Emmaus Life Sciences Reports Third Quarter 2022 Financial Results and Provides Business Update

Torrance, California, November 14, 2022 /PRNewswire/ — Emmaus Life Sciences Corporation (OTCQX: Emmaus)a commercial-stage biopharmaceutical company and a leader in the treatment of sickle cell disease, today reported its results of operations and financial condition for the three and nine months ended September 30, 2022 and provided a business update.

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“Our third consecutive quarterly net income increased substantially, driven by higher sales in the Middle East North Africa (MENA) region. Sales volumes at our domestic dealerships also increased, although our domestic sales were flat compared to the second due to With high volume orders at the end of the second quarter, we expect net revenue to increase further in the fourth quarter as we complete the first volume production of our product packaging for the MENA region,” Nii HaratoyoMD, MPH, Chairman and CEO of Emmaus.

Dr. Niihara added: “We are pleased to see the gradual reduction in quarterly net loss. We will continue to work with our stakeholders and all concerned to further restructure or to refinance our outstanding debt and other current liabilities and will report any transactions that may occur in this regard. “

Financial and Operating Results

net income. Net income for the three and nine months ended September 30, 2022 Yes $4.9 million and $12.5 millionrespectively with $5.8 million and $17.6 million, respectively for the same period in 2021. The decrease is primarily due to lower bulk order purchases in 2022 than in the same period in 2021 due to stockpiling by U.S. distributors in 2021. Third quarter 2022 net income increased $700,000or nearly 15%, from net income in the second quarter of 2022 $4.3 million. Net Income Positively Impacted by Endari’s Q3 Sales united arab emiratesEndari is approved in May 2022, and to a lesser extent, on an Early Access basis in other Gulf Cooperation Council (GCC) countries. The company has no similar sales in the first quarter of 2022 or in 2021.

Operating expenses. Total operating expenses for the three months ended September 30, 2022 Yes $5.1 millioncompared to $5.4 million The same period in 2021. Among the reduced expenses in the third quarter, $200,000 The reason is a reduction in professional fees.Total Operating Expenses Ended Nine Months September 30, 2022 Yes $15.7 millioncompared to $17.4 million For the same period in 2021.The reason for the decrease is $1.8 million Reduce R&D costs associated with $500,000 cash and $500,000 Shares of common stock of the company paid and issued to Kainos Medicine, Inc in 2021. (“Kainos”) leads the clinical development of Kainos’ patented IRAK4 inhibitors. Total operating expenses in the third quarter of 2022 were slightly lower than in the second quarter of 2022 due to $300,000 Selling expenses are reduced.

operating loss. Operating loss for the three months ended September 30, 2022 wash $700,000compared to $31,000 The same period in 2021.Nine months end with operating loss September 30, 2022 increased to $5.2 millioncompared to $1.2 million same time last year. The higher operating loss was due to lower net income in 2022 than in 2021. Operating loss narrowed in Q3 2022 $800,000or 54.2%, from $1.4 million Q2 2022 due to increased net income in Q3.

Other income (expenses). increase in other income $3100,000 to $200,000 up to three months September 30, 2022compared to other costs $2.9 million During the same period in 2021.Other revenue for the third quarter included $5.2 million Decrease in changes in fair value of derivatives with conversion features and $1.2 million Compared with the third quarter of 2021, foreign exchange losses increased.

just loss. In this quarter, the company realized a net loss $400,000or $0.01 Each share is based on approximately 49.6 million weighted average basic and diluted common shares.This is compared to the net loss $3.2 millionor $0.06 Per share based on a weighted average of approximately 49.3 million basic and diluted common shares for the third quarter of 2021.The decrease in net loss was mainly due to the increase in $3.1 million In other income, offset by a decrease $700,000 Loss of said business.up to nine months September 30, 2022, based on approximately 49.4 million weighted average basic and diluted common shares, the company had a net loss of $10.8 million, or $0.22 per share. This compares to a net loss of $9.1 million, or $0.18 per share, for the nine months ended September 30, 2021, based on approximately 49.2 million weighted average basic and diluted common shares. Net loss narrowed in Q3 2022 $8.5 millionor 96%, from $8.9 million Q2 2022, due to increased $7.5 million in other income and decreases $800,000 As mentioned above, operating losses.

