Raphael Pharmaceutical Reports Q1 2025 Financial Results with $429,000 Net Loss

Raphael Pharmaceutical Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $429,000, a decrease of 22% from the $550,000 loss recorded in the same period of 2024. The company did not generate any revenue during this quarter, consistent with the previous year. Operating loss for the period was $425,000, down from $547,000 in the prior year, primarily due to a significant reduction in research and development expenses, which fell to $72,000 from $379,000. General and administrative expenses, however, increased by 110% to $353,000, largely attributed to stock-based compensation.

In terms of financial position, Raphael Pharmaceutical's total assets rose to $93,000 as of March 31, 2025, compared to $27,000 at the end of 2024. The increase was driven by a rise in cash and cash equivalents, which reached $50,000, up from $19,000. Current liabilities decreased slightly to $827,000 from $769,000, while stockholders' equity showed a marginal improvement, with a deficit of $734,000 compared to $742,000 at the end of the previous fiscal year.

Strategically, the company has been active in raising capital through the issuance of common stock and warrants. In the first quarter of 2025, Raphael Pharmaceutical raised a total of $240,000 through financing activities, compared to $230,000 in the same period last year. The company has also made significant changes to its board, including the appointment of Ajay Kumar Dhadha as chairman, who received 350,000 restricted shares and warrants as part of his compensation.

Operationally, Raphael Pharmaceutical continues to focus on its research and development efforts, particularly in the area of cannabinoid-based therapies. The company has recently completed a proof-of-concept clinical study for its lead product candidate aimed at treating rheumatoid arthritis, with plans to further investigate its efficacy in autoimmune diseases. The company is also exploring treatments for asthma, leveraging insights gained from studies related to COVID-19. As of March 31, 2025, the company had a total of 19,626,418 shares outstanding, reflecting its ongoing efforts to expand its shareholder base.

Looking ahead, Raphael Pharmaceutical faces significant challenges, including the need for additional funding to support its operations and research activities. The company anticipates requiring approximately $500,000 for research and development and $700,000 for capital expenditures over the next 12 months. Management has expressed concerns about the company's ability to continue as a going concern without securing sufficient financing, highlighting the uncertainty surrounding its future operations and the potential need to pursue alternative strategies if funding is not obtained.