform, Kempass 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 to an expected 8.5 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 LaviBio, selling it to ICL for $15.25 million, licensed Biomica Phase 1 asset to Lishan Biotech, focused Castera on Brazil SAF market, and advanced ActPlanis novel fungicides discovery. Another strong indication of the confidence in Evogen's long-term potential comes from Mr. Leon Recanati, a member of Evogen's Board of Director and a highly respected investor. Mr. Recanati recently made a significant investment in Evogen and today he is one of the largest shareholders of the company. This recent investment reflects his strong belief in Evogen'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 interests with those of all other Evogen shareholders. As you may know, we were presented with a demand by a group of dissident investors who are seeking to replace the entire board. Following this recent demand, we approached them openly and in good faith and engaged in a dialogue with them to understand their vision for Evogen. 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 roadmap, or credible operating plan. Let me be clear, replacing most of a public technology company board is an extremely consequential decision. It should only be considered when there is a superior, fully articulated roadmap 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 two highly accomplished industry leaders, Dr. Yael Margolin, a pharmaceutical innovation and commercialization expert, and Mr. Yoshinori Oyakawa, a veteran of international biotechnology. These additions ensure our board 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 Evogen 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. Oyakawa in the coming vote. Thank you. Offer 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 four new drug development agreements. This brings our total active collaboration to six, as Nir noted earlier. I am highly encouraged to report that for two of these collaborations we have already successfully completed the initial step of our computational platform campus AI process. The validation results we achieved exceeded our partners' 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 two, head to lead, of the campus AI process, and progressed to step three, lead optimization, The generation of unique proprietary molecules that will serve as drug candidates to initiate preclinical trials. It is important to emphasize that all of these collaborations and internal programs targets therapeutics areas addressing markets with multi-billion dollars commercial potential. Importantly, Evogen 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 the value and expanding Avogen'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 campus AI process and we are currently testing synthesized molecules in advanced biological assays ahead of launching greenhouse and field trials. 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 automate highly complex, time-consuming tasks 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's 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 collaborations with other leading biotechnology companies while simultaneously initiating discussions with 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 chemical companies. continuously upgrading our computational technology, advancing towards increasing autonomous computational system designed to predict key success requirements at the earliest stage of development. To conclude, I want to strongly reinforce Mir's message. The transformation of Evogen 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 am 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 continuity, 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 Evogen has undergone, particularly the refocusing of our activities and the decisive steps we have taken to implement our new strategy. As you 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 and maximizing the cash resources available across the group and focusing our investments on the areas where we believe Evogen 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 had already taken to create a more focused, disciplined and financially sustainable organization. I will start with the status of our non-core subsidiaries. Consistent with our revised strategy, we continue to manage the breakdown or transition of our non-core business activities in a disciplined manner. LaviBio is no longer operational. Under the ICL transaction, two 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, LaVibai received court approval to distribute a $4.25 million dividend to its shareholders, of which Evogen 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 1 clinical trial and the licensing of its lead oncology candidate BMC-128 to Leshan Pharmaceuticals, is no longer conducting ongoing operations. In April 2026, Biomica received court approval to distribute a $2.7 million dividend to its shareholders, of which Evugen was entitled to approximately $1.35 million. The dividend distribution was completed during the second quarter of 2026. Castera has significantly reduced and realigned its operations and is now focused exclusively on Brazil. Evogen 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 of 2026. 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 30th, 2026, Evergen held consolidated cash and cash equivalents of approximately $9.3 million. Consolidated cash usage during the second quarter of 2026 was approximately $2.1 million. For the full year 2026, we expect cash usage to be in the range of approximately $8.5 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 to 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. Revenue 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 merely attributable to lower revenue from Costera, as the first half of 2025 included approximately $2 million in significant castor 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 a Plenus Agreement with Bayer in May 2026. Research and development expenses net of non-refundable grants for the first half of 2026 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 Castera and at Plenus, partially offset by increased R&D expenses at Evogen, 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 US dollar and the NIS 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 Castera, partially offset by increased expenses in Evogen, as mentioned above. In addition, the decrease was partially offset by the impact of exchange rate fluctuations between the US 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 with approximately $0.4 million in the second quarter of 2025. General 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 Evogen and its subsidiaries was substantially offset by approximately $0.2 million of transaction costs related to the warranted useman transaction and other legal expenses, as well as approximately $0.2 million resulting from and exchange rate fluctuations between the US dollar and the means. 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 regulation of warrants, including warrants issued in August 2024 fundraising and the February 2026 Warrant and Usement Transaction. Importantly, these results include significant non-cash 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, were 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 evaluation of the warrant liability as described above. 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. These amounts primarily reflect the financial results of the VBio 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 in our consolidated statements of profit and loss. Following the sale of a majority of the VBI's assets, as well as Evogen's MicroBoost AI for Ag to ICL in July 2025, and the licensing of BMC-128 to Lesion 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, a 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 one 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, substantially reduce activities in non-core 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 Avogen's most promising operations and creating long-term value. The action we have taken during 2025 and the first half of 2026 have created a stronger and more disciplined financial foundation 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 Avogen 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.

