Rafael Holdings Reports Third Quarter Fiscal Year 2019 Results
NEWARK, N.J., June 5, 2019 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE American: RFL), reported revenue of $1.4 million and a loss per share of $0.07 for the third quarter of its 2019 fiscal year, the three months ended April 30, 2019.
3Q19 Highlights
-- Rafael Pharma announced that its lead compound, CPI-613® (devimistat), will be explored in a new combination for the treatment of T-cell lymphoma as a part of Stand Up To Cancer's T-Cell Lymphoma Dream Team Research Grant. -- Rafael Pharma's Phase 2 trial of CPI-613 (devimistat) for patients with relapsed or refractory Burkitt lymphoma opened in multiple sites. The US FDA has designated devimistat orphan drug status for the treatment of Burkitt lymphoma. -- Rafael Pharma's Phase 3 pivotal trials of CPI-613 (devimistat) devimistat for patients with metastatic pancreatic cancer and relapsed or refractory acute myeloid leukemia was ongoing in multiple sites. -- Rafael Pharma completed its Phase 1 study of CPI-613 (devimistat) in combination with bendamustine in patients with relapsed or refractory T-cell lymphoma. -- To meet the growing demands of its expanded clinical trial program, Rafael Pharma added a second qualified CPI-613 (devimistat) manufacturer and continued to build out its management team.
Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings
"Rafael Holdings is supporting Rafael Pharma and Lipomedix as they pursue their clinical development programs including Rafael Pharma's Phase 3 global trials of CPI-613. We are also continuing to make progress in our effort to realize the full value of our real estate holdings and particularly our 20-story commercial property and associated garage in Newark, New Jersey."
About Rafael Holdings, Inc.:
Holdings holds commercial real estate assets and interests in two clinical stage, oncology focused pharmaceutical companies. The real estate holdings comprise properties in Newark and Piscataway, New Jersey and Jerusalem, Israel. The pharmaceutical holdings consist of equity 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 BALANCE SHEETS
(unaudited, in thousands, except share data)
April 30, July 31, 2019 2018 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 12,969 $ 15,803 Trade accounts receivable, net of allowance for doubtful accounts of $86 and $82 at April 30, 2019 and July 31, 2018 672 287 Marketable securities 24,701 Due from Rafael Pharmaceuticals 160 3,300 Prepaid expenses and other current assets 840 421 Total current assets 14,641 44,512 Property and equipment, net 49,181 50,113 Investments - Rafael Pharmaceuticals 70,018 13,300 Investments - Other Pharmaceuticals 2,000 2,000 Investments - Hedge Funds 4,632 4,218 Deferred income tax assets, net 24 Patents 407 324 In-process research and development 1,327 1,327 Other assets 1,223 1,126 Total assets $ 143,453 $ 116,920 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Trade accounts payable $ 755 $ 367 Accrued expenses 203 500 Other current liabilities 19 24 Total current liabilities 977 891 Due to/from related parties 44 276 Convertible note, net of $60 discount - Related Party 14,940 Accrued interest on convertible note - Related Party 418 Other liabilities 210 188 Total liabilities 16,589 1,355 Commitments and contingencies STOCKHOLDERS' EQUITY Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of April 30, 2019 and July 31, 2018 8 8 Class B common stock, $0.01 par value; 200,000,000 shares authorized, 13,139,333 and 11,762,346 shares issued and outstanding as of April 30, 2019 and July 31, 2018, respectively 131 118 Additional paid in capital 117,383 103,636 Accumulated deficit (3,654) (1,108) Accumulated other comprehensive income 4,134 4,043 Total Rafael Holdings, Inc. stockholders' equity 118,002 106,697 Noncontrolling interests 8,862 8,868 Total equity 126,864 115,565 Total liabilities and STOCKHOLDERS' equity $ 143,453 $ 116,920
RAFAEL HOLDINGS, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except share data)
