Full Press Release Details
Rafael Holdings Reports First Quarter
Fiscal Year 2019 Results
NEWARK, NJ - December 10, 2018: Rafael Holdings,
Inc., (NYSE American: RFL), reported revenue of $1.1 million and a loss per share of $0.04 for the first quarter of its 2019 fiscal
year, the three months ended October 31, 2018.
Financial and Operational Highlights
Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings
"This quarter, we continued our efforts to optimize the
value of both our pharmaceutical and real estate holdings.
"We continued to invest in Rafael Pharmaceuticals to support
its operational progress. Rafael Pharmaceuticals launched a pivotal Phase 3 trial of its lead compound, CPI-613, for patients with
acute myeloid leukemia and is preparing to launch a Phase 3 trial for patients with metastatic pancreatic cancer. Also, during
the quarter, Rafael Pharmaceuticals announced that the FDA has granted CPI-613 orphan drug designation for the treatment of peripheral
T-cell lymphoma. CPI-613 has now received orphan drug designation for five difficult-to-treat cancers with significant unmet clinical
"LipoMedix Pharmaceuticals continued to execute on its
pre-clinical and clinical trial programs of Promitil , its flagship prodrug. This quarter, the FDA cleared LipoMedix'
IND application to launch a randomized Phase 2b clinical trial of Promitil for the treatment of patients with previously treated
metastatic colorectal cancer.
"On the real estate side of our business, we are working
to monetize our properties including our 20-story commercial property and associated garage in Newark, New Jersey."
About Rafael Holdings, Inc.:
Rafael Holdings holds commercial real estate assets and interests
in two clinical stage, oncology focused pharmaceutical companies. The real estate holdings include properties in Newark and Piscataway,
New Jersey and Jerusalem, Israel. The pharmaceutical holdings consist of interests in Rafael Pharmaceuticals, Inc. and a majority
stake in Lipomedix Pharmaceuticals Ltd., both of which are focused on development and commercialization of drugs in the oncology
Chief Financial Officer
RAFAEL HOLDINGS, INC.
CONSOLIDATED AND COMBINED BALANCE SHEETS
(unaudited, in thousands, except per
| October 31, | July 31, | |||||||
| 2018 | 2018 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 10,086 | $ | 15,803 | ||||
| Trade accounts receivable, net of allowance for doubtful accounts of $82 at October 31, 2018 and July 31, 2018 | 379 | 287 | ||||||
| Marketable securities | 20,061 | 24,701 | ||||||
| Due from Rafael Pharmaceuticals | 3,435 | 3,300 | ||||||
| Prepaid expenses and other current assets | 484 | 421 | ||||||
| Total current assets | 34,445 | 44,512 | ||||||
| Property and equipment, net | 49,740 | 50,113 | ||||||
| Investments - Rafael Pharmaceuticals | 23,300 | 13,300 | ||||||
| Investments - Other Pharmaceuticals | 2,000 | 2,000 | ||||||
| Investments - Hedge Funds | 4,314 | 4,218 | ||||||
| Deferred income tax assets, net | 40 | - | ||||||
| Patents | 324 | 324 | ||||||
| In-process research and development | 1,327 | 1,327 | ||||||
| Other assets | 1,139 | 1,126 | ||||||
| TOTAL ASSETS | 116,629 | 116,920 | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| CURRENT LIABILITIES | ||||||||
| Trade accounts payable | 298 | 367 | ||||||
| Accrued expenses | 431 | 500 | ||||||
| Other current liabilities | 18 | 24 | ||||||
| Total current liabilities | 747 | 891 | ||||||
| Due to related parties | 582 | 276 | ||||||
| Other liabilities | 174 | 188 | ||||||
| TOTAL LIABILITIES | 1,503 | 1,355 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS' DEFICIT | ||||||||
| Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of October 31, 2018 and July 31, 2018, respectively | 8 | 8 | ||||||
| Class B common stock, $0.01 par value; 200,000,000 shares authorized, 11,786,397 and 11,762,346 shares issued and outstanding as of October 31, 2018 and July 31, 2018, respectively | 118 | 118 | ||||||
| Additional paid-in capital | 103,784 | 103,636 | ||||||
| Accumulated deficit | (1,628 | ) | (1,108 | ) | ||||
| Accumulated other comprehensive income | 4,160 | 4,043 | ||||||
| Total stockholders' deficit | 106,442 | 106,697 | ||||||
| Noncontrolling interests | 8,684 | 8,868 | ||||||
| Total equity | 115,126 | 115,565 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 116,629 | $ | 116,920 |
RAFAEL HOLDINGS, INC.
