NEWARK, N.J., June 11, 2025 (GLOBE NEWSWIRE) -- Rafael Holdings, Inc. (NYSE: RFL; NYSE American: RFL-WT), today reported its financial results for the third quarter and first nine months of fiscal year 2025 ended April 30, 2025.

"We are pleased to have completed our merger with Cyclo Therapeutics and look forward to reporting the topline data from the 48-week interim analysis of the pivotal Phase 3 TransportNPC$(TM)$ study evaluating Trappsol$(R)$ Cyclo(TM) for the treatment of Niemann-Pick Disease Type C1 anticipated later this month," said Howard Jonas, Chief Executive Officer, Executive Chairman and Chairman of the Board of Rafael Holdings. Mr. Jonas added, "We have enhanced our financial position with the closing of a $25 million rights offering earlier this month which will support advancing this potential new treatment option for patients suffering from this rare genetic disease."

Rafael Holdings, Inc. Third Quarter Fiscal Year 2025 Financial Results

As of April 30, 2025, we had cash and cash equivalents of $37.9 million. On June 4, 2025, the Company announced the closing of a $25 million rights offering, which, including the funding of the backstop commitment by the Jonas family, raised net proceeds of $24.9 million after deduction of certain expenses incurred in connection with the offering.

For the three months ended April 30, 2025, we recorded a net loss attributable to Rafael Holdings of $4.8 million, or $0.19 per share, versus a net loss of $32.4 million, or $1.36 per share in the year ago period. The year over year decrease in net loss is attributable to non-cash items, primarily unrealized losses of $1.4 million on the Company's investment in Cyclo equity which we purchased in advance of the potential merger in the current period versus $4.4 million in the year ago period, combined with an in-process R&D expense of $89.9 million related to the acquisition of Cornerstone, partially offset by a $31.3 million recovery of receivables from Cornerstone in the year ago period.

Research and development expenses were $3.0 million for the three months ended April 30, 2025, compared to $1.5 million in the year ago period. The year over year increase relates to the inclusion in the current year period of spending at Cyclo Therapeutics following the March 25, 2025 merger and the activity of Cornerstone and Day Three which were consolidated with Rafael Holdings during fiscal 2024.

General and administrative expenses were $3.2 million for the three months ended April 30, 2025, compared to $1.9 million in the year ago period. The year over year increase relates to the inclusion of Cyclo Therapeutics following closing of the merger, and the activity of Cornerstone and Day Three, following their consolidation.

Rafael Holdings, Inc. First Nine Months Fiscal Year 2025 Financial Results

For the nine months ended April 30, 2025, we recorded a net loss attributable to Rafael Holdings of $18.4 million, or $0.73 per share, versus a net loss of $29.9 million, or $1.26 per share in the year ago period. The year over year decrease in net loss is attributable to in-process R&D expense of $89.9 million related to the acquisition of Cornerstone net with a $31.3 million recovery of receivables from Cornerstone in the year ago period and $3.2 million in unrealized gains on the Company's investment in Cyclo equity.

Research and development expenses were $5.3 million for the nine months ended April 30, 2025, compared to $2.6 million in the year ago period. The year over year increase relates to the merger with Cyclo Therapeutics which closed on March 25, 2025, and the activity of Cornerstone and Day Three, which were consolidated with Rafael Holdings during fiscal 2024.

For the nine months ended April 30, 2025, general and administrative expenses were $8.3 million compared to $6.5 million in the same period in the prior year. The year over year increase relates to the merger with Cyclo Therapeutics which closed on March 25, 2025, and the activity of Cornerstone and Day Three, which were consolidated with Rafael Holdings during fiscal 2024.

About Rafael Holdings, Inc.

Rafael Holdings, Inc. holds interests in clinical and early-stage pharmaceutical and certain other companies, including our wholly owned subsidiary, Cyclo Therapeutics, LLC, a clinical stage biotechnology company dedicated to developing Rafael's lead clinical candidate, Trappsol(R) Cyclo(TM), which is being evaluated in clinical trials for the potential treatment of Niemann-Pick Disease Type C1 ("NPC1"), a rare, fatal, and progressive genetic disorder. Rafael also holds majority equity interests in LipoMedix Pharmaceuticals Ltd., a clinical stage pharmaceutical company, Cornerstone Pharmaceuticals, Inc., formerly known as Rafael Pharmaceuticals Inc., a cancer metabolism-based therapeutics company, Rafael Medical Devices, LLC, an orthopedic-focused medical device company developing instruments to advance minimally invasive surgeries, and Day Three Labs, Inc., a company which empowers third-party manufacturers to reimagine their existing cannabis offerings.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our expectations surrounding the potential, safety, efficacy, and regulatory and clinical progress of our product candidates; plans regarding the further evaluation of clinical data; and the potential of our pipeline, including our internal cancer metabolism research programs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, those disclosed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended July 31, 2024, and our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Contact:

Barbara Ryan

Barbara.ryan@rafaelholdings.com

(203) 274-2825

 
 
     RAFAEL HOLDINGS, INC. 
  CONSOLIDATED BALANCE SHEETS 
 (in thousands, except share and 
         per share data) 
 
                                    April 30, 2025    July 31, 2024 
                                   ----------------  --------------- 
                                                        (audited) 
             ASSETS 
 
CURRENT ASSETS 
  Cash and cash equivalents         $       37,936    $       2,675 
  Available-for-sale securities                 --           63,265 
  Interest receivable                           --              515 
  Prepaid clinical trial costs               2,968               -- 
  Convertible note receivables, 
   due from Cyclo                               --            5,191 
  Accounts receivable, net of 
   allowance for credit losses of 
   $245 at April 30, 2025 and 
   July 31, 2024                               414              426 
  Inventory                                    288               -- 
  Prepaid expenses and other 
   current assets                              837              430 
     Total current assets                   42,443           72,502 
 
  Property and equipment, net                1,614            2,120 
  Non-current prepaid clinical 
  trial costs                                1,399               -- 
  Investments -- Cyclo                          --           12,010 
  Investments - Hedge Funds                     --            2,547 
  Convertible note receivable 
   classified as 
   available-for-sale                        1,719            1,146 
  Goodwill                                  28,278            3,050 
  Intangible assets, net                     1,027            1,847 
  In-process research and 
   development                              31,575            1,575 
  Other assets                                  41               35 
                                       -----------       ---------- 
TOTAL ASSETS                        $      108,096    $      96,832 
                                       ===========       ========== 
 
     LIABILITIES AND EQUITY 
CURRENT LIABILITIES 
  Accounts payable                  $        7,793    $       2,556 
  Accrued expenses                           1,866            1,798 
  Convertible notes payable                    614              614 
  Other current liabilities                     93              113 
  Due to related parties                       664              733 
  Installment note payable                      --            1,700 
                                       -----------       ---------- 
     Total current liabilities              11,030            7,514 
 
  Accrued expenses, noncurrent               3,445            2,982 
  Convertible notes payable, 
   noncurrent                                   76               73 
  Other liabilities                             25                5 
  Deferred income tax liability              9,002               -- 
TOTAL LIABILITIES                           23,578           10,574 
 
COMMITMENTS AND CONTINGENCIES 
 
EQUITY 
Class A common stock, $0.01 par 
 value; 35,000,000 shares 
 authorized, 787,163 shares 
 issued and outstanding as of 
 April 30, 2025 and July 31, 
 2024                                            8                8 

(MORE TO FOLLOW) Dow Jones Newswires

June 11, 2025 07:00 ET (11:00 GMT)