NEWARK, N.J., Dec. 9, 2019 /PRNewswire/ -- Rafael
Holdings, Inc., (NYSE: RFL), reported revenue of $1.2 million and a loss per share of $0.10 for the fiscal quarter ended October 31, 2019.
Recent Operational Highlights
- Rafael Holdings became a New York Stock Exchange listed company
on November 21, 2019.
- Rafael Pharmaceuticals (Rafael Pharma) a clinical-stage
pharmaceutical company in which the
Company holds preferred equity and a warrant to increase ownership
to 56% of the fully diluted equity interests, announced
several significant expansions of ongoing clinical trials:
-
- Its Phase 3 clinical trial (AVENGER 500) of CPI-613®
(devimistat) for patients with metastatic pancreatic cancer had
enrolled 100 patients at multiple sites in the United States, Europe and Israel. The trial was
subsequently expanded to four sites in South Korea. The trial
is expected to enroll up to 500 patients worldwide;
- Expanded its Phase 3 clinical trial (ARMADA 2000) of CPI-613®
(devimistat) in older patients with relapsed or refractory
acute myeloid leukemia (AML) to four sites in South Korea.
The trial is expected to enroll up to 500 patients worldwide;
- Expanded its Phase 2 clinical trial of CPI-613® (devimistat)
for patients with relapsed or refractory Burkitts lymphoma/leukemia
to Massachusetts General Hospital. The initial trial sites
were Memorial Sloan Kettering Cancer Center in New York City and City of Hope in Duarte, California;
- José Octávio Costa Filho, M.D., joined Rafael Pharma as
Co-Chief Medical Officer. He works alongside Timothy Pardee, M.D., Ph.D., who continues as
Co-Chief Medical Officer.
- On August 5th, 2019
Lipomedix Pharmaceuticals, in which the Company holds a majority
interest, announced the addition of Miranda J. Toledano and Praveen Tyle, Ph.D., to its board
of directors. The company also announced the formation of an
executive committee of the board to enhance governance and support
the company's development. Ms. Toledano and Dr. Tyle will join
Sanjeev Luther, chairman of the
board, on the newly formed executive committee.
Remarks by Howard Jonas,
Chairman and CEO of Rafael Holdings
"During the quarter, our
key pharma holding, Rafael Pharma, continued enrolling patients in
key clinical trials, including in its Phase 3 trials
of CPI-613® (devimistat) for metastatic pancreatic
cancer and AML, as well as its Phase 2 trial for Burkitt
lymphoma.
"We've also put into place the foundation for our internal
cancer metabolism drug development initiative, the Barer Institute,
a wholly-owned early stage venture focused on developing a pipeline
of therapeutic compounds, including compounds to regulate cancer
metabolism. The venture is pursuing collaborative research
agreements with leading scientists from top academic
institutions."
"After the quarter closed, we were very pleased to begin our
listing on the New York Stock Exchange with the enhanced visibility
that the Big Board offers."
About Rafael Holdings, Inc.:
Rafael Holdings holds
commercial real estate assets and interests in clinical stage
pharmaceutical companies. The real estate holdings consist of
properties in Newark and
Piscataway, New Jersey and
Jerusalem, Israel. The
pharmaceutical holdings include interests in two companies focused
on the development and commercialization of oncology drugs:
Rafael Pharmaceuticals, Inc. and LipoMedix Pharmaceuticals Ltd. In
addition, Rafael Holdings through its wholly owned subsidiary, the
Barer Institute, is developing a pipeline of therapeutic compounds
including compounds to regulate cancer metabolism. For more information, visit
www.rafaelholdings.com.
