Rafael(RFL)2020-06-09 21:16Financial Performance - Consolidated net loss attributable to Rafael Holdings, Inc. was $2,159,000 for the three months ended April 30, 2020, representing a 115% increase compared to the net loss of $1,005,000 for the same period in 2019[152]. - The company incurred a loss before income taxes of $5,252,000 for the nine months ended April 30, 2020, a 107% increase from the loss of $2,534,000 for the same period in 2019[153]. - Loss from operations for the Pharmaceuticals segment increased by 150% to $778,000 for the three months ended April 30, 2020 compared to $311,000 for the same period in 2019[146]. - Selling, general and administrative expenses for the nine months ended April 30, 2020 increased by approximately $949,000 (18%) compared to the same period in 2019, primarily due to increased payroll and bonus payments[148]. - The Pharmaceuticals segment has not generated any revenues to date, with expenses increasing due to the commencement of operations at Barer, resulting in a 1,209% increase in selling, general and administrative expenses for the three months ended April 30, 2020 compared to the same period in 2019[145]. Revenue and Expenses - The Real Estate segment experienced a revenue decrease of approximately $153,000 (39%) for the three months ended April 30, 2020, while revenues increased by approximately $141,000 (11%) for the nine months ended April 30, 2020 compared to the same period in 2019[147]. - Cash used in operating activities was $2,975,000 for the nine months ended April 30, 2020, compared to $2,538,000 for the same period in 2019, reflecting increased operations at the Barer Institute[158]. - Rental revenue from third-party tenants decreased by 39% to $360,000 for the three months ended April 30, 2020 compared to $588,000 for the same period in 2019[150]. - The company recorded an impairment loss of $295,000 related to investments in other pharmaceuticals for the nine months ended April 30, 2020[155]. Cash Position - Cash and cash equivalents as of April 30, 2020 were $8.4 million, expected to be sufficient for working capital, research and development, and capital expenditure requirements over the next twelve months[157]. - Cash used in financing activities for the nine months ended April 30, 2020, was primarily due to tax payments related to shares withheld for employee taxes on restricted stock vesting, net of proceeds from option exercises[161]. - The company does not anticipate paying dividends on common stock until achieving sustainable profitability and maintaining certain minimum cash reserves[161]. COVID-19 Impact - As of April 30, 2020, COVID-19 has not had a material impact on the company's operations, and existing cash balances are expected to satisfy operating requirements for at least the next twelve months[162]. - The company actively monitors the COVID-19 outbreak and its potential impact on operations, particularly for pharmaceutical holdings conducting activities in Europe and Asia[163]. - Clinical trial activities for pharmaceutical holdings have been managed to minimize disruptions, with collaboration from regulatory agencies[164]. - The company has implemented a mandatory work-from-home policy for employees who can perform their jobs remotely, along with restrictions on business travel and in-person meetings[165]. - The evolving nature of COVID-19 presents risks that could adversely impact operations, financial condition, and cash flows, with uncertainties regarding the pandemic's duration and severity[166]. - The potential economic impact of COVID-19 may reduce the company's ability to access capital, negatively affecting long-term liquidity[172]. Accounting and Financial Reporting - There have been no material changes in critical accounting policies and estimates during the nine months ended April 30, 2020[168]. - The company does not have any off-balance sheet arrangements that could affect financial condition or results of operations[169].