Based on the provided financial report, 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 · 04/07 05:35
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Based on the provided financial report, 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 $123.6 million and total liabilities of $64.4 million, resulting in a stockholders’ equity of $59.2 million. The consolidated statements of operations and comprehensive (loss) income reported a net loss of $2.3 million for the three months ended January 31, 2025, compared to a net loss of $1.4 million for the same period in 2024. The company’s cash and cash equivalents decreased by $1.1 million to $14.3 million during the six months ended January 31, 2025. Management’s discussion and analysis of financial condition and results of operations highlighted the company’s efforts to reduce costs and improve operational efficiency, as well as its plans to explore strategic alternatives to enhance shareholder value.
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 and 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 due to the inclusion of Cornerstone expenses 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 operations, the company concluded a triggering event occurred that required an assessment of impairment. The company recorded a $3.1 million impairment charge related to the Infusion Technology segment’s goodwill.
Real Estate Segment
- Results of operations for the Real Estate 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) | ||||||||
| 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
- Key consolidated income and expense items below loss from operations:
| Metric | Three Months Ended January 31 | Six Months Ended January 31 | ||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | 2025 | 2024 | Change | % Change | |
| (in thousands) | ||||||||
| Interest income | $489 | $693 | $(204) | 29% | $1,057 | $1,275 | $(218) | (17)% |
| Realized (loss) gain on available-for-sale securities | $(16) | $399 | $(415) | (104)% | $178 | $576 | $(398) | (69)% |
| Unrealized gain (loss) on investment - Cyclo | $614 | $9,718 | $(9,104) | (94)% | $(3,751) | $7,594 | $(11,345) | (149)% |
| Unrealized gain (loss) on convertible notes receivable due from Cyclo | $486 | $- | $486 | 100% | $(1,102) | $- | $(1,102) | 100% |
| Interest expense | $(163) | $- | $(163) | 100% | $(325) | $- | $(325) | 100% |
| Equity in loss of Day Three | $- | $(206) | $206 | 100% | $- | $(422) | $422 | (100)% |
| Net loss attributable to noncontrolling interests | $(686) | $(143) | $(543) | (380)% | $(891) | $(265) | $(626) | (236)% |
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 Flows
- 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 current period was primarily from proceeds from sales and maturities of available-for-sale securities, partially offset by purchases and payments for convertible notes due from Cyclo.
- Cash used in financing activities for the current period was related to a payment for taxes related to shares withheld for employee taxes.
Critical Accounting Estimates
- The company assessed long-lived assets and goodwill for impairment during the period:
- Long-lived assets: The company determined the expected undiscounted cash flows of the asset group exceeded its carrying amount, indicating no impairment.
- Goodwill: The company recorded a $3.1 million impairment charge related to the Infusion Technology segment’s goodwill.
Off-Balance Sheet Arrangements
- The company does not have any off-balance sheet arrangements.
Market Risks
- The company has some foreign currency risk from revenues denominated in currencies other than the U.S. dollar, but the net exposure is generally not material.
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