RAFAEL HOLDINGS,
INC. CONSOLIDATED BALANCE SHEETS (unaudited, in
thousands, except share data)
|
|
|
|
October
31,
|
|
|
July
31,
|
|
|
|
2019
|
|
|
2019
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,771
|
|
|
$
|
12,024
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $170 and $122
at
October 31, 2019 and July 31, 2019, respectively
|
|
|
229
|
|
|
|
450
|
|
Due from Rafael
Pharmaceuticals
|
|
|
120
|
|
|
|
280
|
|
Prepaid expenses and
other current assets
|
|
|
540
|
|
|
|
507
|
|
Total current
assets
|
|
|
11,660
|
|
|
|
13,261
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
48,588
|
|
|
|
48,733
|
|
Investments – Rafael
Pharmaceuticals
|
|
|
70,018
|
|
|
|
70,018
|
|
Investments – Other
Pharmaceuticals
|
|
|
2,000
|
|
|
|
2,000
|
|
Investments – Hedge
Funds
|
|
|
5,088
|
|
|
|
5,125
|
|
Deferred income tax
assets, net
|
|
|
20
|
|
|
|
19
|
|
In-process research
and development and patents
|
|
|
1,575
|
|
|
|
1,575
|
|
Other
assets
|
|
|
1,451
|
|
|
|
1,412
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
140,400
|
|
|
$
|
142,143
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
621
|
|
|
$
|
795
|
|
Accrued
expenses
|
|
|
564
|
|
|
|
605
|
|
Other current
liabilities
|
|
|
15
|
|
|
|
27
|
|
Total current
liabilities
|
|
|
1,200
|
|
|
|
1,427
|
|
|
|
|
|
|
|
|
|
|
Due to Related
Party
|
|
|
28
|
|
|
|
65
|
|
Convertible note, net
of discount of $ – and $54 – Related Party
|
|
|
—
|
|
|
|
14,946
|
|
Other
liabilities
|
|
|
210
|
|
|
|
292
|
|
Accrued interest on
convertible note – Related Party
|
|
|
—
|
|
|
|
649
|
|
TOTAL
LIABILITIES
|
|
|
1,438
|
|
|
|
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 October 31, 2019 and July 31,
2019
|
|
|
8
|
|
|
|
8
|
|
Class B common stock,
$0.01 par value; 200,000,000 shares authorized, 14,997,251 and
13,142,502 shares issued and outstanding as of October 31, 2019 and
July 31, 2019,
respectively
|
|
|
149
|
|
|
|
131
|
|
Additional paid-in
capital
|
|
|
128,642
|
|
|
|
112,898
|
|
Accumulated
deficit
|
|
|
(7,438)
|
|
|
|
(5,840)
|
|
Accumulated other
comprehensive income
|
|
|
3,790
|
|
|
|
3,784
|
|
Total equity
attributable to Rafael Holdings, Inc.
|
|
|
125,151
|
|
|
|
110,981
|
|
Noncontrolling
interests
|
|
|
13,811
|
|
|
|
13,783
|
|
TOTAL
EQUITY
|
|
|
138,962
|
|
|
|
124,764
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
140,400
|
|
|
$
|
142,143
|
|
RAFAEL HOLDINGS,
INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (unaudited, in thousands, except share
data)
|
|
|
|
Three Months
Ended
October 31,
|
|
|
|
2019
|
|
|
2018
|
|
Revenues:
|
|
|
|
|
|
|
Rental – Third
Party
|
|
$
|
346
|
|
|
$
|
383
|
|
Rental – Related
Party
|
|
|
520
|
|
|
|
521
|
|
Parking
|
|
|
224
|
|
|
|
231
|
|
Other – Related
Party
|
|
|
120
|
|
|
|
—
|
|
Total
Revenues
|
|
|
1,210
|
|
|
|
1,135
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
2,041
|
|
|
|
1,453
|
|
Research and
development
|
|
|
245
|
|
|
|
373
|
|
Depreciation and
amortization
|
|
|
466
|
|
|
|
429
|
|
Loss from
operations
|
|
|
(1,542)
|
|
|
|
(1,120)
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income, net
|
|
|
(64)
|
|
|
|
101
|
|
Net loss resulting
from foreign exchange transactions
|
|
|
(5)
|
|
|
|
—
|
|
Loss on sales of
marketable securities, net
|
|
|
—
|
|
|
|
(10)
|
|
Unrealized gain on
sales of marketable securities
|
|
|
—
|
|
|
|
333
|
|
Unrealized loss on
investments – Hedge Funds
|
|
|
(37)
|
|
|
|
—
|
|
Loss before income
taxes
|
|
|
(1,648)
|
|
|
|
(696)
|
|
(Provision for)
benefit from income taxes
|
|
|
(4)
|
|
|
|
31
|
|
Net
Loss
|
|
|
(1,652)
|
|
|
|
(665)
|
|
Net loss
attributable to noncontrolling interests
|
|
|
(54)
|
|
|
|
(184)
|
|
Net loss
attributable to Rafael Holdings, Inc.
