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Rafael Holdings, Inc. Overview
Rafael Holdings, Inc. (RFL), a Delaware corporation, is a holding company focusing on investments in clinical and early-stage pharmaceutical companies, including an investment in cancer metabolism-based therapeutics company Cornerstone Pharmaceuticals, Inc. The company also holds a majority equity interest in clinical stage pharmaceutical company LipoMedix Pharmaceuticals Ltd., the activities of the Barer Institute Inc. for preclinical cancer metabolism research, and orthopedic-focused medical device company Rafael Medical Devices, Inc. With a strategic shift in their business plan, Rafael Holdings actively seeks to expand its portfolio through acquisitions and strategic investments.
Unrecognized Compensation Costs
In their recent quarterly report, Rafael Holdings highlights unrecognized compensation costs related to non-vested stock options of $7 thousand, expected to be recognized over the next 1.69 years. Additionally, the company reports a total of $2.1 million unrecognized compensation costs related to non-vested stock-based compensation arrangements, also expected to be recognized over the next four years.
Stock-Based Compensation Expenses and Reversals
Furthermore, the company disclosed stock-based compensation expenses of $591 thousand for the three months ended April 30 and $1,648 thousand for the nine months ended April 30. A significant reversal of previously recorded stock-based compensation expenses occurred due to material forfeiture of Class B restricted shares and stock options, amounting to $915 thousand for the nine months ended April 30, in connection with the termination of Patrick Fabbio’s position as Chief Financial Officer.
COVID-19 and Russia-Ukraine Impact
The quarterly report also highlights the company’s ongoing monitoring of the COVID-19 pandemic and its potential impact on operations and holdings, as well as the possible consequences of the ongoing Russia-Ukraine war on economic markets and the business itself.
Strategic Opportunities
Despite the uncertain global situation, Rafael Holdings continues to explore strategic opportunities and evaluate external opportunities to acquire or strategically invest in later-stage assets with the potential to achieve meaningful clinical milestones, improve patients’ lives, and increase shareholder value.
Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/1713863/000121390023048592/f10q0423_rafaelhold.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!