Rafael(RFL)2021-06-14 21:20Financial Performance - The consolidated net loss attributable to Rafael Holdings, Inc. was $2,553 thousand for the three months ended April 30, 2021, compared to a net loss of $2,159 thousand for the same period in 2020, an increase of 18%[170] - The Pharmaceuticals segment reported a loss from operations of $1,417 thousand for the three months ended April 30, 2021, compared to a loss of $778 thousand for the same period in 2020, representing an increase of 82%[165] - The Real Estate segment experienced a loss from operations of $2,062 thousand for the three months ended April 30, 2021, compared to a loss of $1,187 thousand for the same period in 2020, marking a 74% increase[167] Research and Development - Research and development expenses in the Pharmaceuticals segment increased by 99% to $1,262 thousand for the three months ended April 30, 2021, compared to $634 thousand in the same period in 2020[165] - The Pharmaceuticals segment has not generated any revenues to date, with all expenses related to various pharmaceutical activities[165] Cash Flow and Investments - As of April 30, 2021, the company had cash and cash equivalents of $4.7 million and investments in hedge funds amounting to $9.7 million, expected to meet working capital and R&D needs for the next 12 months[175] - For the nine months ended April 30, 2021, cash used in operating activities was $(8,620) thousand, an increase from $(2,975) thousand for the same period in 2020[176] - Cash used in investing activities for the nine months ended April 30, 2021 was primarily due to purchasing 7.3 million shares of Rafael Pharmaceuticals' Series D Preferred Stock for $9.1 million[178] - Cash provided by financing activities for the nine months ended April 30, 2021 was $15,770 thousand, primarily from the sale of 567,437 shares of Class B common stock[176] Impairment and Gains - The company recorded an impairment expense of $7.0 million related to its investment in Altira for the nine months ended April 30, 2021[165] - The company incurred an impairment expense related to the investment in Altira of $7.0 million for the nine months ended April 30, 2021[177] - The company recognized a gain on the sale of a building in Piscataway, New Jersey, amounting to approximately $749 thousand[171] - Unrealized gains on investments in hedge funds were approximately $4.2 million for the nine months ended April 30, 2021, compared to $492 thousand for the same period in 2020, reflecting a 748% increase[173] Operating Expenses - Selling, general and administrative expenses increased by 47% to $2,852 thousand for the three months ended April 30, 2021, compared to $1,937 thousand for the same period in 2020[168] Dividend Policy - The company does not anticipate paying dividends until achieving sustainable profitability and retaining minimum cash reserves[181] COVID-19 Impact - The ongoing COVID-19 pandemic has not had a material impact on the company's operations as of October 31, 2020, but the situation remains uncertain[182] - The company actively monitors the impact of COVID-19 on its operations and those of its holdings, particularly in clinical trials conducted in Europe and Asia[183] Shelf Registration - The company filed a Shelf Registration on Form S-3 on May 27, 2021, authorizing the sale of up to $250 million of Class B common stock[175]