Rafael Holdings Reports Third Quarter Fiscal Year 2020 Results
NEWARK, N.J., June 9, 2020 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE: RFL), reported revenue of $1.2 million and a loss per share of $0.14 for the fiscal quarter ended April 30, 2020.
Q3 FY 2020 Consolidated Highlights
-- Revenue of $1.2 million in Q3 FY2020, generated by Rafael Holdings' real
estate portfolio, decreased from $1.4 million in the year-ago quarter.
The loss per share of $0.14 increased from $0.07 in the year ago quarter
largely on increased R&D expense incurred by the Barer Institute.
Rafael Pharmaceuticals
-- On May 26, 2020, Rafael Pharma announced positive results of a
single-arm, open-label, Phase 1 study of CPI-613® (devimistat) with
gemcitabine and nab-paclitaxel in patients with locally advanced or
metastatic pancreatic cancer. The data was presented at the American
Society of Clinical Oncology (ASCO) 2020 Virtual Scientific Program.
-- On April 28, 2020, Rafael Pharma announced the expansion of its Phase 2
clinical trial of CPI-613® (devimistat) for patients with relapsed or
refractory Burkitt's lymphoma/leukemia. The clinical trial began
enrolling patients at MD Anderson Cancer Center, where Dr. Raphael
Steiner serves as principal investigator.
-- On March 24, 2020, Rafael Pharma announced that it had enrolled more
than 75% of the 500 patients needed for its pivotal Phase 3 clinical
trial for metastatic pancreatic cancer (AVENGER 500). The trial is
evaluating the efficacy and safety of Rafael's lead compound CPI-613®?
(devimistat) in combination with modified FOLFIRINOX (mFFX) as
first-line therapy.
LipoMedix
At April 30, 2020, Rafael Holdings held 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.
-- Lipomedix was awarded a Seal of Excellence for its Promitil project by
European Innovation Council of the European Union.
-- LipoMedix's Phase IB study of Promitil in Israel continued to enroll
patients with advanced cancer requiring palliative radiotherapy for
inoperable tumors or metastatic disease.
Barer Institute
Rafael Holdings increased its investment in pharmaceutical development through its Barer Institute subsidiary. The Barer Institute is currently testing indications for lead compounds targeting cancer metabolism and has initiated a preclinical in-licensing effort on selected compounds that target the unique mechanisms of cancer.
Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings
"Rafael Holdings' key pharmaceutical investments, Rafael Pharma and LipoMedix and our wholly owned Barer Institute, continue to execute on their development and clinical programs despite the challenges posed by the worldwide Covid-19 pandemic. I am especially gratified that Rafael Pharma has surpassed the 80% enrollment milestone in its pivotal Phase 3 Avenger 500 study of patients with pancreatic cancer. The Barer Institute is evaluating promising candidates for potential clinical development programs. And finally, we continue to work to monetize our New Jersey real estate assets, while our asset in Israel is now fully leased."
About Rafael Holdings, Inc.:
Rafael Holdings is focused on development of novel cancer therapies. The company is a significant investor in two clinical stage oncology companies, Rafael Pharmaceuticals, Inc. and LipoMedix Pharmaceuticals Ltd. Through its wholly owned Barer Institute subsidiary, the company is developing a pipeline of compounds focused on the regulation of cancer metabolism. The company also holds commercial real estate assets in New Jersey and Jerusalem. For more information, visit www.rafaelholdings.com.
