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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. 

Rafael Holdings holds commercial real estate assets and interests in two clinical stage pharmaceutical companies. The pharmaceutical holdings consist of 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. For more information, visit www.rafaelholdings.com (PRNewsfoto/Rafael Holdings, Inc.)

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
April 30,



Nine Months Ended
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


$



$


 

Cision

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