Rafael Holdings Reports Second Quarter Fiscal Year 2020 Results
NEWARK, N.J., March 5, 2020 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE: RFL), reported revenue of $1.2 million and a loss per diluted share of $0.08 for the fiscal quarter ended January 31, 2020.
Recent Rafael Holdings Highlights
-- Subsequent to the quarter close, Rafael Holdings and other shareholders
in Rafael Pharmaceuticals, a leader in cancer metabolism-based
therapeutics, entered into an agreement to provide up to $50 million to
finance Rafael Pharmaceuticals' operations and clinical development
program. Please see Rafael Holdings' Form 8-K filed with the U.S.
Securities and Exchange Commission on February 3, 2020 for additional
information.
-- On November 21, 2019, Rafael Holdings up-listed its Class B common stock
to the New York Stock Exchange from the NYSE American exchange. The
Company retained its ticker symbol, 'RFL'.
-- The Barer Institute successfully synthesized novel chemical entities
that have shown efficacy at inhibiting cancer metabolism, with ongoing
studies in syngeneic animal models.
-- Revenue of $1.2 million in Q2 FY2020, generated through Rafael Holdings'
real estate portfolio, increased from $1.0 million in the year-ago
quarter. The loss per share of $0.08 was unchanged from Q2 FY2019.
Rafael Pharmaceuticals
Following the equity issued in connection with the financing arrangement referenced above, Rafael Holdings and its subsidiaries held 50.7% (38.7% exclusive of minority interests) of the capital stock of Rafael Pharmaceuticals.
-- On March 3, 2020, Rafael Pharmaceuticals announced the appointment of
Sanjay Sehgal, Ph.D., to Chief Regulatory Affairs and Quality Assurance
Officer. Dr. Sehgal formerly served as the Senior Vice President of
Regulatory Affairs and Conformance at Celularity, Inc. and was Chair of
Regulatory Sciences for the American Association of Pharmaceutical
Scientists (AAPS) from 2007-2008.
-- On January 21, 2020, Rafael Pharmaceuticals announced a collaboration
with Michigan Medicine on a Phase 1b/2 clinical trial of CPI-613®
(devimistat) in combination with gemcitabine and cisplatin for patients
with biliary tract cancer.
-- On January 14, 2020, Rafael Pharmaceuticals announced that it had
enrolled 250 patients - half of its enrollment goal - in its Phase 3
clinical trial (AVENGER 500) of CPI-613® for patients with metastatic
pancreatic cancer. The study is being conducted at multiple sites in the
United States, France, Israel and South Korea.
LipoMedix
Rafael Holdings owns 57.9% of the issued and outstanding ordinary shares of LipoMedix, a development-stage Israeli company focused on the development of an innovative, safe and effective cancer therapy based on liposome delivery.
-- On January 23, 2020, LipoMedix announced that a Phase 1 study of
Promitil® (PL-MLP) in 53 patients with advanced, treatment-refractory
colorectal cancer treated with Promitil either as a single agent or in
combination with capecitabine and/or bevacizumab was well tolerated and
resulted in a substantial rate of disease stabilization. Prolonged
survival of stable disease patients was also observed.
Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings
"Rafael Holdings' key pharmaceutical investments, Rafael Pharmaceuticals and LipoMedix, both achieved important milestones in their respective clinical development programs this quarter. We also entered into an agreement to finance Rafael Pharmaceuticals' expanding clinical development program and put in place key Barer Institute research programs. Finally, we continue to work to monetize some of our real estate portfolio including our office building in Newark, New Jersey."
