NEWARK, N.J., March 5, 2020 /PRNewswire/ -- Rafael
Holdings, Inc., (NYSE: RFL), reported revenue of $1.2 million and a loss per diluted share of
$0.08 for the fiscal quarter ended
January 31, 2020.
Recent Rafael Holdings Highlights
- Subsequent to the quarter close, Rafael Holdings and other
shareholders in Rafael Pharmaceuticals, a leader in cancer
metabolism-based therapeutics, entered into an agreement to provide
up to $50 million to finance Rafael
Pharmaceuticals' operations and clinical development program.
Please see Rafael Holdings' Form 8-K filed with the U.S. Securities
and Exchange Commission on February 3,
2020 for additional information.
- On November 21, 2019, Rafael
Holdings up-listed its Class B common stock to the New York Stock
Exchange from the NYSE American exchange. The Company
retained its ticker symbol, 'RFL'.
- The Barer Institute successfully synthesized novel chemical
entities that have shown efficacy at inhibiting cancer metabolism,
with ongoing studies in syngeneic animal models.
- Revenue of $1.2 million in Q2
FY2020, generated through Rafael Holdings' real estate portfolio,
increased from $1.0 million in the
year-ago quarter. The loss per share of $0.08 was unchanged from Q2 FY2019.
Rafael Pharmaceuticals
Following the equity issued in connection with the financing
arrangement referenced above, Rafael Holdings and its subsidiaries
held 50.7% (38.7% exclusive of minority interests) of the capital
stock of Rafael Pharmaceuticals.
- On March 3, 2020, Rafael
Pharmaceuticals announced the appointment of Sanjay Sehgal, Ph.D., to Chief Regulatory
Affairs and Quality Assurance Officer. Dr. Sehgal formerly served
as the Senior Vice President of Regulatory Affairs and Conformance
at Celularity, Inc. and was Chair of Regulatory Sciences for the
American Association of Pharmaceutical Scientists (AAPS) from
2007-2008.
- On January 21, 2020, Rafael
Pharmaceuticals announced a collaboration with Michigan Medicine on
a Phase 1b/2 clinical trial of
CPI-613® (devimistat) in combination with gemcitabine and cisplatin
for patients with biliary tract cancer.
- On January 14, 2020, Rafael
Pharmaceuticals announced that it had enrolled 250 patients – half
of its enrollment goal – in its Phase 3 clinical trial (AVENGER
500) of CPI-613® for patients with metastatic pancreatic cancer.
The study is being conducted at multiple sites in the United States, France, Israel and South
Korea.
LipoMedix
Rafael Holdings owns 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.
- On January 23, 2020, LipoMedix
announced that a Phase 1 study of Promitil® (PL-MLP) in 53 patients
with advanced, treatment-refractory colorectal cancer treated with
Promitil either as a single agent or in combination with
capecitabine and/or bevacizumab was well tolerated and resulted in
a substantial rate of disease stabilization. Prolonged
survival of stable disease patients was also observed.
Remarks by Howard Jonas,
Chairman and CEO of Rafael Holdings
"Rafael Holdings' key pharmaceutical investments, Rafael
Pharmaceuticals and LipoMedix, both achieved important milestones
in their respective clinical development programs this
quarter. We also entered into an agreement to finance Rafael
Pharmaceuticals' expanding clinical development program and put in
place key Barer Institute research programs. Finally, we
continue to work to monetize some of our real estate portfolio
including our office building in Newark,
New Jersey."
