1、UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549FORM 20-F(MarkOne)REGISTRATIONSTATEMENTPURSUANTTOSECTION12(b)OR(g)OFTHESECURITIESEXCHANGEACTOF1934ORxANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934ForthefiscalyearendedJune30,2020ORTRANSITIONREPORTPURSUANTTOSECTIO
2、N13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934Forthetransitionperiodfrom_to_ORSHELLCOMPANYREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934Date of event requiring this shell company report:_Commission file number:001-38405Bioceres Crop Solutions Corp.(ExactnameofRegistrantasspecifiedinits
3、charter)Cayman Islands(Jurisdictionofincorporation)Ocampo 210 bis,Predio CCT,RosarioProvince of Santa Fe,Argentina(Addressofprincipalexecutiveoffices)Gloria MontaronExecutive DirectorOcampo 210 bis,Predio CCT,RosarioProvince of Santa Fe,ArgentinaPhone:54-341-4861122Email:(Name,Telephone,E-mailand/or
4、FacsimilenumberandAddressofCompanyContactPerson)Copiesto:Conrado Tenaglia,Esq.Matthew S.Poulter,Esq.Linklaters LLP1290 Avenue of the AmericasNew York,NY 10104Phone:(212)903-9000Fax:(212)903-9100SecuritiesregisteredortoberegisteredpursuanttoSection12(b)oftheAct:TitleofEachClassTradingSymbolNameofeach
5、exchangeonwhichregisteredOrdinaryShares,parvalueUS$0.0001pershareBIOXNYSEAmericanLLCSecuritiesregisteredortoberegisteredpursuanttoSection12(g)oftheAct:None SecuritiesforwhichthereisareportingobligationpursuanttoSection15(d)oftheAct:Ordinary SharesWarrants Indicatethenumberofoutstandingsharesofeachof
6、theissuersclassesofcapitalstockorcommonstockasofthecloseofbusinesscoveredbytheannualreport.36,115,416ordinaryshareswereissuedandoutstandingasofJune30,2020.Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesxNoIfthisreportisanannualortransitionreport
7、,indicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934.YesxNoIndicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperi
8、odthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.xYesNoIndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulatio
9、nS-Tduringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).xYesNoIndicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,oranemerginggrowthcompany.Seedefinitionof“largeacceleratedfiler,”“acceleratedfiler
10、,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.LargeacceleratedfilerAcceleratedfilerNon-acceleratedfiler xEmerginggrowthcompanyxIfanemerginggrowthcompanythatpreparesitsfinancialstatementsinaccordancewithU.S.GAAP,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiod
11、forcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.IndicatebycheckmarkwhethertheregistranthasfiledareportonandattestationtoitsmanagementsassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyA
12、ct(15U.S.C.7262(b)bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.Indicatebycheckmarkwhichbasisofaccountingtheregistranthasusedtopreparethefinancialstatementsincludedinthisfiling:USGAAPInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoardxOt
13、herIf“Other”hasbeencheckedinresponsetothepreviousquestionindicatebycheckmarkwhichfinancialstatementitemtheregistranthaselectedtofollow.Item17Item18Ifthisisanannualreport,indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).YesxNoTable of ContentsPARTIINTRODUCT
14、ORYNOTEANDPRESENTATIONOFFINANCIALANDOTHERINFORMATION1CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS3ITEM1.IDENTITYOFDIRECTORS,SENIORMANAGEMENTANDADVISERS5ITEM2.OFFERSTATISTICSANDEXPECTEDTIMETABLE5A.OfferStatistics5B.MethodandExpectedTimetable5ITEM3.KEYINFORMATION5A.SelectedFinancialData5B.Capitali
15、zationandIndebtedness8C.ReasonsfortheOfferandUseofProceeds8D.RiskFactors8ITEM4.INFORMATIONONTHECOMPANY47A.HistoryandDevelopmentoftheCompany47B.BusinessOverview49C.OrganizationalStructure80D.Property,PlantandEquipment81ITEM4A.UNRESOLVEDSTAFFCOMMENTS81ITEM5.OPERATINGANDFINANCIALREVIEWANDPROSPECTS82A.O
16、peratingResults82B.LiquidityandCapitalResources94C.ResearchandDevelopment,PatentsandLicenses,etc.98D.TrendInformation99E.Off-BalanceSheetArrangements99F.TabularDisclosureofContractualObligations99ITEM6.DIRECTORS,SENIORMANAGEMENTANDEMPLOYEES100A.DirectorsandSeniorManagement100B.Compensation102C.Board
17、Practices104D.Employees107E.ShareOwnership107ITEM7.MAJORSHAREHOLDERSANDRELATEDPARTYTRANSACTIONS109A.MajorShareholders109B.RelatedPartyTransactions109C.InterestsofExpertsandCounsel113ITEM8.FINANCIALINFORMATION114A.ConsolidatedStatementsandOtherFinancialInformation114iB.SignificantChanges115ITEM9.THEO
18、FFERANDLISTING116A.OfferandListingDetails116B.PlanofDistribution116C.Markets116D.SellingShareholders116E.Dilution116F.ExpensesoftheIssue116ITEM10.ADDITIONALINFORMATION116A.ShareCapital116B.MemorandumandArticlesofAssociation116C.MaterialContracts119D.ExchangeControls122E.Taxation124F.DividendsandPayi
19、ngAgents128G.StatementbyExperts128H.DocumentsonDisplay128I.SubsidiaryInformation129ITEM11.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTRISK130A.QuantitativeandQualitativeDisclosureaboutMarketRisk130B.Currencyrisk130C.Interestraterisk130D.Creditrisk131E.Liquidityrisk132ITEM12.DESCRIPTIONOFSECURITIESOTHE
20、RTHANEQUITYSECURITIES133A.DebtSecurities133B.WarrantsandRights133C.OtherSecurities133D.AmericanDepositaryShares133PARTIIITEM13.DEFAULTS,DIVIDENDARREARAGESANDDELINQUENCIES134A.Defaults134B.ArrearsandDelinquencies134ITEM14.MATERIALMODIFICATIONSTOTHERIGHTSOFSECURITYHOLDERSANDUSEOFPROCEEDS134ITEM15.CONT
21、ROLSANDPROCEDURES134A.DisclosureControlsandProcedures134B.ManagementsAnnualReportonInternalControlOverFinancialReporting134C.AttestationReportoftheRegisteredPublicAccountingFirm135iiD.ChangesinInternalControlOverFinancialReporting135ITEM16.Reserved136A.AuditCommitteeFinancialExpert136B.CodeofEthics1
22、36C.PrincipalAccountantFeesandServices136D.ExemptionsfromtheListingStandardsforAuditCommittees137E.PurchasesofEquitySecuritiesbytheIssuerandAffiliatedPurchasers137F.ChangeinRegistrantsCertifyingAccountant137G.CorporateGovernance137H.MineSafetyDisclosure137PARTIIIITEM17.FINANCIALSTATEMENTS138ITEM18.F
23、INANCIALSTATEMENTS138ITEM19.EXHIBITS139 iii PART I INTRODUCTORY NOTE AND PRESENTATION OF FINANCIAL AND OTHER INFORMATION Introductory Note OnMarch14,2019,UnionAcquisitionCorp.(“Union”or“UAC”),whosenamechangedtoBioceresCropSolutionsCorp.,consummatedthepreviouslyannouncedbusinesscombinationpursuanttoa
24、shareexchangeagreement,datedasofNovember8,2018(asamended,the“ExchangeAgreement”),byandamongUACandBioceres,Inc.,acompanyincorporatedunderthelawsofDelaware,whichconvertedintoBioceresLLCpursuanttotheReorganization(asdefinedbelow)onFebruary28,2019.PriortotheconsummationofthebusinesscombinationonMarch14,
25、2019,thefollowingstepstookplaceamongBioceres,Inc.andcertainofitsaffiliates(collectivelythe“Reorganization”).OnFebruary13,2019,Bioceres,Inc.formedanewsubsidiary,BCSHoldingInc.(“BCSHolding”),andcontributedallofitsassets(includingitscropbusinessassets)toBCSHoldinginexchangefor100%oftheequityinterestsin
26、BCSHolding.OnFebruary28,2019,Bioceres,Inc.convertedintoBioceresLLC,andonMarch1,2019,BioceresS.A.,acompanyorganizedunderthelawsofArgentinaandourultimateparentcompany(the“Parent”)contributedallofitsequityinterestinBioceresSemillasS.A.U(“BioceresSemillas”)(itsdirectmajorityownedsubsidiary)toBioceresLLC
27、inexchangeforadditionalequityinterestsinBioceresLLC.Inaddition,concurrentlywiththeconsummationofthebusinesscombinationonMarch14,2019,theRizobacterCallOption(asdefinedbelow)wasexercised,pursuanttowhichthetotalindirectownershipofBCSHoldinginRizobacterincreasedto80.00%ofalloutstandingstockofRizobacter.
28、OnOctober22,2018,Parent,RASAHoldingLLC,aDelawarelimitedliabilitycompanyandawhollyownedsubsidiaryofBioceres,Inc.,nowawholly-ownedsubsidiaryofBCSHolding(“RASAHolding”),andPedroEnriqueMacMullen,MaraMartaMacMullenandInternationalPropertyServicesCorp.,assellers(collectively,the“Grantors”)enteredintoaname
29、ndedandrestatedoptionagreement(asmaybeamendedfromtimetotime,the“RizobacterCallOptionAgreement”),pursuanttowhichtheParent,RASAHoldingoranyoftheirnominatedaffiliates(includingBCSHoldinganditssubsidiaries)wouldhavetheoption(the“RizobacterCallOption”)topurchasefromtheGrantorsalloftheir11,916,000sharesof
30、commonstock(parvalueAR$1eachand5votespershare)ofRizobacterArgentinaS.A.,anArgentinecorporationandasubsidiaryofRASAHolding(“Rizobacter”),representing29.99%ofalloutstandingcommonstockofRizobacter.ConsiderationfortheRizobacterCallOptionwasincashandintheformofUACshares(the“In-KindConsideration”).Asaresu
31、ltofthebusinesscombinationandtheothertransactionscontemplatedbytheExchangeAgreement,aswellastheReorganizationandexerciseoftheRizobacterCallOption,UnionbecametheholdingcompanyofBCSHolding,itssubsidiariesandBioceresSemillas.Upontheconsummationofthebusinesscombination,UnionchangeditsnametoBioceresCropS
32、olutionsCorp.Unlessthecontextotherwiserequires,“we,”“us,”“our,”“theCompany,”“BIOX,”“Bioceres”and“BioceresCropSolutions”willrefertoBioceresCropSolutionsCorp.anditssubsidiaries.Financial statement information InDecember2016,ourParentapprovedachangeinitsanditssubsidiariesfiscalyearendfromDecember31toJu
33、ne30.Followingthesix-monthperiodendedJune30,2017(the“TransitionPeriod”),BioceresS.A.anditssubsidiariesfiscalyearendhasbeenJune30ofeachyear.Inconnectionwiththebusinesscombination,theshareholdersofUnionpassedresolutionstochangeitsfiscalyeartoJune30,whichbecameeffectiveuponclosingofthebusinesscombinati
34、oninMarch2019,duringanextraordinarygeneralmeetingheldonFebruary27,2019.1TheconsolidatedstatementsofcomprehensiveincomedataforBioceresfortheyearendedJune30,2020,2019and2018andtheconsolidatedstatementsoffinancialpositiondataasofJune30,2020,2019and2018arederivedfromourauditedconsolidatedfinancialstatem
35、entsappearingelsewhereinthisreport.OurpresentationcurrencyisU.S.dollars.Weaccountforour50%equityinterestsinourjointventuresasequitymethodinvestmentsinourconsolidatedfinancialstatements.WehaveappliedthefollowingstandardsandamendmentsforthefirsttimeforourannualreportingperiodcommencingJuly1,2019:IFRS1
36、6-LeasesIFRIC23-UncertaintyoverincometaxtreatmentsAmendmentstoIFRS9-Pre-paymentfeatureswithnegativecompensationAmendmentstoIAS28-Long-terminterestsinassociatesandjointventuresAnnualimprovementstoIFRSstandards2015-2017cycleAmendmentstoIAS19-Planamendment,curtailment,orsettlementAmendmentstoIAS1andIAS
37、8-DefinitionofmaterialAmendmentstoIFRS3-DefinitionofbusinessAmendmentstoIFRS10andIAS28Saleorcontributionofassetsbetweenaninvestoranditsassociateorjointventure.InordertoevaluatetheeffectofadoptionIFRS16,pleaseseeNote15toourconsolidatedfinancialstatements.Theadoptionoftheotherstandardsandamendmentsapp
38、liedforthefirsttimeforourannualreportingperiodcommencingJuly1,2019didnothaveamaterialimpactontheamountsrecognizedinpriorperiods.Significant equity method investments(Rule 3-09 of Regulation S-X)OnMay20,2020,theSECadoptedamendmentstofinancialdisclosuresregardingacquiredanddisposedbusinesseswhichassis
39、tregistrantsinmakingmoremeaningfuldeterminationsofwhetherasubsidiaryoranacquiredordisposedbusinessissignificantandimprovethedisclosurerequirementsforfinancialstatementsrelatingtoacquisitionsanddispositionsofbusinesses,includingrealestateoperationsandinvestmentcompanies.Thechangesareintendedtoimprove
40、accesstofinancialinformationaboutacquiredordisposedbusinessesforinvestors,facilitatemoretimelyaccesstocapital,andreducethecomplexityandcoststopreparethedisclosure.Rule1-02(w)isusedtodeterminewhetheratestedentityisdeemedsignificantforthepurposesofvariousSECrulesandformrequirements,includingtheRule3-0
41、9ofRegulationS-X.ThesignificancetestssetforthinRule1-02(w)arecommonlyreferredtoastheinvestmenttest,theassettest,andtheincometest.2Thenewrulesamendtheinvestmentandincometestsandareintendedtoresultinmoremeaningfuldeterminationsofwhetherasubsidiaryoranacquiredordisposedbusinessissignificant.Nochangewas
42、madetotheassettest.RegistrantswillberequiredtoapplythenewrulesnolaterthanthebeginningoftheregistrantsfiscalyearbeginningafterDecember31,2020(themandatorycompliancedate).However,voluntaryearlycomplianceispermittedprovidedthatthenewrulesareappliedintheirentiretyfromthedateofearlycompliance.Wehavedecid
