Rafael (RFL) Q4 2024 earnings summary

Executive summary

• Rafael Holdings is a holding company with interests in clinical and early-stage pharmaceutical and medical device companies, including a planned merger with Cyclo Therapeutics, and maintains a real estate asset in Israel.

• In FY2024, the company completed the Cornerstone Pharmaceuticals acquisition, consolidated RP Finance, and acquired a controlling interest in Day Three Labs.

• The company’s primary focus is on expanding its investment portfolio in therapeutics addressing high unmet medical needs, with Trappsol Cyclo as the anticipated lead program post-merger.

Financial highlights

• FY2024 consolidated net loss attributable to Rafael Holdings was $34.4 million, compared to $1.9 million in FY2023.

• Loss from operations was $102.6 million, up from $15.0 million in FY2023, primarily due to a one-time $89.9 million in-process R&D expense from the Cornerstone acquisition.

• Revenues were $637,000, up from $279,000, driven by the acquisition of Day Three Labs and increased real estate rental income.

• Cash and cash equivalents as of July 31, 2024, were $2.7 million, with $63.3 million in available-for-sale securities.

• The company recorded a $31.3 million recovery of receivables from Cornerstone and a $2.6 million benefit from the sale of New Jersey NOLs.

Outlook and guidance

• The company expects its cash and available-for-sale securities to be sufficient to meet obligations for at least the next 12 months.

• Upon closing the Cyclo merger, Rafael will focus on funding the Phase III TransportNPC trial for Trappsol Cyclo, with interim results expected in mid-2025.

• The company does not anticipate paying dividends until sustainable profitability is achieved.