Full Press Release Details
Rafael Holdings Reports First Quarter
Fiscal Year 2020 Results
Highlights Developments in Key Holdings
Including Rafael Pharmaceuticals
NEWARK, NJ - December 9, 2019: Rafael Holdings, Inc.,
(NYSE: RFL), reported revenue of $1.2 million and a loss per share of $0.10 for the fiscal quarter ended October 31, 2019.
Recent Operational Highlights
Remarks by Howard Jonas, Chairman and CEO of Rafael
"During the quarter, our key pharma holding, Rafael Pharma,
continued enrolling patients in key clinical trials, including in its Phase 3 trials of CPI-613 (devimistat) for
metastatic pancreatic cancer and AML, as well as its Phase 2 trial for Burkitt lymphoma.
"We've also put into place the foundation for our internal
cancer metabolism drug development initiative, the Barer Institute, a wholly-owned early stage venture focused on developing a
pipeline of therapeutic compounds, including compounds to regulate cancer metabolism. The venture is pursuing collaborative
research agreements with leading scientists from top academic institutions"
"After the quarter closed, we were very pleased to begin our
listing on the New York Stock Exchange with the enhanced visibility that the Big Board offers."
About Rafael Holdings, Inc.:
Rafael Holdings holds commercial real estate assets and interests
in clinical stage pharmaceutical companies. The real estate holdings consist of properties in Newark and Piscataway, New Jersey
and Jerusalem, Israel. The pharmaceutical holdings include interests in two companies focused on the development and commercialization
of oncology drugs: Rafael Pharmaceuticals, Inc. and LipoMedix Pharmaceuticals Ltd. In addition, Rafael Holdings through its wholly
owned subsidiary, the Barer Institute, is developing a pipeline of therapeutic compounds including compounds to regulate cancer
metabolism. For more information, visit www.rafaelholdings.com.
Chief Financial Officer
RAFAEL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share data)
| October 31, | July 31, | |||||||
| 2019 | 2019 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 10,771 | $ | 12,024 | ||||
| Trade accounts receivable, net of allowance for doubtful accounts of $170 and $122 at October 31, 2019 and July 31, 2019, respectively | 229 | 450 | ||||||
| Due from Rafael Pharmaceuticals | 120 | 280 | ||||||
| Prepaid expenses and other current assets | 540 | 507 | ||||||
| Total current assets | 11,660 | 13,261 | ||||||
| Property and equipment, net | 48,588 | 48,733 | ||||||
| Investments - Rafael Pharmaceuticals | 70,018 | 70,018 | ||||||
| Investments - Other Pharmaceuticals | 2,000 | 2,000 | ||||||
| Investments - Hedge Funds | 5,088 | 5,125 | ||||||
| Deferred income tax assets, net | 20 | 19 | ||||||
| In-process research and development and patents | 1,575 | 1,575 | ||||||
| Other assets | 1,451 | 1,412 | ||||||
| TOTAL ASSETS | $ | 140,400 | $ | 142,143 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Trade accounts payable | $ | 621 | $ | 795 | ||||
| Accrued expenses | 564 | 605 | ||||||
| Other current liabilities | 15 | 27 | ||||||
| Total current liabilities | 1,200 | 1,427 | ||||||
| Due to Related Party | 28 | 65 | ||||||
| Convertible note, net of discount of $ - and $54 - Related Party | - | 14,946 | ||||||
| Other liabilities | 210 | 292 | ||||||
| Accrued interest on convertible note - Related Party | - | 649 | ||||||
| TOTAL LIABILITIES | 1,438 | 17,379 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Class A common stock, $0.01 par value; 50,000,000 shares authorized, 787,163 shares issued and outstanding as of October 31, 2019 and July 31, 2019 | 8 | 8 | ||||||
| Class B common stock, $0.01 par value; 200,000,000 shares authorized, 14,997,251 and 13,142,502 shares issued and outstanding as of October 31, 2019 and July 31, 2019, respectively | 149 | 131 | ||||||
| Additional paid-in capital | 128,642 | 112,898 | ||||||
| Accumulated deficit | (7,438 | ) | (5,840 | ) | ||||
| Accumulated other comprehensive income | 3,790 | 3,784 | ||||||
| Total equity attributable to Rafael Holdings, Inc. | 125,151 | 110,981 | ||||||
| Noncontrolling interests | 13,811 | 13,783 | ||||||
| TOTAL EQUITY | 138,962 | 124,764 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 140,400 | $ | 142,143 |
