Investment in Day Three Labs Inc. (Tables)

12 Months Ended

Jul. 31, 2025

Investment in Day Three Labs Inc [Line Items]

Schedule of Purchase Consideration

The following table summarizes the purchase consideration transferred in the Day Three Acquisition as defined in ASC 805:

(in thousands)	Purchase Consideration
Cash consideration	$	200
Accrued consideration		200
Exchange of Day Three Promissory Notes for Common Stock		2,000
Fair value of previously held interests(1)		742
Total purchase consideration	$	3,142

⁽¹⁾ The Company remeasured its previously held equity interest in Day Three immediately before the Day Three Acquisition, previously accounted for under the equity method of accounting, to its fair value (determined using the implied enterprise value based on the purchase price multiplied by the ratio of the number of shares previously held to total shares, as of the acquisition date) and recognized a loss of $1.6 million recorded on the consolidated statements of operations and comprehensive loss as a loss on initial investment in Day Three upon acquisition  during the quarter ended January 31, 2024.

Schedule of Fair Values of the Assets Acquired and Liabilities

The following table presents, in accordance with ASC 810, the net amount of the VIE’s identifiable assets and liabilities recognized and measured in accordance with ASC 805 (amounts in thousands):

Assets acquired and liabilities assumed
Cash and cash equivalents	$	2,756
Prepaid expenses and other current assets		121
Property and equipment		19
Other assets		48
Acquired IPR&D		89,861
Accounts payable		(2,006	)
Accrued expenses		(1,188	)
Series C Convertible Notes, short-term portion		(614	)
Due to related parties		(1,289	)
Other current liabilities		(28	)
Series C Convertible Notes, long-term portion		(70	)
Creditor payable, noncurrent		(2,745	)
Amended RPF Line of Credit		(15,336	)
Other liabilities		(20	)
Total	$	69,509

The following table presents, in accordance with ASC 810, the net amount of the VIE’s identifiable assets and liabilities recognized and measured in accordance with ASC 805 (amounts in thousands):

Assets acquired and liabilities assumed
Investments - Cornerstone common stock	$	4,931
Due from Cornerstone - Amended RPF Line of Credit		15,336
Total	$	20,267

Acquisition of Day Three [Member]

Investment in Day Three Labs Inc [Line Items]

Schedule of Fair Values of the Assets Acquired and Liabilities

The following table summarizes the fair values of the assets acquired and liabilities assumed in the Day Three Acquisition as of the acquisition date:

(in thousands)	January 2, 2024
Cash and cash equivalents	$	1,499
Accounts receivable		63
Prepaid expenses and other current assets		77
Property and equipment		408
Goodwill		3,050
Identifiable intangible assets		2,180
Accounts payable		(386	)
Accrued expenses		(98	)
Installment note payable		(2,500	)
Total fair value of net assets acquired		4,293
Less: noncontrolling interest		(1,151	)
Net assets acquired attributable to Rafael	$	3,142