Thank you. Ladies and gentlemen, at this time we will begin the question and answer session. In order to send the 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, when was the last time you used the ATM? I noticed that the number of outstanding shares increased by approximately 2.5 million.

Hi, this is Ofer answering this question. So we are using the ATM consciously and according to the market condition we decide whether to use it or not. This is part of our strategy to raise money and we found 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 six months in our regular reporting system and I'm sure that all of the information as usual will be available in these reports.

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, etc., one of our subsidiaries, or the Champus engine?

When we are evaluating our technology, And we did so. So we looked at all the companies that are focusing on small molecule discovery for pharma and for the ag. In the ag, there are not many at all. I think that Teboten is one of the major companies in this field. In the pharma, there are additional companies in the same area of activity. and then you can divide them into a huge company, which usually they are working on their own pipeline and less in the favor of other company. There is a small company that are competing with what Evogen is doing. I think that the fact that actually Evogen is entering into this field after many, many years of experience in how to use computational 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 open our activity in this area, less than a year, we already have a six collaboration agreement and we are now talking with additional companies on additional collaboration. and what I'm very excited to see is that we are now starting to talk also 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 are talking on the additional portfolio agreement In the majority of our ongoing discussion we are also talking about R&DP to fund our activity which 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 and 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 target that we are focusing, the field trial. We are now in the stage of validate our most promising molecules on attached open leaves with the Pondy. and the next step will be a 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 when it was tested on the Pungi level. and I really hope to start to see the indication. Also, Pungi only, 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, it's not a coincidence. Septoria is one of the main, main Pungi that all the big companies are looking for solutions for, because what exists in the market Funky already developed a resistance and everybody today is looking for new mode of action. 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 have now in our hands. So I'm really looking to see what we can build commercially around this program when we start to present those results

The next question. When do you expect EVG R510 to enter the clinic?

I don't have in front of me the table, but our In the near future, we are more focusing on entering into the correct clinical trials. This is something that is more closer to a milestone, and I really hope that in some of our programs at the second half of next year, something like this 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 that two from our six ongoing program already moved from step one to step two in our workload scheme with a very very promising result it was better than what we expected and including our partner and we also are nicely advancing in in our internal pipeline, which we already finished step two, and now we are moving to step three, and assuming we'll end step three during next year, then we can start to talk about moving into the preclinical trial. The minute that Evogen will move to the stage of preclinical trial company, I think this will be a reflection 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 shot itself in the foot by pigeonholing yourself to your single banker. I would like the C-Suite and others to do NDR across US as IMO Champess 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 definitely agree to almost everything that was said in these questions. I think that we definitely need to explore Evergen to a much broader audience. I think that we need to meet with new investors and existing investors and tell them the Evergen story. So what we haven't done until now, if it's so clear, We are now in the position that if somebody would have told me a year ago that we will achieve all what we achieved already, I thought that maybe it's too good to be true. Because we started a new and significant shift in our strategy a year and a half ago. So a year and a half ago, what we can tell to the industry is also just, you know, the expectation, what we are planning to do and what might happen. A year and a half later, the reality is now that 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 financial institution and tell them not just the evolution story, but also to show them the results and the list of collaboration that we signed on. And this list is going to and I feel that we have today now not just a story, we have the reality that supports 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 evidence stories all the results that we achieved and when we showed the numbers from the program that finished step one and I see the reaction on the face of people when you show them the number of molecules that show positive results, this is where I felt 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 they're doing will increase and when the results will come more and more frequently, I believe that 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 doing so.

The next question. How long does the heat to lead stage of development typically take?

