NEWARK, N.J., June 9, 2020 /PRNewswire/ -- Rafael
Holdings, Inc., (NYSE: RFL), reported revenue of $1.2 million and a loss per share of $0.14 for the fiscal quarter ended April 30, 2020.
Q3 FY 2020 Consolidated Highlights
- Revenue of $1.2 million in Q3
FY2020, generated by Rafael Holdings' real estate portfolio,
decreased from $1.4 million in the
year-ago quarter. The loss per share of $0.14 increased from $0.07 in the year ago quarter largely on
increased R&D expense incurred by the Barer Institute.
Rafael Pharmaceuticals
- On May 26, 2020, Rafael Pharma
announced positive results of a single-arm, open-label, Phase 1
study of CPI-613® (devimistat) with gemcitabine and
nab-paclitaxel in patients with locally advanced or metastatic
pancreatic cancer. The data was presented at the American Society
of Clinical Oncology (ASCO) 2020 Virtual Scientific Program.
- On April 28, 2020, Rafael Pharma
announced the expansion of its Phase 2 clinical trial of CPI-613®
(devimistat) for patients with relapsed or refractory Burkitt's
lymphoma/leukemia. The clinical trial began enrolling patients at
MD Anderson Cancer Center, where Dr. Raphael Steiner serves as principal
investigator.
- On March 24, 2020, Rafael Pharma
announced that it had enrolled more than 75% of the 500 patients
needed for its pivotal Phase 3 clinical trial for metastatic
pancreatic cancer (AVENGER 500). The trial is evaluating the
efficacy and safety of Rafael's lead compound CPI-613®️
(devimistat) in combination with modified FOLFIRINOX (mFFX) as
first-line therapy.
LipoMedix
At April 30, 2020, Rafael Holdings
held 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.
- Lipomedix was awarded a Seal of Excellence for its Promitil
project by European Innovation Council of the European Union.
- LipoMedix's Phase IB study of Promitil in Israel continued to enroll patients with
advanced cancer requiring palliative radiotherapy for inoperable
tumors or metastatic disease.
Barer Institute
Rafael Holdings increased its investment in pharmaceutical
development through its Barer Institute subsidiary. The Barer
Institute is currently testing indications for lead compounds
targeting cancer metabolism and has initiated a preclinical
in-licensing effort on selected compounds that target the unique
mechanisms of cancer.
Remarks by Howard Jonas,
Chairman and CEO of Rafael Holdings
"Rafael Holdings' key pharmaceutical investments, Rafael Pharma
and LipoMedix and our wholly owned Barer Institute, continue to
execute on their development and clinical programs despite the
challenges posed by the worldwide Covid-19 pandemic. I am
especially gratified that Rafael Pharma has surpassed the 80%
enrollment milestone in its pivotal Phase 3 Avenger 500 study of
patients with pancreatic cancer. The Barer Institute is
evaluating promising candidates for potential clinical development
programs. And finally, we continue to work to monetize our
New Jersey real estate assets,
while our asset in Israel is now
fully leased."
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. The
company also holds commercial real estate assets in New Jersey and Jerusalem. For more information, visit
www.rafaelholdings.com.
RAFAEL HOLDINGS,
INC.
CONSOLIDATED
BALANCE SHEETS
(unaudited, in
thousands, except share data)
|
|
|
|
April
30,
|
|
|
July
31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,430
|
|
|
$
|
12,024
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of
$143
and $122 at April 30, 2020 and July
31, 2019, respectively
|
|
|
261
|
|
|
|
450
|
|
Due from Rafael
Pharmaceuticals
|
|
|
135
|
|
|
|
280
|
|
Prepaid expenses and
other current assets
|
|
|
336
|
|
|
|
507
|
|
Total current
assets
|
|
|
9,162
|
|
|
|
13,261
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
47,811
|
|
|
|
48,733
|
|
Investments – Rafael
Pharmaceuticals
|
|
|
70,018
|
|
|
|
70,018
|
|
Investments – Other
Pharmaceuticals
|
|
|
1,705
|
|
|
|
2,000
|
|
Investments – Hedge
Funds
|
|
|
5,617
|
|
|
|
5,125
|
|
Equity investment –
RP Finance
|
|
|
53
|
|
|
|
—
|
|
Deferred income tax
assets, net
|
|
|
6
|
|
|
|
19
|
|
In-process research
and development and patents
|
|
|
1,575
|
|
|
|
1,575
|
|
Other
assets
|
|
|
1,484
|
|
|
|
1,412
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
137,431
|
|
|
$
|
142,143
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
700
|
|
|
$
|
795
|
|
Accrued
expenses
|
|
|
728
|
|
|
|
605
|
|
Other current
liabilities
|
|
|
57
|
|
|
|
27
|
|
Total current
liabilities
|
|
|
1,485
|
|
|
|
1,427
|
|
|
|
|
|
|
|
|
|
|
Due to Related
Party
|
|
|
27
|
|
|
|
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
|
|
|
1,604
|
|
|
|
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 April 30, 2020 and July 31,
2019
|
|
|
8
|
|
|
|
8
|
|
Class B common stock,
$0.01 par value; 200,000,000 shares authorized,
15,034,931 issued and 15,028,869
outstanding as of April 30, 2020 and
13,142,502 shares issued and
outstanding as of July 31, 2019
|
|
|
149
|
|
|
|
131
|
|
Additional paid-in
capital
|
|
|
128,998
|
|
|
|
112,898
|
|
Accumulated
deficit
|
|
|
(10,850)
|
|
|
|
(5,840)
|
|
Accumulated other
comprehensive income related to foreign currency translation
adjustment
|
|
|
3,752
|
|
|
|
3,784
|
|
Total equity
attributable to Rafael Holdings, Inc.
