Fri, Jun 14, 8:32 PM (85 days ago)
Rafael Holdings, Inc. reported its financial results for the quarter ended April 30, 2024. Key highlights include: 1. **Financial Performance**: - **Revenue**: Increased to $336,000 from $71,000 in the same quarter last year, driven by new Infusion Technology revenue. - **Net Loss**: Significant increase in net loss to $62.3 million from $1.5 million, primarily due to a substantial $89.9 million in-process research and development (IPR&D) expense related to the Cornerstone acquisition. 2. **Balance Sheet**: - **Cash and Equivalents**: Declined to $7.4 million from $21.5 million. - **Total Assets**: Increased slightly to $101.6 million from $98.8 million. - **Liabilities**: Increased to $11.1 million from $2.2 million, mainly due to accrued expenses and convertible notes. 3. **Segment Information**: - **Healthcare**: No revenue, but significant expenses due to research and development. - **Infusion Technology**: New revenue stream contributing $262,000. - **Real Estate**: Stable revenue of $74,000. 4. **Investments and Acquisitions**: - Acquired a 67% interest in Cornerstone Pharmaceuticals, consolidating its financials. - Increased investment in Cyclo Therapeutics, now holding a 32% stake. 5. **Cash Flow**: - **Operating Activities**: Net cash used was $4.9 million. - **Investing Activities**: Net cash used was $8.9 million, primarily due to purchases of available-for-sale securities. - **Financing Activities**: Minimal activity with net cash used of $155,000. 6. **Future Outlook**: - Focus on strategic investments in high unmet medical needs areas. - Uncertainties around the financial performance of acquired entities and new revenue streams. The company's financial health indicates a strategic shift towards expanding its investment portfolio, although it faces significant operational losses and cash flow challenges.