43、edtoapplythenewamendedrulesearly,andconsequentlydeterminedthatwewerenotrequiredtoprovideseparatefinancialstatementsforanyofourequitymethodinvestments.CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Wemakeforward-lookingstatementsinthisreportthataresubjecttorisksanduncertainties.Theseforward-loo
44、kingstatementsincludeinformationaboutpossibleorassumedfutureresultsofourbusiness,financialcondition,resultsofoperations,liquidity,anticipatedgrowthstrategies,anticipatedtrendsinourindustry,ourpotentialgrowthopportunities,plansandobjectives.Insomecases,youcanidentifyforward-lookingstatementsbytermino
45、logysuchas“believe,”“may,”“might,”“will,”“consider,”“estimate,”“continue,”“anticipate,”“intend,”“target,”“project,”“contemplate,”“should,”“plan,”“expect,”“predict,”“potential,”orthenegativeofthesetermsorothersimilartermsorexpressions.Thestatementswemakeregardingthefollowingmattersareforward-lookingb
46、ytheirnature:ourabilitytodevelopandcommercializebiotechnologyproductsandcropproductivitytechnologies;ourabilitytomaintainourjointventureagreementswithourcurrentpartners;thesuccessoftheHB4technologythatwelicenseandthatremainssubjecttoreceiptofregulatoryapprovalinjurisdictionsotherthanArgentina;ouroro
47、urcollaboratorsabilitytodevelopcommercialproductsthatincorporateourlicensedseedtraitsandcompletetheregulatoryapprovalprocessforsuchproducts;ourexpectationsregardingthecommercialvalueofourkeyproductsinyieldandabioticstressandbioticstress;ourexpectationsregardingregulatoryapprovalofproductsdevelopedor
48、licensedbyus,ourjointventuresandthird-partycollaborators;ourabilitytoadapttocontinuoustechnologicalchangeinourindustry;ourexpectationsthatproductscontainingourlicensedseedtraitswillbecommercializedandwewillearnroyaltiesfromthesalesofsuchproducts;ourexpectationstoacceleratetheMicrostarrampup,ourleadi
49、ngbrandinmicro-granulatedfertilizers;our expectations regarding the future growth of the global agricultural,agricultural biotechnology,biological-based chemical and agro-industrialbiotechnologymarkets;ourabilitytodevelopandexploitaproprietarychannelforthesaleofourlicensedbiotechnologyproducts;ourco
50、mpliancewithlawsandregulationsthatimpactourbusinessandchangestosuchlawsandregulations;3ourabilitytoassemble,store,integrateandanalyzesignificantamountsofpublicandproprietarydata;ourabilitytorespondtohealthepidemicsandotheroutbreaks,suchasCOVID-19,includingresponsesbygovernmentalbodiesorregulators;th
51、eimpactofCOVID-19ontheeconomy,ourcustomers,employeesandvendorsaswellasonourbusiness,financialconditionandresultsofoperations;ourabilitytomaintainourlicensingarrangementsfortheproductsthatwecommercialize;andvariousotherfactors,includingwithoutlimitationthosedescribedunder“Item3.KeyInformationD.RiskFa
52、ctors.”Theprecedinglistisnotintendedtobeanexhaustivelistofallofourforward-lookingstatements.Theforward-lookingstatementsarebasedonourbeliefs,assumptionsandexpectationsoffutureperformance,takingintoaccounttheinformationcurrentlyavailabletous.Thesestatementsareonlypredictionsbaseduponourcurrentexpecta
53、tionsandprojectionsaboutfutureevents.Thereareimportantfactorsthatcouldcauseouractualresults,levelsofactivity,performanceorachievementstodiffermateriallyfromtheresults,levelsofactivity,performanceorachievementsexpressedorimpliedbytheforward-lookingstatements.Youshouldnotrelyuponforward-lookingstateme
54、ntsaspredictionsoffutureevents.Althoughwebelievethattheexpectationsreflectedintheforward-lookingstatementsarereasonable,wecannotguaranteethatfutureresults,levelsofactivity,performanceandeventsandcircumstancesreflectedintheforward-lookingstatementswillbeachievedorwilloccur.Exceptasrequiredbylaw,weund
55、ertakenoobligationtoupdatepubliclyanyforward-lookingstatementsforanyreasonafterthedateofthisreportortoconformthesestatementstoactualresultsortochangesinourexpectations.4ITEM 1.IDENTITY OF DIRECTORS,SENIOR MANAGEMENT AND ADVISERSNotapplicable.ITEM 2.OFFER STATISTICS AND EXPECTED TIMETABLEA.Offer Stat
56、istics Notapplicable.B.Method and Expected Timetable Notapplicable.ITEM 3.KEY INFORMATIONA.Selected Financial Data Thefollowingtablespresentourselectedconsolidatedfinancialdatafortheperiodsindicated.InDecember2016,ourParentapprovedachangeinitsanditssubsidiariesfiscalyearendfromDecember31toJune30.Inc
57、onnectionwiththebusinesscombination,theshareholdersofUnionpassedresolutionstochangeitsfiscalyeartoJune30,whichbecameeffectiveuponclosingofthebusinesscombinationinMarch2019,duringanextraordinarygeneralmeetingheldonFebruary27,2019.Followingthesix-monthperiodendedJune30,2017(the“TransitionPeriod”),ourf
58、iscalyearendhasbeenJune30ofeachyear.BioceresconsolidatedfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards,whichwerefertoasIFRS,asissuedbytheInternationalAccountingStandardsBoard.Theinformationinthissectionisnotintendedtoreplacetheauditedfinancialstatementsap
59、pearingelsewhereinthisreport.Youshouldreadthisselectedfinancialdatatogetherwith“Item5.OperatingandFinancialReviewandProspects”andthefinancialstatementsandaccompanyingnotesincludedinthisreport.ThehistoricalresultsarenotnecessarilyindicativeofBioceresfutureresultsofoperationsorfinancialcondition.5Cons
60、olidated Statement of Comprehensive Income of Bioceres Year Ended June 30,Six-Month Transition Period Ended June 30,Year Ended December 31,2020 2019 2018 2017 2016(1)2015(2)(US$)Revenuefromcontractswithcustomers 172,350,699 160,308,979 133,491,118 46,853,369 41,027,474 5,100,395Governmentgrants 24,7
61、32 16,372 51,586 31,941 141,775 105,696Initialrecognitionandchangesinthefairvalueofbiologicalassets 716,741 279,945 Total revenue 173,092,172 160,605,296 133,542,704 46,885,310 41,169,249 5,206,091 CostofSales(93,575,588)(86,964,881)(77,094,551)(29,613,158)(30,598,956)(3,837,242)Researchanddevelopme
62、ntexpenses(4,195,270)(3,689,391)(3,950,100)(1,990,268)(853,854)(302,774)Selling,generalandadministrativeexpenses(38,345,028)(39,243,800)(35,263,688)(15,689,598)(8,827,121)(1,401,037)Shareofprofit(loss)ofjointventuresandassociates 2,477,193 1,012,486 (2,136,801)(649,075)(707,042)(858,158)Othernet(los
63、s)income(307,499)365,900 613,389 54,252 24,765 12Operating income/(loss)39,145,980 32,085,610 15,710,953 (1,002,537)207,041 (1,193,108)Financecost(20,880,526)(24,361,733)(17,188,653)(8,492,135)(6,876,095)(689,594)Otherfinancialresults(11,822,116)(17,096,484)(23,762,063)(1,701,128)(1,373,482)1,379,41
64、7Profit(loss)before income tax 6,443,338 (9,372,607)(25,239,763)(11,195,800)(8,042,536)(503,285)Incometax(expense)benefit(2,206,710)(6,986,284)10,928,517 2,817,251 1,860,647 (690,726)Profit(loss)for the period/year 4,236,628 (16,358,891)(14,311,246)(8,378,549)(6,181,889)(1,194,011)Othercomprehensive
65、(loss)profit(3)(9,682,116)3,904,365 (31,833,554)(2,714,241)(4,579,700)Total comprehensive loss (5,445,488)(12,454,526)(46,144,800)(11,092,790)(10,761,589)(1,194,011)Profit(loss)per share(4)Basicprofit(loss)pershareattributabletoordinaryequityholdersoftheparent 0.093 (0.603)(0.393)(0.21)(0.21)(0.04)D
66、ilutedprofit(loss)pershareattributabletoordinaryequityholdersoftheparent 0.092 (0.603)(0.393)(0.21)(0.21)(0.04)Weightedaveragenumberofordinarysharesusedincomputingbasicnetprofit(loss)pershare 36,120,447 30,478,390 28,098,117 28,098,117 28,098,117 28,098,117Weightedaveragenumberofsharesusedincomputin
67、gdilutednetprofit(loss)pershare 36,416,988 30,478,390 28,098,117 28,098,117 28,098,117 28,098,117Non-IFRS measures AdjustedEBITDA(unaudited)(5)46,517,201 41,345,206 22,370,693 4,133,308 8,775,411 (1,116,215)AdjustedEBITDAMargin(unaudited)(5)26.9%25.7%16.8%8.8%21.3%(21.4)%Notes:(1)Consolidatedstateme
68、ntsofprofitorlossandothercomprehensiveincomefortheyearendedDecember31,2016includeresultsofoperationsofRizobacterfromOctober19,2016toDecember31,2016(theperiodbeginningonthedatewhereuponBioceresacquiredcontrolofRizobacter).(2)Consolidatedstatementsofprofitorlossandothercomprehensiveincomefortheyearend
69、edDecember31,2015donotincludetheconsolidatedstatementsofprofitorlossandothercomprehensiveincomeofRizobacter,controlofwhichBioceresacquiredonOctober19,2016.(3)Includes(i)exchangedifferencesontranslationofforeignoperationsfromjointventures,(ii)exchangedifferencesontranslationofforeignoperations,(iii)r
70、evaluationofproperty,plantandequipment,netoftaxfromjointventuresand(iv)revaluationofproperty,plantandequipment,netoftax.(4)SeeNote9toourconsolidatedfinancialstatementsforanexplanationofthemethodusedtocalculatethebasicanddilutedlosspershare.(5)ToprovideinvestorswithadditionalinformationregardingBioce
71、resfinancialresults,BioceresmonitorsandhaspresentedwithinthisreportAdjustedEBITDAandAdjustedEBITDAMargin.AdjustedEBITDAandAdjustedEBITDAMarginarenotmeasurementsoffinancialperformanceunderIFRSandshouldnotbeconsidered an alternative to cash flow from operating activities or as a measure of liquidity o
72、r an alternative to profit/(loss)as indicators of operatingperformanceoranyothermeasuresofperformancederivedinaccordancewithIFRS.Bioceresdefines(a)AdjustedEBITDAasprofit/(loss)exclusiveoffinancial income/(costs),income tax benefit/(expense),depreciation,amortization,share-based compensation,inventor
73、y purchase allocation and one-timetransactionalexpensesand(b)AdjustedEBITDAMarginasAdjustedEBITDAdividedbytotalrevenue.See“Item5.OperatingandFinancialReviewandProspectsA.OperatingResultsNon-IFRSFinancialMeasures.”6ThetablebelowprovidesareconciliationofourlossfortheperiodstoAdjustedEBITDA:Year Ended
74、June 30,Six-Month Transition Period Ended June 30,2017 Year Ended December 31,2020 2019 2018 2017 2016 2015(US$)Reconciliation of Net Profit(loss)to AdjustedEBITDA:Profit(loss)for the period/year 4,236,628 (16,358,891)(14,311,246)(8,378,549)(6,181,889)(1,194,011)Incometaxexpense(benefit)2,206,710 6,
75、986,284 (10,928,517)(2,817,251)(1,860,647)690,726Financialcost 20,880,526 24,361,733 17,188,653 8,492,135 6,876,095 689,594Otherfinancialresults 11,822,116 17,096,484 23,762,063 1,701,128 1,373,482 (1,379,417)Depreciationofproperty,plantandequipment 2,576,954 2,450,256 2,230,881 1,254,657 584,293 71
76、,277Amortizationofintangibleassets 2,149,534 2,376,920 2,141,476 1,418,529 424,179 2,331Inventorypurchasepriceallocationcharge 2,257,378 2,436,949 7,516,071 Stock-basedcompensationcharges 3,428,029 (102,827)30,005 25,710 43,827 3,285Transactionexpenses(783,296)4,535,247 Adjusted EBITDA(unaudited)46,
77、517,201 41,345,206 22,370,693 4,133,308 8,775,411 (1,116,215)Adjusted EBITDA Margin(unaudited)26.9%25.7%16.8%8.8%21.3%(21.4)%Consolidated Statement of Financial Position of Bioceres Bioceres As of June 30,2020 2019 2018 2017 2016 (US$)Cashandcashequivalents 27,159,421 3,450,873 2,215,103 1,679,478 9
78、82,897Totalassets 297,561,369 242,467,297 196,638,764 239,871,051 250,522,746Borrowings 104,948,345 103,556,730 91,017,133 74,990,135 64,687,486Totalliabilities 236,811,887 180,372,431 163,505,108 162,631,985 166,852,003Sharecapital 3,613 3,613 2,810 2,810 2,810Sharepremium 96,486,865 96,486,865 68,
79、023,449 56,254,519 54,896,7317Bioceres As of June 30,2020 2019 2018 2017 2016 (US$)Totalequity 60,749,482 62,094,866 33,133,656 77,239,066 83,670,743Totalsharesoutstanding 36,115,416 36,120,516 28,098,117 28,098,117 28,098,117B.Capitalization and Indebtedness Notapplicable.C.Reasons for the Offer an
80、d Use of Proceeds Notapplicable.D.Risk Factors ThefollowingriskfactorsapplytothebusinessandoperationsofBioceresCropSolutions.Theoccurrenceofoneormoreoftheeventsorcircumstancesdescribedintheseriskfactors,aloneorincombinationwithothereventsorcircumstances,mayhaveamaterialadverseeffectonthebusiness,cas
81、hflows,financialconditionandresultsofoperationsofBioceresCropSolutions.Youshouldcarefullyconsiderthefollowingriskfactorsinadditiontotheotherinformationincludedinthisreport,includingmattersaddressedinthesectionentitled“CautionaryNoteRegardingForward-LookingStatements.”Wemayfaceadditionalrisksanduncer
