| Rafael Holdings Reports Third Quarter Fiscal Year 2021 Results |
NEWARK, N.J., June 14, 2021 -- Rafael Holdings, Inc., (NYSE: RFL), reported revenue of $1.0 million and a loss per share of $0.15 for the third quarter of its 2021 fiscal year, the three months ended April 30, 2021. Q3 FY 2021 Operations and Consolidated Financial Highlights - Ameet Mallik became the Company's Chief Executive Officer on May 1, 2021 and William "Bill" Conkling is now serving as the Company's first Chief Commercial Officer.
- On May 27, 2021, the Company filed a "shelf" registration statement covering sales of its Class B common stock in one or more offerings up to an aggregate initial offering price of $250 million.
- Q3 FY 2021 revenue of $1.0 million decreased from $1.2 million in the year-ago quarter due primarily to the sale of the Company's building in Piscataway, NJ and reduced parking revenues resulting from the shift to work-from-home during the COVID pandemic.
- Q3 FY 2021 loss per share was $0.15 compared to a loss per share of $0.14 in the year ago quarter.
Q3 FY 2021 - Pharmaceutical Holdings - Recent Developments Rafael Pharmaceuticals At April 30, 2021, the Company and its controlled subsidiaries collectively owned securities representing 51% of the issued and outstanding capital stock of Rafael Pharmaceuticals and approximately 41% on a fully diluted basis. Recent developments at Rafael Pharmaceuticals include: - Rafael Pharma expects to obtain a data readout from its pivotal Phase 3 clinical trial for metastatic pancreatic cancer in the fourth quarter of 2021.
- Rafael Pharma presented two posters at the 2021 American Society of Clinical Oncology (ASCO) Annual Meeting summarizing the respective enrollment status of ongoing trials studying devimistat in pancreatic cancer and biliary tract cancers.
- In March, enrollment surpassed 150 patients in Rafael Pharma's pivotal Phase 3 clinical trial assessing the efficacy and safety of its lead compound CPI-613® (devimistat) in combination with high dose cytarabine and mitoxantrone for patients with relapsed or refractory acute myeloid leukemia (AML).
LipoMedix At April 30, 2021, Rafael Holdings held 68% 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. Recent developments announced by LipoMedix include: - LipoMedix announced that its lead compound, Promitil® (PL-MLP), will be manufactured in the United States by ForDoz Pharma, a specialty pharmaceutical company.
Remarks by Howard Jonas, Chairman of Rafael Holdings
"We continued to build out our leadership team and operating capabilities. We are focused on becoming an integrated oncology company dedicated to the clinical development of devimistat and a robust pipeline of therapies based on cellular metabolism. I'm very pleased that Ameet Mallik is now leading our organization, as our CEO, and already has begun to accelerate execution on our strategic priorities." 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. For more information, visit rafaelholdings.com. RAFAEL HOLDINGS, INC. | CONSOLIDATED BALANCE SHEETS | (in thousands) |
|
|
| April 30, 2021
(unaudited) |
| July 31, 2020 | ASSETS |
|
|
|
| CURRENT ASSETS |
|
|
|
| Cash and cash equivalents |
| $ | 4,679 |
|
| $ | 6,206 |
| Trade accounts receivable, net of allowance for doubtful accounts of $183 and $218 at April 30, 2021 and July 31, 2020, respectively |
| 248 |
|
| 267 |
| Due from Rafael Pharmaceuticals |
| 480 |
|
| 118 |
| Prepaid expenses and other current assets |
| 625 |
|
| 273 |
| Assets held for sale |
| - |
|
| 2,968 |
| Total current assets |
| 6,032 |
|
| 9,832 |
|
|
|
|
|
| Property and equipment, net |
| 43,591 |
|
| 44,433 |
| Equity investment - RP Finance LLC |
| 479 |
|
| 192 |
| Due from RP Finance LLC |
| 3,750 |
|
| - |
| Investments - Rafael Pharmaceuticals |
| 79,141 |
|
| 70,018 |
