Executive Summary

Q2 FY2025 showed minimal revenue and a net loss driven primarily by a $3.05M non-cash goodwill impairment and investment fair value movements; revenue was $0.08M, net loss attributable was $(4.64)M ($0.19 per share) .
Liquidity remains solid with $48.3M in cash and cash equivalents at quarter-end (vs. $8.2M in Q1, reflecting reallocation from marketable securities) .
Strategic path unchanged: management reiterated expectations for the TransportNPC 48-week interim analysis of Trappsol Cyclo in mid-2025 and intent to focus the company on Cyclo’s lead program post-merger; the merger subsequently closed on March 26, 2025 (post-quarter) .
No formal revenue/EPS guidance or call transcript was provided; near-term stock catalysts remain the NPC1 interim data and integration updates post-merger closing .

What Went Well and What Went Wrong

What Went Well
- Maintained clinical and strategic focus: “Upon closing, the Company’s strategic focus will be on its lead clinical asset, Trappsol Cyclo,” and reiterated mid-2025 interim readout timing .
- Year-over-year G&A discipline at the quarterly level (flat at $2.6M in both Q2 FY2025 and Q2 FY2024), helping contain operating burn from overhead .
- Liquidity strengthened to $48.3M of cash and equivalents, positioning the company for the mid-2025 clinical catalyst and integration work .
What Went Wrong
- Bottom-line swing vs. prior year: net loss of $(4.6)M vs. net income of $6.0M in Q2 FY2024, primarily due to fair-value items on Cyclo investments and a $3.05M goodwill impairment this quarter .
- R&D stepped up (to $0.95M from $0.61M YoY) as consolidated entities (Cornerstone, Day Three) increased activity, elevating operating loss leverage on a very small revenue base .
- Revenue remains de minimis ($0.08M), rendering traditional operating margin analysis not meaningful and magnifying the impact of non-operating items on EPS .

Financial Results

Trend (last two quarters plus prior quarter)

Metric ($USD Millions, except per share)	Q4 FY2024 (ended Jul 31, 2024)	Q1 FY2025 (ended Oct 31, 2024)	Q2 FY2025 (ended Jan 31, 2025)
Revenue	$0.17	$0.13	$0.08
Net (Loss) Income attributable to RFL	$(4.47)	$(9.01)	$(4.64)
Diluted EPS ($)	$(0.19)	$(0.37)	$(0.19)
R&D Expense	$1.54	$1.33	$0.95
SG&A Expense	$2.33	$2.52	$2.59
Cash & Equivalents (period-end)	$2.68	$8.16	$48.32

YoY comparison

Metric ($USD Millions, except per share)	Q2 FY2024	Q2 FY2025
Revenue	$0.07	$0.08
Net (Loss) Income attributable to RFL	$6.05	$(4.64)
Diluted EPS ($)	$0.25	$(0.19)
R&D Expense	$0.61	$0.95
SG&A Expense	$2.56	$2.59

Non-operating drivers

Item ($USD Millions)	Q4 FY2024	Q1 FY2025	Q2 FY2025
Goodwill Impairment	—	—	$3.05
Interest Income	$0.61	$0.57	$0.49
Unrealized (Loss)/Gain – Cyclo Equity	$(3.16)	$(4.37)	$0.61
Unrealized (Loss)/Gain – Cyclo Convertible Notes	$1.19	$(1.59)	$0.49

Notes:

Revenue is not a meaningful driver; results are dominated by non-operating fair-value items and non-cash charges .
Cash rose sharply in Q2 as available-for-sale securities appear to have been reallocated to cash and equivalents on the balance sheet date .

No segment revenue or KPI breakdowns were provided in the 8-K/press release for Q2 FY2025 .

