PR Newswire | Jun 14, 2021 04:45PM EDT

06/14 15:45 CDT

Rafael Holdings Reports Third Quarter Fiscal Year 2021 Results NEWARK, N.J., June 14, 2021

NEWARK, N.J., June 14, 2021 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE: RFL), reported revenue of $1.0 million and a loss per share of $0.15 for the third quarter of its 2021 fiscal year, the three months ended April 30, 2021.

Q3 FY 2021 Operations and Consolidated Financial Highlights

* Ameet Mallik became the Company's Chief Executive Officer on May 1, 2021 and William "Bill" Conkling is now serving as the Company's first Chief Commercial Officer. * On May 27, 2021, the Company filed a "shelf" registration statement covering sales of its Class B common stock in one or more offerings up to an aggregate initial offering price of $250 million. * Q3 FY 2021 revenue of $1.0 million decreased from $1.2 million in the year-ago quarter due primarily to the sale of the Company's building in Piscataway, NJ and reduced parking revenues resulting from the shift to work-from-home during the COVID pandemic. * Q3 FY 2021 loss per share was $0.15 compared to a loss per share of $0.14 in the year ago quarter.

Q3 FY 2021 - Pharmaceutical Holdings - Recent Developments

Rafael Pharmaceuticals

At April 30, 2021, the Company and its controlled subsidiaries collectively owned securities representing 51% of the issued and outstanding capital stock of Rafael Pharmaceuticals and approximately 41% on a fully diluted basis. Recent developments at Rafael Pharmaceuticals include:

* Rafael Pharma expects to obtain a data readout from its pivotal Phase 3 clinical trial for metastatic pancreatic cancer in the fourth quarter of 2021. * Rafael Pharma presented two posters at the 2021 American Society of Clinical Oncology (ASCO) Annual Meeting summarizing the respective enrollment status of ongoing trials studying devimistat in pancreatic cancer and biliary tract cancers. * In March, enrollment surpassed 150 patients in Rafael Pharma's pivotal Phase 3 clinical trial assessing the efficacy and safety of its lead compound CPI-613(r) (devimistat) in combination with high dose cytarabine and mitoxantrone for patients with relapsed or refractory acute myeloid leukemia (AML).

LipoMedix

At April 30, 2021, Rafael Holdings held 68% 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. Recent developments announced by LipoMedix include:

* LipoMedix announced that its lead compound, Promitil(r) (PL-MLP), will be manufactured in the United States by ForDoz Pharma, a specialty pharmaceutical company.

Remarks by Howard Jonas, Chairman of Rafael Holdings"We continued to build out our leadership team and operating capabilities. We are focused on becoming an integrated oncology company dedicated to the clinical development of devimistat and a robust pipeline of therapies based on cellular metabolism. I'm very pleased that Ameet Mallik is now leading our organization, as our CEO, and already has begun to accelerate execution on our strategic priorities."

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. For more information, visit rafaelholdings.com.

RAFAEL HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)



April 30, 2021July 31, 2020 (unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents $4,679 $6,206

Trade accounts receivable, net of allowance for doubtful accounts of $183 and $218 at 248 267 April 30, 2021 and July 31, 2020, respectively

Due from Rafael Pharmaceuticals 480 118

Prepaid expenses and other current assets 625 273

Assets held for sale - 2,968

Total current assets 6,032 9,832



Property and equipment, net 43,591 44,433

Equity investment - RP Finance LLC 479 192

Due from RP Finance LLC 3,750 -

Investments - Rafael Pharmaceuticals 79,141 70,018

Investments - Other Pharmaceuticals 477 1,201

Investments - Hedge Funds 9,681 7,510

Deferred income tax assets, net - 6

In-process research and development and 1,575 1,575 patents

Other assets 1,482 1,580

TOTAL ASSETS $146,208 $136,347

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Trade accounts payable $753 $921

Accrued expenses 861 1,191

Amount due for purchase of membership interest3,000 3,500

Other current liabilities 235 115

Due to related parties 60 -

Total current liabilities 4,909 5,727



Deferred income tax liabilities, net 9 -

Other liabilities 33 92

TOTAL LIABILITIES 4,951 5,819



COMMITMENTS AND CONTINGENCIES



EQUITY

Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares 8 8 issued and outstanding as of April 30, 2021 and July 31, 2020, respectively

Class B common stock, $0.01 par value; 200,000,000 shares authorized, 15,969,962 issued and 15,982,349 outstanding as of April 158 149 30, 2021, and 15,034,598 issued and 15,028,536 outstanding as of July 31, 2020

Additional paid-in capital 151,258 129,136

Accumulated deficit (28,419) (16,255)

Accumulated other comprehensive income related3,766 3,762 to foreign currency translation adjustment

Total equity attributable to Rafael Holdings, 126,771 116,800 Inc.