CONSOLIDATED AND COMBINED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited, in thousands, except per
| Three Months Ended | ||||||||
| October 31, | ||||||||
| 2018 | 2017 | |||||||
| REVENUES | ||||||||
| Rental - Third Party | $ | 383 | $ | 386 | ||||
| Rental - Related Party | 521 | 505 | ||||||
| Parking | 231 | 215 | ||||||
| Total Revenue | 1,135 | 1,106 | ||||||
| COSTS AND EXPENSES | ||||||||
| Selling, general and administrative | 1,453 | 1,736 | ||||||
| Research and development | 373 | - | ||||||
| Depreciation and amortization | 429 | 425 | ||||||
| Loss from operations | (1,120 | ) | (1,055 | ) | ||||
| Interest income , net | 101 | 2 | ||||||
| Net gains resulting from foreign exchange transactions | - | 11 | ||||||
| Net loss on equity investments | - | (104 | ) | |||||
| Loss on sales of marketable securities | (10 | ) | - | |||||
| Unrealized gain on marketable securities | 333 | - | ||||||
| Gain on disposal of bonus shares | - | 246 | ||||||
| Loss before income taxes | (696 | ) | (900 | ) | ||||
| Benefit from (provision for) income taxes | 31 | (8,428 | ) | |||||
| Net Loss | (665 | ) | (9,328 | ) | ||||
| Net loss attributable to noncontrolling interests | (184 | ) | - | |||||
| Net loss attributable to Rafael Holdings, Inc. | (481 | ) | (9,328 | ) | ||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
| Foreign currency translation adjustments | $ | 78 | $ | 10 | ||||
| Total Comprehensive Loss | (403 | ) | (9,318 | ) | ||||
| Comprehensive loss attributable to noncontrolling interests | (9 | ) | - | |||||
| Total Comprehensive Loss attributable to Rafael Holdings, Inc. | $ | (394 | ) | $ | (9,318 | ) | ||
| Loss per share: | ||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.74 | ) | ||
| Weighted average number of shared used in calculation of loss per share: | ||||||||
| Basic and diluted | 12,566,358 | 12,541,998 |
RAFAEL HOLDINGS, INC.
CONSOLIDATED AND COMBINED STATEMENTS
(unaudited, in thousands, except per
| Three Months Ended | ||||||||
| October 31, | ||||||||
| 2018 | 2017 | |||||||
| (in thousands) | ||||||||
| Operating activities | ||||||||
| Net loss | $ | (665 | ) | $ | (9,328 | |||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 429 | 425 | ||||||
| Deferred income taxes | (40 | ) | 8,838 | |||||
| Realized gain on disposal of bonus shares | - | (246 | ||||||
| Net realized and unrealized gain on sale of marketable securities | (323 | ) | - | |||||
| Non-cash compensation | 30 | 606 | ||||||
| Interest in the equity of investments | - | 104 | ||||||
| Change in assets and liabilities: | ||||||||
| Trade accounts receivable | (92 | ) | (88 | |||||
| Other current assets and prepaid expenses | (63 | ) | 6 | |||||
| Other assets | (13 | ) | (140 | |||||
| Trade accounts payable and accrued expenses | (138 | ) | 79 | |||||
| Other current liabilities | (6 | ) | (25 | |||||
| Due from/to related parties | 171 | (260 | ||||||
| Other liabilities | (14 | ) | - | |||||
| Net cash used in operating activities | (724 | ) | (29 | |||||
| Investing activities | ||||||||
| Purchases of property and equipment | (26 | ) | (223 | |||||
| Proceeds from sale and maturity of marketable securities | 5,820 | - | ||||||
| Purchase of marketable securities | (953 | ) | - | |||||
| Investment in Rafael Pharmaceuticals | (10,000 | ) | - | |||||
| Net cash used in investing activities | (5,159 | ) | (223 | |||||
| Financing activities | ||||||||
| Proceeds from exercise of options | 118 | - | ||||||
| Net cash used in financing activities | 118 | - | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 48 | 15 | ||||||
| Net decrease in cash and cash equivalents | (5,717 | ) | (237 | |||||
| Cash and cash equivalents at beginning of period | 15,803 | 11,756 | ||||||
| Cash and cash equivalents at end of period | $ | 10,086 | $ | 11,519 | ||||
| Supplemental Schedule of Non-Cash Financing and Investing Activities | ||||||||
| Adoption effect of ASU 2016-01 | $ | 39 | $ | - |