Based on the provided financial report articles, the title of the article is:
"RAFAEL HOLDINGS, INC. FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2025
Press release · 03/14 22:46
Share
Listen to the news
Based on the provided financial report articles, the title of the article is: "RAFAEL HOLDINGS, INC. FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2025
Rafael Holdings, Inc. reported its quarterly financial results for the period ended January 31, 2025. The company’s consolidated balance sheets showed total assets of $X, total liabilities of $Y, and total stockholders’ equity of $Z. The consolidated statements of operations and comprehensive (loss) income for the three and six months ended January 31, 2025, reported net income of $X and net loss of $Y, respectively. The company’s cash and cash equivalents decreased by $X to $Y, and its accounts payable and accrued expenses increased by $X to $Y. The company’s management’s discussion and analysis of financial condition and results of operations highlighted the company’s financial performance and outlook.
Results of Operations
Healthcare Segment
- Consolidated expenses for the Healthcare segment were as follows:
| Metric | Three Months Ended January 31 | Six Months Ended January 31 | ||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | 2025 | 2024 | Change | % Change | |
| (in thousands) | ||||||||
| General and administrative | $(2,402) | $(2,514) | $112 | 4% | $(4,692) | $(4,522) | $(170) | (4)% |
| Research and development | $(857) | $(612) | $(245) | (40)% | $(2,018) | $(1,101) | $(917) | (83)% |
| Depreciation and amortization | $- | $(22) | $22 | 100% | $(2) | $(25) | $23 | 92% |
| Loss from operations | $(3,259) | $(3,148) | $(111) | (4)% | $(6,712) | $(5,648) | $(1,064) | (19)% |
- The Healthcare segment has not generated any revenues to date. Expenses relate to the activities of Barer, LipoMedix, Farber, Cornerstone, and Rafael Medical Devices.
- The decrease in general and administrative expenses during the three months ended January 31, 2025 was due to a decrease in stock-based compensation, offset by an increase in legal and professional fees.
- The increase in general and administrative expenses during the six months ended January 31, 2025 was due to an increase in payroll expense related to the consolidation of Cornerstone, as well as an increase in legal and professional fees, offset by a decrease in stock-based compensation.
- Research and development expenses increased for the three and six months ended January 31, 2025 and 2024, primarily due to the inclusion of Cornerstone expenses following its acquisition in March 2024 and ongoing clinical trials at LipoMedix.
Infusion Technology Segment
- Results of operations for the Infusion Technology segment were as follows:
| Metric | Three Months Ended January 31 | Six Months Ended January 31 | ||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | 2025 | 2024 | Change | % Change | |
| (in thousands) | ||||||||
| Infusion Technology revenue | $- | $- | $- | -% | $51 | $- | $51 | 100% |
| Cost of Infusion Technology revenue | $(38) | $- | $(38) | (100)% | $(75) | $- | $(75) | (100)% |
| Loss on impairment of goodwill | $(3,050) | $- | $(3,050) | (100)% | $(3,050) | $- | $(3,050) | (100)% |
| General and administrative | $(143) | $- | $(143) | (100)% | $(255) | $- | $(255) | (100)% |
| Research and development | $(90) | $- | $(90) | (100)% | $(255) | $- | $(255) | (100)% |
| Depreciation and amortization | $(74) | $- | $(74) | (100)% | $(143) | $- | $(143) | (100)% |
| Loss from operations | $(3,395) | $- | $(3,395) | (100)% | $(3,727) | $- | $(3,727) | (100)% |
- The Infusion Technology segment is comprised of the majority equity interest in Day Three, acquired in January 2024.
- Due to reductions in certain operations, including a layoff, the company concluded that a triggering event occurred during the three months ended January 31, 2025, requiring an assessment for impairment.
- The company recorded a $3.1 million impairment charge related to the Infusion Technology segment’s goodwill during the three months ended January 31, 2025.
Real Estate Segment
- The Real Estate segment consists of a portion of a commercial building in Israel. Consolidated revenue, expenses and (loss) income were as follows:
| Metric | Three Months Ended January 31 | Six Months Ended January 31 | ||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | 2025 | 2024 | Change | % Change | |
| (in thousands) | ||||||||
| Rental - Third Party | $48 | $41 | $7 | 17% | $98 | $82 | $16 | 20% |
| Rental - Related Party | $29 | $27 | $2 | 7% | $56 | $54 | $2 | 4% |
| General and administrative | $(46) | $(47) | $1 | 2% | $(167) | $(79) | $(88) | (111)% |
| Depreciation and amortization | $(16) | $(16) | $- | -% | $(31) | $(30) | $(1) | (3)% |
| Income (loss) from operations | $15 | $5 | $10 | (200)% | $(44) | $27 | $(71) | (263)% |
Consolidated Operations
- Interest income decreased due to lower interest rates on cash and investments.
- Realized and unrealized gains/losses on investments in Cyclo, convertible notes receivable from Cyclo, and hedge funds were recognized.
- Interest expense of $0.2 million and $0.3 million was recorded for the three and six months ended January 31, 2025, respectively, related to liabilities assumed in the Cornerstone acquisition.
- Equity in loss of Day Three was recognized for the three and six months ended January 31, 2024.
- Net loss attributable to noncontrolling interests increased due to the acquisitions of Cornerstone and Day Three.
Liquidity and Capital Resources
- As of January 31, 2025, the company held $48.3 million in cash and cash equivalents, which is expected to be sufficient to meet obligations for at least the next 12 months.
- Cash used in operating activities increased by $0.7 million from the prior year period, due to the change from net income to net loss.
- Cash provided by investing activities for the six months ended January 31, 2025 was primarily from proceeds from sales and maturities of available-for-sale securities, partially offset by purchases of securities and payments for convertible notes due from Cyclo.
- Cash used in financing activities for the six months ended January 31, 2025 was related to a payment for taxes related to shares withheld for employee taxes.
Critical Accounting Estimates
- The company assessed long-lived assets within the Infusion Technology segment for potential impairment due to a triggering event, but determined the expected undiscounted cash flows exceeded the carrying amount, indicating no impairment.
- The company performed a quantitative goodwill impairment test for the Infusion Technology segment, which indicated the carrying amount exceeded the estimated fair value, resulting in a $3.1 million impairment charge.
Item 3. Quantitative and Qualitative Disclosures about Market Risks
- The company’s foreign currency exchange risk is somewhat mitigated by its ability to offset a portion of non-U.S. Dollar-denominated revenues with operating expenses paid in the same currencies.
Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
What's Trending
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.
Copyright © 2025 Webull. All Rights Reserved