Rafael Holdings, Inc. Segments Disclosure

NOTE 22 – BUSINESS SEGMENT INFORMATION

 

The Company conducts business as three operating segments, Healthcare, Infusion Technology and Real Estate. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s Chief Financial Officer who is the chief operating decision-maker (“CODM”).

 

The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its Healthcare segment based primarily on results of clinical trials and loss from operations, and the Infusion Technology and Real Estate segments based primarily on revenues and income (loss) from operations. The CODM uses these measures to allocate the Company’s resources. The CODM does not review any measure of significant segment expenses which differ from the level of reporting reflected in the tables below. Currently, the CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented.

 

The Healthcare segment is comprised of a majority equity interest in LipoMedix, Barer, Cornerstone, Cyclo, and Rafael Medical Devices. Following the Cyclo Merger, the Healthcare segment generated $515 thousand of product revenue during the year ended July 31, 2025.

 

The Real Estate segment consists of the Company’s real estate holdings, which are currently comprised of a portion of one commercial building in Israel.

 

The Infusion Technology segment is comprised of a majority equity interest in Day Three. Revenues associated with the Infusion Technology segment include Infusion Technology revenue derived from Day Three’s Unlokt technology.

 

Operating results for the business segments of the Company are as follows:

 

(in thousands)		Healthcare				Infusion Technology				Real Estate				Total
Year Ended July 31, 2025
Infusion technology revenue		$	—			$	93			$	—			$	93
Rental – Third Party			—				—				197				197
Rental – Related Party			—				—				112				112
Product revenue			515				—				—				515
COSTS AND EXPENSES
Cost of Infusion Technology revenue			—				(106	)			—				(106	)
Cost of product revenue			(28	)			—				—				(28	)
General and administrative			(13,165	)			(320	)			(296	)			(13,781	)
Research and development			(12,568	)			(255	)			—				(12,823	)
Depreciation and amortization			(48	)			(177	)			(63	)			(288	)
Loss on impairment of goodwill			—				(3,050	)			—				(3,050	)
Loss from operations		$	(25,294	)		$	(3,815	)		$	(50	)		$	(29,159	)

(in thousands)		Healthcare				Infusion Technology				Real Estate				Total
Year Ended July 31, 2024
Infusion technology revenue		$	—			$	355			$	—			$	355
Rental – Third Party			—				—				174				174
Rental – Related Party			—				—				108				108
COSTS AND EXPENSES
Cost of Infusion Technology revenue			—				(154	)			—				(154	)
General and administrative			(8,338	)			(374	)			(142	)			(8,854	)
Research and development			(3,668	)			(502	)			—				(4,170	)
In-process research and development			(89,861	)			—				—				(89,861	)
Depreciation and amortization			(165	)			—				(60	)			(225	)
(Loss) income from operations		$	(102,032	)		$	(675	)		$	80			$	(102,627	)

 

A reconciliation between loss from operations by reportable segment to consolidated net loss before income taxes for the years ended July 31, 2025 and 2024, is as follows:

 

(in thousands)		July 31, 2025				July 31, 2024
(Loss) income from operations by segment
Healthcare		$	(25,294	)		$	(102,032	)
Infusion Technology			(3,815	)			(675	)
Real Estate			(50	)			80
Total			(29,159	)			(102,627	)
Reconciliation to loss before income taxes:
Interest income			1,996				2,383
Loss on initial investment in Day Three upon acquisition			—				(1,633	)
Realized gain on available-for-sale securities			178				1,772
Realized loss on investment in equity securities			—				(46	)
Realized gain on investment - Cyclo			—				424
Unrealized (loss) gain on investment - Cyclo			(5,144	)			37
Unrealized (loss) gain on convertible notes receivable, due from Cyclo			(719	)			1,191
Unrealized gain on investment - Hedge Funds			—				63
Recovery of receivables from Cornerstone			—				31,305
Interest expense			(658	)			(248	)
Other income, net			310				118
Loss before income taxes		$	(33,196	)		$	(67,261	)

 

Geographic Information

 

Healthcare Segment

 

Revenue from the Healthcare segment was generated primarily from customers located in the United States. During the year ended July 31, 2025, approximately $30 thousand of product revenue from the Healthcare Segment was generated from customers located in Canada.

 

Infusion Technology Segment

 

Revenue from the Infusion Technology segment was generated entirely from customers located in the United States.

 

Real Estate Segment

 

Revenue from the Real Estate segment was generated entirely from tenants located in Israel.

Assets

Net property, plant, and equipment and total assets summarized by geographic area are as follows:

 

(in thousands)		United States				Israel				Total
July 31, 2025
Property, plant and equipment, net		$	321			$	1,275			$	1,596
Total assets			111,954				2,155				114,109
July 31, 2024
Property, plant and equipment, net		$	783			$	1,337			$	2,120
Total assets			93,434				3,398				96,832