|
|
|
122,057
|
|
|
|
110,981
|
|
Noncontrolling
interests
|
|
|
13,770
|
|
|
|
13,783
|
|
TOTAL
EQUITY
|
|
|
135,827
|
|
|
|
124,764
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
137,431
|
|
|
$
|
142,143
|
|
RAFAEL HOLDINGS,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in
thousands, except share and per share data)
|
|
|
|
Three Months
Ended
April 30,
|
|
|
Nine Months
Ended
April 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental – Third
Party
|
|
$
|
360
|
|
|
$
|
588
|
|
|
$
|
1,076
|
|
|
$
|
1,277
|
|
Rental – Related
Party
|
|
|
523
|
|
|
|
521
|
|
|
|
1,570
|
|
|
|
1,564
|
|
Parking
|
|
|
221
|
|
|
|
268
|
|
|
|
664
|
|
|
|
688
|
|
Other – Related
Party
|
|
|
120
|
|
|
|
—
|
|
|
|
360
|
|
|
|
—
|
|
Total
Revenue
|
|
|
1,224
|
|
|
|
1,377
|
|
|
|
3,670
|
|
|
|
3,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
2,081
|
|
|
|
2,059
|
|
|
|
6,343
|
|
|
|
5,228
|
|
Research and
development
|
|
|
634
|
|
|
|
300
|
|
|
|
1,327
|
|
|
|
949
|
|
Depreciation and
amortization
|
|
|
474
|
|
|
|
436
|
|
|
|
1,413
|
|
|
|
1,296
|
|
Loss from
Operations
|
|
|
(1,965)
|
|
|
|
(1,418)
|
|
|
|
(5,413)
|
|
|
|
(3,944)
|
|
Interest (expense)
income, net
|
|
|
—
|
|
|
|
(221)
|
|
|
|
(31)
|
|
|
|
647
|
|
Net gain (loss)
resulting from foreign exchange transactions
|
|
|
—
|
|
|
|
19
|
|
|
|
(5)
|
|
|
|
19
|
|
Gain on sales of
marketable securities, net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
330
|
|
Impairment of
investments – Other Pharmaceuticals
|
|
|
(295)
|
|
|
|
—
|
|
|
|
(295)
|
|
|
|
—
|
|
Unrealized (loss)
gain on investments – Hedge Funds
|
|
|
(28)
|
|
|
|
466
|
|
|
|
492
|
|
|
|
414
|
|
Loss Before Income
Taxes
|
|
|
(2,288)
|
|
|
|
(1,154)
|
|
|
|
(5,252)
|
|
|
|
(2,534)
|
|
(Provision for)
benefit from income taxes
|
|
|
(8)
|
|
|
|
7
|
|
|
|
(24)
|
|
|
|
21
|
|
Equity in earnings of RP
Finance
|
|
|
53
|
|
|
|
—
|
|
|
|
53
|
|
|
|
—
|
|
Consolidated Net
Loss
|
|
|
(2,243)
|
|
|
|
(1,147)
|
|
|
|
(5,223)
|
|
|
|
(2,513)
|
|
Net loss attributable
to noncontrolling interests
|
|
|
(84)
|
|
|
|
(142)
|
|
|
|
(213)
|
|
|
|
(6)
|
|
Net
Loss Attributable to Rafael Holdings, Inc.
