Rafael Holdings Reports Second Quarter Fiscal 2023 Financial Results
14 Marzo 2023 - 9:01PM
Rafael Holdings, Inc. (NYSE: RFL), today reported its second
quarter fiscal 2023 financial results for the three months and six
months ended January 31, 2023.
“Our strong balance sheet allows us to continue to fund our
pipeline assets and explore selective strategic business
development opportunities, which potentially could improve the
lives of patients and generate value for our shareholders,” said
Bill Conkling, CEO of Rafael Holdings.
Rafael Holdings, Inc. Second Quarter Fiscal Year 2023
Financial Results
As of January 31, 2023, we had cash, cash
equivalents and marketable securities of $88.9 million.
For the three months ended January 31, 2023, we incurred a net
loss from continuing operations of $3.3 million, or $0.13 per
share. For the same period in the prior year, we incurred a net
loss from continuing operations of $2.1 million, or $0.09 per
share.
Research and development expenses were $2.2 million for the
three months ended January 31, 2023, which includes $0.5 million in
severance costs. For the same period in the prior year, research
and development expenses were $3.3 million. The year over year
reduction in spending is due to the winding down of the early-stage
programs at Barer Institute.
Our general and administrative expenses from
continuing operations were $2.1 million for the three months ended
January 31, 2023, which includes $0.3 million in severance costs
offset by a net credit of $0.05 million in non-cash stock-based
compensation expense. For the same period in the prior year, we
reported a credit of $1.7 million which included a net, non-cash
credit of $11.2 million of stock-based compensation expense.
Rafael Holdings, Inc. First Half Fiscal Year 2023
Financial Results
For the six months ended January 31, 2023, we incurred a net
loss from continuing operations of $8.5 million, or $0.36 per
share. For the same period in the prior year, we incurred a net
loss from continuing operations of $130.9 million, or $5.86 per
share, which included a $25 million loss on the write-off of a
receivable pursuant to a line of credit, a loss of $10.1 million on
the write-off of a related party receivable and a $79.1 million
charge for the impairment of our investment in Cornerstone
Pharmaceuticals, Inc.
Research and development expenses were $4.3 million for the six
months ended January 31, 2023, which includes $0.5 million in
severance costs. For the same period in the prior year, R&D
expenses were $5.5 million.
Our general and administrative expenses were $5.2 million for
the six months ended January 31, 2023, which includes $0.4 million
in severance costs as well as $1.0 million net, non-cash
stock-based compensation expense. For the same period in the prior
year, G&A expenses were $10.6 million which included $5.9
million in severance costs as well as a net, non-cash credit of
$3.6 million of stock-based compensation expense.
About Rafael Holdings, Inc.
Rafael Holdings is a holding company with
interests in clinical and early-stage pharmaceutical companies,
including an investment in Cornerstone Pharmaceuticals, Inc.,
formerly known as Rafael Pharmaceuticals Inc., a cancer
metabolism-based therapeutics company. The Company’s primary focus
is to invest in, fund, and develop novel cancer therapies. We
further seek to expand our portfolio through opportunistic
investments in therapeutics which address high unmet medical needs
including through acquisitions and strategic investments.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including without limitation statements
regarding our expectations surrounding the potential, safety,
efficacy, and regulatory and clinical progress of our product
candidates; plans regarding the further evaluation of clinical
data; and the potential of our pipeline, including our internal
cancer metabolism research programs. These statements are neither
promises nor guarantees, but involve known and unknown risks,
uncertainties and other important factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements, including, but not
limited to, the following: the impact of public health threats,
including COVID-19, on our business and operations; clinical trials
of product candidates may not be successful; our pharmaceutical
companies may not be able to develop any medicines of commercial
value; our pharmaceutical companies may not be successful in their
efforts to identify or discover potential product candidates; the
manufacturing and manufacturing development of our products and
product candidates present technological, logistical and regulatory
risks, each of which may adversely affect our potential revenue;
potential unforeseen events during clinical trials could cause
delays or other adverse consequences; risks relating to the
regulatory approval process; interim, topline and preliminary data
may change as more patient data become available, and are subject
to audit and verification procedures that could result in material
changes in the final data; our product candidates may cause serious
adverse side effects; ongoing regulatory obligations; effects of
significant competition; unfavorable pricing regulations,
third-party reimbursement practices or healthcare reform
initiatives; product liability lawsuits; failure to attract, retain
and motivate qualified personnel; the possibility of system
failures or security breaches; risks relating to intellectual
property and significant costs as a result of operating as a public
company. These and other important factors discussed under the
caption “Risk Factors” in our Annual Report on Form 10-K for the
year ended July 31, 2022, and our other filings with the SEC could
cause actual results to differ materially from those indicated by
the forward-looking statements made in this press release. Any such
forward-looking statements represent management’s estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, we disclaim
any obligation to do so, even if subsequent events cause our views
to change.
