Raphael Pharma's Cash Dries Up Amid Mounting Losses

TL;DR

**Raphael Pharma is on life support with only $3K in cash; avoid at all costs unless you're a high-risk speculator.**

AI Summary

Raphael Pharmaceutical Inc. (RAPH) reported a net loss of $1.006 million for the nine months ended September 30, 2025, a decrease from the $1.124 million net loss in the same period of 2024. The company's operating loss also decreased to $991 thousand in the first nine months of 2025, down from $1.115 million in 2024. Research and development expenses significantly declined to $286 thousand for the nine months ended September 30, 2025, compared to $565 thousand in the prior year, while general and administrative expenses increased to $705 thousand from $550 thousand. RAPH's cash and cash equivalents plummeted from $19 thousand at December 31, 2024, to just $3 thousand by September 30, 2025, indicating severe liquidity issues. The accumulated deficit expanded to $9.895 million as of September 30, 2025, from $8.889 million at December 31, 2024. The company raised $240 thousand through the issuance of common stock and warrants during the nine months ended September 30, 2025, but this was insufficient to cover its cash burn from operations, which was $256 thousand. Management explicitly stated substantial doubt about the company's ability to continue as a going concern without additional funding.

Why It Matters

This filing reveals Raphael Pharmaceutical is in a precarious financial state, with cash reserves nearly depleted and a significant accumulated deficit. For investors, this signals extreme risk, as the company's ability to fund ongoing R&D and clinical trials is severely compromised, potentially leading to asset licensing, acquisition, or even bankruptcy. Employees face job insecurity given the 'going concern' warning. Customers, if any, and the broader market should note that RAPH's product development is at high risk of stalling, impacting future pharmaceutical innovation and competitive dynamics in its target therapeutic areas.

Risk Assessment

Risk Level: high — The risk level is high due to the company's explicit 'going concern' warning and critically low cash balance of $3 thousand as of September 30, 2025. The accumulated deficit of $9.895 million further underscores its financial instability, with management stating that substantial doubt exists about its ability to continue operations without additional funding.

Analyst Insight

Investors should immediately divest any holdings in RAPH due to the severe liquidity crisis and explicit going concern warning. New investors should avoid RAPH entirely, as the company faces a high probability of further dilution, asset sales, or bankruptcy without significant, uncertain capital infusions.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

$7K

total Debt

$1.271M

net Income

-$1.006M

eps

-$0.05

gross Margin

N/A

cash Position

$3K

revenue Growth

N/A

Key Numbers

• $3K — Cash and cash equivalents (Critically low balance as of September 30, 2025, down from $19K at Dec 31, 2024.)
• $1.006M — Net loss (For the nine months ended September 30, 2025, indicating continued unprofitability.)
• $9.895M — Accumulated deficit (As of September 30, 2025, highlighting significant historical losses.)
• $286K — Research and development expenses (For the nine months ended September 30, 2025, a significant decrease from $565K in 2024.)
• $705K — General and administrative expenses (For the nine months ended September 30, 2025, an increase from $550K in 2024.)
• $256K — Net cash used in operating activities (For the nine months ended September 30, 2025, contributing to cash depletion.)
• $240K — Net cash provided by financing activities (For the nine months ended September 30, 2025, insufficient to cover operating burn.)
• 19,626,418 — Common stock outstanding (As of November 13, 2025, reflecting recent share issuances.)

Key Players & Entities

• Raphael Pharmaceutical Inc. (company) — registrant
• Ajay Kumar Dhadha (person) — Board member and chairman
• Zvi Laufer (person) — Board member
• U.S. Food and Drug Administration (regulator) — regulatory approval body
• European Medicines Agency (regulator) — regulatory approval body
• Nevada (company) — state of incorporation
• Tel Aviv-Jaffa, Israel (company) — headquarters location

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has a net loss of $1.006 million for the nine months ended September 30, 2025, and its cash and cash equivalents have plummeted to $3 thousand. Management explicitly stated substantial doubt about the company's ability to continue as a going concern without additional funding.
• Severe Liquidity Constraints [high — financial]: Cash and cash equivalents decreased from $19 thousand at December 31, 2024, to $3 thousand as of September 30, 2025. The net cash used in operating activities was $256 thousand, exceeding the $240 thousand raised through financing, further depleting cash reserves.
• Expanding Accumulated Deficit [medium — financial]: The accumulated deficit has grown to $9.895 million as of September 30, 2025, from $8.889 million at December 31, 2024, indicating a consistent pattern of historical losses.
• Increased G&A Expenses [medium — operational]: General and administrative expenses increased to $705 thousand for the nine months ended September 30, 2025, from $550 thousand in the prior year, despite a significant decrease in R&D spending.
• Dependence on External Financing [high — financial]: The company raised $240 thousand through stock and warrant issuance, but this was insufficient to cover operating cash burn of $256 thousand, highlighting a critical reliance on external capital.
• Reduced R&D Investment [medium — operational]: Research and development expenses significantly declined to $286 thousand for the nine months ended September 30, 2025, compared to $565 thousand in the prior year, potentially impacting future product development.