RAFAEL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share data)
April 30, July 31,
2020 2019
ASSETS
CURRENT ASSETS
Cash and cash equivalents $
8,430 $
12,024
Trade accounts receivable, net of allowance for doubtful accounts of $143 261 450
and $122 at April 30, 2020 and July 31, 2019, respectively
Due from Rafael Pharmaceuticals 135 280
Prepaid expenses and other current assets 336 507
Total current assets 9,162 13,261
Property and equipment, net 47,811 48,733
Investments - Rafael Pharmaceuticals 70,018 70,018
Investments - Other Pharmaceuticals 1,705 2,000
Investments - Hedge Funds 5,617 5,125
Equity investment - RP Finance 53
Deferred income tax assets, net 6 19
In-process research and development and patents 1,575 1,575
Other assets 1,484 1,412
TOTAL ASSETS $
137,431 $
142,143
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable $
700 $
795
Accrued expenses 728 605
Other current liabilities 57 27
Total current liabilities 1,485 1,427
Due to Related Party 27 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 1,604 17,379
COMMITMENTS AND CONTINGENCIES
EQUITY
Class A common stock, $0.01 par value; 50,000,000 shares authorized, 8 8
787,163 shares issued and outstanding as of April 30, 2020 and July 31,
2019
Class B common stock, $0.01 par value; 200,000,000 shares authorized, 149 131
15,034,931 issued and 15,028,869 outstanding as of April 30, 2020 and
13,142,502 shares issued and outstanding as of July 31, 2019
Additional paid-in capital 128,998 112,898
Accumulated deficit (10,850) (5,840)
Accumulated other comprehensive income related to foreign currency translation adjustment 3,752 3,784
Total equity attributable to Rafael Holdings, Inc. 122,057 110,981
Noncontrolling interests 13,770 13,783
TOTAL EQUITY 135,827 124,764
TOTAL LIABILITIES AND EQUITY $
137,431 $
142,143
RAFAEL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except share and per share data)
Three Months Ended Nine Months Ended
April 30, April 30,
2020 2019 2020 2019
REVENUE:
Rental - Third Party $
360 $
588 $
1,076 $
1,277
Rental - Related Party 523 521 1,570 1,564
Parking 221 268 664 688
Other - Related Party 120 360
Total Revenue 1,224 1,377 3,670 3,529
COSTS AND EXPENSES
Selling, general and administrative 2,081 2,059 6,343 5,228
Research and development 634 300 1,327 949
Depreciation and amortization 474 436 1,413 1,296
Loss from Operations (1,965) (1,418) (5,413) (3,944)
Interest (expense) income, net (221) (31) 647
Net gain (loss) resulting from foreign exchange transactions 19 (5) 19
Gain on sales of marketable securities, net 330
Impairment of investments - Other Pharmaceuticals (295) (295)
Unrealized (loss) gain on investments - Hedge Funds (28) 466 492 414
Loss Before Income Taxes (2,288) (1,154) (5,252) (2,534)
(Provision for) benefit from income taxes (8) 7 (24) 21
Equity in earnings of RP Finance 53 53
Consolidated Net Loss (2,243) (1,147) (5,223) (2,513)
Net loss attributable to noncontrolling interests (84) (142) (213) (6)
Net Loss Attributable to Rafael Holdings, Inc. $
(2,159) $
(1,005) $
(5,010) $
(2,507)
OTHER COMPREHENSIVE LOSS
Net Loss $
(2,243) $
(1,147) $
(5,223) $
(2,513)
Foreign currency translation adjustments (4) (54) (32) (52)
Total Comprehensive Loss (2,247) (1,201) (5,255) (2,565)
Comprehensive (loss) income attributable to noncontrolling (3) (18) (19) 5
interests
Total Comprehensive Loss attributable to Rafael Holdings, Inc. $
(2,244) $
(1,183) $
(5,236) $
(2,570)
Loss Per Share:
Basic and diluted $
(0.14) $
(0.07) $
(0.32) $
(0.19)
Weighted average number of shares used in calculation of
loss per share:
Basic and diluted 15,813,679 13,924,691 15,747,709 13,055,037
RAFAEL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Nine Months Ended
April 30,
2020 2019
Operating activities
Net loss $
(5,223) $
(2,513)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization 1,413 1,296
Deferred income taxes 13 (24)
Interest income on Series D
Convertible Note (848)
Net gain on sales of marketable
securities (330)
Impairment of investments - Other
Pharmaceuticals 295
Unrealized gain on investments -
Hedge Funds (492) (414)
Equity in earnings of RP Finance (53)
Provision for doubtful accounts 48 86
Non-cash compensation 546 269
Amortization of debt discount 54 11
Change in assets and liabilities:
Trade accounts receivable 141 (471)
Prepaid expenses and other current
assets 171 (419)
Other assets (72) (180)
Accounts payable and accrued
expenses 28 91
Due to/from related parties 107 473
Accrued interest - Related Party 19 418
Other current liabilities (5)
Other liabilities 30 22
Net cash used in operating
activities (2,975) (2,538)
Investing activities
Purchases of property and
equipment (491) (364)
Proceeds from sale and maturity of
marketable securities, net 25,031
Investment in Rafael
Pharmaceuticals (55,870)
Net cash used in investing
activities (491) (31,203)
Financing activities
Contribution from noncontrolling
interest of consolidated entity 4,587
Repayment of Loan from Rafael
Pharmaceuticals 3,300
Proceeds from exercise of options 29 190
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 (125)
Net cash (used in) provided by
financing activities (96) 30,854
Effect of exchange rate changes on
cash and cash equivalents (32) 53
Net decrease in cash and cash
equivalents (3,594) (2,834)
Cash and cash equivalents at
beginning of period 12,024 15,803
Cash and cash equivalents at end
of period $
8,430 $
12,969
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
$
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SOURCE Rafael Holdings, Inc.
