Rafael(RFL)2024-03-13 21:54Financial Performance - Rafael Holdings reported a net income from continuing operations of $5.9 million, or $0.25 per fully diluted share for the three months ended January 31, 2024, compared to a net loss of $3.3 million, or $0.13 per share in the same period last year [5]. - The company recorded a net income of $2.1 million, or $0.10 per fully diluted share for the six months ended January 31, 2024, versus a net loss of $8.5 million, or $0.36 per share in the prior year [8]. - The net income attributable to Rafael Holdings, Inc. for the six months ended January 31, 2024, was $2,409,000, compared to a loss of $1,658,000 in the same period last year [17]. - Basic earnings per share from continuing operations for the three months ended January 31, 2024, was $0.26, compared to a loss of $0.13 in Q1 2023 [17]. - Consolidated net income from continuing operations for the three months ended January 31, 2024, was $5,904,000, compared to a loss of $3,252,000 in Q1 2023 [17]. Cash and Assets - Cash, cash equivalents, and marketable securities totaled $71.7 million as of January 31, 2024 [4]. - Total assets increased to $106.149 million as of January 31, 2024, compared to $98.829 million as of July 31, 2023 [15]. Expenses - Research and development expenses decreased to $0.6 million for the three months ended January 31, 2024, down from $2.2 million in the prior year, due to the winding down of early-stage programs [6]. - General and administrative expenses increased to $2.6 million for the three months ended January 31, 2024, compared to $2.1 million in the same period last year, primarily due to higher non-cash stock-based compensation [7]. - General and Administrative (G&A) expenses increased to $2,561,000 for the three months ended January 31, 2024, from $2,085,000 in the prior year, an increase of 22.8% [17]. - Research and Development (R&D) expenses decreased significantly to $612,000 in Q1 2024 from $2,225,000 in Q1 2023, a reduction of 72.5% [17]. - The operating loss for the three months ended January 31, 2024, was $3,143,000, an improvement from a loss of $4,259,000 in the same period last year [17]. Investments and Strategic Focus - The company increased its ownership in Day Three Labs to a majority interest of 79% and began consolidating its financial results in the second quarter of 2024 [5]. - An unrealized gain of $9.7 million on investments in Cyclo Therapeutics contributed to the net income reported during the second quarter [5]. - The company aims to leverage its strong balance sheet for selective strategic investments in companies with potential value generation for stockholders [3]. - Rafael Holdings is focused on expanding its investment portfolio through strategic investments in therapeutics addressing high unmet medical needs [11]. - The company reported a loss on initial investment in Day Three upon acquisition of $1,633,000 for the three months ended January 31, 2024 [17]. Revenue - Revenues for the three months ended January 31, 2024, were $68,000, compared to $70,000 for the same period in 2023, representing a decrease of 2.86% [17]. - Unrealized gains on investments from Cyclo Therapeutics Inc. amounted to $9,718,000 for the three months ended January 31, 2024 [17].