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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.

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.)

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 
     and $122 at April 30, 2020 and July 31, 2019, respectively



261




450


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, 
     787,163 shares issued and outstanding as of April 30, 2020 and July 31, 
     2019



8




8


Class B common stock, $0.01 par value; 200,000,000 shares authorized, 
     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



149




131


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
April 30,



Nine Months Ended
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 
     interests



(3)




(18)




(19)




5


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



$


 

Cision

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SOURCE Rafael Holdings, Inc.