Industry Context

The pharmaceutical industry is highly competitive and capital-intensive, requiring substantial investment in research and development. Companies often face long development cycles, stringent regulatory hurdles, and patent expirances. Smaller biopharmaceutical companies like Raphael Pharmaceutical Inc. typically rely on external funding to finance their operations and drug development pipelines.

Regulatory Implications

As a pharmaceutical company, Raphael is subject to extensive regulatory oversight from bodies like the FDA. Failure to comply with regulations regarding drug development, manufacturing, and marketing can result in significant penalties, delays, or product recalls. The company's current financial distress could also impact its ability to meet ongoing compliance requirements.

What Investors Should Do

1. Monitor future financing activities closely.
2. Evaluate the sustainability of reduced R&D spending.
3. Assess the company's ability to manage operating expenses.
4. Consider the going concern warning seriously.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period for net loss of $1.006 million, operating loss of $991 thousand, and cash balance of $3 thousand.
• 2024-12-31: As of December 31, 2024 — Previous reporting period showing cash and cash equivalents of $19 thousand and an accumulated deficit of $8.889 million.
• 2021-05-14: Share Exchange Agreement Completed — Raphael Pharmaceutical Ltd. and Easy Energy, Inc. completed a share exchange, leading to the current corporate structure.
• 2021-05-19: Company Name Change — Easy Energy, Inc. changed its name to Raphael Pharmaceutical Inc., reflecting the acquisition.

Glossary

Accumulated deficit

The cumulative total of net losses a company has incurred since its inception, minus any net profits. It represents a negative balance in retained earnings. (Indicates the company's history of unprofitability, which has reached $9.895 million as of September 30, 2025.)

Going concern

A business's ability to continue operating for the foreseeable future without the threat of liquidation. Auditors assess this when reviewing financial statements. (Management has expressed substantial doubt about Raphael Pharmaceutical Inc.'s ability to continue as a going concern, highlighting severe financial distress.)

Cash burn

The rate at which a company spends its cash reserves, particularly when its expenses exceed its revenues. (Raphael Pharmaceutical Inc. experienced a cash burn from operations of $256 thousand in the first nine months of 2025, contributing to its critically low cash position.)

Operating loss

The loss a company incurs from its normal business operations before accounting for interest and taxes. (Raphael Pharmaceutical Inc. reported an operating loss of $991 thousand for the nine months ended September 30, 2025, indicating its core business activities are not profitable.)

Additional paid-in capital

The amount of money a company receives from selling stock above its par value. (Represents a significant portion of the company's equity, totaling $8.435 million as of September 30, 2025, but does not offset the large accumulated deficit.)

Year-Over-Year Comparison

Raphael Pharmaceutical Inc. has seen a reduction in its net loss to $1.006 million for the nine months ended September 30, 2025, down from $1.124 million in the prior year, and a decrease in operating loss. However, this improvement is overshadowed by a severe cash crunch, with cash and cash equivalents dropping from $19 thousand to $3 thousand. While R&D expenses were cut significantly, G&A expenses rose, and the accumulated deficit widened, underscoring ongoing financial challenges and a critical need for external funding.

Key Financial Figures

• $0.01 — hares of the registrant's common stock, $0.01 par value, outstanding as of November 1

Filing Documents

• ea0264734-10q_raphael.htm (10-Q) — 343KB
• ea026473401ex31-1_raphael.htm (EX-31.1) — 10KB
• ea026473401ex31-2_raphael.htm (EX-31.2) — 10KB
• ea026473401ex32-1_raphael.htm (EX-32.1) — 3KB
• ea026473401ex32-2_raphael.htm (EX-32.2) — 3KB
• 0001213900-25-109968.txt ( ) — 1715KB
• raph-20250930.xsd (EX-101.SCH) — 13KB
• raph-20250930_cal.xml (EX-101.CAL) — 15KB
• raph-20250930_def.xml (EX-101.DEF) — 70KB
• raph-20250930_lab.xml (EX-101.LAB) — 142KB
• raph-20250930_pre.xml (EX-101.PRE) — 87KB
• ea0264734-10q_raphael_htm.xml (XML) — 126KB

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 2 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 9 Item 4.