Contact:Barbara
RyanBarbara.ryan@rafaelholdings.com(203) 274-2825
|
RAFAEL
HOLDINGS, INC. |
CONSOLIDATED
BALANCE SHEETS |
(in
thousands, except share and per share data) |
|
|
|
|
|
|
|
January 31, 2023 |
|
July 31, 2022 |
|
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
9,670 |
|
|
$ |
26,537 |
|
Available-for-sale securities |
|
|
79,197 |
|
|
|
36,698 |
|
Interest receivable |
|
|
314 |
|
|
|
140 |
|
Accounts receivable, net of allowance for doubtful accounts of $242
and $197 at October 31, 2022 and July 31, 2022, respectively |
|
|
272 |
|
|
|
157 |
|
Prepaid expenses and other current assets |
|
|
512 |
|
|
|
4,621 |
|
Assets held for sale |
|
|
- |
|
|
|
40,194 |
|
Total current assets |
|
|
89,965 |
|
|
|
108,347 |
|
|
|
|
|
|
Property and equipment, net |
|
|
1,732 |
|
|
|
1,770 |
|
Investments – Other Pharmaceuticals |
|
|
254 |
|
|
|
477 |
|
Investments – Hedge Funds |
|
|
5,015 |
|
|
|
4,764 |
|
In-process research and development and patents |
|
|
1,575 |
|
|
|
1,575 |
|
Other assets |
|
|
9 |
|
|
|
1,387 |
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
98,550 |
|
|
$ |
118,320 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Accounts payable |
|
$ |
443 |
|
|
$ |
564 |
|
Accrued expenses |
|
|
1,326 |
|
|
|
1,875 |
|
Other current liabilities |
|
|
197 |
|
|
|
3,518 |
|
Due to related parties |
|
|
- |
|
|
|
69 |
|
Note payable, net of debt issuance costs |
|
|
- |
|
|
|
15,000 |
|
Total current liabilities |
|
|
1,966 |
|
|
|
21,026 |
|
|
|
|
|
|
Other liabilities |
|
|
49 |
|
|
|
88 |
|
TOTAL LIABILITIES |
|
$ |
2,015 |
|
|
$ |
21,114 |
|
|
|
|
|
|
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 January 31,
2022 and July 31, 2022, respectively |
|
|
8 |
|
|
|
8 |
|
Class B common stock, $0.01 par value; 200,000,000 shares
authorized, 23,636,084 issued and 23,522,995 outstanding as of
January 31, 2023, and 23,712,449 issued and 23,687,964 outstanding
as of July 31, 2022, respectively |
|
|
236 |
|
|
|
237 |
|
Additional paid-in capital |
|
|
262,924 |
|
|
|
262,023 |
|
Accumulated deficit |
|
|
(167,115 |
) |
|
|
(165,457 |
) |
Accumulated other comprehensive gain (loss) related to unrealized
gain (loss) on available-for-sale securities |
|
|
308 |
|
|
|
(63 |
) |
Accumulated other comprehensive income related to foreign currency
translation adjustment |
|
|
3,741 |
|
|
|
3,767 |
|
Total equity attributable to Rafael Holdings, Inc. |
|
|
100,102 |
|
|
|
100,515 |
|
Noncontrolling interests |
|
|
(3,567 |
) |
|
|
(3,309 |
) |
TOTAL EQUITY |
|
$ |
96,535 |
|
|
$ |
97,206 |
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
98,550 |
|
|
$ |
118,320 |
|
|
|
|
|
|
|
RAFAEL
HOLDINGS, INC. |
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS) |
(in
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
|
Three Months Ended January 31, |
|
Six Months Ended January 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
$ |
70 |
|
|
$ |
74 |
|
|
$ |
140 |
|
|
$ |
265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
G&A Expenses |
|
2,085 |
|
|
|
(1,680 |
) |
|
|
5,194 |
|
|
|
10,594 |
|
R&D Expenses |
|
2,225 |
|
|
|
3,335 |
|
|
|
4,306 |
|
|
|
5,488 |
|
Depreciation and amortization |