82、taintiesthatarenotpresentlyknowntous,orthatwecurrentlydeemimmaterial,whichmayalsoimpairourbusinessorfinancialcondition.Thefollowingdiscussionshouldbereadinconjunctionwiththefinancialstatementsandnotestothefinancialstatementsincludedherein.Risks Related to Our Business We may not be successful in dev
83、eloping marketable or commercial technologies.Oursuccessdependsinpartonourabilitytoidentifyanddevelophigh-valuecropproductivitytechnologiesforuseincommercialproducts.Throughourtechnologysourcingandproductdevelopmentcollaborationswecommitsubstantialeffortsandotherresourcestoaccomplishthis.Itmaytakese
84、veralyears,ifatall,beforemanyofourproductscompletethedevelopmentprocessandbecomeavailableforproductionandcommercialization.Asofthedateofthisreport,manyofourproductshavebeencommercializedbyRizobacterandBioceresSemillas.Therecanbenoassurancethatourfuturecropproductivitytechnologieswillbeviableforcomme
85、rcialuse,orthatwewillbeabletogeneraterevenuesfromthosetechnologies,inasignificantmanneroratall.Ifseedsorotherproductsthatcontainourlicensedseedtraitsortechnologyareunsuccessfulinachievingtheirdesiredeffectorotherwisefailtobecommercialized,wewillnotreceiverevenuesfromourcustomersorroyaltypaymentsfrom
86、thecommercializationofthelicensedseedtraitsandtechnologieswedeveloporlicense,whichcouldmateriallyandadverselyaffectourbusiness,financialcondition,resultsofoperationsandgrowthstrategy.Seedscontainingtheseedtraitsorbiologicaltreatmentsthatwedevelopmaybeunsuccessfulorfailtoachievecommercializationforan
87、yofthefollowingreasons:ourlicensedseedtraitsorbiologicaltreatmentsmaynotbesuccessfullyvalidatedinthetargetcrops;ourlicensedseedtraitsorbiologicaltreatmentsmaynothavethedesiredeffectontherelevantcropsoughtbyourend-market;8weorourjointventuresorcollaboratorsmaybeunabletoobtaintherequisiteregulatoryapp
88、rovalsfortheseedscontainingourlicensedseedtraitsorforourbiologicaltreatments;ourcompetitorsmaylaunchcompetingormoreeffectiveseedtraits,biologicaltreatmentsorgermplasms;amarketmaynotexistforseedscontainingourlicensedseedtraitsorbiologicaltreatmentsorsuchproductsmaynotbecommerciallysuccessful;wemaybeu
89、nabletopatentand/orobtainbreedersrightsoranyotherintellectualpropertyrightsonourtechnologiesinthenecessaryjurisdictions;evenifweobtainpatentand/orbreedersrightsoranyotherintellectualpropertyrightsonourtechnologies,suchrightsmaybelaterchallengedbycompetitorsorotherparties;andevenifweobtainpatentand/o
90、rbreedersrightsoranyotherintellectualpropertyrightsonourtechnologies,competitorsmaydesigncompetingproductsthatdonotinfringetheseintellectualpropertyrights.Our business and the commercialization of our products currently in development are subject to various government regulations and we or our colla
91、borators maybe unable to obtain,or may face delays in obtaining,necessary regulatory approvals.Ourbusinessisgenerallysubjecttotwotypesofregulations:(i)thosethatapplytoouroperationsand(ii)thosethatapplytoproductscontainingorbasedonourtechnology.Weareresponsibleforapplyingforandmaintainingtheregulator
92、yapprovalsnecessaryforouroperations,particularlythosecoveringourfieldtrials,bio-safetyevaluationsandfeedandfoodtests.Underthetermsofourjointventureagreements,weandourjointventurepartnersarejointlyresponsibleforobtainingandmaintainingtheregulatoryapprovalsnecessaryforthecommercializationofproductstha
93、tcontainourlicensedseedtraitsandothertechnologiesinthevariousrelevantmarkets.Regulatoryandlegislativerequirementsaffectthedevelopment,productionandsaleofourproducts,includingthetesting,commercializingandplantingofseedscontainingourbiotechnologylicensedseedtraits.Failuretoreceivesuchapprovalsornon-co
94、mpliancewiththeapplicableregulatoryregimecouldadverselyimpactouroperationsandbusinessstrategy.Additionally,wemayfacedifficultiesinobtainingregulatoryapprovalsinjurisdictionsinwhichwehavenotpreviouslyoperatedorinwhichwehavelimitedexperience.Inmostofourkeytargetmarkets,includingtheUnitedStates,regulat
95、oryapprovalsmustbereceivedpriortotheimportationandcommercializationoftransgenicproducts.Regulatoryregimesinsomeofourkeytargetmarketsmaybemoreonerous.Forexample,inArgentina,theArgentinegovernmentsregulationofagriculturalbiotechnologyishandledprimarilybytwoagencies,theArgentineNationalAdvisoryCommissi
96、ononAgriculturalBiotechnology(ComisinNacionalAsesoradeBiotecnologaAgropecuaria)(“CONABIA”),whichregulatesactivityrelatedtobiosafety,andtheNationalFoodSafetyandQualityService(ServicioNacionaldeSanidadyCalidadAgroalimentaria),orSENASA,whichregulatesactivityrelatedtofoodandfeedsafety.Additionally,theNa
97、tionalMarketRegulator(DireccinNacionaldeMercados)mustconductaneconomicevaluation.Whenproductscontainingourlicensedseedtraitsorothertechnologyreachlarge-scalefieldtrials,bio-safetyevaluationsandcommercialapprovalstages,ifwe,ourjointventuresorothercollaboratorsareunabletoobtaintherequisiteregulatoryap
98、provalsorifthereisadelayinobtainingsuchapprovalsasaresultofnegativemarketperception,heightenedregulatorystandardsorunfamiliaritywiththeapplicableregulatoryregime,suchproductswillnotbecommercialized,whichwouldnegativelyimpactourbusinessandresultsofoperations.Our EcoSeed business is dependent in large
99、 part on the success of a technology that we license and that remains subject to receipt of regulatory approval.MostofourbiotechnologylicensedseedproductscurrentlyunderdevelopmentincorporatesHB4technology(ayieldimprovementtechnology).WeexpectthatthesaleofbiotechseedsthatcontainHB4technology,ourEcoSe
100、edbusiness,willcompriseanincreasinglysignificantportionofourfuturerevenues.Asaresult,ourfuturegrowthandfinancialperformancewilllargelydependonourabilitytoreceiveormaintainregulatoryapprovalforandtocommercializeourlicensedHB4technology,andifthiseffortisunsuccessfulwemaynothavetheresourcestopursuedeve
101、lopmentofourotherproductsandourbusinesscouldbemateriallyandadverselyaffected.WealsodependonourcontinuedexclusiveuseoftheHB4technologypursuanttothetermsoflicensingagreementswithParent,theNationalScientificandTechnicalResearchCouncilofArgentina(ConsejoNacionaldeInvestigacionesCientficasyTcnicas)(“CONI
102、CET”)andtheNationalUniversityoftheLitoral.TheParentholdsanexclusivelicenseforHB4,whichterminatesontheexpirationdateofthelastoftheHB4patentsin2033,unlessterminatedbeforesuchdateinaccordancewithitsterms.Ifthislicensingagreementisdeclaredunenforceableorinvalid,wecouldloseaccesstooneofourprincipaltechno
103、logiesandcouldbecomeinvolvedinacostlyortime-consuminglegaldispute.9The Parent is party to funding agreements pursuant to which certain investors have a right to the majority of the payments we may receive in connection with thecommercialization of our technologies in certain crops.Between2005and2007
104、,theParententeredintoagreementswithvariousinvestorstoobtainfundingintheaggregateamountofUS$1.0millionforresearchandearlystagedevelopmentoftechnologyrelatingtoaspecificsunflowergene,Hahb4,thatisintendedtopromotedroughttoleranceincrops.Thefundingagreementsgranttheinvestors,intheaggregate,therighttorec
105、eive52.8%oftherightsandroyaltiespayabletousfromthesuccessfulcommercializationoftheresultingtechnologywithrespecttosoybean,wheatandcorn.Asofthedatehereof,thepromoterelementofthetechnologydevelopedinconnectionwithourresearchanddevelopmentofHahb4isbeingincorporatedintoaleadingsoybeanproductthatVerdecai
106、sdeveloping,whichalsoincorporatesourHB4technology.Inaddition,thelicensesofParentsHB4technologythatParenthasgrantedtootherdevelopersandourjointventureswithrespecttocertaincropsincludetheHahb4promoterelement.Accordingly,wemayhavetopaythirdpartiesroyaltiesotherwiseduetousintheabsenceoftheseagreementsan
107、dwemaynotreceivethefulleconomicbenefitofthecommercializationofcertainofourtechnologies.Inaddition,theinvestorspartytothesefundingarrangementsmayclaimtobeentitledtopaymentsinadditiontotheroyalties,whichwebelievearewithinthescopeofsuchagreements.Theinvestorsmayalsodisputetheallocationofrevenueasitrela
108、testotherelativeimportanceofourvarioustechnologiesincorporatedintoagivenproduct.Wecannotbecertainhowacourtwouldinterpretanyambiguitiesregardingthescopeofthesefundingagreementsorotherclaimsthatmayberaisedbyoneormoreinvestorspursuanttothesefundingagreements.Anydisputeregardingtheseagreementscouldbecos
109、tlyanddivertmanagementsattentionfromouroperations,andiftheinvestorsaredeemedtohaverightstopaymentsinexcessofthosewebelieveareapplicable,ourbusiness,resultsofoperations,cashflowsandprospectswouldbemateriallyandadverselyaffected.See“Item5.OperatingandFinancialReviewandProspectsF.Tabular Disclosure of
110、Contractual Obligations”and“Item 4.Information on the CompanyB.Business OverviewEarly Stage TechnologyDevelopmentAgreements.”There are a limited number of prospective collaborators in the markets in which we operate.Our Research and Development(“R&D”)and commercialization activities are costly,time-
111、intensive and require significant infrastructure and resources.Therefore,ourbusinessstrategyinvolvesenteringintocollaborationandjointventurearrangementswithglobalagriculturalfirmstoleveragetheirresources,know-howandchannelsofdistributionandintocollaborationswithresearchinstitutionsandgovernmentalage
112、nciestofacilitateourlow-costapproachtoR&D.Thecropproductivitymarketishighlyconsolidatedanddominatedbyarelativelysmallnumberoflargecompanies.Additionally,therearealimitednumberofresearchersandresearchinstitutionsfocusedonthetechnologiesthatweseektodevelopandcompetitionforentryintocollaborationarrange
113、mentswiththemcanbechallenging.Duetothesmallnumberofcompaniesinourmarketsandthesmallnumberofpotentialcollaborators,therearelimitedopportunitiesforustopursueadditionaljointventuresandcollaborationswithnewpartnersandcollaborators.Wemayceasetobeattractivetoprospectivecollaboratorsifourtechnologyplatform
114、ortrackrecordisnotperceivedtobesufficientlydevelopedorsuccessfulorif,inthecaseofprospectivejointventurepartners,suchprospectivepartnersviewusasacompetitorandchoosenottocollaboratewithus.Inaddition,ifwefailtodevelopormaintainourrelationshipswithanyofourexistingcollaborators,wecouldloseouropportunityt
115、oworkwiththatcollaboratorandsufferareputationalriskthatcouldimpactourrelationshipswithothercollaboratorsinwhatisarelativelysmallindustrycommunity.Ifweareunabletoenterintonewjointventureagreementsorcollaborations,wemayfacehigherdevelopmentcoststhananticipated,greaterdifficultiesinachievingcommerciali
116、zation,challengesinexpandingourportfoliooftechnologiesanddistributionnetworksandcommercialproducts,orotheradverseimpacts,whichcouldhaveamaterialadverseeffectonourbusinessprospects.10The licenses that our Parent grants to certain of the joint ventures in which we participate and to certain third part
117、ies are exclusive with respect to certainterritories and/or crops,limiting our ability to use the licensed technology and future technologies either independently or with another partner.ThelicenseourParenthasagreedtogranttoVerdecawouldbeexclusivewithrespecttoHB4soybeantechnologyworldwideand,althoug
118、hwewouldbepermittedtousethistechnology,wewouldbeprohibitedfromsub-licensingittothirdparties.ThelicenseourParentgrantedtoTrigallGeneticsisexclusivewithrespecttoHB4wheattechnologyinArgentina,Brazil,ParaguayandUruguay.Pursuanttothetermsofthelicensesineachoftheabove-mentionedjointventures,wereservetheri
119、ghtstousesuchtechnologiesforresearchandnon-commercialpurposes.WeareprohibitedfromindependentlyusingthetechnologyourParentlicensedtoTrigallGeneticsandVerdecawithrespecttowheatandsoybean,respectively,withintheirexclusivefieldandterritories.Asaresult,weare,toacertainextent,dependentontheeffortsofourjoi
120、ntventuresandlicenseesthatholdorwillholdexclusivelicensestocommercializeourtechnologiesinthosefieldsandterritories.Theselicensesarevalidsolongastherespectivejointventureoperatesandcanberecuperatedbyusuponjointventuredissolution.Therestrictionsimposedbytheselicenseslimitourflexibilitytocommercializeo