RAFAEL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
(unaudited, in thousands, except share data)
| Three Months Ended October 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenues: | ||||||||
| Rental - Third Party | $ | 346 | $ | 383 | ||||
| Rental - Related Party | 520 | 521 | ||||||
| Parking | 224 | 231 | ||||||
| Other - Related Party | 120 | - | ||||||
| Total Revenues | 1,210 | 1,135 | ||||||
| Costs and expenses: | ||||||||
| Selling, general and administrative | 2,041 | 1,453 | ||||||
| Research and development | 245 | 373 | ||||||
| Depreciation and amortization | 466 | 429 | ||||||
| Loss from operations | (1,542 | ) | (1,120 | ) | ||||
| Interest (expense) income, net | (64 | ) | 101 | |||||
| Net loss resulting from foreign exchange transactions | (5 | ) | - | |||||
| Loss on sales of marketable securities, net | - | (10 | ) | |||||
| Unrealized gain on sales of marketable securities | - | 333 | ||||||
| Unrealized loss on investments - Hedge Funds | (37 | ) | - | |||||
| Loss before income taxes | (1,648 | ) | (696 | ) | ||||
| (Provision for) benefit from income taxes | (4 | ) | 31 | |||||
| Net Loss | (1,652 | ) | (665 | ) | ||||
| Net loss attributable to noncontrolling interests | (54 | ) | (184 | ) | ||||
| Net loss attributable to Rafael Holdings, Inc. | $ | (1,598 | ) | $ | (481 | ) | ||
| OTHER COMPREHENSIVE LOSS | ||||||||
| Net Loss | $ | (1,652 | ) | $ | (665 | ) | ||
| Foreign currency translation adjustments | 6 | 78 | ||||||
| Total Comprehensive Loss | (1,646 | ) | (587 | ) | ||||
| Comprehensive income (loss) attributable to noncontrolling interests | 2 | (9 | ) | |||||
| Total Comprehensive Loss attributable to Rafael Holdings, Inc. | $ | (1,648 | ) | $ | (596 | ) | ||
| Loss per share attributable to Rafael Holdings, Inc. common shareholders: | ||||||||
| Basic and diluted | $ | (0.10 | ) | $ | (0.04 | ) | ||
| Weighted average number of shared used in calculation of loss per share: | ||||||||
| Basic and diluted | 15,640,683 | 12,566,358 |
RAFAEL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, except share data)
| Three Months Ended October 31, | ||||||||
| 2019 | 2018 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (1,652 | ) | $ | (665 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 466 | 429 | ||||||
| Deferred income taxes | 1 | (40 | ) | |||||
| Net gain on sales of marketable securities | - | (323 | ) | |||||
| Unrealized loss on investments - Hedge Funds | 37 | - | ||||||
| Provision for doubtful accounts | 48 | - | ||||||
| Stock based compensation | 94 | 30 | ||||||
| Amortization of debt discount | 54 | - | ||||||
| Change in assets and liabilities: | ||||||||
| Trade accounts receivable | 173 | (92 | ) | |||||
| Prepaid expenses and other current assets | 217 | (63 | ) | |||||
| Other assets | (289 | ) | (13 | ) | ||||
| Trade accounts payable and accrued expenses | (196 | ) | (138 | ) | ||||
| Other current liabilities | (12 | ) | (6 | ) | ||||
| Due to Related Party | (37 | ) | 171 | |||||
| Due from Related Party | 160 | - | ||||||
| Other liabilities | - | (14 | ) | |||||
| Net cash used in operating activities | (936 | ) | (724 | ) | ||||
| Investing activities | ||||||||
| Purchases of property and equipment | (321 | ) | (26 | ) | ||||
| Proceeds from sale and maturity of marketable securities, net | - | 5,820 | ||||||
| Purchase of marketable securities | - | (953 | ) | |||||
| Investment in Rafael Pharmaceuticals | - | (10,000 | ) | |||||
| Net cash used in investing activities | (321 | ) | (5,159 | ) | ||||
| Financing activities | ||||||||
| Proceeds from exercise of options | - | 118 | ||||||
| Net cash provided by financing activities | - | 118 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 4 | 48 | ||||||
| Net decrease in cash and cash equivalents | (1,253 | ) | (5,717 | ) | ||||
| Cash and cash equivalents at beginning of period | 12,024 | 15,803 | ||||||
| Cash and cash equivalents at end of period | $ | 10,771 | $ | 10,086 | ||||
| Supplemental Schedule of Non-Cash Investing and Financing Activities | ||||||||
| Adoption effect of ASU 2016-01 | $ | - | $ | 39 | ||||
| Conversion of LipoMedix Bridge Note | $ | 82 | $ | - | ||||
| Conversion of related party convertible notes payable and accrued interest | $ | 15,668 | $ | - |