Guidance Changes

Metric/Item	Period	Previous Guidance	Current Guidance	Change
Trappsol Cyclo – TransportNPC 48-week interim analysis timing	CY2025	“Results … expected in the middle of 2025” (Q1 FY2025 PR)	“Topline data … expected in the middle of 2025” (Q2 FY2025 PR)	Maintained
Merger with Cyclo – closing	Q1–Q2 CY2025	“Anticipate a shareholder vote … in Q1 2025 and closing promptly” (Q1 PR)	“Shareholder vote later this month … anticipate closing promptly” (Q2 PR); merger closed Mar 26, 2025	Achieved (post-quarter)
Strategic focus post-merger	Ongoing	Intends to focus on Trappsol Cyclo (Q1 PR)	Reaffirmed intent to focus on Trappsol Cyclo (Q2 PR)	Maintained
Revenue/EPS/Opex/Tax guidance	FY2025	Not provided	Not provided	Maintained (no guidance)

Earnings Call Themes & Trends

No Q2 FY2025 earnings call transcript was furnished in the company’s filings/press materials; themes below synthesize disclosures from the last three quarterly press releases.

Topic	Previous Mentions (Q4 FY2024)	Previous Mentions (Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Clinical progress – NPC1 (Trappsol Cyclo)	Fully enrolled pivotal Phase 3; interim results mid-2025	Fully enrolled; interim results mid-2025	Interim results mid-2025 reiterated; positive preliminary observations noted at WORLDS symposium	Steady progress
Corporate strategy/focus	Advancing clinical-stage assets; proposed Cyclo merger	Post-merger focus to be Trappsol Cyclo; evaluating other assets	Post-merger focus reaffirmed	Consistent
Capital position	$65.9M cash, equivalents & marketable securities at FY-end	$54.3M cash, equivalents & marketable securities at Q1	$48.3M cash & equivalents at Q2; AFS line nil on balance sheet	Sufficient for near-term catalysts
Portfolio/Consolidation impacts (Cornerstone, Day Three)	Consolidation raised R&D/G&A in FY2024	Higher R&D/G&A from consolidated entities	R&D and G&A reflect consolidated activity; goodwill impairment recognized	Integration ongoing
External events/catalysts	Expect interim data mid-2025	Expect interim data mid-2025	Interim analysis mid-2025; merger expected then achieved post-quarter	Catalyst approaching

Management Commentary

“Upon closing, the Company’s strategic focus will be on its lead clinical asset, Trappsol Cyclo.” – Bill Conkling, CEO .
“We are encouraged by the preliminary results presented at the 21st Annual WORLDS symposium in early February from the ongoing Phase 3 TransportNPC Open-Label Sub-Study … topline data from the 48-week interim analysis of 104 enrolled patients is expected in the middle of 2025.” – Bill Conkling, CEO .
Post-quarter merger close statement: “The merger with Cyclo Therapeutics is a major step forward in our strategy … and we eagerly await the interim analysis in the middle of 2025.” – Bill Conkling .

Q&A Highlights

No Q2 FY2025 earnings call transcript was available; analysis is based on the 8-K/press release disclosures .

Estimates Context

We attempted to retrieve S&P Global consensus for Q2 FY2025 revenue and EPS; data was unavailable due to API request limits at the time of query, so we cannot provide a vs-consensus comparison for this quarter. If you would like, we can re-run the request to include consensus comparison once access resets.

Key Takeaways for Investors

The investment case is now a binary-ish clinical catalyst plus integration: interim NPC1 data in mid-2025 is the dominant stock driver, with the company now focused on Trappsol Cyclo post-merger .
Liquidity of $48.3M as of Q2-end provides runway into the interim readout and near-term integration activities .
P&L remains highly sensitive to non-cash fair-value items and impairments given a very small revenue base; quarter-to-quarter EPS variability should be expected .
Operating discipline on G&A YoY at the quarterly level is encouraging, but consolidated R&D is trending up, consistent with clinical development focus .
No formal financial guidance was issued; near-term catalysts are (1) TransportNPC interim data and (2) execution on post-merger focus, both of which can materially shift sentiment. A clean, positive interim readout would be the key re-rating event .

Additional source documents used for prior-quarter context and post-quarter developments:

Q1 FY2025 earnings 8-K/press release (Dec 11, 2024) .
Q4/FY2024 earnings 8-K/press release (Nov 6–7, 2024) .
Merger completion press release (Mar 26, 2025) .

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