Emmaus Life Sciences, Inc. (OTCQX: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the three months ended March 31, 2023.
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TORRANCE, Calif., May 15, 2023 /PRNewswire/ -- Emmaus Life Sciences (Formerly Known As Emmaus Medical, Inc.), (OTCQX: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the three months ended March 31, 2023.
Recent Highlights "We enjoyed a fifth straight increase in quarterly net revenues and increased net revenues of 109% year-over-year on the strength of increased sales in the U.S. and the Middle East North Africa region. As a result, we were able to substantially reduce loss from operations and realized income from operations excluding share-based compensation. We hope to build on this momentum and achieve income from operations in the coming quarters, as well as obtaining potential marketing approval of Endari in the Kingdom of Saudi Arabia," remarked Yutaka Niihara, M.D., M.P.H., Chairman and Chief Executive Officer of Emmaus. Financial and Operating Results Net Revenues. Net revenues for the three months ended March 31, 2023 were $6.8 million, compared to $3.2 million for same period in 2022. The increase was primarily attributable to increased sales both in the U.S. and the Middle East North Africa (MENA) region. Net revenues in Q1 2023 were positively affected by sales of Endari in the MENA region, including Kuwait, where Endari was approved for marketing in late 2022, as well as increased U.S. sales as inventory overstocking by distributors was resolved. Operating Expenses. Total operating expenses for the three months ended March 31, 2023 were $7.5 million, compared with $5.3 million for the same period in 2022. Of the increased expenses in Q1 2023, $1.2 million was attributable to an increase in share-based compensation and $0.9 million to an increase in selling expenses. Loss From Operations. Loss from operations for the three months ended March 31, 2023 was $1.2 million, compared to $3.1 million in the same period in 2022. The decreased operating loss resulted from a $4.1 million increase in gross profit, partially offset by a $2.2 million increase in operating expenses in 2023 compared to the same period in 2022. Other Income (Expense). Other expenses increased by $3.7 million to $2.3 million for the three months ended March 31, 2023, compared to other income of $1.4 million in the same period in 2022. Other expense in Q1 2023 included a decrease of $3.0 million in change in fair value of embedded conversion option of convertible promissory notes and an $0.8 million increase in interest expense compared to Q1 2022. Net Loss. For the quarter, the company realized a net loss of $3.5 million, or $0.07 per share based on approximately 50.7 million weighted average basic and diluted common shares. This compares to net loss of $1.5 million, or $0.03 per share based on approximately 49.3 million weighted average basic and diluted common shares for the first quarter of 2022. The increase in net loss was primarily attributable to the increase of $3.7 million in other expense discussed above. Liquidity and Capital Resources. On March 31, 2023, the company had cash and cash equivalents of $1.8 million, compared with $2.0 million on December 31, 2022. Cash and cash equivalents on March 31 included the net proceeds of $0.2 million from related party loans. Based on the company's cash and cash equivalents, anticipated future revenues, current liabilities and expected operating expenses, the company's working capital is insufficient to meet its current liabilities and anticipated future working capital requirements without obtaining additional loans from related parties or debt or equity financing from third parties or curtailing certain operations or activities. About Emmaus Life Sciences About Endari® (prescription grade L-glutamine oral powder) Indication Important Safety Information Adverse reactions leading to treatment discontinuation included one case each of hypersplenism, abdominal pain, dyspepsia, burning sensation, and hot flash. The safety and efficacy of Endari® in pediatric patients with sickle cell disease younger than five years of age has not been established. For more information, please see full Prescribing Information of Endari® at: www.ENDARIrx.com/PI. Forward-looking Statements Company Contact: (Financial Tables Follow)
SOURCE Emmaus Life Sciences, Inc. |
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Company Codes: OTC-QX:EMMA, OTC-BB:EMMA, OTC-PINK:EMMA |
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