|
|
$
|
(1,598)
|
|
|
$
|
(481)
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(1,652)
|
|
|
$
|
(665)
|
|
Foreign currency
translation adjustments
|
|
|
6
|
|
|
|
78
|
|
Total
Comprehensive Loss
|
|
|
(1,646)
|
|
|
|
(587)
|
|
Comprehensive income
(loss) attributable to noncontrolling interests
|
|
|
2
|
|
|
|
(9)
|
|
Total
Comprehensive Loss attributable to Rafael Holdings,
Inc.
|
|
$
|
(1,648)
|
|
|
$
|
(596)
|
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to Rafael Holdings, Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.10)
|
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shared used in
calculation of loss per share:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
15,640,683
|
|
|
|
12,566,358
|
|
RAFAEL HOLDINGS,
INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited, in thousands, except share
data)
|
|
|
|
Three Months
Ended
October 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,652)
|
|
|
$
|
(665)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
466
|
|
|
|
429
|
|
Deferred income
taxes
|
|
|
1
|
|
|
|
(40)
|
|
Net gain on sales of
marketable securities
|
|
|
—
|
|
|
|
(323)
|
|
Unrealized loss on
investments – Hedge Funds
|
|
|
37
|
|
|
|
—
|
|
Provision for
doubtful accounts
|
|
|
48
|
|
|
|
—
|
|
Stock based
compensation
|
|
|
94
|
|
|
|
30
|
|
Amortization of debt
discount
|
|
|
54
|
|
|
|
—
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
173
|
|
|
|
(92)
|
|
Prepaid expenses and
other current assets
|
|
|
217
|
|
|
|
(63)
|
|
Other
assets
|
|
|
(289)
|
|
|
|
(13)
|
|
Trade accounts
payable and accrued expenses
|
|
|
(196)
|
|
|
|
(138)
|
|
Other current
liabilities
|
|
|
(12)
|
|
|
|
(6)
|
|
Due to Related
Party
|
|
|
(37)
|
|
|
|
171
|
|
Due from Related
Party
|
|
|
160
|
|
|
|
—
|
|
Other
liabilities
|
|
|
—
|
|
|
|
(14)
|
|
Net cash used in
operating activities
|
|
|
(936)
|
|
|
|
(724)
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(321)
|
|
|
|
(26)
|
|
Proceeds from sale
and maturity of marketable securities, net
|
|
|
—
|
|
|
|
5,820
|
|
Purchase of
marketable securities
|
|
|
—
|
|
|
|
(953)
|
|
Investment in Rafael
Pharmaceuticals
|
|
|
—
|
|
|
|
(10,000)
|
|
Net cash used in
investing activities
|
|
|
(321)
|
|
|
|
(5,159)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of options
|
|
|
—
|
|
|
|
118
|
|
Net cash provided by
financing activities
|
|
|
—
|
|
|
|
118
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
4
|
|
|
|
48
|
|
Net decrease in cash
and cash equivalents
|
|
|
(1,253)
|
|
|
|
(5,717)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
12,024
|
|
|
|
15,803
|
|
Cash and cash
equivalents at end of period
|
|
$
|
10,771
|
|
|
$
|
10,086
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Non-Cash Investing and Financing
Activities
|
|
|
|
|
|
|
|
|
Adoption effect of
ASU 2016-01
|
|
$
|
—
|
|
|
$
|
39
|
|
Conversion of
LipoMedix Bridge Note
|
|
$
|
82
|
|
|
$
|
—
|
|
Conversion of related
party convertible notes payable and accrued interest
|
|
$
|
15,668
|
|
|
$
|
—
|
|
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SOURCE Rafael Holdings, Inc.