121、urtechnologyandexpandourbusiness,bothofwhichcouldadverselyaffectourbusiness,resultsofoperationsandprospects.Our product development cycle is lengthy and uncertain,and we may never generate revenues or earn royalties on the sale of our products currently indevelopment.R&Dinthecropproductivityindustry
122、isexpensive,complex,prolonged,anduncertain.Wemayspendmanyyearsanddedicatesignificantfinancialandotherresourcesdevelopingproductsthatmaynevergeneraterevenuesorcometomarket.Ourprocessofdevelopingandcommercializingtechnologiesinvolvesseveralphasesandcantakeseveralyearsfromdiscoverytocommercializationof
123、aproduct.Onaverage,ittakesbetweenfiveand13yearstodevelopaproductforourcropproductivityproducts.Someproductswillneverreachthefinalstagesofdevelopment.Developmentofneworimprovedagriculturalproductsinvolvesrisksoffailureinherentinthedevelopmentofproductsbasedoninnovativeandcomplextechnologies.Theserisk
124、sincludethepossibilitythat:ourproductswillfailtoperformasexpectedinthefield;ourproductswillnotreceivenecessaryregulatorypermitsandgovernmentalclearancesinthemarketsinwhichweintendtosellthem;ourproductsmayhaveadverseeffectsonconsumers;consumerpreferences,whichareunpredictableandcanvarygreatly,maychan
125、gequickly,makingourproductsnolongerdesirable;ourcompetitorsdevelopnewproductsthathaveothermoreappealingcharacteristicsthanourproducts;ourproductswillbeviewedastooexpensivebyfoodcompaniesorgrowersascomparedtocompetitiveproducts;ourproductswillbedifficulttoproduceonalargescaleorwillnotbeeconomicaltogr
126、ow;intellectualpropertyandotherproprietaryrightsofthirdpartieswillpreventus,ourR&Dpartners,orourlicenseesfrommarketingandsellingourproducts;11wemaybeunabletopatentorotherwiseobtainintellectualpropertyprotectionforourdiscoveriesinthenecessaryjurisdictions;weorthecustomersthatwesellourproductstomaybeu
127、nabletofullydeveloporcommercializeourproductsinatimelymanneroratall;andthirdpartiesmaydevelopsuperiororequivalentproducts.WeintendtocontinuetoinvestinR&Dincludingadditionalandexpandedfieldtestingtovalidatepotentialproductsinrealworldconditions.Becauseofthelongproductdevelopmentcycleandthecomplexitie
128、sanduncertaintiesassociatedwithbiotechtechnologies,therecanbenoassurancethatwewillevergeneratesignificantrevenuesfromthetechnologiesorproductsthatwearecurrentlydevelopingwithoutsignificantdelay,withouttheincurrenceofunanticipatedcostsoratall.We or our collaborators may fail to perform our respective
129、 contractual obligations and we may have disputes with our collaborators.Pursuanttoourjointventureagreements,otheragreementswithourjointventurepartnersandcollaborationarrangements,wearerequiredtoprovideR&Dservicesoveraparticularperiodoftimeandmeetothercontractualobligations.Ifwefailtoperformouroblig
130、ationsundertheseagreements,ourcollaboratorsobligationstousmaybereducedand,inothercases,ourcollaboratorsmayseektodissolvethecorrespondingjointventureorterminatetheiragreementswithusand,asaresult,ouranticipatedrevenuesmaydecrease.Inaddition,thefailureofanyofourcollaboratorstoperformtheircontractualobl
131、igations,duetofinancialhardship,disagreementundertherelevantagreementorforanyotherreason,mayhinderourresearchcollaboration,developmentandcommercializationactivities,increaseourcostsandmateriallyandadverselyaffectourresultsofoperations.Becausesomeofourintellectualpropertyhasbeenlicensedtovariousjoint
132、venturesforuseinseveraldifferentfields,theinterestsofeachofourpartnersinthesejointventuresmaynotalwaysbealigned.Asaresult,itispossiblethatpotentialdisputesmayarisebetweenusandourpartners.Ourabilitytogeneratevaluefromourjointventuresandresearchcollaborationswilldependon,amongotherthings,ourabilitytow
133、orkcooperativelywithourcollaboratorsforthediscovery,developmentandcommercializationofourtechnologyandproductsandwemaybeunabletodoso.Wecannotbesurethatthedivisionoflaborwillbesuccessfulinaidingthecommercializationofourproducts.Furthermore,theagreementsgoverningourpartnershipandcollaborationsarecomple
134、xandcoverarangeoffutureactivities.Theoccurrenceofanynegativeeventwithrespecttotheabovemattersoradisputebetweenusandourpartnersorcollaboratorscoulddelayourdevelopmentandcommercializationefforts,andleadtothedissolutionofthepartnershiporcollaboration.Ifdisagreementswithacollaboratorarise,anysuchdispute
135、couldbecostly,time-consumingtoresolveanddistractingtoourmanagement.Suchadisputemayalsonegativelyaffectourrelationshipwithoneormoreofourothercollaboratorsandmayhinderourabilitytoenterintofuturecollaborationagreements.Anyoftheseoccurrencescouldnegativelyimpactourbusinessandresultsofoperations.Our join
136、t venture agreements or any partnerships that we may enter into in the future may not be successful,which could adversely affect our ability to developand commercialize our product candidates.Wemayseekpartnershipsorjointventurearrangementswiththirdpartiesforthedevelopmentorcommercializationofourprod
137、uctcandidatesdependingonthemeritsofretainingcommercializationrightsforourselvesascomparedtoenteringintopartnershipsorjointventurearrangements.Wewillface,totheextentthatwedecide to enter into partnerships or joint venture agreements,significant competition in seeking appropriate partners.Moreover,par
138、tnerships or joint venturearrangementsarecomplexandtime-consumingtonegotiatedocumentimplementandmaintain.Wemaynotbesuccessfulinoureffortstoestablishandimplementpartnerships,jointventures,orotheralternativearrangementsshouldwesochosetoenterintosucharrangementsandanyfuturepartnershipsorjointventuresth
139、atweenterintomaynotbesuccessful.Furthermore,thetermsofanypartnerships,jointventures,orotherarrangementsthatwemayestablishmaynotbefavorabletous.12The success of our R&D partnerships or joint venture arrangements will depend heavily on the efforts and activities of our partners.Our joint venturearrang
140、ementsmaypresentfinancial,managerial,andoperationalchallenges,includingpotentialdisputes,liabilities,orcontingenciesandmayinvolverisksnototherwisepresentwhenoperatingindependentlyincluding:partnersmayhavebusinessinterests,goalsorculturesthatareorbecomeinconsistentwithourbusinessinterests,goalsorcult
141、ure;partnersmayhavesignificantdiscretionindeterminingtheeffortsandresourcesthattheywillapplytopartnershipsorjointventures;partners may not pursue development and commercialization of our potential products or may elect not to continue or renew development orcommercializationprogramsbasedontrialresul
142、ts,changesintheirstrategicfocusduetotheacquisitionofcompetitiveproducts,availabilityoffundingorotherexternalfactors,suchasbusinesscombinationthatdivertsresourcesorcreatescompetingpriorities;partnersmaydelaytrials,provideinsufficientfundingforatrialprogram,stopatrial,abandonaproductcandidate,repeator
143、conductnewtrialsorrequireanewformulationofaproductcandidatefortesting;partnerscouldindependentlydevelop,ordevelopwiththirdparties,productsthatcompetedirectlyorindirectlywithourproductsorproductcandidates;apartnerwithmarketingmanufacturinganddistributionrightstooneormoreproductsmaynotcommitsufficient
144、resourcestoorotherwisenotperformsatisfactorilyincarryingouttheseactivities;wecouldgrantexclusiverightstoourpartnersthatwouldpreventusfromcollaboratingwithothers;partnersmaynotproperlymaintainordefendourintellectualpropertyrightsormayuseourintellectualpropertyorproprietaryinformationinawaythatgivesri
145、setoactualorthreatenedlitigationthatcouldjeopardizeorinvalidateourintellectualpropertyorproprietaryinformationorexposeustopotentialliability;wemayincurliabilitiesorlossesasaresultofanactiontakenbythejointventureorourjointventurepartners;disputesmayarisebetweenusandapartnerthatcausesthedelayortermina
146、tionoftheresearchdevelopmentorcommercializationofourcurrentorfutureproductsorthatresultsincostlylitigationorarbitrationthatdivertsmanagementattentionandresources;ourjointventurepartnersmayactcontrarytoourinstructions,requests,policiesorobjectives,whichcouldreduceourreturnoninvestment,harmourreputati
147、onorrestrictourabilitytorunourbusiness;partnershipsmaybeterminated,and,ifterminated,mayresultinaneedforadditionalcapitaltopursuefurtherdevelopmentorcommercializationoftheapplicablecurrentorfutureproducts;partnersmayownorco-ownintellectualpropertycoveringourproductsthatresultsfromourpartneringwiththe
148、mandinsuchcases,wewouldnothavetheexclusiverighttodeveloporcommercializesuchintellectualproperty;andapartnerssalesandmarketingactivitiesorotheroperationsmaynotcomplywithapplicablelawsresultingincivilorcriminalproceedings.Therisksdescribedaboveorthefailuretocontinueanyjointventureorjointdevelopmentarr
149、angementortoresolvedisagreementswithourcurrentorfuturejointventurepartnerscouldmateriallyandadverselyaffectourabilitytotransactthebusinessthatisthesubjectofsuchjointventure,whichwouldinturnnegativelyaffectourfinancialconditionandresultsofoperations.13We may experience difficulties in collecting paym
150、ents or royalties to which we believe we are entitled.WesellcertainofourproductstodistributorsthroughRizobacterandBioceresSemillas,ourproprietarycommercialchannelsforcropproductivitytechnologies.Wealsooftenlicensetheuseofcertaintechnologytocollaboratorsandlicenseeswhouseorwillusetheintellectualprope
151、rtytodevelopandcommercializeseedswithimprovedseedtraits.Additionally,wemaybeentitledunderapplicableintellectualpropertylawsinthecountriesinwhichweoperatetothepaymentofroyaltiesfromenduserswhosubsequentlymultiplyanduseourseedtechnology.Ineachcase,wemaynotactuallyreceivethepaymentsorroyaltiestowhichwe
152、areentitled,duetofailureorrefusaloftheresponsiblepartiestopaytheamountsdue.Failuretoreceiveamountsowedtouscouldhaveanadverseimpactonourbusiness.Inthecaseofroyaltypaymentsfromlicensees,werelyonthegoodfaithofthelicenseestoreporttousthesalestheyearnfromtheseproductsandtoaccuratelycalculatetheroyalties,
153、towhichweareentitled,processesthatmayinvolvecomplicatedanddifficultcalculations.Underexistingagreements,wehavetherighttoinspecttheinventoryandaccountsofmultipliersofourseedsandlicenseesofourtechnologies;however,wemustalsorelyonthegoodfaithofenduserstoaccuratelyreporttousthemultiplicationofourseedsan
154、dremitroyaltypaymentsdueinrespectofthesame,whichmayberespectedtovaryingdegreesindifferentjurisdictionsgiventheabsenceofcontractualprivityandprevailingmarketpractice.Additionally,alicensee,collaboratororthirdpartymayuseourintellectualpropertywithoutourpermission,disputeourownershipofcertainintellectu
155、alpropertyrightsorarguethatourintellectualpropertydoesnotcoverthejointventuresmarketedproduct.Weseektoaddresstheseconcernsinourcontractualagreements;however,wemaynothavecontractualarrangementswiththepartyinquestionand/orsuchprovisionsmaynotbeeffective.Iftheseprovisionsprovetobeineffective,wemaynotbe
156、abletoachieveourobjectivesofgeneratingsignificantrevenuesfromcropproductivityproductssalesandroyaltiesfromourseedtechnologies.Furthermore,regardlessofanyresorttolegalaction,adisputewithanend-customer,alicenseeorcollaboratoroverintellectualpropertyrightsmaydamageourrelationshipwiththatlicenseeorcolla
157、boratorandmayalsoharmourreputationintheindustry.We depend on our key personnel and research collaborators and we may be adversely affected if we are unable to attract and retain qualified scientific andbusiness personnel.Our business is dependent on our ability to recruit and maintain highly skilled
158、 and educated individuals through direct employment or collaborationarrangements,withexpertiseinarangeofdisciplines,includingbiology,chemistry,plantgenetics,agronomics,mathematicsprogrammingandothersubjectsrelevanttoourbusiness.Ourabilitytorecruitsuchaworkforcedependsinpartonourabilitytomaintainourm
159、arketleadershipinagriculturalbiotechindustryinArgentinaandLatinAmerica.Maintainingourabilitytoattracthighly-skilledworkersandleadingscientificinstitutionsdependsinpartonourabilitytomaintainastrongtechnologyplatformandstate-of-the-artfacilities,aswellasourabilitytoconsistentlyandsuccessfullycommercia
160、lizeourtechnology.Therecanbenoassurancethatwewillbeabletomaintainleadingscientificcapabilitiesorcontinuetosuccessfullymaintainadvancedtechnologyinthemarket.Oursuccessisalsodependenttoasignificantdegreeuponthetechnicalskillsandcontinuedserviceofcertainmembersofourmanagementteam,inparticularthoseofour