Noncontrolling interests 14,486 13,728

TOTAL EQUITY 141,257 130,528

TOTAL LIABILITIES AND EQUITY $146,208 $136,347

RAFAEL HOLDINGS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited, in thousands, except share and per share data)



Three Months Ended Nine Months Ended April 30, April 30,

2021 2020 2021 2020

REVENUE

Rental - Third Party $228 $360 $654 $1,076

Rental - Related Party 523 523 1,570 1,570

Parking 119 221 418 664

Other - Related Party 120 120 360 360

Total revenue 990 1,224 3,002 3,670



COSTS AND EXPENSES

Selling, general and 3,006 2,081 8,365 6,343 administrative

Research and development 1,262 634 3,345 1,327

Depreciation and amortization201 474 1,079 1,413

Impairment - Altira - - 7,000 -

Loss from operations (3,479) (1,965) (16,787) (5,413)



Interest (expense) income, (1) - (2) (31) net

Net loss resulting from - - - (5) foreign exchange transactions

Gain on sale of building - - 749 -

Impairment of investments - - (295) (724) (295) Other Pharmaceuticals

Unrealized (loss) gain on 738 (28) 4,171 492 investments - Hedge Funds

Loss before income taxes (2,742) (2,288) (12,593) (5,252)

Provision for income taxes (4) (8) (13) (24)

Equity in earnings of RP 96 53 288 53 Finance

Consolidated net loss (2,650) (2,243) (12,318) (5,223)

Net loss attributable to (97) (84) (154) (213) noncontrolling interests

Net loss attributable to $(2,553) $(2,159) $(12,164)$(5,010)Rafael Holdings, Inc.



OTHER COMPREHENSIVE LOSS

Net loss $(2,650) $(2,243) $(12,318)$(5,223)

Foreign currency translation 5 (4) 4 (32) adjustment

Total comprehensive loss (2,645) (2,247) (12,314) (5,255)

Comprehensive loss attributable to (28) (3) (39) (19) noncontrolling interests

Total comprehensive loss attributable to Rafael $(2,617) $(2,244) $(12,275)$(5,236)Holdings, Inc.



Loss per share

Basic and diluted $(0.15) $(0.14) $(0.75) $(0.32)



Weighted average number of shares used in calculation of loss per share

Basic and diluted 16,668,62415,813,67916,216,96915,747,709

RAFAEL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)



Nine Months Ended April 30,

2021 2020

Operating activities

Net loss $ (12,318)$ (5,223)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization 1,079 1,413

Deferred income taxes 15 13

Net unrealized gain on investments - Hedge Funds(4,171) (492)

Impairment of investments - Other 724 295 Pharmaceuticals

Impairment - Altira 7,000 -

Equity in earnings of RP Finance (288) (53)

(Recovery of) provision for doubtful accounts (183) 48

Stock-based compensation 1,023 546

Amortization of debt discount - 54

Gain on sale of building (749) -



Change in assets and liabilities:

Trade accounts receivable 202 141

Prepaid expenses and other current assets (352) 171

Other assets 98 (72)

Accounts payable and accrued expenses (459) 28

Other current liabilities 120 -

Due to related parties 60 107

Due from Rafael Pharmaceuticals (362) -

Accrued interest - Related Party - 19

Other liabilities (59) 30

Net cash used in operating activities (8,620) (2,975)



Investing activities

Purchase of investment in Altira (1,250) -

Purchases of property and equipment (237) (491)

Payments to fund RP Finance (3,750) -

Proceeds from sale of building 3,658 -

Proceeds related to distribution from Hedge 2,000 - Funds

Investment in Rafael Pharmaceuticals (9,123) -

Net cash used in investing activities (8,702) (491)



Financing activities

Contribution from noncontrolling interest of 912 - consolidated entity

Proceeds from exercise of options 43 29

Proceeds from exercise of warrants 2,000 -

Proceeds from issuance of shares 13,000 -

Payments for taxes related to shares withheld (185) (125) for employee taxes

Net cash provided by (used in) financing 15,770 (96) activities

Effect of exchange rate changes on cash and cash25 (32) equivalents

Net decrease in cash and cash equivalents (1,527) (3,594)

Cash and cash equivalents, beginning of period 6,206 12,024

Cash and cash equivalents, end of period $ 4,679 $ 8,430





Supplemental schedule of noncash investing and financing activities

Common shares issued for settlement of Altira $ 6,250 $ - liability

Conversion of LipoMedix bridge notes $ - $ 200

Conversions of related party convertible notes $ - $ 15,668 payable and accrued interest

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SOURCE Rafael Holdings, Inc.