Rafael Holdings Reports First Quarter Fiscal Year 2019 Results
NEWARK, N.J., Dec. 10, 2018 /PRNewswire/ -- 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
-- On August 16, 2018, Rafael Pharmaceuticals, in which subsidiaries of
Rafael Holdings hold a warrant to purchase a 56% interest, announced
that the U.S. Food and Drug Administration (FDA) has granted orphan drug
designation to CPI-613, the Company's lead compound, for the treatment
of Peripheral T-Cell Lymphoma;
-- On November 29, 2018, Rafael Pharmaceuticals announced the initiation of
a Phase 3 pivotal trial to evaluate the efficacy and safety of CPI-613
in combination with high dose cytarabine and mitoxantrone in older
patients with relapsed or refractory acute myeloid leukemia (AML);
-- In October 2018, LipoMedix, in which Rafael Holdings holds a majority
stake, announced that the FDA has cleared its investigational new drug
application to launch a randomized Phase 2b clinical trial of Promitil,
LipoMedix's patented prodrug, for the treatment of patients with
previously treated metastatic colorectal cancer;
-- Rafael Holdings continues to work to monetize its real estate holdings.
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 needs.
"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 space.
RAFAEL HOLDINGS, INC.
CONSOLIDATED AND COMBINED BALANCE SHEETS
(unaudited, in thousands, except per share data)
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 share data)
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 OF CASH FLOWS
(unaudited, in thousands, except per share data)
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
$
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SOURCE Rafael Holdings, Inc.