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, Inc., is developing a pipeline of therapeutic
compounds including compounds to regulate cancer metabolism. For
more information, visit rafaelholdings.com
|
RAFAEL HOLDINGS,
INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(unaudited, in
thousands, except share and per share data)
|
|
|
|
January
31,
|
|
|
July
31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,522
|
|
|
$
|
12,024
|
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $170 and $122
at
January 31, 2020 and July 31, 2019, respectively
|
|
|
325
|
|
|
|
450
|
|
|
Due from Rafael
Pharmaceuticals
|
|
|
118
|
|
|
|
280
|
|
|
Prepaid expenses and
other current assets
|
|
|
326
|
|
|
|
507
|
|
|
Total current
assets
|
|
|
10,291
|
|
|
|
13,261
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
48,250
|
|
|
|
48,733
|
|
|
Investments – Rafael
Pharmaceuticals
|
|
|
70,018
|
|
|
|
70,018
|
|
|
Investments – Other
Pharmaceuticals
|
|
|
2,000
|
|
|
|
2,000
|
|
|
Investments – Hedge
Funds
|
|
|
5,645
|
|
|
|
5,125
|
|
|
Deferred income tax
assets, net
|
|
|
7
|
|
|
|
19
|
|
|
In-process research
and development and patents
|
|
|
1,575
|
|
|
|
1,575
|
|
|
Other
assets
|
|
|
1,450
|
|
|
|
1,412
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
139,236
|
|
|
$
|
142,143
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
569
|
|
|
$
|
795
|
|
|
Accrued
expenses
|
|
|
579
|
|
|
|
605
|
|
|
Other current
liabilities
|
|
|
48
|
|
|
|
27
|
|
|
Total current
liabilities
|
|
|
1,196
|
|
|
|
1,427
|
|
|
|
|
|
|
|
|
|
|
|
Due to Related
Party
|
|
|
29
|
|
|
|
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
|
|
|
1,317
|
|
|
|
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 January
31, 2020 and July 31, 2019
|
|
|
8
|
|
|
|
8
|
|
|
Class B common stock,
$0.01 par value; 200,000,000 shares authorized, 15,020,485
and
13,142,502 shares issued and
outstanding as of January 31, 2020 and July 31, 2019,
respectively
|
|
|
149
|
|
|
|
131
|
|
|
Additional
paid-in capital
|
|
|
128,843
|
|
|
|
112,898
|
|
|
Accumulated
deficit
|
|
|
(8,691)
|
|
|
|
(5,840)
|
|
|
Accumulated
other comprehensive income related to foreign currency translation
adjustment
|
|
|
3,756
|
|
|
|
3,784
|
|
|
Total equity
attributable to Rafael Holdings, Inc.
|
|
|
124,065
|
|
|
|
110,981
|
|
|
Noncontrolling
interests
|
|
|
13,854
|
|
|
|
13,783
|
|
|
TOTAL
EQUITY
|
|
|
137,919
|
|
|
|
124,764
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
139,236
|
|
|
$
|
142,143
|
|
|
RAFAEL HOLDINGS,
INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
|
(unaudited, in
thousands, except share and per share data)
|
|
|
|
Three Months
Ended
January 31,
|
|
|
Six Months
Ended
January 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental – Third
Party
|
|
$
|
370
|
|
|
$
|
306
|
|
|
$
|
716
|
|
|
$
|
689
|
|
|
Rental – Related
Party
|
|
|
527
|
|
|
|
522
|
|
|
|
1,047
|
|
|
|
1,043
|
|
|
Parking
|
|
|
219
|
|
|
|
189
|
|
|
|
443
|
|
|
|
420
|
|
|
Other – Related
Party
|
|
|
120
|
|
|
|
—
|
|
|
|
240
|
|
|
|
—
|
|
|
Total
Revenue
|
|
|
1,236
|
|
|
|
1,017
|
|
|
|
2,446
|
|
|
|
2,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
2,221
|
|
|
|
1,716
|
|
|
|
4,262
|
|
|
|
3,169
|
|
|
Research and
development
|
|
|
448
|
|
|
|
276
|
|
|
|
693
|
|
|
|
649
|
|
|
Depreciation and
amortization
|
|
|
473
|
|
|
|
431
|
|
|
|
939
|
|
|
|
860
|
|
|
Loss from
Operations
|
|
|
(1,906)
|
|
|
|
(1,406)
|
|
|
|
(3,448)
|
|
|
|
(2,526)
|
|
|
Interest income
(expense), net
|
|
|
33
|
|
|
|
767
|
|
|
|
(31)
|
|
|
|
868
|
|
|
Net loss resulting
from foreign exchange transactions
|
|
|
—
|
|
|
|
—
|
|
|
|
(5)
|
|
|
|
—
|
|
|
Gain on sales of
marketable securities, net
|
|
|
—
|
|
|
|
103
|
|
|
|
—
|
|
|
|
330
|
|
|
Unrealized gain
(loss) on Investments – Hedge Funds
|
|
|
557
|
|
|
|
(148)
|
|
|
|
520
|
|
|
|
(52)
|
|
|
Loss Before Income
Taxes
|
|
|
(1,316)
|
|
|
|
(684)
|
|
|
|
(2,964)
|
|
|
|
(1,380)
|
|
|
(Provision for)
benefit from income taxes
|
|
|
(12)
|
|
|
|
(17)
|
|
|
|
(16)
|
|
|
|
14
|
|
|
Net
Loss
|
|
|
(1,328)
|
|
|
|
(701)
|
|
|
|
(2,980)
|
|
|
|
(1,366)
|
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
|
(75)
|
|
|
|
320
|
|
|
|
(129)
|
|
|
|
136
|
|
|
Net Loss
attributable to Rafael Holdings, Inc.