Liquidity and Capital Resources. exist September 30, 2022The company’s cash and cash equivalents are $1.2 millioncompared to $2.3 million exist December 31, 2021. Cash and cash equivalents September 30 Net Income Included $5.5 Loans from related parties. Based on the company’s cash and cash equivalents, expected future revenue, current liabilities, and expected operating expenses, the company’s working capital is insufficient to meet its current liabilities and expected future working capital needs over the next 12 months without restructuring or refinancing existing debt and other current liabilities and obtaining additional loans from related parties or obtaining debt or equity financing from third parties or curtailment of certain businesses or activities.

About Emmaus Life Sciences

Emmaus Life Sciences is a commercial-stage biopharmaceutical company and a leader in the treatment of sickle cell disease.The company currently markets and sells Endari® (L-glutamine oral powder) in the U.S. and U.S. for the reduction of acute complications of sickle cell disease in adults and children 5 years and older united arab emirates, or the UAE, and is seeking marketing authorization for Endari® in other GCC countries. The company is also engaged in the discovery and development of innovative treatments and therapies for certain rare and orphan diseases, as well as diseases that affect larger populations, such as certain cancers. For more information, please visit www.emmausmedical.com.

About Endari® (Prescription Grade L-Glutamine Oral Powder)

Endari®, Emmaus’ prescription-grade L-glutamine oral powder, has been approved by the US Food and Drug Administration and the UAE Ministry of Health for the treatment of sickle cell disease. Endari® is also available on a designated patient or early access basis France, DutchThis U.K., Saudi Arabia, Bahrain, Qatar, Omanand Kuwait.


Endari® is indicated for the reduction of acute complications of sickle cell disease in adults and pediatric patients five years and older.

Important Safety Information

The most common adverse reactions (incidence >10%) in clinical studies were constipation, nausea, headache, abdominal pain, cough, pain in extremity, back pain, and chest pain.

Adverse reactions leading to treatment discontinuation included hypersplenism, abdominal pain, dyspepsia, burning sensation and hot flashes in 1 case each.

The safety and effectiveness of Endari® in pediatric patients younger than 5 years of age with sickle cell disease have not been established.

For more information, see the full Prescribing Information for Endari® at: www.ENDARIrx.co/PI.

forward-looking statement

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended, including regarding possible increases in sales of Endari® in GCC countries, kingdom of saudi arabia and other countries in the Middle East North Africa (MENA) region, outstanding debt may be restructured or refinanced, or equity or debt financing may be undertaken. These forward-looking statements are subject to a number of assumptions, risks and uncertainties that change over time, including risks and uncertainties related to the Company’s working capital and ability to raise required financing Certainty, risks inherent in the regulatory approval process and other factors disclosed in the MENA region for Endari®, as well as in the Company’s 2021 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, actual results may There are major differences. Such forward-looking statements speak only as of the date they are made, and Emmaus undertakes no obligation to update these statements, except as required by law.

Company contact information:
Emmaus Life Sciences
Lee Willis
chief operating officer
(310) 214-0065, ext. 1130
[email protected]

(The financial table is as follows)

Emmaus Life Sciences
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except share and per share amounts) (unaudited)

For the three months ended September 30

Nine months ended September 30





net income





cost of goods sold





gross profit


5,321 people



Operating expenses


5,352 people


17,442 people

operating loss





Other gross income (expenses)





just loss





comprehensive loss





net loss per share





Weighted average common shares outstanding





Emmaus Life Sciences
Condensed Consolidated Balance Sheet

(in thousands) (unaudited)

if or

September 30,

December 31,


Current assets:

Cash and cash equivalents



Net accounts receivable



Inventory, net



Prepaid expenses and other current assets



Total Current Assets



Property and equipment, net



equity method investment


17,616 people

Asset use rights



convertible bond investment



other assets



Total assets



Liabilities and shareholder deficits

Current liabilities:

Accounts Payable and Accruals



Conversion characteristics derivatives, notes payable



Notes Payable, Current Section



Convertible notes payable, net of discounts

14,346 people


Other current liabilities

3,356 people


Total current liabilities



Notes payable, less current portion


Convertible notes payable, net of discounts


Notes payable to related parties, net

3,381 people

Other long-term liabilities



total liabilities



shareholder deficit



Total Liabilities and Shareholder Deficit



SOURCE Emmaus Life Sciences, Inc.

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