RFL
$11.33
Rafael Holdings
($.26)
(2.24%)
Earnings Details
Quarter January 2020
Thursday, March 5, 2020 4:30:00 PM
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Summary

Rafael Holdings (RFL) Recent Earnings

Rafael Holdings (RFL) reported a Quarter January 2020 loss of $0.08 per share on revenue of $1.2 million.. Revenue grew 21.5% on a year-over-year basis.

Results
Reported Earnings
($0.08)
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$1.2 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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
January 31, 2020 and July 31, 2019, respectively



325




450


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 $54Related 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 
     issued and outstanding as of January 31, 2020 and July 31, 2019



8




8


     Class B common stock, $0.01 par value; 200,000,000 shares authorized, 15,020,485 and 
     13,142,502 shares issued and outstanding as of January 31, 2020 and July 31, 2019, respectively



149




131


 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
January 31,



Six Months Ended
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
interests



(18)




15




(16)




23


Total Comprehensive Loss attributable to Rafael Holdings,
Inc.


$

(1,344)



$

(636)



$

(2,992)



$

(1,387)



















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



$











 

 

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SOURCE Rafael Holdings, Inc.