Controls and Procedures

Controls and Procedures 10 PART II Item 1.

Legal Proceedings

Legal Proceedings 11 Item 1A.

Risk Factors

Risk Factors 11 Item 6. Exhibits 11 i

Financial Statements

Item 1. Financial Statements RAPHAEL PHARMACEUTICAL INC. AND ITS SUBSIDIARY CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2025 UNAUDITED U.S. DOLLARS IN THOUSANDS INDEX Page Condensed Consolidated Interim Balance Sheets (PCAOB ID No. 6816) F-1 Condensed Consolidated Interim Statements of Comprehensive Loss F-2 Condensed Consolidated Interim Statements of Changes in Stockholders' Equity F-3 Condensed Consolidated Interim Statements of Cash Flows F-4 Notes to Condensed Consolidated Interim Financial Statements F-5 - - - - - - - - - - - 1 RAPHAEL PHARMACEUTICAL INC. AND SUBSIDIARY CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS U.S dollars in thousands (except for share and per share data) As of September 30, As of December 31, 2025 2024 (Unaudited) (Audited) Assets Current assets: Cash and cash equivalents $ 3 $ 19 Other current assets 2 6 Total current assets 5 25 Fixed assets, net 2 2 Total assets $ 7 $ 27 Liabilities and stockholders' equity Current liabilities: Short-term credit from a related party 41 41 Other account payables and accrued expenses 475 500 Payable to related party 755 228 Total current liabilities 1,271 769 Stockholders' equity (deficit): Common stock, $ 0.01 par value: Authorized: 50,000,000 shares at September 30, 2025, and December 31, 2024; Issued and outstanding: 19,626,418 and 18,701,418 at September 30, 2025 and December 31, 2024, respectively; 196 187 Additional paid-in capital 8,435 7,960 Accumulated deficit ( 9,895 ) ( 8,889 ) Total stockholders' equity (deficit) ( 1,264 ) ( 742 ) Total liabilities and stockholders' equity (deficit) $ 7 $ 27 The accompanying notes are an integral part of the condensed consolidated interim financial statements. -F-1- RAPHAEL PHARMACEUTICAL INC. AND SUBSIDIARY CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS U.S dollars in thousands (except

Management's Discussion and Analysis

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, or the Quarterly Report. On May 14, 2021, Raphael Pharmaceutical Ltd., an Israeli company, and Easy Energy, Inc., a Nevada corporation, completed a share exchange agreement, or the Share Exchange, pursuant to which the shareholders of Raphael Pharmaceutical Ltd. became the holders of 90% of the issued and outstanding share capital of Easy Energy, Inc., while Easy Energy, Inc.'s shareholders hold, following the share exchange, 10% of Easy Energy, Inc. On May 19, 2021, as agreed by the parties to the Share Exchange, Easy Energy, Inc. changed its name to Raphael Pharmaceutical Inc. Unless otherwise mentioned or unless the context requires otherwise, when used in this Quarterly Report, the terms "Raphael," "Company," "we," "us," and "our" refer to Raphael Pharmaceutical Inc. and its subsidiary, Raphael Pharmaceutical Ltd., or Raphael Israel. References to Easy Energy are to Easy Energy, Inc. Unless otherwise mentioned or unless the context requires otherwise, the information provided in this Quarterly Report relates to Raphael Israel.

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, which includes information relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such as "may," "will," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information we have when those statements are made or our management's good faith belief as of that time with respect to future events and are subject to significant risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: the regulatory pathways that we may elect to utilize in seeking U.S. Food and Drug Administration, or FDA, European Medicines Agency, or EMA, and other regulatory approvals, if any; obtaining (and the cost thereof) FDA and EMA approval of, or other regulatory action in Europe or the United States and elsewhere with respect to our product candidates; the commercial launch and future sales of our product candidates and our advancement of product candidates for other indications in our pipeline; the potential cost of our rheumatoid arthritis product candidate, or RA and RA product candidate, respectively, for patients; our expectations regarding the timing of commencing clinical trials; our expectations regarding the s

View Full Filing

View this 10-Q filing on SEC EDGAR