Rafael Holdings Reports First Quarter Fiscal 2025 Financial Results
Rhea-AI Summary
Rafael Holdings (NYSE: RFL) reported Q1 fiscal 2025 financial results, highlighting its pending merger with Cyclo Therapeutics expected to close in Q1 2025. The company reported cash and equivalents of $54.3 million and a net loss of $9.0 million ($0.37 per share), compared to a $3.6 million loss ($0.15 per share) in the prior year.
The increased losses were mainly due to $6.0 million in unrealized losses on Cyclo investments and convertible notes. R&D expenses rose to $1.3 million from $0.5 million, while G&A expenses increased to $2.5 million from $2.0 million. Post-merger, Rafael will focus on Trappsol® Cyclo™, currently in a fully enrolled Phase 3 study for Niemann-Pick Disease Type C1, with interim results expected mid-2025.
Positive
- Strong cash position of $54.3 million
- Strategic merger with Cyclo Therapeutics pending completion
- Phase 3 study for Trappsol® Cyclo™ fully enrolled
Negative
- Net loss increased to $9.0 million from $3.6 million YoY
- $6.0 million in unrealized investment losses
- R&D expenses increased 160% to $1.3 million
- G&A expenses rose 25% to $2.5 million
News Market Reaction
On the day this news was published, RFL gained 1.61%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Upon completion of our proposed merger with Cyclo Therapeutics the Company intends to focus its efforts on Cyclo’s lead clinical program Trappsol® Cyclo™
NEWARK, N.J., Dec. 11, 2024 (GLOBE NEWSWIRE) -- Rafael Holdings, Inc. (NYSE: RFL), today reported its financial results for the first quarter of fiscal year 2025 ended October 31, 2024.
“We anticipate proceeding to a shareholder vote on our pending merger agreement with Cyclo Therapeutics, Inc. (Nasdaq: CYTH) in the first calendar quarter of 2025 and closing promptly post shareholder approvals. Upon closing of the merger, the Company intends to focus its strategic efforts and resources on what will then be the Company’s lead clinical program and core asset, Trappsol® Cyclo™. Accordingly, we are currently evaluating our other operating entities and portfolio of assets,” said Bill Conkling, CEO of Rafael Holdings. Bill added, “We are encouraged that Cyclo Therapeutics has fully enrolled its pivotal Phase 3 study evaluating Trappsol® Cyclo™ for the treatment of Niemann-Pick Disease Type C1, a rare and fatal genetic disease, and results from the 48-week interim analysis are expected in the middle of 2025. Despite recent FDA approvals of other treatments for NPC Type C1, we believe that Trappsol® Cyclo™ has the potential to be a market leader.”
Rafael Holdings, Inc. First Quarter Fiscal Year 2025 Financial Results
As of October 31, 2024, we had cash, cash equivalents and marketable securities of
For the three months ended October 31, 2024, we recorded a net loss attributable to Rafael Holdings of
Research and development expenses were
For the three months ended October 31, 2024, general and administrative expenses were
About Rafael Holdings, Inc.
Rafael Holdings, Inc. is a holding company with interests in clinical and early-stage pharmaceutical companies including an investment in (and planned merger with) Cyclo Therapeutics Inc. (Nasdaq: CYTH), a biotechnology company dedicated to developing Trappsol® Cyclo™, which is being evaluated in clinical trials, including an ongoing Phase 3 trial for the potential treatment of Niemann-Pick Disease Type C1 (“NPC1”), a rare, fatal, and progressive genetic disorder. Rafael also holds a majority equity interest in LipoMedix Pharmaceuticals Ltd. a clinical stage pharmaceutical company, Barer Institute Inc., a wholly owned preclinical cancer metabolism research operation, a majority interest in Cornerstone Pharmaceuticals, Inc., formerly known as Rafael Pharmaceuticals Inc., a cancer metabolism-based therapeutics company, a majority interest in Rafael Medical Devices, LLC., an orthopedic-focused medical device company developing instruments to advance minimally invasive surgeries, and a majority interest in Day Three Labs, Inc., a company which empowers third-party manufacturers to reimagine their existing cannabis offerings enabling them to bring to market better, cleaner, more precise and predictable versions by utilizing Day Three’s pharmaceutical-grade technology and innovation like Unlokt™. The Company’s primary focus is to expand our investment portfolio through opportunistic and strategic investments including therapeutics, which address high unmet medical needs. Upon closing of the planned merger with Cyclo Therapeutics, the Company intends to focus its efforts on making Trappsol®Cyclo™ its lead clinical program.
