secwatch.observer — SEC 8-K summary
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Issuer:     Rafael Holdings, Inc. (RFL)
CIK:        0001713863
Form:       8-K/A
Filed at:   2024-05-23T23:59:59+00:00
Accession:  0001213900-24-046085
Event type: other_material
Sentiment:  negative
Materiality: 0.50
Item codes: 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Rafael Holdings files audited FY2023 financials of acquired Cornerstone; net income $4.2M but going concern noted
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- Cornerstone FY2023 net income $4.2M (vs loss $10.2M FY2022) driven by $21.7M derivative gain; no product revenue.
- Auditor expresses substantial doubt about going concern due to recurring losses and negative operating cash flows.
- Total liabilities $88.9M vs assets $17.9M; accumulated deficit $261M; debt defaults on $12.2M convertible notes.
- Acquisition of controlling interest closed March 13, 2024 after stockholder restructuring approvals.
- Pro forma condensed combined financial statements filed as Exhibit 99.3; cash used in operations $7.2M in FY2023.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1713863/000121390024046085/0001213900-24-046085-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1713863/000121390024046085/ea0206676-8ka1_rafael.htm
  HTML page:      https://secwatch.observer/filing/0001213900-24-046085

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