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Rafael Holdings Reports First Quarter Fiscal Year 2019 Results
By: PR Newswire Association LLC. - 10 Dec 2018Back to overview list

NEWARK, N.J., Dec. 10, 2018 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE American: RFL), reported revenue of $1.1 million and a loss per share of $0.04 for the first quarter of its 2019 fiscal year, the three months ended October 31, 2018. 

Financial and Operational Highlights

  • On August 16, 2018, Rafael Pharmaceuticals, in which subsidiaries of Rafael Holdings hold a warrant to purchase a 56% interest, announced that the U.S. Food and Drug Administration (FDA) has granted orphan drug designation to CPI-613, the Company's lead compound, for the treatment of Peripheral T-Cell Lymphoma;
  • On November 29, 2018, Rafael Pharmaceuticals announced the initiation of a Phase 3 pivotal trial to evaluate the efficacy and safety of CPI-613 in combination with high dose cytarabine and mitoxantrone in older patients with relapsed or refractory acute myeloid leukemia (AML);
  • In October 2018, LipoMedix, in which Rafael Holdings holds a majority stake, announced that the FDA has cleared its investigational new drug application to launch a randomized Phase 2b clinical trial of Promitil, LipoMedix's patented prodrug, for the treatment of patients with previously treated metastatic colorectal cancer;
  • Rafael Holdings continues to work to monetize its real estate holdings.

Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings

"This quarter, we continued our efforts to optimize the value of both our pharmaceutical and real estate holdings.

"We continued to invest in Rafael Pharmaceuticals to support its operational progress.  Rafael Pharmaceuticals launched a pivotal Phase 3 trial of its lead compound, CPI-613, for patients with acute myeloid leukemia and is preparing to launch a Phase 3 trial for patients with metastatic pancreatic cancer.  Also, during the quarter, Rafael Pharmaceuticals announced that the FDA has granted CPI-613 orphan drug designation for the treatment of peripheral T-cell lymphoma.  CPI-613 has now received orphan drug designation for five difficult-to-treat cancers with significant unmet clinical needs.

"LipoMedix Pharmaceuticals continued to execute on its pre-clinical and clinical trial programs of Promitil®, its flagship prodrug. This quarter, the FDA cleared LipoMedix' IND application to launch a randomized Phase 2b clinical trial of Promitil for the treatment of patients with previously treated metastatic colorectal cancer.

"On the real estate side of our business, we are working to monetize our properties including our 20-story commercial property and associated garage in Newark, New Jersey."

About Rafael Holdings, Inc.:

Rafael Holdings holds commercial real estate assets and interests in two clinical stage, oncology focused pharmaceutical companies.  The real estate holdings include properties in Newark and Piscataway, New Jersey and Jerusalem, Israel.  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. 

RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED BALANCE SHEETS

(unaudited, in thousands, except per share data)




October 31,



July 31,




2018



2018









ASSETS














CURRENT ASSETS







Cash and cash equivalents


$

10,086




$   15,803


Trade accounts receivable, net of allowance for doubtful accounts of $82 at October 31, 2018 and July 31, 2018



379




287


Marketable securities



20,061




24,701


Due from Rafael Pharmaceuticals



3,435




3,300


Prepaid expenses and other current assets



484




421


Total current assets



34,445




44,512











Property and equipment, net



49,740




50,113


Investments – Rafael Pharmaceuticals



23,300




13,300


Investments – Other Pharmaceuticals



2,000




2,000


Investments – Hedge Funds



4,314




4,218


Deferred income tax assets, net



40




-


Patents



324




324


In-process research and development



1,327




1,327


Other assets



1,139




1,126











TOTAL ASSETS



116,629




116,920











LIABILITIES AND STOCKHOLDERS' DEFICIT


















CURRENT LIABILITIES









Trade accounts payable



298




367


Accrued expenses



431




500


Other current liabilities



18




24


Total current liabilities



747




891











Due to related parties



582




276


Other liabilities



174




188











TOTAL LIABILITIES



1,503




1,355











COMMITMENTS AND CONTINGENCIES


















STOCKHOLDERS' DEFICIT


















Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of October 31, 2018 and July 31, 2018, respectively