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, those disclosed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended July 31, 2024, and our other filings with the SEC. These factors 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 Ryan
Barbara.ryan@rafaelholdings.com
(203) 274-2825
| RAFAEL HOLDINGS, INC. | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (in thousands, except share and per share data) | |||||||||
| October 31, 2024 | July 31, 2024 | ||||||||
| (audited) | |||||||||
| ASSETS | |||||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | $ | 8,159 | $ | 2,675 | |||||
| Available-for-sale securities | 46,138 | 63,265 | |||||||
| Interest receivable | 438 | 515 | |||||||
| Convertible note receivables, due from Cyclo | 12,603 | 5,191 | |||||||
| Accounts receivable, net of allowance for credit losses of | 201 | 426 | |||||||
| Prepaid expenses and other current assets | 2,942 | 430 | |||||||
| Total current assets | 70,481 | 72,502 | |||||||
| Property and equipment, net | 2,078 | 2,120 | |||||||
| Investments - Hedge Funds | - | 2,547 | |||||||
| Investments – Cyclo | 7,645 | 12,010 | |||||||
| Convertible note receivable classified as available-for-sale | 1,161 | 1,146 | |||||||
| Goodwill | 3,050 | 3,050 | |||||||
| Intangible assets, net | 1,818 | 1,847 | |||||||
| In-process research and development | 1,575 | 1,575 | |||||||
| Other assets | 27 | 35 | |||||||
| TOTAL ASSETS | $ | 87,835 | $ | 96,832 | |||||
| LIABILITIES AND EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Accounts payable | $ | 2,700 | $ | 2,556 | |||||
| Accrued expenses | 1,379 | 1,798 | |||||||
| Convertible notes payable | 614 | 614 | |||||||
| Other current liabilities | 112 | 113 | |||||||
| Due to related parties | 734 | 733 | |||||||
| Installment note payable | 1,700 | 1,700 | |||||||
| Total current liabilities | 7,239 | 7,514 | |||||||
| Accrued expenses, noncurrent | 3,138 | 2,982 | |||||||
| Convertible notes payable, noncurrent | 74 | 73 | |||||||
| Other liabilities | — | 5 | |||||||
| TOTAL LIABILITIES | 10,451 | 10,574 | |||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||
| EQUITY | |||||||||
| Class A common stock, | 8 | 8 | |||||||
| Class B common stock, | 238 | 238 | |||||||
| Additional paid-in capital | 280,359 | 280,048 | |||||||
| Accumulated deficit | (210,749 | ) | (201,743 | ) | |||||
| Treasury stock, at cost; 101,487 Class B shares as of October 31, 2024 and July 31, 2024 | (168 | ) | (168 | ) | |||||
| Accumulated other comprehensive income related to unrealized income on available-for-sale securities | 132 | 111 | |||||||
| Accumulated other comprehensive income related to foreign currency translation adjustment | 3,696 | 3,691 | |||||||
| Total equity attributable to Rafael Holdings, Inc. | 73,516 | 82,185 | |||||||
| Noncontrolling interests | 3,868 | 4,073 | |||||||
| TOTAL EQUITY | 77,384 | 86,258 | |||||||
| TOTAL LIABILITIES AND EQUITY | $ | 87,835 | $ | 96,832 | |||||
| RAFAEL HOLDINGS, INC. | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||
| (unaudited, in thousands, except share and per share data) | |||||||
| Three Months Ended October 31, | |||||||
| 2024 | 2023 | ||||||
| Revenues | $ | 128 | $ | 68 | |||
| Cost of infusion technology revenue | 37 | - | |||||
| SG&A Expenses | 2,523 | 2,040 | |||||
| R&D Expenses | 1,326 | 489 | |||||
| Depreciation and amortization | 86 | 17 | |||||
| Operating Loss | (3,844 | ) | (2,478 | ) | |||
| Interest income | 568 | 582 | |||||
| Realized gain on available-for-sale securities | 194 | 177 | |||||
| Realized loss on investment in equity securities | - | (46 | ) | ||||
| Realized gain on investments - Cyclo | - | 424 | |||||
| Unrealized loss on investments - Cyclo | (4,365 | ) | (2,124 | ) | |||
| Unrealized loss on convertible notes receivable, due from Cyclo | (1,588 | ) | - | ||||
| Unrealized loss on investments - Hedge Funds | - | (166 | ) | ||||
| Interest expense | (162 | ) | - | ||||
| Other income | (2 | ) | 93 | ||||
| Loss before Incomes Taxes | (9,199 | ) | (3,538 | ) | |||
| Taxes | (12 | ) | (6 | ) | |||
| Equity in loss of Day Three Labs Inc. | - | (216 | ) | ||||
| Consolidated net loss | (9,211 | ) | (3,760 | ) | |||
| Net loss attributable to noncontrolling interests | (205 | ) | (122 | ) | |||
| Net loss attributable to Rafael Holdings, Inc. | $ | (9,006 | ) | $ | (3,638 | ) | |
| Loss per share | |||||||
| Basic and diluted | (0.37 | ) | (0.15 | ) | |||
| Loss per basic common share | $ | (0.37 | ) | $ | (0.15 | ) | |
| Weighted average shares in calculation | 25,062,854 | 23,644,647 | |||||
FAQ
What is Rafael Holdings' (RFL) current cash position as of Q1 FY2025?
When is Rafael Holdings (RFL) expected to complete its merger with Cyclo Therapeutics?
What caused Rafael Holdings' (RFL) increased net loss in Q1 FY2025?
When are the interim results expected for Trappsol® Cyclo™'s Phase 3 study?
How much did Rafael Holdings' (RFL) R&D expenses increase in Q1 FY2025?
