| 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. 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 |
| $ | - |
|
| $ | - |
|
 View original content to download multimedia:http://www.prnewswire.com/news-releases/rafael-holdings-reports-third-quarter-fiscal-year-2019-results-300862467.html
SOURCE Rafael Holdings, Inc. |
| Jun 05, 2019 |
|