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, Inc., is developing a pipeline of therapeutic compounds including compounds to regulate cancer metabolism. For more information, visit rafaelholdings.com
RAFAEL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share data)
January 31, July 31,
2020 2019
ASSETS
CURRENT ASSETS
Cash and cash equivalents $
9,522 $
12,024
Trade accounts receivable, net of allowance for doubtful accounts of $170 and $122 at 325 450
January 31, 2020 and July 31, 2019, respectively
Due from Rafael Pharmaceuticals 118 280
Prepaid expenses and other current assets 326 507
Total current assets 10,291 13,261
Property and equipment, net 48,250 48,733
Investments - Rafael Pharmaceuticals 70,018 70,018
Investments - Other Pharmaceuticals 2,000 2,000
Investments - Hedge Funds 5,645 5,125
Deferred income tax assets, net 7 19
In-process research and development and patents 1,575 1,575
Other assets 1,450 1,412
TOTAL ASSETS $
139,236 $
142,143
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable $
569 $
795
Accrued expenses 579 605
Other current liabilities 48 27
Total current liabilities 1,196 1,427
Due to Related Party 29 65
Convertible note, net of discount of $0 and $54 - Related Party 14,946
Other liabilities 92 292
Accrued interest on convertible note - Related Party 649
TOTAL LIABILITIES 1,317 17,379
COMMITMENTS AND CONTINGENCIES
EQUITY
Class A common stock, $0.01 par value; 50,000,000 shares authorized, 787,163 shares 8 8
issued and outstanding as of January 31, 2020 and July 31, 2019
Class B common stock, $0.01 par value; 200,000,000 shares authorized, 15,020,485 and 149 131
13,142,502 shares issued and outstanding as of January 31, 2020 and July 31, 2019, respectively
Additional paid-in capital 128,843 112,898
Accumulated deficit (8,691) (5,840)
Accumulated other comprehensive income related to foreign currency translation adjustment 3,756 3,784
Total equity attributable to Rafael Holdings, Inc. 124,065 110,981
Noncontrolling interests 13,854 13,783
TOTAL EQUITY 137,919 124,764
TOTAL LIABILITIES AND EQUITY $
139,236 $
142,143
RAFAEL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except share and per share data)
Three Months Ended
Six Months Ended
January 31, January 31,
2020 2019 2020 2019
REVENUE:
Rental - Third Party $
370 $
306 $
716 $
689
Rental - Related Party 527 522 1,047 1,043
Parking 219 189 443 420
Other - Related Party 120 240
Total Revenue 1,236 1,017 2,446 2,152
COSTS AND EXPENSES
Selling, general and administrative 2,221 1,716 4,262 3,169
Research and development 448 276 693 649
Depreciation and amortization 473 431 939 860
Loss from Operations (1,906) (1,406) (3,448) (2,526)
Interest income (expense), net 33 767 (31) 868
Net loss resulting from foreign exchange transactions (5)
Gain on sales of marketable securities, net 103 330
Unrealized gain (loss) on Investments - Hedge Funds 557 (148) 520 (52)
Loss Before Income Taxes (1,316) (684) (2,964) (1,380)
(Provision for) benefit from income taxes (12) (17) (16) 14
Net Loss (1,328) (701) (2,980) (1,366)
Net (loss) income attributable to noncontrolling interests (75) 320 (129) 136
Net Loss attributable to Rafael Holdings, Inc. $
(1,253) $
(1,021) $
(2,851) $
(1,502)
OTHER COMPREHENSIVE INCOME (LOSS)
Net Loss $
(1,328) $
(701) $
(2,980) $
(1,366)
Foreign currency translation adjustments (34) 80 (28) 2
Total Comprehensive Loss (1,362) (621) (3,008) (1,364)
Comprehensive (loss) income attributable to noncontrolling (18) 15 (16) 23
interests
Total Comprehensive Loss attributable to Rafael Holdings, $
(1,344) $
(636) $
(2,992) $
(1,387)
Inc.
Loss Per Share:
Basic and diluted $
(0.08) $
(0.08) $
(0.18) $
(0.12)
Weighted average number of shared used in calculation of
loss per share:
Basic and diluted 15,790,400 13,489,583 15,715,442 12,634,389
RAFAEL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Six Months Ended
January 31,
2020 2019
Operating activities
Net loss $
(2,980) $
(1,366)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 939 860
Deferred income taxes 12 (15)
Interest income on Series D Convertible Note (848)
Net gain on sales of marketable securities (330)
Unrealized (gain) loss on investments - Hedge Funds (520) 52
Provision for doubtful accounts 48 9
Non-cash compensation 411 172
Amortization of debt discount 54 5
Change in assets and liabilities:
Trade accounts receivable 77 (78)
Prepaid expenses and other current assets 181 (186)
Other assets (38) (82)
Accounts payable and accrued expenses (252) 296
Due to/from related parties 126 588
Other current liabilities 39
Other liabilities 42 (15)
Net cash used in operating activities (1,900) (899)
Investing activities
Purchases of property and equipment (456) (58)
Proceeds from sale and maturity of marketable securities, net 25,031
Investment in Rafael Pharmaceuticals (55,870)
Net cash used in investing activities (456) (30,897)
Financing activities
Contribution from noncontrolling interest of consolidated entity 4,587
Repayment of Loan from Rafael Pharmaceuticals 3,300
Proceeds from exercise of options 163
Proceed from sale of shares 7,777
Proceeds from convertible notes payable - Related Party 15,000
Payments for taxes related to shares withheld for employee taxes (116)
Net cash (used in) provided by financing activities (116) 30,827
Effect of exchange rate changes on cash and cash equivalents (30) (65)
Net decrease in cash and cash equivalents (2,502) (1,034)
Cash and cash equivalents at beginning of period 12,024 15,803
Cash and cash equivalents at end of period $
9,522 $
14,769
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
Debt and accrued interest converted to Series D Preferred Stock
$ $
10,848
Related Party deposit utilized to purchase Class B Common Stock
$ $
864
Conversion of LipoMedix Bridge Note $
200
$
Conversions of related party convertible notes payable and accrued interest $
15,668
$
View original content to download multimedia:http://www.prnewswire.com/news-releases/rafael-holdings-reports-second-quarter-fiscal-year-2020-results-301018664.html
SOURCE Rafael Holdings, Inc.