| Investments - Other Pharmaceuticals |
| 477 |
|
| 1,201 |
| Investments - Hedge Funds |
| 9,681 |
|
| 7,510 |
| Deferred income tax assets, net |
| - |
|
| 6 |
| In-process research and development and patents |
| 1,575 |
|
| 1,575 |
| Other assets |
| 1,482 |
|
| 1,580 |
| TOTAL ASSETS |
| $ | 146,208 |
|
| $ | 136,347 |
| LIABILITIES AND EQUITY |
|
|
|
| CURRENT LIABILITIES |
|
|
|
| Trade accounts payable |
| $ | 753 |
|
| $ | 921 |
| Accrued expenses |
| 861 |
|
| 1,191 |
| Amount due for purchase of membership interest |
| 3,000 |
|
| 3,500 |
| Other current liabilities |
| 235 |
|
| 115 |
| Due to related parties |
| 60 |
|
| - |
| Total current liabilities |
| 4,909 |
|
| 5,727 |
|
|
|
|
|
| Deferred income tax liabilities, net |
| 9 |
|
| - |
| Other liabilities |
| 33 |
|
| 92 |
| TOTAL LIABILITIES |
| 4,951 |
|
| 5,819 |
|
|
|
|
|
| COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
| EQUITY |
|
|
|
| Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of April 30, 2021 and July 31, 2020, respectively |
| 8 |
|
| 8 |
| Class B common stock, $0.01 par value; 200,000,000 shares authorized, 15,969,962 issued and 15,982,349 outstanding as of April 30, 2021, and 15,034,598 issued and 15,028,536 outstanding as of July 31, 2020 |
| 158 |
|
| 149 |
| Additional paid-in capital |
| 151,258 |
|
| 129,136 |
| Accumulated deficit |
| (28,419) |
|
| (16,255) |
| Accumulated other comprehensive income related to foreign currency translation adjustment |
| 3,766 |
|
| 3,762 |
| Total equity attributable to Rafael Holdings, Inc. |
| 126,771 |
|
| 116,800 |
| Noncontrolling interests |
| 14,486 |
|
| 13,728 |
| TOTAL EQUITY |
| 141,257 |
|
| 130,528 |
| TOTAL LIABILITIES AND EQUITY |
| $ | 146,208 |
|
| $ | 136,347 |
|
RAFAEL HOLDINGS, INC. | CONSOLIDATED STATEMENT OF OPERATIONS | (unaudited, in thousands, except share and per share data) |
|
|
| Three Months Ended
April 30, |
| Nine Months Ended
April 30, |
|
| 2021 |
| 2020 |
| 2021 |
| 2020 | REVENUE |
|
|
|
|
|
|
|
| Rental - Third Party |
| $ | 228 |
|
| $ | 360 |
|
| $ | 654 |
|
| $ | 1,076 |
| Rental - Related Party |
| 523 |
|
| 523 |
|
| 1,570 |
|
| 1,570 | Parking |
| 119 |
|
| 221 |
|
| 418 |
|
| 664 | Other - Related Party |
| 120 |
|
| 120 |
|
| 360 |
|
| 360 | Total revenue |
| 990 |
|
| 1,224 |
|
| 3,002 |
|
| 3,670 |
|
|
|
|
|
|
|
|
|
| COSTS AND EXPENSES |
|
|
|
|
|
|
|
| Selling, general and administrative |
| 3,006 |
|
| 2,081 |
|
| 8,365 |
|
| 6,343 |
| Research and development |
| 1,262 |
|
| 634 |
|
| 3,345 |
|
| 1,327 |
| Depreciation and amortization |
| 201 |
|
| 474 |
|
| 1,079 |
|
| 1,413 |
| Impairment - Altira |
| - |
|
| - |
|
| 7,000 |
|
| - |
| Loss from operations |
| (3,479) |
|
| (1,965) |
|
| (16,787) |
|
| (5,413) |
|
|
|
|
|
|
|
|
|
| Interest (expense) income, net |
| (1) |
|
| - |
|
| (2) |
|
| (31) |
| Net loss resulting from foreign exchange transactions |
| - |
|
| - |
|
| - |
|
| (5) |
| Gain on sale of building |
| - |
|
| - |
|
| 749 |
|
| - |
| Impairment of investments - Other Pharmaceuticals |
| - |
|
| (295) |
|
| (724) |
|
| (295) |
| Unrealized (loss) gain on investments - Hedge Funds |
| 738 |
|
| (28) |
|
| 4,171 |
|
| 492 |
| Loss before income taxes |
| (2,742) |
|
| (2,288) |
|
| (12,593) |
|
| (5,252) |
| Provision for income taxes |
| (4) |
|
| (8) |
|
| (13) |
|
| (24) |
| Equity in earnings of RP Finance |
| 96 |
|
| 53 |
|
| 288 |
|
| 53 |
| Consolidated net loss |
| (2,650) |
|
| (2,243) |
|
| (12,318) |
|
| (5,223) |
| Net loss attributable to noncontrolling interests |
| (97) |
|
| (84) |
|
| (154) |
|
| (213) |
| Net loss attributable to Rafael Holdings, Inc. |
| $ | (2,553) |
|
| $ | (2,159) |
|
| $ | (12,164) |
|
| $ | (5,010) |
|
|
|
|
|
|
|
|
|
| OTHER COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
| Net loss |
| $ | (2,650) |
|
| $ | (2,243) |
|
| $ | (12,318) |
|