So the computational part, it shouldn't take too long. It's something around like two to three months. But before we are moving to step two, which this is the heat to lead, this is the name of the second step. We are our partners or inside of Evotent, we order the predicted small molecules according to our computational analysis and then we validate them in a wet assay. And by doing so, we confirm the prediction and we are using all of this information before we start the second round, the second computational round of analysis. What really takes more time is to order the small molecules, the time until they came to the lab, and the assay itself. This might take another few months. So in total, it might take something between four to five months in order to see the results. When you're working with an academic institution, it might take longer, because usually academic institutions They have to do everything a little bit slower than what you expect. When you're working with a commercial partner, things are moving much faster. And when we are doing it by ourselves, this is when you see the fastest... the fastest... evolve in the program. In this example, even though we initiate our internal program After we already engaged in two or maybe even three collaboration agreements, the program that is the most advanced and now we initiate stage three is the internal program because we are moving much faster than academic institutions and some of our partners. So to summarize the answer to the question, it's between four to five months. The next question. I'm a shareholder for a long time. Why the price drops down so much till 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 a year and a half 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 campus. 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 meeting with potential partners. It's a differentiated asset, and we believe that we will be able to evolve the six current collaborations into tangible products down the road that would be monetized. And we believe that even before 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. With 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 one fourth in its size and even less so in terms of the burn. This is being done to preserve our runway and to be able to actually demonstrate this value. So again, all in all, we share 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 to emphasize that it's part from our strategy to focus the company activity on small molecule discovery. So we reduced the level of biome activity significantly starting from 2015, 2025. and we were mainly focusing on ABS-C128, which is our lead candidate for cancer. And we finished phase one 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 And because of our decision to focus on small molecules and not on microbes, we decided strategically to look for a partner that we can license those acids to. And we chose to work with a Chinese company. that are focusing specifically on the area of drugs based on human 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 microbes forward. No doubt that if we will move from four microbes to one microbe, it will change significantly the regulation hurdle. But the reason that we chose these four is because we felt that the total effect of all the four together is quite important because each one of the microbes is operated on a different mechanism and all together it serves the maximum effect that we were looking for. And I think this was also reflected in the result that we received. And what was also very nice is that the clinical indication supports the prediction on how those microbes are going to affect our body. So, we are in direct contact with Li Shan. Actually, today we had a board meeting of Biomica. I'm today leading this board meeting, and we talked 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 is leading the research and the commercial process of these microbes. Of course, if they will come to the conclusion that you can reduce the number of microbes, it's something that we will 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 puts you in a much stronger IP position rather than only one microbe. So maybe another reason to have a product based on two or three microbes is also from IP reasons. I hope that I addressed this question. If not, I would be more happy to do it offline.

The next question. Can you add the value for Avogen in the VIRB, Biotics and Finally Foods? Those two items are really under-disclosed compared to the relatively short term.

So with respect to Finally Food, it's one of our subsidiaries. We hold in this company more than 30% of its equity. I hope that this is correct, because the company raised some money lately. The company is focusing on producing Casdain, which is a protein that exists in milk, in potato. The whole concept was developed in Avogel, and the researcher that was leading the program, they moved to, at the beginning it was part of the kitchen hub, they established a company and the company name is finally, I'm giving this information because I'm not sure that everybody in the call knows about this activity. All of the wet lab or maybe I should say the majority of the wet lab conducted by this company was taking place in Everton facility, Everton lab. And now the majority of the greenhouse activity is taking place in Everton farm. And the company has a very nice and promising result 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, it will come to the conclusion that from a financial perspective, it makes sense to keep our holding in this 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 this company moving forward with the idea of producing Kazen Protein and other proteins that usually exist in meal in a potato and they have a very nice result based on the last update I received from them.

The next question. The APH1 and the APTH1, is the program dead or is it possible to license it to someone like Adama or Syngenta?

Adama or Syngenta. So APTH1 is a protein that was a protein that we were focusing on for herbicides. When we had the collaboration, it was filled with barriers. And we announced that we stopped this collaboration in the first half of this year. And there is good news and bad news related to this announcement. I will start with the bad news. The bad news was that what it turned out is that the protein itself, even when you stop its activity, So the idea was to develop a herbicide, weed killer. So it turned out that when we stop the protein activity, the weed at the beginning show that they are getting weak 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 procession was that the molecule that we discovered 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 Evergen, to find the molecules that are going to stop the protein activity. The problem wasn't the molecule, the problem was the protein itself, the protein that we were supposed to stop its activity, was not essential enough to the existing of the weed and this is why both Bayer and Evogen decided to stop focusing on this target. So I'm not sure that we will succeed to generate enough interest with other partners with respect to this specific protein. The good news came from this work is that I think that Bayer felt very positive and pleased from the average work in this project, because as I said, our target was to find the right small molecules that are going to bind to this protein and stop its activity and we succeed in doing so. And this is how both parties expose that the protein is not essential enough to kill the wind. So my belief and expectation is that this positive impression on Evergen technology, I hope that it will lead to a new discussion with Bayer or new program New projects and I believe that there is more to come in respect of the relationship between these two companies. I can't disclose much, but I really hope that the good impression, the great atmosphere between the two teams will be translated into expanding and continuation of the commercial relationship between the two 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 that participated in this analyst call. We highly appreciate the time. I think the company is in a really great position to progress and prosper. We are in the right space. Small molecules in pharma, it's a huge, huge space. I believe it's exactly the same in the ag industry. And I'm looking forward to continue to update you in future analyst calls on additional achievement. and if you have any additional questions that maybe I didn't succeed to address in this call, don't hesitate to 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 Evergen's second quarter 2026 results conference call. Thank you for your participation. You may go ahead and disconnect.