161、CEO,Dr.FedericoTrucco.Dr.TruccohasoccupiedseveralpositionsatBioceressince2005andhasvastexperienceandknowledgeofourbusiness,strategy and technologies.Furthermore,he has developed and maintained strong relationships with our original shareholders.The cessation of Dr.Truccosemploymentforanyreasoncouldh
162、aveamaterialandnegativeimpactonus.Inaddition,thenumberofqualifiedandhighlyeducatedpersonnelinArgentina,wheremostofouroperationsarelocated,islimitedandcompetitionfortheservicesofsuchpersonsmaybeintense.Ourinabilitytosecure,retainorfindreplacementsforkeymanagementandtechnicalpersonnelcouldadverselyaff
163、ectourbusinessandcouldhaveamaterialadverseeffectonourbusiness,operatingresults,financialconditionandgrowthprospects.14We do not enter into non-compete agreements with our employees,and therefore we may be unable to prevent our competitors from benefiting from the expertiseof our former employees.Wed
164、onotenterintonon-competeagreementswithouremployees,whichpreventsusfromlimitingourkeyemployeesfromjoiningourcompetitorsorcompetingdirectlyagainstus.Asaresult,wemaybeunabletopreventourcompetitorsfrombenefitingfromtheexpertiseofsuchemployees.Directcompetitionbyaformeremployeecouldmateriallyadverselyaff
165、ectourbusiness,resultsofoperationsandabilitytocapitalizeonourproprietaryinformation.We may be adversely affected by global economic conditions.Ourabilitytocontinuetodevelopandgrowourbusiness,buildproprietarydistributionchannelsandgeneraterevenuesfromproductsalesandroyaltypaymentsmaybeadverselyaffect
166、edbyglobaleconomicconditionsinthefuture,includinginstabilityincreditmarkets,decliningconsumerandbusinessconfidence,fluctuatingcommoditypricesandinterestrates,volatileexchangeratesandotherchallengesthatcouldaffecttheglobaleconomysuchasthechangingfinancialregulatoryenvironment.Forexample,ourcustomersa
167、ndlicenseesmayexperiencedeteriorationoftheirbusinesses,cashflowshortagesordifficultiesobtainingfinancing,whichcouldadverselyaffectthedemandforourtechnologies,productsandservices.Inaddition,ourearningsmaybeadverselyaffectedbyfluctuationsinthepriceofcertaincommodities,suchasgrains,milk,meat,biofuelsan
168、dbiomaterials.Ifcommoditypricesarenegativelyimpacted,thevalueofourproductscouldbedirectlyandnegativelyimpacted.Additionally,growersincomeshavehistoricallybeennegativelyaffectedbycommodityprices.Asaresult,fluctuationsincommoditypricescouldhaveanimpactongrowerspurchasingdecisionsandnegativelyaffectthe
169、irabilityanddecisionstopurchaseourseedsorproductsthatincorporateourproprietarytechnology.Wecannotanticipateallofthewaysinwhichthecurrenteconomicclimateandfinancialmarketconditionscouldadverselyimpactourbusiness.We may acquire businesses or products,or form strategic alliances,in the future,and we ma
170、y not realize the benefits of such acquisitions.Weplantoselectivelypartner,in-licenseoracquiredkeyenablingtechnologiesandbusinessesacrossourvaluechainthatwebelievewillkeepusonthecuttingedgeofourindustry.Wemaynotbeabletoidentifyappropriatetargetsormakeacquisitionsundersatisfactoryconditions,inparticu
171、lar,satisfactorypriceconditions.Inaddition,wemaybeunabletoobtainthefinancingfortheseacquisitionsunderotherpurposesinthecontextofexistingoperations.Ifweacquirebusinesseswithpromisingmarketsortechnologies,wemaynotbeabletorealizethebenefitofacquiringsuchbusinessesifweareunabletosuccessfullyintegratethe
172、mwithourexistingoperationsandcompanyculture.Wemayencounternumerousdifficultiesindevelopingmanufacturingandmarketinganynewproductsresultingfromastrategicallianceoracquisitionthatdelayorpreventusfromrealizingtheirexpectedbenefitsorenhancingourbusiness.Wecannotassureyouthat,followinganysuchacquisition,
173、wewillachievetheexpectedsynergiestojustifythetransaction,whichcouldhaveamaterialadverseeffectonourbusiness,financialconditions,earningsandprospects.The effects of COVID-19 and certain measures adopted by the Argentine government to mitigate the effects of the pandemic are negatively affecting us,and
174、 wecannot accurately predict its ultimate impact on our results and operations.InDecember2019,anewdiseasewasdiscoveredfromthecoronavirusstrain(SARS-COV-2)inthecityofWuhaninChina,whichcausesasevereacuterespiratorysyndrome,andwhichwasgloballygiventhenameCOVID-19.Sincethen,COVID-19hasspreadthroughoutth
175、eworld,includingArgentina.OnMarch11,2020,theWorldHealthOrganizationdeclaredtheexistenceofaglobalpandemic.Inresponsetotheeffectsofthepandemic,severalcountrieshavetakenextraordinarymeasurestocontainthespreadofthevirus,includingimposingrestrictionsontravelandclosingborders,closingbusinessesdeemednon-es
176、sential,instructingresidentstopracticeisolationand/orsocialdistancing,mandatoryquarantines,andsimilaractions.Theongoingpandemicandtheseextraordinarygovernmentmeasuresareaffectingglobaleconomicactivity.15TheArgentinegovernmenthastakenmultiplemeasuresinresponsetothespreadofCOVID-19inArgentina,includin
177、gamandatorynationwidepreventativesocialisolationthatbeganonMarch19,2020andhasbeenextendedseveraltimes.TheArgentinegovernmentalsorequiredthemandatoryclosureofnon-essentialbusinesses.ThesocialisolationwasextendeduntilOctober25,2020,butinsomejurisdictionsthelocalgovernmentshavebeguntorelaxtherestrictio
178、nsandexpandthenumberofauthorizedactivities.InordertomitigatetheeconomicimpactofCOVID-19andofthemandatoryclosureofnon-essentialbusinesses,theArgentinegovernmenthasadoptedsocial,monetary,andfiscalaidmeasures,includingfinancialaidforthepaymentofsalariestoworkersaffectedbythemandatoryisolation;socialsec
179、uritycontributionexemptionsforsectorscriticallyaffectedbyCOVID-19;settingmaximumpricesforessentialproducts;andpaymentofastimulusincometovulnerablefamiliesfromMarchtoAugust2020.Similarly,theCentralBankoftheArgentineRepublic(the“ArgentineCentralBank”)tookaseriesofmeasuresinordertomitigatetheimpactonth
180、eeconomy,includingincentivesfortheextensionofworkingcapitalcreditlinesbyfinancialinstitutionstosmallandmediumenterprises.ThesemeasureshavenotpreventedaneconomicrecessioninArgentina,whichcouldbeextendedordeepened,particularlyifcurrentconditionsextendovertimeandifArgentinasmaintrading partners are sim
181、ultaneously facing an economic recession.Additionally,to the extent that the Argentine government had limited resources to supportArgentinaseconomysincethepandemichashitArgentinaatatimewhenitwasalreadystrugglingtoemergefromarecessionandforeignexchangecrisis,allsuchfinancialaidextendedbytheArgentineg
182、overnmenthasbeenfinancedthroughexpansionofthemonetarybase,whichhasresultedinadditionalinflationanddevaluationoftheArgentinepeso.Inadditiontothestay-at-homeordersandclosureofbusinessandpremisesconsiderernon-essential,someothermeasuresadoptedbytheArgentinegovernmentcouldnegativelyaffectthedemandforour
183、products,includingtheprohibitiononlayoffswithoutcauseandemployeesuspensions,andthepricefixing,amongothers.Ouroperations,whichinvolveagriculturalproductionandcommercializationactivities,havebeenexemptedfromtheorder.Nonetheless,wecannotpredictwhetherouroperationswillcontinuetobeexempted.Whileitisnotpo
184、ssibletopredictthefutureimpactofCOVID-19andtheeffectthemeasuresadoptedbytheArgentinegovernmentontheArgentineeconomy,COVID-19hasalreadysignificantlyaffectedArgentineandglobaleconomicconditionsandislikelytocontinuetodosofortheremainderof2020andbeyond.BothCOVID-19andtheArgentinegovernmentsresponsemayaf
185、fectourfinancialpositionandresultsofoperations.WeareconstantlymonitoringtheimpactofCOVID-19onus.TheultimateimpactofCOVID-19onourbusiness,resultsofoperations,andfinancialpositionremainshighlyuncertainandwilldependonfutureeventsbeyondourcontrol,includingtheintensityanddurationofCOVID-19,thepossibility
186、thatavaccinewillbeavailableinthemediumterm,andgovernmentmeasurestakentocontainthevirusormitigatetheeconomicimpact.Our crop productivity business is highly seasonal and affected by factors beyond our control,which may cause our sales and operating results to fluctuatesignificantly.Thesaleofourproduct
187、sisdependentuponplantingandgrowingseasons,whichvaryfromyeartoyear,andareexpectedtoresultinbothhighlyseasonalpatternsandsubstantialfluctuationsinquarterlysalesandprofitability.Weatherconditionsandnaturaldisasters,suchasheavyrains,hail,floods,freezingconditions,windstorms,droughtorfire,alsoaffectdecis
188、ionsbyourdistributors,directcustomersandendusersaboutthetypesandamountsofproductstouseandthetimingofharvestingandplanting.AccordingtotheBuenosAiresGrainExchange,theaveragenationalyieldsofsoybeanandcornasofApril18,2018hadregistereddecreasesasaresultofthedrought.FromDecember2017toMarch2018,Argentinaex
189、periencedasignificantdrought,whichimpactedcropyields.During2020,Argentinaissufferingoneoftheworstdroughtsofthelastcentury.Asaresult,fireshaveaffectedmorethan120.000hectaresin11provinceswhichincludesomeofthemostproductivecentralandnorthernregionsofArgentina.16Asweincreaseoursalesinourcurrentmarketsan
190、dexpandintonewmarketsindifferentgeographies,itispossiblethatwemayexperiencedifferentseasonalitypatternsinourbusiness.Disruptionsmayleadtodelaysinharvestingorplantingbygrowerswhichcanresultinpushingorderstoafuturequarter,whichcouldnegativelyaffectresultsforthequarterinquestionandcausefluctuationsinou
191、roperatingresults.SeasonalvariationsmaybeespeciallypronouncedbecauseourproductlinesaremainlysoldintheSouthernHemisphere.Ourseeds,biologicalsandothercropinputproductssalestendtobecomparativelylowduringthethirdandfourthquartersofourfiscalyear,assoybeanrelatedsalespeakinthesecondquarter.However,plantin
192、gandgrowingseasons,climaticconditionsandothervariablesonwhichsalesofourproductsaredependentvaryfromyeartoyearandquartertoquarter.Asaresult,wemayexperiencesubstantialfluctuationsinquarterlyseedsales.The overall level of seasonality in our business is difficult to evaluate as a result of our relativel
193、y early stage of development,our limited number ofcommercializedproducts,ourexpansionintonewgeographicalterritories,theintroductionofnewproductsandthetimingofintroductionsofnewproducts.Itispossible that our business may be more seasonal or experience seasonality in different periods than anticipated
194、.Other factors may also contribute to theunpredictabilityofouroperatingresults,includingthesizeandtimingofsignificantdistributortransactions,thedelayordeferralofuseofourcommercialtechnologyorproductsandthefiscalorquarterlybudgetcyclesofourdirectcustomers,distributors,licenseesandendusers.Customersma
195、ypurchaselargequantitiesofourproductsinaparticularquartertostoreanduseoverlongperiodsoftimeortimetheirpurchasestomanagetheirinventories,whichmaycausesignificantfluctuationsinouroperatingresultsforaparticularquarteroryear.Our results of operations from our crop productivity products may vary signific
196、antly from period to period due to circumstances beyond our control.Thecropproductivitymarketisaffectedbyvariousfactorsthatmaketheiroperationsrelativelyunpredictablefromperiodtoperiod.Thedevelopmentofourproductsmaybeadverselyaffectedbycircumstancesbeyondourcontrol.Forourcropproductivityproducts,fact
197、orsbeyondourcontrolincludeweatherandclimaticvariations,suchasdroughtsorheatstress,orotherfactorsweareunabletoidentify.Forexample,iftherewereaprolongedorpermanentdisruptiontotheelectricity,climatecontrolorwatersupplyoperatingsystemsinourgreenhousesorlaboratories,theplantsonwhichwearetestingourlicense
198、dseedtraitsandthesampleswestoreinfreezers,bothofwhichareessentialtoourdevelopmentactivities,wouldbeseverelydamagedordestroyed,adverselyaffectingourdevelopmentactivitiesandtherebyourbusinessandresultsofoperations.Wehaveexperiencedcropfailuresinthepastforvariousreasons,whichhaveresultedinre-startfield
199、trialsanddelaysinachievingexpectedresults.Thecropproductivitymarketisalsovulnerabletocropdiseaseandtopests,whichmayvaryinseverityandeffect,dependingonthestageofproductionatthetimeofinfectionorinfestation,thetypeoftreatmentapplied,climaticconditionsandtherisksassociatedwithongoingglobalclimatechange.
