Rafael Holdings Reports Decline in Revenue and Net Loss for Six Months Ending January 31, 2025

Rafael Holdings, Inc. reported a significant decline in financial performance for the six months ending January 31, 2025, compared to the same period in the previous year. The company recorded total revenues of $205,000, a decrease from $136,000 in the prior year. The net loss attributable to Rafael Holdings, Inc. was $13.6 million, compared to a net income of $2.4 million for the same period in 2024. This resulted in a basic loss per share of $0.57, compared to earnings of $0.10 per share in the previous year.

The company's financial position has also changed notably, with total assets decreasing to $83.0 million from $96.8 million as of July 31, 2024. Cash and cash equivalents increased significantly to $48.3 million from $2.7 million, primarily due to the sale of available-for-sale securities. However, total equity attributable to Rafael Holdings decreased to $69.4 million from $82.2 million, reflecting a reduction in accumulated deficit and other comprehensive income.

Strategically, Rafael Holdings has made several significant moves, including the acquisition of Cornerstone Pharmaceuticals, which was completed in March 2024. This acquisition has led to the consolidation of Cornerstone's financial results into Rafael's statements. Additionally, the company has entered into a merger agreement with Cyclo Therapeutics, expected to close by March 31, 2025. This merger aims to focus on the development of Cyclo's lead therapeutic asset, Trappsol® Cyclo™, which is in clinical trials for Niemann-Pick Disease Type C1.

Operationally, Rafael Holdings has seen changes in its business segments. The Infusion Technology segment, which includes Day Three Labs, reported revenues of $51,000 for the six months ended January 31, 2025, compared to no revenues in the prior year. However, the segment incurred a loss of $3.7 million, primarily due to a goodwill impairment charge of $3.1 million. The Real Estate segment generated $154,000 in revenue, up from $136,000, but also reported a loss from operations.

Looking ahead, Rafael Holdings expects to utilize its cash reserves to meet obligations and fund ongoing operations, particularly in light of the planned merger with Cyclo. The company anticipates that the merger will enhance its focus on high unmet medical needs and potentially lead to significant advancements in its clinical programs.