Rafael Holdings Reports First Quarter Fiscal 2025 Financial Results
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.
Rafael Holdings (NYSE: RFL) ha riportato i risultati finanziari del primo trimestre dell'anno fiscale 2025, evidenziando la fusione in sospeso con Cyclo Therapeutics, prevista per essere completata nel primo trimestre del 2025. L'azienda ha registrato un capitale liquido e equivalenti di $54,3 milioni e una perdita netta di $9,0 milioni ($0,37 per azione), rispetto a una perdita di $3,6 milioni ($0,15 per azione) nell'anno precedente.
Le perdite aumentate sono state principalmente dovute a $6,0 milioni in perdite non realizzate sugli investimenti in Cyclo e sulle obbligazioni convertibili. Le spese di R&S sono aumentate a $1,3 milioni rispetto a $0,5 milioni, mentre le spese generali e amministrative sono aumentate a $2,5 milioni rispetto a $2,0 milioni. Dopo la fusione, Rafael si concentrerà su Trappsol® Cyclo™, attualmente in uno studio di Fase 3 completamente arruolato per la malattia di Niemann-Pick Tipo C1, con risultati intermedi previsti per metà del 2025.
Rafael Holdings (NYSE: RFL) informó los resultados financieros del primer trimestre del año fiscal 2025, destacando su fusión pendiente con Cyclo Therapeutics, que se espera que se complete en el primer trimestre de 2025. La compañía reportó efectivo y equivalentes de $54.3 millones y una pérdida neta de $9.0 millones ($0.37 por acción), en comparación con una pérdida de $3.6 millones ($0.15 por acción) el año anterior.
Las pérdidas incrementadas se debieron principalmente a $6.0 millones en pérdidas no realizadas en las inversiones de Cyclo y notas convertibles. Los gastos de I+D aumentaron a $1.3 millones desde $0.5 millones, mientras que los gastos generales y administrativos aumentaron a $2.5 millones desde $2.0 millones. Tras la fusión, Rafael se centrará en Trappsol® Cyclo™, que actualmente está en un estudio de Fase 3 completamente enrollado para la enfermedad de Niemann-Pick Tipo C1, con resultados intermedios esperados a mediados de 2025.
라파엘 홀딩스 (NYSE: RFL)는 2025 회계연도 1분기 재무 결과를 발표하며, 2025년 1분기에 완료될 것으로 예상되는 사이클로 테라퓨틱스와의 합병을 강조했습니다. 회사는 $54.3 백만의 현금 및 동등 자산과 $9.0 백만의 순손실 ($0.37 주당)을 보고했으며, 이는 지난해의 $3.6 백만 손실 ($0.15 주당)과 비교됩니다.
증가된 손실은 주로 사이클로 투자 및 전환 사채에서 $6.0 백만의 미실현 손실로 인해 발생했습니다. R&D 비용은 $0.5 백만에서 $1.3 백만으로 증가했으며, 일반 관리 비용은 $2.0 백만에서 $2.5 백만으로 증가했습니다. 합병 후 라파엘은 현재 Niemann-Pick Disease Type C1에 대한 3상 시험에 완전히 등록된 Trappsol® Cyclo™에 집중할 예정이며, 중간 결과는 2025년 중반에 예상됩니다.
Rafael Holdings (NYSE: RFL) a publié les résultats financiers du premier trimestre de l'exercice 2025, soulignant sa fusion en cours avec Cyclo Therapeutics, qui devrait se conclure au premier trimestre 2025. L'entreprise a annoncé des liquidités et équivalents de $54,3 millions et une perte nette de $9,0 millions ($0,37 par action), contre une perte de $3,6 millions ($0,15 par action) l'année précédente.
Les pertes accrues sont principalement dues à $6,0 millions de pertes non réalisées sur les investissements Cyclo et les obligations convertibles. Les dépenses de R&D ont augmenté à $1,3 millions contre $0,5 millions, tandis que les dépenses générales et administratives ont augmenté à $2,5 millions contre $2,0 millions. Après la fusion, Rafael se concentrera sur Trappsol® Cyclo™, actuellement en phase d'étude 3 entièrement inscrite pour la maladie de Niemann-Pick de type C1, avec des résultats intermédiaires attendus pour mi-2025.
Rafael Holdings (NYSE: RFL) hat die Finanzzahlen für das erste Quartal des Geschäftsjahres 2025 veröffentlicht und hebt die bevorstehende Fusion mit Cyclo Therapeutics hervor, die voraussichtlich im ersten Quartal 2025 abgeschlossen werden soll. Das Unternehmen berichtete über liquide Mittel und äquivalente Werte von $54,3 Millionen und einen Nettoverlust von $9,0 Millionen ($0,37 pro Aktie), im Vergleich zu einem Verlust von $3,6 Millionen ($0,15 pro Aktie) im Vorjahr.
Die gestiegenen Verluste waren hauptsächlich auf $6,0 Millionen an nicht realisierten Verlusten aus Cyclo-Investitionen und wandelbaren Anleihen zurückzuführen. Die F&E-Ausgaben stiegen auf $1,3 Millionen von $0,5 Millionen, während die allgemeinen und administrativen Ausgaben auf $2,5 Millionen von $2,0 Millionen anstiegen. Nach der Fusion wird sich Rafael auf Trappsol® Cyclo™ konzentrieren, das sich derzeit in einer vollständig eingeschriebenen Phase-3-Studie zur Niemann-Pick-Krankheit Typ C1 befindet, mit vorläufigen Ergebnissen, die Mitte 2025 erwartet werden.
- Strong cash position of $54.3 million
- Strategic merger with Cyclo Therapeutics pending completion
- Phase 3 study for Trappsol® Cyclo™ fully enrolled
- 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
Insights
The Q1 FY2025 results reveal concerning financial metrics with a significant net loss of
The strategic focus on Trappsol® Cyclo™ for Niemann-Pick Disease Type C1 (NPC1) treatment presents a significant market opportunity, despite existing FDA-approved treatments. The fully enrolled Phase 3 study with interim results expected mid-2025 is a important catalyst. However, the competitive landscape in NPC1 treatment and the company's planned divestment of other assets to focus solely on this program increases risk concentration. The potential market leadership position for Trappsol® Cyclo™ will heavily depend on the Phase 3 results and differentiation from existing treatments.
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?