200、Thecoststocontroldiseaseandotherinfestationsvarydependingontheseverityofthedamageandtheextentoftheplantingsaffected.Moreover,therecanbenoassurancethatavailabletechnologiestocontrolsuchinfestationswillcontinuetobeeffective.Theseinfestationscanalsoincreasecosts,decreaserevenuesandleadtoadditionalcharg
201、estoearnings,whichmayhaveamaterialadverseeffectonourbusiness,financialpositionandresultsofoperations.Anydevelopmentorproductfailurewemayexperienceoranyinabilitytoeconomicallysourcenecessarymaterialscouldresultinincreasedcostofdevelopmentofourcropproductivityproducts,whichmaynegativelyimpactourbusine
202、ssandresultsofoperations.17 Certain estimates of market opportunity included in this report are based on assumptions that are inherently uncertain and subject to risks and uncertainties thatcould have a material adverse effect on our business,operating results,and financial condition.Theinformationr
203、egardingmarketopportunityforEcoSoyandEcoWheathasbeenpreparedbymanagementandourassumptionsunderlyingourstatementsaboutthesemarketopportunitiesareinherentlyuncertainandaresubjecttosignificantbusiness,economic,regulatoryandcompetitiverisksandotheruncertaintiesthatcouldcauseactualresultstodiffermaterial
204、lyfromthosesetforthinthemarketopportunity.Noindependentthirdpartyhascompiled,examined,orperformedanyprocedureswithrespecttoourpotentialmarketopportunitiesrelatedtoEcoSoyand/orEcoWheat,norhasanythirdpartyexpressedanyopinionoranyotherformofassuranceontheinformationoritsachievabilitybyus,andnoindepende
205、ntthirdpartyhasassumedresponsibilityfor,orclaimedanyassociationwith,theinformationwehaveincludedhereinregardingsuchpotentialmarketopportunities.TheinformationregardingmarketopportunitiesforEcoSoyandEcoWheatisnotfactandshouldnotberelieduponasbeingindicativeoffutureresults.Forexample,weextrapolatedfro
206、mpubliclyavailabledataforthepasttenyearstoestimatesoyandwheatproductionareainordertointurnestimatethesizeofEcoSoyandEcoWheat-relatedmarketopportunities.Changesineconomic,climate,regulatoryandotherfactorscouldsignificantlyreducethetargetareaandourmarketopportunity.Wealsomadeassumptionsregardingthenum
207、berofbagsofsoybeansandwheatseedsneededtoplantonehectareaswellasotherinformation,whichineachcasemayprovetobemateriallyincorrect.Furthermore,wemaynotbeabletotakeadvantageofthesemarketopportunitieseveniftheyareavailable.Ourfailuretotakeadvantageofmarketopportunitiesortocorrectlysizeourmarketopportunity
208、couldhaveamaterialadverseeffectonourabilitytotakeadvantageofourinvestmentsinEcoSoyandEcoWheat,andthereforeonourbusiness,operatingresultsandfinancialcondition.Consumer and government resistance to GM crops may negatively affect our public image and reduce sales of seeds or other products containing o
209、ur licensedseed traits.Weareactiveinthefieldofbiotechdevelopmentofseeds,includingGMseedsandthesuccessfulcommercializationofourproductsdepends,inpart,onpublicacceptanceofgeneticallyengineeredagriculturalproducts.SomeconsumersmayrejectfoodsmadefromGMseedsandproductionofcertainGMcropsisprohibitedincert
210、aincountriesduetofoodsafetyandenvironmentalconcerns.AnyincreaseinnegativeperceptionsofGMcrops,ormorerestrictivegovernmentregulationsinresponsethereto,couldhaveanegativeeffectonourbusinessandmaydelayorimpairthedevelopmentandcommercializationofourproducts.Thecommercialsuccessofourproductsmaybeadversel
211、yaffectedbyclaimsthatbiotechnologyplantproductsareunsafeforconsumptionoruse,poserisksofdamagetotheenvironment,orcreatelegal,socialandethicaldilemmas.Thehighpublicprofileofbiotechnologyinfoodproductionandfoodproductsandpublicattitudesaboutthesafetyandenvironmentalhazardsof,andethicalconcernsover,gene
212、ticresearchandbiotechnologyplantproductscouldnegativelyaffectourpublicimageandresultsofoperations.TheprohibitionoftheproductionofcertainGMcropsinselectcountriesandthecurrentresistancefromconsumergroupstoGMcropsnotonlylimitsouraccesstosuchmarketsbutalsohasthepotentialofspreadingtoandinfluencingtheacc
213、eptanceofproductsdevelopedthroughbiotechnologyinotherregionsoftheworldandmayalsoinfluenceregulatorsinothercountriestolimitorbanproductionofGMcrops,whichcouldlimitthecommercialopportunitiestoexploitbiotechnology.Forexample,intheUnitedStates,noproductmaybelabelledas“organic”ifitcontainsanygeneticallym
214、odifiedorganisms(“GMO”).Additionally,somestatesintheUnitedStatesareconsidering,andonestatehaspassedalawrelatingto,mandatorylabellingofGMOfoods,whichmaycarryanegativeconnotationforconsumersandwhichcouldmakeitdifficultandexpensiveforcompaniestouseingredientsfromGMcropsanddistributeproductsincompliance
215、withthelabellingrequirements,eachofwhichcouldinturnhaveanadverseimpactonthesaleofourlicensedGMseeds.InArgentina,aclassactionsuithasbeeninitiatedagainstthenational government and certain biotechnology companies,including the Parent,requesting,among other changes,the mandatory labelling of GM foods an
216、denvironmentalprotectionoflanduse.Asofthedateofthisreport,theplaintiffsrequestforaninjunctionagainstGMOapprovalswasrejectedbytheFederalCourtofAppealsandanextraordinaryappealattheArgentineSupremeCourtwasfiled,thepracticablechancesofsuccessofwhicharelow.18GMcropsaregrownprincipallyintheUnitedStates,Br
217、azilandArgentina,wheretherearefewerrestrictionsontheproductionofGMcrops.IftheseorothercountrieswhereGMcropsaregrownorwhereweengageinbusinessactivitiesenactlawsorregulationsthatbantheproductionofsuchcropsormakeregulationsmore stringent,we could experience a longer product development cycle for our pr
218、oducts and may be forced to abandon projects related to certain crops orgeographies,bothofwhichwouldnegativelyaffectourbusinessandresultsofoperations.Publicattitudestowardsownershipofgeneticmaterialandpotentialchangestolawsregulatingsuchownershipcouldweakenourintellectualpropertyrightswithrespecttoo
219、urgeneticmaterialanddiscourageR&Dpartnersfromsupporting,developingorcommercializingourproductsandtechnologies.Furthermore,anyfuturelabelingrequirementscouldheightentheseconcernsandmakeconsumerslesslikelytopurchasefoodproductscontaininggene-editedingredients.Competition in crop productivity products
220、is intense and requires continuous technological development.Wecurrentlyfacesignificantdirectandindirectcompetitioninthemarketsinwhichweoperate.Themarketsforcropproductivityproductsareintenselycompetitiveandrapidlychanging.Manycompaniesengageinthedevelopmentofcropproductivityproducts,andspeedincomme
221、rcializinganewproductcanbeasignificantcompetitiveadvantage.Asanexample,someofourcompetitorsengageinresearchassociatedwithdiscoveryandthereforehaveR&DbudgetsallocatedforcropproductivityproductsthataremoresignificantthanourownR&Dbudgetandthatcovermoreactivitiesthanthoseinwhichweengage.Inaddition,forme
222、rcollaborators,byvirtueofhavinghadaccesstoourproprietarytechnology,mayutilizethisinsightfortheirowndevelopmentefforts.Inmostsegmentsofthecropproductivitymarkets,thenumberofproductsavailabletoend-customersissteadilyincreasingasnewproductsareintroduced.Wemaybeunabletocompetesuccessfullyagainstourcurre
223、ntandfuturecompetitors,whichmayresultinpricereductions,reducedmarginsandtheinabilitytoachievemarket acceptance for products containing our licensed seed traits and technology.In addition,many of our competitors have substantially greater financial,marketing,sales,distributionandtechnicalresourcestha
224、nusandsomeofourcompetitorshavemoreexperienceinR&D,regulatorymatters,manufacturingandmarketing.Weanticipateincreasedcompetitioninthefutureasnewcompaniesenterthemarketandnewtechnologiesbecomeavailable.Programstoimprovegeneticsandcropprotectionchemicalsaregenerallyconcentratedwithinarelativelysmallnumb
225、eroflargecompanies,whilenon-geneticapproachesareunderwaywithbroadersetofcompanies.Mergersandacquisitionsintheplantscience,specialtyfoodingredientandagriculturalbiotechnologyseedandchemicalindustriesmayresultinevenmoreresourcesbeingconcentratedamongasmallernumberofourcompetitors.OurParentstechnologym
226、ayberenderedobsoleteoruneconomicalbytechnologicaladvancesorentirelydifferentapproachesdevelopedbyoneormoreofourcompetitors,whichwillpreventorlimitourabilitytogeneraterevenuesfromthecommercializationofourlicensedseedtraitsandtechnology.Atthesametime,theexpirationofpatentscoveringexistingproductsreduc
227、esthebarrierstoentryforcompetitors.Ourabilitytocompeteeffectivelyandtoachievecommercialsuccessdepends,inpart,onourabilitytocontrolmanufacturingandmarketingcosts;effectivelypriceandmarketourproducts,successfullydevelopaneffectivemarketingprogramandanefficientsupplychain,developnewproductswithproperti
228、esattractivetofoodmanufacturersorgrowersandcommercializeourproductsquicklywithoutincurringmajorregulatorycosts.Wemaynotbesuccessfulinachievingthesefactorsandanysuchfailuremayadverselyaffectourbusiness,resultsofoperationsandfinancialcondition.Weregisterandmarketsoybeanvarietieswithglyphosatetolerance
229、technology,meaningthosethathavebeengeneticallymodifiedtotolerateherbicidesbasedonglyphosate.19Changes in laws and regulations to which we are subject,or to which we may become subject in the future,may materially increase our costs of operation,decrease our operating revenues and disrupt our busines
230、s.Lawsandregulatorystandardsandproceduresthatimpactourbusinessarecontinuouslychanging.Respondingtothesechangesandmeetingexistingandnewrequirementsmaybecostlyandburdensome.Changesinlawsandregulationsmayoccurthatcould:impairoreliminateourabilitytosourcetechnologyanddevelopourproducts,includingvalidati
231、ngourproductsthroughfieldtrialsandpassingbiosafetyevaluations;increaseourcomplianceandothercostsofdoingbusinessthroughincreasesinthecosttoprotectourownedandlicensedintellectualproperty,includingknow-how,tradesecretsandregulatorydata,orincreasesinthecosttoobtainthenecessaryregulatoryapprovalstocommer
232、cializeandmarkettheproductswedevelopdirectlyorjointly;requiresignificantproductredesignorredevelopment;renderourlicensedseedtraitsandtechnologyandproductsthatincorporatethemlessprofitableorlessattractivecomparedtocompetingproducts;reducetheamountofrevenuesgeneratedfromlicensesorotherroyalties;restri
233、ctorincreasethecostsofmakingpaymentsanddistributions;increaseourexportandimportdutiesandcostsorintensifycontrolsandrestrictionsonourimports;anddiscourageusandothercollaboratorsfromoffering,andend-marketsfrompurchasing,productsthatincorporateourlicensedseedtraitsandtechnology.Any of these events coul
234、d have a material adverse effect on our business,results of operations and financial condition.We believe we currently are incompliancewithregulationsrelatedtogrowingGMcropsinArgentinaandothercountries;however,iftheseregulationschange,ourvalidationtrialsandcomplianceeffortsmaybecomecostlyandburdenso
235、me.AnychangesinregulationincountrieswhereGMcropsaregrownorexportedintocouldresultinourcollaborators,otherthirdpartiesorusbeingunableorunwillingtodevelop,commercializeorsellproductsthatincorporateourlicensedseedtraitsortechnology.Inaddition,werelyonvariousformsofintellectualpropertyprotection.Legisla
236、tionandjurisprudenceonintellectualpropertyinthekeymarketswhereweseekprotection,suchastheUnitedStates,BrazilandArgentina,isevolvingandchangesinlawscouldaffectourabilitytoobtainormaintainintellectualpropertyprotectionforourproducts.Anychangestotheseexistinglawsandregulationsmaymateriallyincreaseourcos
237、ts,decreaseourrevenuesanddisruptourbusiness.Our indebtedness could adversely affect our financial condition.AsofJune30,2020,ourtotalindebtednesswasUS$92.0million,ofwhichUS$63.7maturesinthefiscalyearendingJune30,2021.Wemayincuradditionalindebtednessinthefuture.OursubsidiaryRizobacterhasanoteprogramin
238、placeunderwhichitmayissuecorporatebondsinanaggregateprincipalamountofuptoUS$40million.Weareintheprocessofseekingapprovalforanincreaseoftheprogramamount.Ourindebtednesscouldhaveimportantadverseconsequences,including:limitingourabilitytoobtainadditionalfinancingtofundfutureworkingcapital,capitalexpend
239、itures,acquisitionsorothergeneralcorporaterequirements;20requiringasubstantialportionofourcashflowstobededicatedtodebtservicepaymentsinsteadofotherpurposes,therebyreducingtheamountofcashflowsavailableforworkingcapital,capitalexpenditures,acquisitionsandothergeneralcorporatepurposes;increasingourvuln
240、erabilitytogeneraladverseeconomicandindustryconditions;limitingourflexibilityinplanningforandreactingtochangesintheindustryinwhichwecompete;placingusatadisadvantagecomparedtoother,lessleveragedcompetitors;andincreasingthecostofborrowing.Theoccurrenceofanyoftheabovemaynegativelyimpactourbusinessandre
241、sultsofoperations.AsofJune30,2020,duetothemacroeconomicconditionsinArgentina,RizobacterfailedtocomplywithratiosundertheSyndicatedLoanFacilityandthePrivateCorporateBonds,butonJune30,2020weobtainedawaiverforthefiscalyearendedonsuchdatefromthemajoritylenders.Ifanyofourindebtednessgetsacceleratedasaresu
242、ltofourfailuretomeetcertaincovenants,therisksdescribedabovecouldintensify.See“Item5.OperatingandFinancialReviewandProspectsB.LiquidityandCapitalResourcesIndebtedness”.Inaddition,ourArgentinesubsidiariesaretemporarilysubjecttocertainrestrictionsonpaymentsofforeignindebtednessthroughtheArgentineExchan
243、geCurrencyMarket(MercadonicoyLibredeCambio)(“MULC”).Therefore,ourArgentinesubsidiariesmaybeimpededfrommakingpaymentsunderforeignindebtednessorthecostsofperformingsuchpaymentscouldbesubstantiallyhigher,allofwhichcouldhaveanadverseeffectonourbusinessandresultsofoperations.See“ArgentinaArgentine exchan
244、ge controls and restrictions have been reinstated in Argentina limiting access to MULC to make payments anddistributionsfromourArgentinesubsidiariesandreceivetheproceedsofanysaleofourassetsinArgentina.”Price increases and shortages of raw materials could adversely affect our results of operations.Ou
245、rresultsofoperationsmaybeaffectedbytheavailabilityandpricingofrawmaterials,principallymaterialsneededtodesignourtechnologies,suchasrawglycerin.Factorssuchaschangesintheglobalorregionallevelsofsupplyanddemand,weatherconditions,seasonalfluctuations,shortagesorinterruptions,changesinglobalclimatesandgo
246、vernmentregulationscouldsubstantiallyimpactthepriceofrawmaterials.Totheextentweareunabletopassonincreasesinrawmaterialsandenergypricestoourcustomers,asubstantialincreaseinrawmaterialpricesoracontinuedinterruptioninsupplycouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofopera
247、tions.The overall agricultural industry is susceptible to commodity price changes and we,along with our food manufacturing customers and grower customers,areexposed to market risks from changes in commodity prices.Changesinthepricesofcertaincommodityproductscouldresultinhigheroverallcostalongtheagri
248、culturalsupplychain,whichmaynegativelyaffectourabilitytocommercializeourproducts.Wewillbesusceptibletochangesincostsintheagriculturalindustryasaresultoffactorsbeyondourcontrol,suchasgeneraleconomicconditions,seasonalfluctuations,weatherconditions,demand,foodsafetyconcerns,productrecallsandgovernment
249、regulations.Asaresult,wemaynotbeabletoanticipateorreacttochangingcostsbyadjustingourpractices,whichcouldcauseouroperatingresultstodeteriorate.We may be required to pay substantial damages as a result of product liability claims for which we do not have insurance.Product liability claims are a commer
250、cial risk for our business,particularly as we are involved in the sale of commercial technology and the supply ofbiotechnologicalproducts,someofwhichmaybeshowninthefuturetobeharmfultohumansandtheenvironment.Wemaybeheldliableifanyproductwedevelop,unsuitableduringmarketing,saleorconsumption.Wedonotcur
