Rafael(RFL) - 2025 Q1 - Quarterly Report

Ownership and Investments - Rafael Holdings has a 95% ownership interest in LipoMedix, which has treated a total of 149 patients in various clinical studies for its product candidate Promitil[369]. - The Company raised $925,000 in August 2023 for a 31.6% ownership stake in Rafael Medical Devices, which focuses on minimally invasive surgical instruments[373]. - As of October 31, 2024, the Company held a 68% interest in Rafael Medical Devices, which is part of its strategic focus on healthcare investments[377]. Financial Performance - The Company reported a loss from operations of$ 3,522,000 for the Healthcare segment for the three months ended October 31, 2024, an increase of 41% compared to the previous year[377]. - Consolidated net loss attributable to Rafael Holdings, Inc. was $9,006,000 for the three months ended October 31, 2024, a 148% increase from the net loss of$ 3,638,000 in the same period of 2023[383]. - Cash used in operating activities increased by 43% to $3,042,000 for the three months ended October 31, 2024, compared to$ 2,133,000 for the same period in 2023[392]. - Interest expense was $162,000 for the three months ended October 31, 2024, attributed to liabilities from the Cornerstone Acquisition[388]. Revenue and Expenses - Infusion Technology revenue for the three months ended October 31, 2024, was$ 51,000, marking a 100% increase from zero revenue in the same period last year[380]. - General and administrative expenses increased by approximately $0.6 million for the three months ended October 31, 2024, compared to the same period in 2023, largely due to the inclusion of Cornerstone and Cyclo Merger-related costs[378]. - Research and development expenses for the Healthcare segment increased by 137% to$ 1,161,000 for the three months ended October 31, 2024, primarily due to the inclusion of Cornerstone's expenses[377]. - Real Estate segment revenue increased by 22% to $50,000 for the three months ended October 31, 2024, compared to$ 41,000 for the same period in 2023[382]. Cash Flow and Assets - Cash provided by investing activities was $8,575,000 for the three months ended October 31, 2024, a significant increase from cash used of$ 6,786,000 in the same period of 2023[392]. - Cash and cash equivalents increased by 205% to $8,159,000 as of October 31, 2024, compared to$ 2,675,000 as of July 31, 2024[395]. - Total assets decreased by 9% to $87,835,000 as of October 31, 2024, down from$ 96,832,000 as of July 31, 2024[395]. Strategic Focus and Future Plans - The Company plans to fund the TransportNPC phase III clinical trial for Trappsol Cyclo™ to its interim analysis in mid-2025 following the planned merger with Cyclo Therapeutics[367]. - Rafael Holdings has entered into a Merger Agreement with Cyclo Therapeutics, which is expected to focus on Trappsol Cyclo™ as its lead clinical program[367]. - The company does not anticipate paying dividends until achieving sustainable profitability[400]. - The Company has curtailed early-stage development efforts at Barer Institute to reduce spending and focus on strategic opportunities[364]. Revenue Sources - Revenue from tenants in Israel represented 60% of consolidated revenues for the three months ended October 31, 2024, down from 100% in the same period of 2023[404]. Unrealized Loss - Unrealized loss on investment in Cyclo was $4,365,000 for the three months ended October 31, 2024, compared to an unrealized loss of$ 2,124,000 for the same period in 2023[385].