Rafael(RFL) - 2021 Q2 - Quarterly Report

Financial Performance - Pharmaceuticals segment expenses for the three months ended January 31, 2021, increased by 250% to $1.568 million compared to $448 thousand in the same period of 2020 [168]. - The company recorded a loss from operations of $8.643 million for the three months ended January 31, 2021, compared to a loss of $514 thousand for the same period in 2020, representing an increase of 1,582% [168]. - Consolidated net loss attributable to Rafael Holdings, Inc. for the three months ended January 31, 2021, was $8.165 million, compared to a net loss of $1.253 million for the same period in 2020, reflecting an increase of 552% [174]. - Loss from operations for the real estate segment increased by 56% to $2.174 million for the three months ended January 31, 2021, compared to a loss of $1.392 million in the same period of 2020 [170]. Revenue and Income - Real estate segment rental income from third parties decreased by 49% to $190 thousand for the three months ended January 31, 2021, down from $370 thousand in the same period of 2020 [170]. - The company has not generated any revenues from its pharmaceuticals segment to date, with all expenses related to ongoing research and development activities [168]. - The company recognized a gain of approximately $749 thousand from the sale of a building in Piscataway, New Jersey, in August 2020 [176]. - The company recorded unrealized gains of approximately $2.5 million for the three months ended January 31, 2021, compared to $557 thousand for the same period in 2020 [178]. Research and Development - Research and development expenses for the six months ended January 31, 2021, increased by 201% to $2.083 million compared to $693 thousand in the same period of 2020 [168]. - The company recorded an impairment loss of $724 thousand related to investments in other pharmaceuticals for the six months ended January 31, 2021 [177]. - The company held a 68% interest in LipoMedix and a 95% interest in Levco as of January 31, 2021, reflecting significant ownership in its pharmaceutical ventures [168]. Cash Flow and Investments - Cash and cash equivalents as of January 31, 2021, totaled $6.1 million, with an additional $8.9 million in Hedge Fund investments, expected to meet working capital and R&D needs for the next 12 months [180]. - Cash used in operating activities increased to $(5,527) thousand for the six months ended January 31, 2021, compared to $(1,900) thousand for the same period in 2020 [181]. - Cash used in investing activities for the six months ended January 31, 2021, was $(8,420) thousand, primarily due to the purchase of 7.3 million shares of Rafael Pharmaceuticals' Series D Preferred Stock for $9.1 million [183]. - Cash provided by financing activities for the six months ended January 31, 2021, was $13.8 million, mainly from the sale of 567,437 shares of Class B common stock [185]. Dividends and Financial Condition - The company does not anticipate paying dividends until achieving sustainable profitability and maintaining minimum cash reserves [186]. - The company does not have any off-balance sheet arrangements that could significantly affect its financial condition [195]. COVID-19 Impact - The company is actively monitoring the COVID-19 pandemic's impact on operations, with no material effects reported as of October 31, 2020 [187]. - The company has implemented measures to protect workforce health, including a mandatory work-from-home policy for applicable employees [191]. - The company has experienced a tenant that temporarily ceased rent payments due to COVID-19 but has since resumed payments [190].