251、rentlyhaveinsurancecoverageforsuchclaims.CourtshaveleviedsubstantialdamagesintheUnitedStatesandelsewhereagainstanumberofcompaniesintheagricultureindustryinpastyearsbaseduponclaimsforinjuriesallegedlycausedbytheuseoftheirproducts.21Inaddition,wemayfaceproductliabilityandsimilarclaimsinvolvingcross-po
252、llinationofcrops,whichrecentlyhasaffectedothercompaniesinourindustryoperatingintheUnitedStates,andcross-contaminationofGMOandnon-GMOingredients.InArgentina,therearenoprecedentsforproductliabilitycasesintheagriculturalindustryrelatedtotransgenicorbiotechnologyproducts;however,therehasbeenatleastonepr
253、oductliabilitycaserelatedtotheuseofpesticides.ThereisapossibilitythataproductsliabilitycasecouldbefiledagainstusinArgentina,inwhichcasedamagesmaybesubstantialalbeitpotentiallysmallerthanthosetypicallyawardedintheUnitedStates.Productliabilityclaimsagainstus,ourjointventuresorthird-partylicenseesselli
254、ngproductsthatcontainourlicensedseedtraitsortechnologyorallegationsofproductliabilityrelatingtoseedsorotherproductscontainingseedtraitsortechnologydevelopedbyuscoulddamageourreputation,harmourrelationshipswithourcollaboratorsandotherbusinesscounterpartiesandmateriallyandadverselyaffectourbusiness,re
255、sultsofoperations,financialconditionandprospects.Our operations are subject to various health and environmental risks associated with our use,handling and disposal of potentially toxic materials.Wearesubjecttonumerousfederal,state,localandforeignenvironmental,healthandsafetylawsandregulations,includ
256、ingthosegoverninglaboratoryprocedures,thehandling,use,storage,treatment,manufactureanddisposalofhazardousmaterialsandwastes,dischargeofpollutantsintotheenvironmentandhumanhealthandsafetymatters.Aspartofourtechnologysourcingandproductdevelopmentactivities,wedevelopGMOsbyinsertingnewgenesintothegenome
257、sofcertainplantsandbacteria.Thoughweintroducethesegenesinordertoimproveplanttraits,wecannotalwayspredicttheeffectthatthesegenesmayhaveontheorganism.Insomecases,thegenesmayrendertheorganismpoisonousortoxic,ortheymaycausetheorganismtodevelopotherdangerouscharacteristicsthatcouldharmtheorganismssurroun
258、dingenvironment.Furthermore,thereisariskthat,whentestingGMOs,theseedsorstrainsoftheseorganismsmayescapethelaboratory,greenhouse,industrialfacilityorfieldinwhichtheyarebeingtestedandcontaminatenearbyareas.Poisonousortoxicorganismsmaythereforebeinadvertentlyintroducedintotheenvironmentorpossiblyentert
259、hefoodproductionsystem,harmingthepeopleandanimalswhocomeincontactwiththem.Ourcropprotectionproducts,whichincludeRizoderma,adjutants,therapies,herbicides,fungicidesandinsecticides,amongothers,bearsimilarrisksinthedevelopmentstage.Wecannoteliminatetheriskofcontaminationordischargeandanyresultantinjury
260、fromthesematerials.Iftheserisksweretomaterialize,wecouldbesubjecttofines,liability,reputationalharmorotherwiseadverseeffectsonourbusiness.Wemaybesuedforanyinjuryorcontaminationthatresultsfromouruseortheusebythirdpartiesofthesematerials,ormayotherwiseberequiredtoremedythecontamination,andourliability
261、mayexceedanyinsurancecoverageandourtotalassets.Furthermore,compliancewithenvironmental,healthandsafetylawsandregulationsmaybeexpensiveandmayimpairourR&Defforts.Ifwefailtocomplywiththeserequirements,wecouldincursubstantialcostsandliabilities,includingcivilorcriminalfinesandpenalties,clean-upcostsorca
262、pitalexpendituresforcontrolequipmentoroperationalchangesnecessarytoachieveandmaintaincomplianceInaddition,wecannotpredicttheimpactonourbusinessofneworamendedenvironmental,healthandsafetylawsorregulationsoranychangesinthewayexistingandfuturelawsandregulationsareinterpretedandenforced.Thesecurrentorfu
263、turelawsandregulationsmayimpairourresearch,developmentorproductionefforts.The requirements of being a public company may strain our resources and distract our management,which could make it difficult to manage our business.Wearerequiredtocomplywithvariousregulatoryandreportingrequirements,includingt
264、hoserequiredbytheSEC.Complyingwiththesereportingandregulatoryrequirementswillbetimeconsuming,resultinginincreasedcoststousorotheradverseconsequences.22Asapubliccompany,wearesubjecttothereportingrequirementsoftheExchangeActandtherequirementsoftheSarbanes-OxleyAct.Theserequirementsmayplaceastrainonour
265、systemsandresources.TheExchangeActrequiresthatwefileannualandcurrentreportswithrespecttoourbusinessandfinancialcondition.TheSarbanes-OxleyActrequiresthatwemaintaineffectivedisclosurecontrolsandproceduresandinternalcontrolsoverfinancialreporting.Tomaintainandimprovetheeffectivenessofourdisclosurecont
266、rolsandprocedures,wewillneedtocommitsignificantresources,hireadditionalstaffandprovideadditionalmanagementoversight.Weexpecttoimplementadditionalproceduresandprocessesforthepurposeofaddressingtheapplicablestandardsandrequirementsforpubliccompanies.Theseactivitiesmaydivertmanagementsattentionfromothe
267、rbusinessconcerns,whichcouldhaveamaterialadverseeffectonourbusiness,financialcondition,resultsofoperationsandcashflows.Asan“emerginggrowthcompany,”asdefinedintheJOBSAct,wemaytakeadvantageofcertaintemporaryexemptionsfromvariousreportingrequirementsincluding,butnotlimitedto,anexemptionfromcompliancewi
268、ththeauditorattestationrequirementsofSection404oftheSarbanes-OxleyActandtherulesandregulationsoftheSECthereunder.TheseexemptionswillceasetoapplybynolaterthanthelastdayofourfiscalyearfollowingthefifthanniversaryofthecompletionofUnionsinitialpublicoffering(the“IPO”)(orundercertainothercircumstances)an
269、dweexpecttoincuradditionalexpensesanddevoteincreasedmanagementefforttowardensuringcompliancewiththeadditionalreportingrequirementsthatwillapplywhenweceasetobean“emerginggrowthcompany.”Wecannotpredictorestimatetheamountofadditionalcostswemayincurasaresultofbecomingapubliccompanyorthetimingofsuchcosts
270、We may require additional financing in the future and may not be able to obtain such financing on favorable terms,if at all,which could force us to delay,reduceor terminate some of our activities.Theprocessofdevelopingandcommercializingproductsisexpensive,lengthyandriskyandweexpecttocontinueinvestin
271、ginourR&Dservicestoidentifynewpotentialproductsfordevelopment.Wemayrequireadditionalcapitaltofundourtechnologysourcingandproductdevelopmentprojectsandtoprovideworkingcapitaltofundotheraspectsofourbusiness.Althoughwecurrentlybelievethatourcashandcashequivalentsandmarketablesecuritieswillprovideadequa
272、teresourcestofundouroperations,includingtechnologysourcingandproductdevelopmentexpenses,plannedcapitalexpendituresandworkingcapitalrequirementsfortheforeseeablefuture,wemayneverthelessneedadditionalfinancinginthefuture,duetochangesinourbusinessstrategyortheoccurrenceofunanticipatedevents.Wemayseekto
273、issueadditionalequitysecurities,whichcouldresultindilutiontoourexistingshareholders,orraiseadditionaldebtfinancing,whichcouldsubjectustorestrictivecovenantsthatlimitouroperatingflexibilityandrequireustocomplywithcertainfinancialratios.Alternatively,wemaynotbeabletoraisesufficientadditionalfundsonter
274、msthatarefavorabletous,ifatall.Ifwefailtoraisethefundswerequire,ourabilitytofundouroperations,takeadvantageofstrategicopportunities,developandcommercializeproductsortechnologies,orotherwiserespondtocompetitivepressurescouldbesignificantlylimited.Insuchanevent,wemaybeforcedtodelayorterminateourdevelo
275、pmentinitiativesorthecommercializationofourtechnologyandproducts,curtailoperationsorgrantlicensestoourtechnologyontermsthatarenotfavorabletous.Ifadequatefundsarenotavailable,wemaynotbeabletosuccessfullyexecuteourbusinessstrategyorcontinueourbusiness.Development and commercialization of our products
276、may incur scrutiny under the Convention on Biological Diversity Treaty.TheConventionisaninternationaltreatythatwasadoptedattheEarthSummitinRiodeJaneiro,Brazilin1992.Thetreatyprovidesthatifacompanyusesgeneticresources,suchasanindigenousplant,fromaparticipatingcountrytodevelopaproduct,thensuchcompanym
277、ustobtainthepriorinformedconsentoftheparticipatingcountryandowesfairandequitablecompensationtotheparticipatingcountry.AlthoughtheUnitedStatesisnotaparticipatingcountry,mostcountrieswherewecurrentlyobtainormayobtaingeneticresourcesinthefuture,includingArgentina,haveratifiedthetreatyandarecurrentlypar
278、ticipantsintheConvention.WemayfallunderscrutinyoftheConventionwithrespecttothedevelopmentorcommercializationofanyofourproductsderivedfromgeneticresourcesoriginatingfromanyofthecountriesthatareparticipantsintheConvention.Therecanbenoassurancethatthegovernmentofaparticipatingcountrywillnotassertthatit
279、isentitledtofairandequitablecompensationfromus.Suchcompensation,ifdemanded,maymakecommercializationofourproductsimpracticable.23Our business strategy may change,and the successful implementation of our business plan is uncertain.Wecurrentlygenerateasignificantportionofourrevenuefromthesaleofcropprot
280、ectionproducts.Weexpectthat,followingregulatoryapprovalandsuccessfulcommercializationofourlicensedtechnologies,includingHB4,whichwasrecentlyapprovedinArgentina,anincreasingportionofourrevenueswillbegeneratedbysalesofseedandintegratedproductsthroughourproprietarycommercialchannelsandthird-partylicens
281、ees,withincrementalincomeexpectedtobegeneratedbythejointventuresinwhichweparticipate.Wefacenumerouschallengestocompletingthevariousstepsnecessaryforthecommercializationofourproductsandtherecanbenoguaranteethatwewillbeabletosuccessfullycommercializeourlicensedtechnologies.Asaresultofourcontinuousanal
282、ysesofourcropproductivitysolutions,wemaydecidetomakesubstantialchangesinourbusinessplanandoperations.Suchmodificationsmayalsoresultfrommanagementsbeliefthatithasidentifiedmoreeconomicalorefficientmeansofachievingourobjectives.Furthermore,suchchangescouldrelatetominoraspectsofthebusinessplan,suchasth
283、emethodsinwhichwesellourcropproductivitysolutions,ortokeyaspectsoftheplan,suchasthetypeoftechnologiesthatweseektocommercialize.Changestoourbusinessplancouldresultinmaterialdelaystothecommercializationofourproducts.Our failure to accurately forecast and manage inventory could result in an unexpected
284、shortfall or surplus of products which could harm our business.Wearerequiredtoproduceinventoriesofcertainofourproducts(mainlyseedsandbiologicals)andwemonitorourinventorylevelsbasedonourownprojectionsoffuturedemand.Becauseofthesignificanttimeittakestoproducecommercialquantitiesofseeds,productiondecis
285、ionsmustbemadewellinadvanceofsales.Aninaccurateforecastofdemandforanyseedvarietycanresultintheunavailabilityofseedsinhighdemand.Suchunavailabilitymaydepresssalesvolumesandadverselyaffectcustomerrelationships.Conversely,aninaccurateforecastcouldalsoresultinanover-supplyofseedswhichmayincreasecosts,ne
286、gativelyimpactcashflow,reducethequalityofinventoryandultimatelycreatewrite-offsofinventory,whichcouldhaveamaterialadverseeffectonourbusiness,resultsofoperationsandfinancialcondition.Disruption to our IT and operating system could adversely affect our reputation and have a material adverse effect on
287、our business and results of operations.DisruptionorfailureofourITsystemduetotechnicalreasons,naturaldisasterorotherunanticipatedcatastrophicevents,includingpowerinterruptions,storms,fires,floods,earthquakes,terroristattacksandwarscouldsignificantlyimpairourabilitytodeliverdatarelatedtoourprojectstoo
288、urcollaboratorsonscheduleandmaterially and adversely affect our relationships with our collaborators,our business and our results of operations.We expect to continue to develop ourcomputationaltechnologiesandmayneedtoupdateourITsystemandstoragecapabilities.IfourexistingorfutureITsystemdoesnotfunctio
289、nproperly,oriftheITsystem proves incompatible with our new technologies,we could experience interruptions in data transmissions and slow response times,preventing us fromcompletingroutineresearchandbusinessactivities.Furthermore,wecanprovidenoassurancethatourcurrentITsystemisfullyprotectedagainstthi
290、rd-partyintrusions,viruses,hackerattacks,informationordatatheftorothersimilarthreats.Our business and operations would suffer in the event of computer system failures,cyber-attacks or a deficiency in our cyber-security.Despitethecontinuousimplementationofsecuritymeasures,ourinternalcomputersystems,a
291、ndthoseofthirdpartiesonwhichwerely,arevulnerabletodamagefromcomputerviruses,malware,naturaldisasters,terrorismwartelecommunicationandelectricalfailures,cyber-attacksorcyber-intrusionsovertheInternet,attachmentstoemails,personsinsideourorganization,orpersonswithaccesstosystemsinsideourorganization.Th
292、eriskofasecuritybreachordisruption,particularlythroughcyber-attacksorcyber-intrusion,includingbycomputerhackers,foreigngovernments,andcyberterrorists,hasgenerallyincreasedasthenumberintensityandsophisticationofattemptedattacksandintrusionsfromaroundtheworldhaveincreased.Ifsuchaneventweretooccurandca
293、useinterruptionsinouroperations,itcouldresultinamaterialdisruptionofourproductdevelopmentprograms.Forexample,thelossoffieldtrialdatafromcompletedorongoingorplannedfieldtrialscouldresultindelaysinourregulatoryapprovaleffortsandsignificantlyincreaseourcoststorecoverorreproducethedata.Totheextentthatan
294、ydisruptionorsecuritybreachwastoresultinalossofordamagetoourdataorapplications,orinappropriatedisclosureofconfidentialorproprietaryinformation,wecouldincurmateriallegalclaimsandliability,damagetoourreputation,andthefurtherdevelopmentofourproductcandidatescouldbedelayed.24Labor unions can request,and
295、 have requested,the unionization of some of our employees.InDecember2016andMarch2017,theArgentineTradeUnionofTruckDrivers(SindicatodeChoferesdeCamiones)(“SCC”)andtheArgentineUnionofRuralWorkersandStevedores(UninArgentinadeTrabajadoresRuralesyEstibadores)(“UATRE”),respectivelyrequestedtheunionization
296、ofsomeemployeesofRizobacter.Withrespecttotheformer,theSCCrequestedtounionizeemployeesinvolvedinlogisticsandoperationofforklifts.UATRErequestedtounionizeworkersengagedinthehandlingandstorageofgrainrelatedtoourseedtreatmentprocessundertakenseasonally.Afternegotiations,bothSCCandUATREcametoanagreementw
297、ithRizobacterwhereinRizobacteragreedtohirecompaniestocarryouttheoperationscoveredbyeachunion.EachcompanyagreedtoindemnifyRizobacterinrelationtoanysubsequentclaimsbytheworkersregisteredwiththeSCCortheUATRE,asthecasemaybe,withoutdirectcausetoRizobacter.Ifnewuniondisputesarise,theymaybetimeconsumingand
298、distractingtomanagement.Theoccurrenceofauniondisputecouldhaveamaterialandadverseeffectonourcostsandbusiness,resultsofoperationsandfinancialcondition.We rely on third parties to grow our seeds.If these parties do not grow our seeds at a satisfactory quality,in a timely manner,in sufficient quantities
299、 or at anacceptable cost,our commercialization efforts could be delayed or otherwise negatively impacted.Werelyonaffiliatedandunaffiliatedgrowerstogrowthemajorityofourproprietaryseedandtosellittousatnegotiatedpriceseachyear.Ourcurrentdependenceuponothersfortheproductionofourseedsmayadverselyaffectou
300、rabilitytocommercializeanyproductsonatimelyandcompetitivebasis.Ifourgrowersdeclinetoasignificantdegreetoplanttheacreageonwhichwerely,andifwecannotfindothergrowerstoplantthelostacreage,ourinventoryofseedcouldbeinsufficienttosatisfytheneedsofourcustomers.Furthermore,growersmayrefusetogrowourseedsforan
301、yreason,includingdeteriorationinourbusinessrelationshiportheexistenceofmorefavorabletermswithothercompanies.Forexample,ifaparticularcropispayingamateriallyhigherpricethanhasbeenpaidinthepast,growersmaydecidetonotgrowourseedsinfavorofreceivingahigherreturnfromanalternativecropplantedonthesameacreage.
