Why did R&D expenses spike in Q2 2024?

The increase in R&D expenses in Q2 2024 can be attributed to several factors:

1. **Investment in Cyclo Therapeutics**: Rafael Holdings has increased its investment in Cyclo Therapeutics, a company developing therapies for rare diseases. This investment is a strategic move to capitalize on potential high returns from the development of treatments like Trappsol® Cyclo™ for Niemann-Pick Disease Type C1.
2. **Revenue Generation at Day Three Labs**: The company has seen revenue generation at Day Three Labs, which is reimagining cannabis offerings with pharmaceutical-grade technology. This suggests a shift towards more precise and predictable products, which could have led to increased R&D expenses as they refine and scale up their offerings.

In conclusion, the spike in R&D expenses in Q2 2024 is likely a result of strategic investments and revenue generation efforts, indicating a forward-looking growth strategy.