Rafael(US:RFL)2025-10-29 21:19Financial Performance - Rafael Holdings reported a 100% increase in product revenue for the Healthcare segment, reaching approximately $515 thousand for the year ended July 31, 2025, compared to $0 in the previous year[466]. - General and administrative expenses rose by 58% to $13.165 million in 2025, primarily due to the consolidation of Cyclo's expenses following the merger[467]. - Research and development expenses surged by 243% to $12.568 million, largely driven by the inclusion of Cyclo's R&D costs post-merger[468]. - The Infusion Technology segment experienced a 74% decline in revenue, dropping to $93 thousand from $355 thousand in 2024[470]. - An impairment charge of $3.1 million was recorded for the Infusion Technology segment's goodwill due to a decline in estimated fair value[471]. - Consolidated loss from operations improved by 72% to $(29.2) million in 2025 from $(102.6) million in 2024[474]. - Net loss attributable to Rafael Holdings, Inc. decreased by 11% to $(30.5) million in 2025 from $(34.4) million in 2024[474]. Cash Flow and Assets - Cash and cash equivalents surged by 1,873% to $52.8 million as of July 31, 2025, up from $2.7 million in 2024[484]. - Cash used in operating activities increased by 143% to $(18.9) million in 2025, compared to $(7.8) million in 2024[486]. - Cash provided by investing activities rose significantly to $44.0 million in 2025, compared to cash used of $(10.8) million in 2024[488]. - Financing activities generated $24.8 million in 2025, a substantial increase from $(0.2) million in 2024[490]. - Total assets grew by 18% to $114.1 million in 2025, up from $96.8 million in 2024[484]. Investments and Subsidiaries - Rafael Holdings holds a 67% interest in Cornerstone Pharmaceuticals following a restructuring, which has become a consolidated subsidiary[460]. - The company invested approximately $582,000 in Rafael Medical Devices in February 2025, maintaining a 73% equity interest[461]. - The merger with Cyclo was completed on March 25, 2025, allowing for the consolidation of Cyclo's financial results[456]. - Rafael Holdings aims to expand its investment portfolio through strategic investments addressing high unmet medical needs[454]. Revenue Sources - Real Estate segment rental revenue increased by 13% to $197,000 for the year ended July 31, 2025, compared to $174,000 in 2024[473]. - Revenue from tenants located in Israel accounted for 34% of consolidated revenues for the year ended July 31, 2025, down from 44% in 2024, with all revenues in currencies other than the U.S. Dollar[503]. Impairment and Goodwill - The company recorded a goodwill impairment charge of $3.1 million for the Infusion Technology segment, representing a full write-off of the goodwill balance associated with this operating segment[499]. - Unrealized loss on investment in Cyclo was $(5.1) million for the year ended July 31, 2025, compared to a gain of $37,000 in 2024[477]. - The company assesses goodwill for impairment annually or more frequently if triggering events occur, using both qualitative and quantitative assessments[498]. Regulatory and Clinical Developments - The FDA granted substantial equivalence determination for the VECTR System, a product of Rafael Medical Devices, for use in minimally invasive surgeries[461]. - Clinical trial accruals are estimated based on the progress of specific tasks and unbilled patient visits related to third-party vendor services[501]. - The company does not have any off-balance sheet arrangements that could materially affect its financial condition or results of operations[502].