Three Months Ended Nine Months Ended April 30, April 30, 2019 2018 2019 2018 Revenues: Rental - Third Party $ 588 $ 400 $ 1,277 $ 1,085 Rental - Related Party 521 447 1,564 1,442 Parking 268 246 688 630 Total Revenue 1,377 1,093 3,529 3,157 Costs and expenses: Selling, general and administrative 2,059 1,402 5,228 4,481 Research and development 300 949 Depreciation and amortization 436 422 1,296 1,276 Loss from operations (1,418) (731) (3,944) (2,600) Interest (expense) income, net (221) 71 647 75 Net gain (loss) resulting from foreign exchange transactions 19 (28) 19 90 Net loss on equity investments (104) Gain on sales of marketable securities, net 24 330 24 Unrealized gain on investments - Hedge Funds 466 414 Gain on disposal of bonus shares 246 Loss before income taxes (1,154) (664) (2,534) (2,269) Benefit from (provision for) income taxes 7 5 21 (8,438) Net Loss (1,147) (659) (2,513) (10,707) Net loss attributable to noncontrolling interests (142) (128) (6) (304) Net loss attributable to Rafael Holdings, Inc. $ (1,005) $ (531) $ (2,507) $ (10,403) OTHER COMPREHENSIVE LOSS Net Loss $ (1,147) $ (659) $ (2,513) $ (10,707) Unrealized loss on marketable securities (311) (311) Foreign currency translation adjustments (54) (85) (52) (10) Total Comprehensive Loss (1,201) (1,055) (2,565) (11,028) Comprehensive (loss) income attributable to noncontrolling interests (18) (29) 5 (29) Total Comprehensive Loss attributable to Rafael Holdings, Inc. $ (1,183) $ (1,026) $ (2,570) $ (10,999) Loss Per Share attributable to Rafael Holdings Inc. common shareholders: Basic and diluted $ (0.07) $ (0.04) $ (0.19) $ (0.83) Weighted average number of shared used in calculation of loss per share: Basic and diluted 13,924,691 12,541,998 13,055,037 12,541,998
RAFAEL HOLDINGS, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, except share data)
Nine Months Ended April 30, 2019 2018 Operating activities Net loss $ (2,513) $ (10,403) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,296 1,276 Deferred income taxes (24) 8,851 Interest income on Rafael Pharmaceuticals Series D Convertible Note (848) Net gain on sale of marketable securities (330) (24) Unrealized gain on investments - Hedge Funds (414) Provision for doubtful accounts 86 Realized gain on disposal of bonus shares (246) Non-cash compensation 269 616 Amortization of debt discount 11 Interest in the equity of investments (80) Change in assets and liabilities: Trade accounts receivable (471) (142) Other current assets and prepaid expenses (419) (392) Other assets (180) (355) Accounts payable and accrued expenses 91 223 Other current liabilities (5) (8) Due to/from related parties 473 (386) Accrued interest - Related Party 418 Other liabilities 22 Net cash used in operating activities (2,538) (1,070) Investing activities Purchases of property and equipment (364) (572) Proceeds from sale and maturity of marketable securities, net 25,031 436 Investment in Rafael Pharmaceuticals (55,870) Net cash used in investing activities (31,203) (136) Financing activities Contribution from noncontrolling interest of consolidated entity 4,587 Repayment of Due from Rafael Pharmaceuticals 3,300 Proceeds from exercise of options 190 Proceed from sale of Class B Common shares to Related Party 7,777 Proceeds from issuance of convertible note payable -Related Party 15,000 Net cash provided by financing activities 30,854 Effect of exchange rate changes on cash and cash equivalents 53 55 Net decrease in cash and cash equivalents (2,834) (1,151) Cash and cash equivalents at beginning of period 15,803 11,756 Cash and cash equivalents at end of period $ 12,969 $ 10,605 Supplemental Schedule of Non-Cash Investing and Financing Activities Adoption effect of ASU 2016-01 $ 39 $ Beneficial conversion feature of convertible debt - Related Party $ 71 $ Series D Convertible Note and accrued interest converted to Series D Preferred Stock $ 10,848 $ Related Party deposit utilized to purchase Class B Common Stock $ 864 $ Cash payments made for interest & taxes $ $
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SOURCE Rafael Holdings, Inc.