|
19 |
|
|
|
18 |
|
|
|
41 |
|
|
|
37 |
|
Provision for loss on receivable pursuant to line of credit |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
25,000 |
|
Provision for losses on related party receivables |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,095 |
|
Operating Loss |
|
(4,259 |
) |
|
|
(1,599 |
) |
|
|
(9,401 |
) |
|
|
(50,949 |
) |
Impairment of cost method investment - Cornerstone
Pharmaceuticals |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(79,141 |
) |
Unrealized (loss) gain on investments - Hedge Funds |
|
378 |
|
|
|
(454 |
) |
|
|
251 |
|
|
|
(243 |
) |
Impairment of investments - Other Pharmaceuticals |
|
(67 |
) |
|
|
- |
|
|
|
(223 |
) |
|
|
- |
|
Other, net |
|
701 |
|
|
|
- |
|
|
|
924 |
|
|
|
(13 |
) |
Loss before Incomes Taxes from continuing operations |
|
(3,247 |
) |
|
|
(2,053 |
) |
|
|
(8,449 |
) |
|
|
(130,346 |
) |
Taxes |
|
(5 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
(4 |
) |
Equity in earnings (loss) of RP Finance |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(575 |
) |
Consolidated net loss from continuing operations |
|
(3,252 |
) |
|
|
(2,057 |
) |
|
|
(8,459 |
) |
|
|
(130,925 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations related to 520 Property |
|
(157 |
) |
|
|
(508 |
) |
|
|
(241 |
) |
|
|
(1,051 |
) |
Gain on disposal of 520 Property |
|
- |
|
|
|
- |
|
|
|
6,784 |
|
|
|
- |
|
Income (loss) from discontinued operations |
|
(157 |
) |
|
|
(508 |
) |
|
|
6,543 |
|
|
|
(1,051 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(3,409 |
) |
|
|
(2,565 |
) |
|
|
(1,916 |
) |
|
|
(131,976 |
) |
Net loss attributable to noncontrolling interests |
|
(159 |
) |
|
|
(244 |
) |
|
|
(258 |
) |
|
|
(17,631 |
) |
Net income (loss) attributable to Rafael Holdings, Inc. |
$ |
(3,250 |
) |
|
$ |
(2,321 |
) |
|
$ |
(1,658 |
) |
|
$ |
(114,345 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
$ |
(3,252 |
) |
|
$ |
(2,057 |
) |
|
$ |
(8,459 |
) |
|
$ |
(130,925 |
) |
Net loss attributable to noncontrolling interests |
|
(159 |
) |
|
|
(244 |
) |
|
|
(258 |
) |
|
|
(17,631 |
) |
Numerator for loss per share from continuing operations |
$ |
(3,093 |
) |
|
$ |
(1,813 |
) |
|
$ |
(8,201 |
) |
|
$ |
(113,294 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from discontinued operations |
$ |
(157 |
) |
|
$ |
(508 |
) |
|
$ |
6,543 |
|
|
$ |
(1,051 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations - basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.36 |
) |
|
$ |
(5.86 |
) |
Discontinued operations - basic and diluted |
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
0.28 |
|
|
|
(0.06 |
) |
Total basic and diluted earnings (loss) per
common share |
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.08 |
) |
|
$ |
(5.91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in calculation of earnings
(loss) per share, basic and diluted |
|
23,155,018 |
|
|
|
19,713,127 |
|
|
|
23,085,612 |
|
|
|
19,332,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grafico Azioni Rafael (NYSE:RFL)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Rafael (NYSE:RFL)
Storico
Da Lug 2023 a Lug 2024