|
|
$
|
(2,159)
|
|
|
$
|
(1,005)
|
|
|
$
|
(5,010)
|
|
|
$
|
(2,507)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(2,243)
|
|
|
$
|
(1,147)
|
|
|
$
|
(5,223)
|
|
|
$
|
(2,513)
|
|
Foreign currency
translation adjustments
|
|
|
(4)
|
|
|
|
(54)
|
|
|
|
(32)
|
|
|
|
(52)
|
|
Total
Comprehensive Loss
|
|
|
(2,247)
|
|
|
|
(1,201)
|
|
|
|
(5,255)
|
|
|
|
(2,565)
|
|
Comprehensive (loss)
income attributable to noncontrolling
interests
|
|
|
(3)
|
|
|
|
(18)
|
|
|
|
(19)
|
|
|
|
5
|
|
Total
Comprehensive Loss attributable to Rafael Holdings,
Inc.
|
|
$
|
(2,244)
|
|
|
$
|
(1,183)
|
|
|
$
|
(5,236)
|
|
|
$
|
(2,570)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.14)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.32)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in calculation of
loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
15,813,679
|
|
|
|
13,924,691
|
|
|
|
15,747,709
|
|
|
|
13,055,037
|
|
RAFAEL HOLDINGS,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
thousands)
|
|
|
|
Nine Months
Ended
April 30,
|
|
|
|
2020
|
|
|
2019
|
|
Operating
activities
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,223)
|
|
|
$
|
(2,513)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,413
|
|
|
|
1,296
|
|
Deferred income
taxes
|
|
|
13
|
|
|
|
(24)
|
|
Interest income on
Series D Convertible Note
|
|
|
—
|
|
|
|
(848)
|
|
Net gain on sales of
marketable securities
|
|
|
—
|
|
|
|
(330)
|
|
Impairment of
investments – Other Pharmaceuticals
|
|
|
295
|
|
|
|
—
|
|
Unrealized gain on
investments – Hedge Funds
|
|
|
(492)
|
|
|
|
(414)
|
|
Equity in earnings of
RP Finance
|
|
|
(53)
|
|
|
|
—
|
|
Provision for
doubtful accounts
|
|
|
48
|
|
|
|
86
|
|
Non-cash
compensation
|
|
|
546
|
|
|
|
269
|
|
Amortization of debt
discount
|
|
|
54
|
|
|
|
11
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
141
|
|
|
|
(471)
|
|
Prepaid expenses and
other current assets
|
|
|
171
|
|
|
|
(419)
|
|
Other
assets
|
|
|
(72)
|
|
|
|
(180)
|
|
Accounts payable and
accrued expenses
|
|
|
28
|
|
|
|
91
|
|
Due to/from related
parties
|
|
|
107
|
|
|
|
473
|
|
Accrued interest –
Related Party
|
|
|
19
|
|
|
|
418
|
|
Other current
liabilities
|
|
|
—
|
|
|
|
(5)
|
|
Other
liabilities
|
|
|
30
|
|
|
|
22
|
|
Net cash used in
operating activities
|
|
|
(2,975)
|
|
|
|
(2,538)
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(491)
|
|
|
|
(364)
|
|
Proceeds from sale
and maturity of marketable securities, net
|
|
|
—
|
|
|
|
25,031
|
|
Investment in Rafael
Pharmaceuticals
|
|
|
—
|
|
|
|
(55,870)
|
|
Net cash used in
investing activities
|
|
|
(491)
|
|
|
|
(31,203)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Contribution from
noncontrolling interest of consolidated entity
|
|
|
—
|
|
|
|
4,587
|
|
Repayment of Loan
from Rafael Pharmaceuticals
|
|
|
—
|
|
|
|
3,300
|
|
Proceeds from
exercise of options
|
|
|
29
|
|
|
|
190
|
|
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
|
|
|
(125)
|
|
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
|
(96)
|
|
|
|
30,854
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(32)
|
|
|
|
53
|
|
Net decrease in cash
and cash equivalents
|
|
|
(3,594)
|
|
|
|
(2,834)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
12,024
|
|
|
|
15,803
|
|
Cash and cash
equivalents at end of period
|
|
$
|
8,430
|
|
|
$
|
12,969
|
|
|
|
|
|
|
|
|
|
|
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-third-quarter-fiscal-year-2020-results-301073243.html
SOURCE Rafael Holdings, Inc.