Skip to main content

Rafael Holdings Reports First Quarter Fiscal 2024 Financial Results

NEWARK, N.J., Dec. 14, 2023 (GLOBE NEWSWIRE) -- Rafael Holdings, Inc. (NYSE: RFL) today reported its financial results for the first quarter of fiscal 2024 - the three months ended October 31, 2023.

“During fiscal 2024, we will continue to focus on advancing our existing portfolio and identifying strategic investments in companies which have the potential to generate value for our stockholders. We believe our strong balance sheet affords us the opportunity to potentially capitalize on attractive investments,” said Bill Conkling, CEO of Rafael Holdings. “In the first quarter of fiscal 2024, we continued to invest in Cyclo Therapeutics (Nasdaq: CYTH) in support of its Phase 3 registrational clinical trial for patients with Niemann-Pick Disease Type C and in Day Three Laboratories, a company which reimagines existing cannabis offerings with pharmaceutical-grade technology and innovation.”

Rafael Holdings, Inc. First Quarter Fiscal Year 2024 Financial Results

As of October 31, 2023, we had cash, cash equivalents and marketable securities of $72.1 million.

For the three months ended October 31, 2023, we incurred a net loss from continuing operations of $3.8 million, or $0.15 per share, down from a net loss from continuing operations of $5.2 million, or $0.22 per share a year ago.

For the three months ended October 31, 2023, research and development expenses were $0.5 million compared to $2.1 million in the year ago period. The year over year reduction in spending is due to the winding down of early-stage programs, including at Barer Institute.

For the three months ended October 31, 2023, general and administrative expenses were $2.0 million. For the same period in the prior year, general and administrative expenses were $3.1 million. The decrease was primarily related to a decrease in non-cash stock-based compensation and payroll expenses.

About Rafael Holdings, Inc.

Rafael Holdings is a holding company with interests in clinical and early-stage pharmaceutical companies, including an investment in Cornerstone Pharmaceuticals, Inc., formerly known as Rafael Pharmaceuticals Inc., a cancer metabolism-based therapeutics company, a majority equity interest in LipoMedix Pharmaceuticals Ltd., a clinical stage pharmaceutical company, the Barer Institute Inc., a wholly-owned preclinical cancer metabolism research operation, an investment in Cyclo Therapeutics Inc. (Nasdaq: CYTH), a clinical-stage biotechnology company dedicated to developing life-changing medicines for patients and families living with challenging diseases through its lead therapeutic asset, Trappsol® Cyclo™, an investment in Day Three Labs, Inc., a company which reimagines existing cannabis offerings with pharmaceutical-grade technology and innovation like Unlokt™ to bring to market better, cleaner, more precise and predictable products in the cannabis industry, and a majority interest in Rafael Medical Devices, LLC, an orthopedic-focused medical device company developing instruments to advance minimally invasive surgeries. The Company’s primary focus is to expand our investment portfolio through opportunistic and strategic investments including therapeutics which address high unmet medical needs.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our expectations surrounding the potential, safety, efficacy, and regulatory and clinical progress of our product candidates; plans regarding the further evaluation of clinical data; and the potential of our pipeline, including our internal cancer metabolism research programs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, those disclosed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended July 31, 2023, and our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Barbara Ryan
(203) 274-2825

(unaudited, in thousands, except share and per share data)
  October 31, 2023 July 31, 2023
Cash and cash equivalents $13,197  $21,498 
Available-for-sale securities  58,894   57,714 
Interest receivable  420   387 
Convertible note receivable, related party  1,858   1,921 
Trade accounts receivable, net of allowance for doubtful accounts of $245 and $245 at October 31, 2023 and July 31, 2023, respectively  231   213 
Prepaid expenses and other current assets  2,866   914 
Assets held for sale    
Investments in equity securities  -   294 
Total current assets  77,466   82,941 
Property and equipment, net  1,671   1,695 
Investments – Other Pharmaceuticals  -   65 
Investments – Hedge Funds  2,318   4,984 
Investments – Day Three Labs Inc.  2,581   2,797 
Investments – Cyclo Therapeutics Inc.  9,849   4,763 
In-process research and development and patents  1,575   1,575 
Other assets  42   9 
TOTAL ASSETS $95,502  $98,829 
Trade accounts payable $471  $333 
Accrued expenses  325   763 
Other current liabilities  115   1,023 
Due to related parties  23   26 
Note payable, net of debt issuance costs  -   - 
Total current liabilities  934   2,145 
Other liabilities  56   55 
Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of October 31, 2023 and July 31, 2023  8   8 
Class B common stock, $0.01 par value; 200,000,000 shares authorized, 23,882,117 issued and 23,668,315 outstanding (excluding treasury shares of 50,700) as of October 31, 2023, and 23,635,709 issued and 23,490,527 outstanding as of July 31, 2023  238   236 
Additional paid-in capital  265,487   264,010 
Accumulated deficit  (170,971)  (167,333)
Treasury stock, at cost; 50,700 and 0 Class B shares as of October 31, 2023 and July 31, 2023, respectively  (79)  
Accumulated other comprehensive loss related to unrealized loss on available-for-sale securities  (146)  (353)
Accumulated other comprehensive income related to foreign currency translation adjustment  3,668   3,725 
Total equity  98,205   100,293 
Noncontrolling interests  (3,693)  (3,664)

(unaudited, in thousands, except share and per share data)
 Three Months Ended October 31,
 2023 2022
Revenues$68  $70 
SG&A Expenses 2,040   3,109 
R&D Expenses 489   2,081 
Depreciation and amortization 17   22 
Operating Loss (2,478)  (5,142)
Interest income 582   208 
Impairment of investments - Other Pharmaceuticals -   (156)
Realized gain on available-for-sale securities 177   15 
Realized loss on investment in equity securities (46)  - 
Realized gain on investments - Cyclo Therapeutics Inc. 424   - 
Unrealized loss on investments - Cyclo Therapeutics Inc. (2,124)  - 
Unrealized loss on investments - Hedge Funds (166)  (127)
Other Income 93   - 
Loss before Incomes Taxes (3,538)  (5,202)
Taxes (6)  (5)
Equity in loss of Day Three Labs Inc. (216)  - 
Consolidated net loss from continuing operations (3,760)  (5,207)
Discontinued Operations   
Loss from operations related to 520 Broad Street, net of tax -   (84)
Gain on disposal of 520 Property -   6,784 
Income from discontinued operations -   6,700 
Net (loss) income (3,760)  1,493 
Net (loss) attributable to noncontrolling interests (122)  (99)
Net (loss) income attributable to Rafael Holdings, Inc.$(3,638) $1,592 
Continuing operations loss per share   
Net loss from continuing operations (3,760)  (5,207)
Net loss attributable to noncontrolling interests (122)  (99)
Numerator for loss per share from continuing operations$(3,638) $(5,108)
Discontinued operations income per share   
Net income from discontinued operations$-  $6,700 
(Loss) income per share   
Continuing operations - basic and diluted (0.15)  (0.22)
Discontinued operations - basic and diluted -   0.29 
(Loss) income per basic common share$(0.15) $0.07 
Weighted average shares in calculation 23,644,647   23,015,443 

Primary Logo

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.