Rafael(RFL)2025-06-11 11:53Revenue and Financial Performance - Rafael Holdings reported a product revenue of approximately $243 thousand for the three and nine months ended April 30, 2025, compared to $0 for the same periods in 2024, primarily due to the inclusion of Cyclo's revenue following the merger[374]. - Infusion Technology segment revenue decreased by 84% to $42,000 for the three months ended April 30, 2025, compared to $262,000 in the same period of 2024[378]. - Real Estate segment rental revenue increased by 4% to $49,000 for the three months ended April 30, 2025, compared to $47,000 in the same period of 2024[382]. - Consolidated loss from operations improved by 94% to $5.9 million for the three months ended April 30, 2025, compared to a loss of $93.2 million in the same period of 2024[383]. - Interest income for the three months ended April 30, 2025, was $0.5 million, consistent with the same period in 2024[384]. - Unrealized loss on investment in Cyclo was $1.4 million for the three months ended April 30, 2025, a decrease of 68% compared to a loss of $4.4 million in the same period of 2024[386]. - Other income, net was $0.2 million for the three months ended April 30, 2025, attributed to gains from asset sales, compared to no other income in the same period of 2024[391]. - Revenue from tenants located in Israel represented 41% of consolidated revenues for the nine months ended April 30, 2025, with the entirety of these revenues in currencies other than the U.S. Dollar[413]. Expenses and Impairments - The company's general and administrative expenses increased by 90% to $3,102 thousand for the three months ended April 30, 2025, compared to $1,636 thousand in the same period of 2024, largely due to legal and professional fees associated with the Cyclo merger[375]. - Research and development expenses rose by 148% to $3,003 thousand for the three months ended April 30, 2025, compared to $1,212 thousand in the same period of 2024, driven by Cyclo's inclusion and ongoing activities at LipoMedix and Cornerstone[376]. - The Infusion Technology segment recorded a goodwill impairment charge of $3.1 million during the nine months ended April 30, 2025, indicating a significant decline in asset value[379]. - The company recorded an impairment charge of $3.1 million related to the Infusion Technology segment's goodwill during the nine months ended April 30, 2025[407]. Cash and Assets - Cash and cash equivalents increased by 1,318% to $37.9 million as of April 30, 2025, compared to $2.7 million on July 31, 2024[393]. - Total assets increased by 12% to $108.1 million as of April 30, 2025, compared to $96.8 million on July 31, 2024[393]. - As of April 30, 2025, the company held cash and cash equivalents of approximately $37.9 million, expected to meet obligations for at least the next 12 months[394]. - Cash used in operating activities increased by $3.6 million, from $4.9 million for the nine months ended April 30, 2024, to $8.5 million for the nine months ended April 30, 2025, primarily due to increased operating activity following the Cyclo Merger[395]. - Cash provided by investing activities for the nine months ended April 30, 2025, included proceeds of $80.7 million from sales and maturities of available-for-sale securities[396]. - Cash used in financing activities for the nine months ended April 30, 2025, included a payment for taxes related to shares withheld for employee taxes of $108 thousand[398]. - Cash provided by financing activities for the nine months ended April 30, 2024, was primarily related to proceeds from the sale of RMD membership units of $0.9 million[399]. Clinical and Product Development - The loss from operations for the Healthcare segment decreased by 94% to $5,884 thousand for the three months ended April 30, 2025, compared to a loss of $92,782 thousand in the same period of 2024[372]. - Rafael Holdings holds a 95% interest in LipoMedix, which has completed various clinical stages of its product candidate, Promitil®, treating a total of 149 patients[364]. - The company intends to fund the TransportNPC Phase 3 clinical trial for Trappsol® Cyclo™ with results expected later this month, which will inform the decision on filing a New Drug Application (NDA)[363]. - Following the merger with Cyclo, Rafael Holdings is focusing on Trappsol Cyclo™ as its lead clinical program, evaluating its operating entities to align resources with core assets[361]. - Rafael Medical Devices received FDA clearance for the VECTR System, which is intended for minimally invasive surgeries, marking a significant milestone for the company[369]. - As of April 30, 2025, Rafael Holdings holds a 67% interest in Cornerstone Pharmaceuticals following a restructuring, which has become a consolidated subsidiary[368]. Inventory and Dividends - The company did not have any inventory as of July 31, 2024, and recognized inventory acquired in the Cyclo Merger at its fair value of $270 thousand[410]. - The company determined no reserve for obsolete inventory was necessary as of April 30, 2025[410]. - The company does not anticipate paying dividends on common stock until achieving sustainable profitability and retaining certain minimum cash reserves[399].