8




8


Class B common stock, $0.01 par value; 200,000,000 shares authorized, 11,786,397 and 11,762,346 shares issued and outstanding as of October 31, 2018 and July 31, 2018, respectively



118




118


Additional paid-in capital



103,784




103,636


Accumulated deficit



(1,628)




(1,108)


Accumulated other comprehensive income



4,160




4,043


Total stockholders' deficit



106,442




106,697


Noncontrolling interests



8,684




8,868


Total equity



115,126




115,565











TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT


$

116,629




$ 116,920


                                                                                                                                                               

RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(unaudited, in thousands, except per share data)




Three Months Ended




October 31,




2018



2017
















REVENUES







     Rental – Third Party


$

383




$          386


     Rental – Related Party



521




505


     Parking



231




215


     Total Revenue



1,135




1,106











COSTS AND EXPENSES









     Selling, general and administrative



1,453




1,736


     Research and development



373




-


     Depreciation and amortization



429




425











Loss from operations



(1,120)




(1,055)


     Interest income , net



101




2


     Net gains resulting from foreign exchange transactions



-




11


     Net loss on equity investments



-




(104)


     Loss on sales of marketable securities



(10)




-


     Unrealized gain on marketable securities



333




-


     Gain on disposal of bonus shares



-




246


Loss before income taxes



(696)




(900)


     Benefit from (provision for) income taxes



31




(8,428)


Net Loss



(665)




(9,328)


     Net loss attributable to noncontrolling interests



(184)




-


Net loss attributable to Rafael Holdings, Inc.



(481)




(9,328)











OTHER COMPREHENSIVE INCOME (LOSS)









     Foreign currency translation adjustments


$

78



$

10


Total Comprehensive Loss



(403)




(9,318)


     Comprehensive loss attributable to noncontrolling interests



(9)




-


Total Comprehensive Loss attributable to Rafael Holdings, Inc.


$

(394)



$

(9,318)











Loss per share:









     Basic and diluted


$

(0.04)



$

(0.74)











Weighted average number of shared used in calculation of loss per share:









     Basic and diluted



12,566,358




12,541,998


                                                                                                                                                               

RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, except per share data)




Three Months Ended




October 31,




2018



2017




(in thousands)


Operating activities






Net loss


$

(665)



$

(9,328

Adjustments to reconcile net (loss) income to net cash used in operating activities:








Depreciation and amortization



429




425

Deferred income taxes



(40)




8,838

Realized gain on disposal of bonus shares






(246

Net realized and unrealized gain on sale of marketable securities



(323)




Non-cash compensation



30




606

Interest in the equity of investments






104

Change in assets and liabilities:








Trade accounts receivable



(92)




(88

Other current assets and prepaid expenses



(63)




6

Other assets



(13)




(140

Trade accounts payable and accrued expenses



(138)




79

Other current liabilities



(6)




(25

Due from/to related parties



171




(260

Other liabilities



(14)




Net cash used in operating activities



(724)




(29









Investing activities








Purchases of property and equipment



(26)




(223

Proceeds from sale and maturity of marketable securities



5,820




Purchase of marketable securities



(953)




Investment in Rafael Pharmaceuticals



(10,000)




Net cash used in investing activities



(5,159)




(223









Financing activities








Proceeds from exercise of options



118




Net cash used in financing activities



118




Effect of exchange rate changes on cash and cash equivalents



48




15

Net decrease in cash and cash equivalents



(5,717)




(237

Cash and cash equivalents at beginning of period



15,803




11,756

Cash and cash equivalents at end of period


$

10,086



$

11,519









Supplemental Schedule of Non-Cash Financing and Investing Activities








Adoption effect of ASU 2016-01


$

39



$

 

 

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SOURCE Rafael Holdings, Inc.

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