|
|
$
|
(1,253)
|
|
|
$
|
(1,021)
|
|
|
$
|
(2,851)
|
|
|
$
|
(1,502)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(1,328)
|
|
|
$
|
(701)
|
|
|
$
|
(2,980)
|
|
|
$
|
(1,366)
|
|
|
Foreign currency
translation adjustments
|
|
|
(34)
|
|
|
|
80
|
|
|
|
(28)
|
|
|
|
2
|
|
|
Total
Comprehensive Loss
|
|
|
(1,362)
|
|
|
|
(621)
|
|
|
|
(3,008)
|
|
|
|
(1,364)
|
|
|
Comprehensive (loss)
income attributable to noncontrolling
interests
|
|
|
(18)
|
|
|
|
15
|
|
|
|
(16)
|
|
|
|
23
|
|
|
Total
Comprehensive Loss attributable to Rafael Holdings,
Inc.
|
|
$
|
(1,344)
|
|
|
$
|
(636)
|
|
|
$
|
(2,992)
|
|
|
$
|
(1,387)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.08)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shared used in calculation of
loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
15,790,400
|
|
|
|
13,489,583
|
|
|
|
15,715,442
|
|
|
|
12,634,389
|
|
|
RAFAEL HOLDINGS,
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(unaudited, in
thousands)
|
|
|
|
Six Months
Ended
January 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,980)
|
|
|
$
|
(1,366)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
939
|
|
|
|
860
|
|
|
Deferred income
taxes
|
|
|
12
|
|
|
|
(15)
|
|
|
Interest income on
Series D Convertible Note
|
|
|
—
|
|
|
|
(848)
|
|
|
Net gain on sales of
marketable securities
|
|
|
—
|
|
|
|
(330)
|
|
|
Unrealized (gain)
loss on investments – Hedge Funds
|
|
|
(520)
|
|
|
|
52
|
|
|
Provision for
doubtful accounts
|
|
|
48
|
|
|
|
9
|
|
|
Non-cash
compensation
|
|
|
411
|
|
|
|
172
|
|
|
Amortization of debt
discount
|
|
|
54
|
|
|
|
5
|
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
77
|
|
|
|
(78)
|
|
|
Prepaid expenses and
other current assets
|
|
|
181
|
|
|
|
(186)
|
|
|
Other
assets
|
|
|
(38)
|
|
|
|
(82)
|
|
|
Accounts payable and
accrued expenses
|
|
|
(252)
|
|
|
|
296
|
|
|
Due to/from related
parties
|
|
|
126
|
|
|
|
588
|
|
|
Other current
liabilities
|
|
|
—
|
|
|
|
39
|
|
|
Other
liabilities
|
|
|
42
|
|
|
|
(15)
|
|
|
Net cash used in
operating activities
|
|
|
(1,900)
|
|
|
|
(899)
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(456)
|
|
|
|
(58)
|
|
|
Proceeds from sale
and maturity of marketable securities, net
|
|
|
—
|
|
|
|
25,031
|
|
|
Investment in Rafael
Pharmaceuticals
|
|
|
—
|
|
|
|
(55,870)
|
|
|
Net cash used in
investing activities
|
|
|
(456)
|
|
|
|
(30,897)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Contribution from
noncontrolling interest of consolidated entity
|
|
|
—
|
|
|
|
4,587
|
|
|
Repayment of Loan
from Rafael Pharmaceuticals
|
|
|
—
|
|
|
|
3,300
|
|
|
Proceeds from
exercise of options
|
|
|
—
|
|
|
|
163
|
|
|
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
|
|
|
(116)
|
|
|
|
—
|
|
|
Net cash (used in)
provided by financing activities
|
|
|
(116)
|
|
|
|
30,827
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(30)
|
|
|
|
(65)
|
|
|
Net decrease in cash
and cash equivalents
|
|
|
(2,502)
|
|
|
|
(1,034)
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
12,024
|
|
|
|
15,803
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
9,522
|
|
|
$
|
14,769
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/rafael-holdings-reports-second-quarter-fiscal-year-2020-results-301018664.html
SOURCE Rafael Holdings, Inc.