| $ | (5,223) |
| Foreign currency translation adjustment |
| 5 |
|
| (4) |
|
| 4 |
|
| (32) |
| Total comprehensive loss |
| (2,645) |
|
| (2,247) |
|
| (12,314) |
|
| (5,255) |
| Comprehensive loss attributable to noncontrolling interests |
| (28) |
|
| (3) |
|
| (39) |
|
| (19) |
| Total comprehensive loss attributable to Rafael Holdings, Inc. |
| $ | (2,617) |
|
| $ | (2,244) |
|
| $ | (12,275) |
|
| $ | (5,236) |
|
|
|
|
|
|
|
|
|
| Loss per share |
|
|
|
|
|
|
|
| Basic and diluted |
| $ | (0.15) |
|
| $ | (0.14) |
|
| $ | (0.75) |
|
| $ | (0.32) |
|
|
|
|
|
|
|
|
|
| Weighted average number of shares used in calculation of loss per share |
|
|
|
|
|
|
|
| Basic and diluted |
| 16,668,624 |
|
| 15,813,679 |
|
| 16,216,969 |
|
| 15,747,709 |
RAFAEL HOLDINGS, INC. | CONSOLIDATED STATEMENTS OF CASH FLOWS | (unaudited, in thousands) |
|
|
| Nine Months Ended April 30, |
|
| 2021 |
| 2020 | Operating activities |
|
|
|
| Net loss |
| $ | (12,318) |
|
| $ | (5,223) |
| Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
| Depreciation and amortization |
| 1,079 |
|
| 1,413 |
| Deferred income taxes |
| 15 |
|
| 13 |
| Net unrealized gain on investments - Hedge Funds |
| (4,171) |
|
| (492) |
| Impairment of investments - Other Pharmaceuticals |
| 724 |
|
| 295 |
| Impairment - Altira |
| 7,000 |
|
| - |
| Equity in earnings of RP Finance |
| (288) |
|
| (53) |
| (Recovery of) provision for doubtful accounts |
| (183) |
|
| 48 |
| Stock-based compensation |
| 1,023 |
|
| 546 |
| Amortization of debt discount |
| - |
|
| 54 |
| Gain on sale of building |
| (749) |
|
| - |
|
|
|
|
|
| Change in assets and liabilities: |
|
|
|
| Trade accounts receivable |
| 202 |
|
| 141 |
| Prepaid expenses and other current assets |
| (352) |
|
| 171 |
| Other assets |
| 98 |
|
| (72) |
| Accounts payable and accrued expenses |
| (459) |
|
| 28 |
| Other current liabilities |
| 120 |
|
| - |
| Due to related parties |
| 60 |
|
| 107 |
| Due from Rafael Pharmaceuticals |
| (362) |
|
| - |
| Accrued interest - Related Party |
| - |
|
| 19 |
| Other liabilities |
| (59) |
|
| 30 |
| Net cash used in operating activities |
| (8,620) |
|
| (2,975) |
|
|
|
|
|
| Investing activities |
|
|
|
| Purchase of investment in Altira |
| (1,250) |
|
| - |
| Purchases of property and equipment |
| (237) |
|
| (491) |
| Payments to fund RP Finance |
| (3,750) |
|
| - |
| Proceeds from sale of building |
| 3,658 |
|
| - |
| Proceeds related to distribution from Hedge Funds |
| 2,000 |
|
| - |
| Investment in Rafael Pharmaceuticals |
| (9,123) |
|
| - |
| Net cash used in investing activities |
| (8,702) |
|
| (491) |
|
|
|
|
|
| Financing activities |
|
|
|
| Contribution from noncontrolling interest of consolidated entity |
| 912 |
|
| - |
| Proceeds from exercise of options |
| 43 |
|
| 29 |
| Proceeds from exercise of warrants |
| 2,000 |
|
| - |
| Proceeds from issuance of shares |
| 13,000 |
|
| - |
| Payments for taxes related to shares withheld for employee taxes |
| (185) |
|
| (125) |
| Net cash provided by (used in) financing activities |
| 15,770 |
|
| (96) |
| Effect of exchange rate changes on cash and cash equivalents |
| 25 |
|
| (32) |
| Net decrease in cash and cash equivalents |
| (1,527) |
|
| (3,594) |
| Cash and cash equivalents, beginning of period |
| 6,206 |
|
| 12,024 |
| Cash and cash equivalents, end of period |
| $ | 4,679 |
|
| $ | 8,430 |
|
|
|
|
|
|
|
|
|
|
| Supplemental schedule of noncash investing and financing activities |
|
|
|
| Common shares issued for settlement of Altira liability |
| $ | 6,250 |
|
| $ | - |
| Conversion of LipoMedix bridge notes |
| $ | - |
|
| $ | 200 |
| Conversions of related party convertible notes payable and accrued interest |
| $ | - |
|
| $ | 15,668 |
|
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SOURCE Rafael Holdings, Inc. |
| Jun 14, 2021 |
|