302、Ifthird-partygrowersdeclinetogrowourseedsoriftheyareunabletogrowourseedsatacceptablequalitylevels,ourbusiness,resultsofoperationsandfinancialconditioncouldmateriallydecline.We are subject to anti-corruption and anti-money laundering laws with respect to both our domestic and international operations
303、,and non-compliance with suchlaws can subject us to criminal and civil liability and harm our business.WearesubjecttotheU.S.ForeignCorruptPracticesActof1977,asamended,theU.S.domesticbriberystatutecontainedin18U.S.C.201,theU.S.TravelAct,theUSAPATRIOTAct,ArgentineLawNo.27,401,asamended,andpossiblyothe
304、ranti-briberyandanti-moneylaunderinglawsincountriesinwhichweconductactivities.Anti-corruptionlawsareinterpretedbroadlyandprohibitusandourcollaboratorsfromauthorizing,offering,ordirectlyorindirectlyprovidingimproperpaymentsorbenefitstorecipientsinthepublicorprivatesector.Weorourcollaboratorsmayhavedi
305、rectandindirectinteractionswithgovernmentagenciesandstate-affiliatedentitiesanduniversitiesinthecourseofourbusiness.WemayalsohavecertainmatterscomebeforepublicinternationalorganizationssuchastheUnited Nations.We use third-party collaborators,joint venture and strategic partners,law firms,and other r
306、epresentatives for regulatory compliance,patentregistration,lobbying,deregulationadvocacy,fieldtesting,andotherpurposesinavarietyofcountries,includingthosethatareknowntopresentahighcorruptionrisksuchasIndia,China,andLatinAmericancountries.Wecanbeheldliableforthecorruptorotherillegalactivitiesofthese
307、third-partycollaborators,ouremployees,representatives,contractors,partners,andagents,evenifwedonotexplicitlyauthorizesuchactivities.Inaddition,althoughwehaveimplementedpoliciesandprocedurestoensurecompliancewithanti-corruptionandrelatedlaws,therecanbenoassurancethatallofouremployees,representatives,
308、contractors,partners,oragentswillcomplywiththeselawsatalltimes.Noncompliancewiththeselawscouldsubjectustowhistleblowercomplaints,investigations,sanctions,settlements,prosecution,otherorinjunctions,suspensionanddebarmentfromcontractingwithcertaingovernmentsorotherpersons,thelossofexportprivileges,rep
309、utationalharm,adversemediacoverage,andothercollateralconsequences.Ifanysubpoenasorinvestigationsarelaunched,orgovernmentalorothersanctionsareimposed,orifwedonotprevailinanypossiblecivilorcriminallitigation,ourbusiness,resultsofoperations,andfinancialconditioncouldbemateriallyharmed.Inaddition,respon
310、dingtoanyactionwilllikelyresultinamateriallysignificantdiversionofmanagementsattentionandresourcesandsignificantdefensecostsandotherprofessionalfees.Enforcementactionsandsanctionscouldfurtherharmourbusiness,resultsofoperations,andfinancialcondition.25Risks Related to Our Intellectual Property Agreem
311、ents with our collaborators and third parties may not adequately prevent disclosure of trade secrets,know-how and other proprietary information,whichcould materially adversely affect our technology and harm our business.Werelyonacombinationofintellectualpropertylawsandotheragreementswithourcollabora
312、torsandthirdpartiestoprotectandotherwiseseektocontrolaccess to,and distribution of,our proprietary information.These measures may not prevent disclosure,infringement or misappropriation of our confidentialinformation.Ourconfidentialityandnondisclosureagreementsorcovenantsmaynotbeenforceableunderappl
313、icablelawand,eveniftheyareenforceable,maybebreached,andwemaynothaveadequateremediesforsuchabreachthatwouldeffectivelypreventthefurtherdisseminationofourconfidentialinformationordirectcompetitionwithusbyajointventurepartner.Wealsohavelimitedcontrolovertheprotectionoftradesecretsusedbyourcollaborators
314、andcouldlosefuturetradesecretprotectionifanyunauthorizeddisclosureofsuchinformationoccurs.Enforcementofanyclaimthatapartyillegallydisclosedconfidentialinformationormisappropriatedatradesecretisdifficult,expensiveandtime-consuming,andtheoutcomeisunpredictable.Inaddition,othersmayindependentlydiscover
315、ourtradesecretsandproprietaryinformation,andinsuchcases,wecouldnotassertanytradesecretrightsagainstsuchparties.Lawsregardingtradesecretrightsincertainmarketswhereweoperatemayaffordlittleornoprotectionofourtradesecrets.Ifanyofourtradesecretsweretobedisclosedtoorindependentlydevelopedbyacompetitor,ori
316、fweotherwiseweretoloseprotectionforourtradesecretsorproprietaryknow-how,thevalueofthisinformationmaybegreatlyreducedandourbusinessandcompetitivepositioncouldbeharmed.Moreover,ourcollaboratorsmayallegethatwehavedisclosedtheirtradesecretsorconfidentialinformation.We may not be able to adequately prote
317、ct our intellectual property rights throughout the world.Ourcommercialsuccessdependsinpartonourabilitytoobtainintellectualpropertyprotectionand/ortradesecretsprotectionforthetechnologieswedevelopanduse.Competitorsmayuseourtechnologiesinjurisdictionswherewehavenotobtainedintellectualpropertyprotectio
318、ntodeveloptheirownproducts,andwemaybeunabletopreventsuchcompetitorsfromimportingthoseinfringingproductsintoterritorieswherewehaveintellectualpropertyprotectionbutenforcementisnotasstrongduetotheexhaustionofrights.Theseproductsmaycompetewithourproductcandidatesandourlicensedpatentsandotherintellectua
319、lpropertyrightsmaynotbeeffectiveorsufficienttopreventthemfromcompetinginthosejurisdictions.Inaddition,competitorscoulduseourlicensedpatentdisclosuresand/orreverseengineerourtrade-secret-protectedproductsinordertoproducecompetingproducts.Moreover,growersorothersinthechainofcommercemayraiselegalchalle
320、ngesagainstourintellectualpropertyrightsormayinfringeuponourintellectualpropertyrights,includingthroughmeansthatmaybedifficulttopreventordetect.Forexample,inArgentina,growersmaylegallyavoidpayingroyaltiestotheownersofintellectualpropertyiftheykeeptheseedsfromtheirownharvestsandplantthemforpersonalus
321、e.Argentinelegislationinrespectofbreedersrightsincludesaconceptofa“farmersprivilege,”whichallowsgrowerstouseseedsobtainedfromtheirownharveststobereplantedontheirownfarm.AccordingtotheNationalSeedInstituteofArgentina(InstitutoNacionaldeSemillas),thereservesofseedskeptforpersonalusehasgrownsignificant
322、lyinrecentyears,whichmayincreasethelikelihoodthatgrowersillegallyclaimingtheprivilegemayuseand/orsellGMseedsintothemarketwithoutpayingroyaltiesowedtous.26Thelegalsystemsofcertaincountries,includingChina,wherewehavesublicensedpatentapplications,havenothistoricallyfavoredtheenforcementofpatentsorother
323、intellectualpropertyrights,whichcouldhinderusfrompreventingtheinfringementofourlicensedpatentsorotherintellectualpropertyrightsandresultinsubstantialriskstous.ProceedingstoenforceourlicensedpatentrightsintheUnitedStatesorforeignjurisdictionscouldresultinsubstantialcostsanddivertoureffortsandattentio
324、nfromotheraspectsofourbusiness,couldputourlicensedpatentsatriskofbeinginvalidatedorinterpretednarrowlyandoursublicensedpatentapplicationsatriskofnotissuingandcouldprovokethirdpartiestoassertpatentinfringementorotherclaimsagainstus.Wemaynotprevailinanylawsuitsthatweinitiateandthedamagesorotherremedie
325、sawarded,ifany,maynotbecommerciallymeaningful.Accordingly,oureffortstoenforceourintellectualpropertyrightsaroundtheworldmaybeinadequatetoobtainasignificantcommercialadvantagefromtheintellectualpropertythatwedeveloporlicensefromthirdparties.Changes in Argentine and U.S.patent law could diminish the v
326、alue of patents in general,thereby impairing our ability to protect our product candidates.Asisthecasewithotherbiotechcompanies,oursuccessisheavilydependentonintellectualproperty,includingpatents.Obtainingandenforcingbiotechpatentsinvolvestechnologicalandlegalcomplexity,andiscostly,timeconsuming,and
327、inherentlyuncertain.Inthisregard,theArgentinePatentOffice(InstitutoNacionaldePropiedadIntelectual)issuedRegulation283/15withnewguidelinesforexaminingbiotechinventions.Theseguidelinesseriouslyrestrictthepatentabilityofseveralcategoriesofinventionsintheagriculturalfield.Thisrestrictionisalreadybeingfo
328、llowedinthepracticeoftheArgentinePatentOffice.In September 2016,the Argentine Patent Office issued Argentine Regulation 56/16,under which the Argentine Patent Office will deem that any patentapplicationwhoseexaminationhadnotbegunbyOctober15,2016satisfiesthesubstantiverequirementsofpatentability(nove
329、lty,non-obviousnessandindustrialapplication);providedthatapatenthasbeengrantedabroadforthesameinventionbyaforeignpatentofficecarryingoutsubstantiveexaminationinacountrywhosepatentlawhasthesamesubstantiverequirementsasArgentinelaw.Thiscanresultinprosecutiontimesthataresubstantiallyshorter,andsimilart
330、othoseofthefastestjurisdictions.Inparticular,thepatentofficehasappliedthisregulationtobiotechcasesaslongastheyaredirectedtomatterthatisnotaffectedbytheguidelines.Inaddition,theU.S.SupremeCourthasruledonseveralpatentcasesinrecentyears,eithernarrowingthescopeofpatentprotectionavailableincertaincircums
331、tancesorweakeningtherightsofpatentownersincertainsituations.Inadditiontoincreasinguncertaintywithregardtoourabilitytoobtainpatentsinthefuture,thiscombinationofeventshascreateduncertaintywithrespecttothevalueofpatents,onceobtained.Inarecentruling(inre“MonsantoTechnologyLLCc/InstitutoNacionaldelaPropi
332、edadIndustrials/DenegatoriadePatente”,casenumberCCF8044/2007),TribunalIIIoftheCivilandCommercialFederalCourtofAppealsoftheCityofBuenosAiresconfirmed,byrevokingadecisionofalowercourt,therejectionofabiotechnologicalpatentapplicationbytheArgentinePatentOffice,withtheunderstandingthattheinventionshouldb
333、eprotectedasaplantvarietyprotection(“PVP”)andnotunderapatent(thepatentapplicationwasforarecombinantDNAmoleculeandacelltransformedbysuchmolecule).Lackofinventiveactivityandnon-patentablemattersarealsomentionedasgroundsinthisprecedent.TheCourtofAppealsdecisionwasappealedtothecourtoflastresort,buttheArgentineSupremeCourtrefusedtoresolvethecasebasedonthegroundsthattheissuewasmootasthestatutorytermofth
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