RAFAEL HOLDINGS, INC. Overview
The Company has an investment in
On
In 2019, the Company established the
The Company's commercial real estate holdings consist of a building at
Business Update - COVID-19, War in
In
The pandemic's impacts on the Company's and its affiliates' operations and
specifically the ongoing clinical trials being conducted by
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Even with growing availability of testing and vaccines and the relaxation of public health measures that were implemented to limit the spread of the pandemic, there continues to be uncertainty around the COVID-19 pandemic and its impact.
The Company has implemented a number of measures to protect the health and
safety of the Company's workforce including a voluntary work-from-home policy
for the Company's workforce
The full impact of the COVID-19 pandemic on the Company will depend on factors such as the length of time of the pandemic; the responses of federal, state and local governments, the impact of future variants that may emerge; vaccination rates among the population; the efficacy of the COVID-19 vaccines; the longer-term impact of the pandemic on the economy and consumer behavior; and the effect on our employees, vendors, and other partners.
The short and long-term implications of
Results of Operations
Our business consists of two reportable segments - Pharmaceuticals and Real Estate. We evaluate the performance of our Pharmaceuticals segment based primarily on research and development efforts and results of clinical trials, and our Real Estate segment based primarily on results of operations. Accordingly, the income and expense line items below loss from operations are only included in the discussion of consolidated results of operations.
Three and Six Months Ended
Pharmaceuticals Segment
Our consolidated expenses for our Pharmaceuticals segment were as follows:
Three Months Ended
January 31, Change
2022 2021 $ %
(unaudited, in thousands)
General and administrative $ 1,714 $ (1,733 ) 3,447 199 %
Research and development (3,335 ) (1,568 ) (1,767 ) (113 )%
Impairment - Altira - (7,000 ) 7,000 100 %
Loss from operations $ (1,621 ) $ (10,301 ) 8,680 84 %
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Six Months Ended
January 31, Change
2022 2021 $ %
(unaudited, in thousands)
General and administrative $ (10,383 ) $ (3,352 ) (7,031 ) (210 )%
Research and development (5,488 ) (2,083 ) (3,405 ) (163 )%
Provision for loss on receivable
pursuant to line of credit (25,000 ) - (25,000 ) (100 )%
Provision for losses on related party
receivables (10,095 ) - (10,095 ) (100 )%
Impairment - Altira - (7,000 ) 7,000 100 %
Loss from operations $ (50,966 ) $ (12,435 ) (38,531 ) (310 )%
To date, the Pharmaceuticals segment has not generated any revenues. The
entirety of the expenses in the Pharmaceuticals segment relate to the activities
of LipoMedix, Barer, Levco, Farber, and Rafael Medical Devices. As of
General and administrative expenses. General and administrative expenses
consist mainly of payroll, severance, stock compensation expense, benefits,
facilities, consulting and professional fees. The decrease in general and
administrative expenses during the three months ended
The increase in general and administrative expenses during six months ended
Research and development expenses. Research and development expenses increased
for the three and six months ended
Loss on line of credit. Due to the Data Events, for the six months ended
Loss on related party receivables. Due to the Data Events, for the six months
ended
Impairment expense - Altira. The Company recorded an impairment loss of
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Real Estate Segment
Our consolidated income and expenses for our Real Estate segment were as
follows:
Three Months Ended
January 31, Change
2022 2021 $ %
(unaudited, in thousands)
Rental - Third Party $ 232 $ 190 42 22 %
Rental - Related Party 705 527 178 34 %
Parking 173 122 51 42 %
Other - Related Party - 120 (120 ) (100 )%
Selling, general and administrative (818 ) (1,034 ) 216 21 %
Depreciation (381 ) (441 ) 60 14 %
Loss from operations $ (89 ) $ (516 ) 427 83 %
Six Months Ended
January 31, Change
2022 2021 $ %
(unaudited, in thousands)
Rental - Third Party $ 428 $ 426 2 - %
Rental - Related Party 1,225 1,047 178 (17 )%
Parking 363 299 64 (21 )%
Other 120 240 (120 ) 50 %
Selling, general and administrative (1,613 ) (2,007 ) 394 20 %
Depreciation (763 ) (878 ) 115 13 %
Loss from operations $ (240 ) $ (873 ) 633 73 %
Revenues. Total rental revenues increased by approximately
Selling, general and administrative expenses. Selling, general and
administrative expenses consist mainly of payroll, benefits, facilities,
consulting and professional fees. The decrease in selling, general and
administrative expenses of approximately
Depreciation expenses. Depreciation expenses decreased by approximately
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