PR Newswire | Sep 2, 2021 08:45AM EDT

30, 2021

09/02 07:45 CDT

Emmaus Life Sciences Reports Financial Results for the Six Months Ended June 30, 2021Company Now Current with SEC Reporting Obligations TORRANCE, Calif., Sept. 2, 2021

TORRANCE, Calif., Sept. 2, 2021 /PRNewswire/ --Emmaus Life Sciences, Inc. (OTC: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today announced financial results for the six months ended June 30, 2021. As a result, the company is now current in its Securities and Exchange Commission (SEC) reporting obligations.

"With the filing of our delinquent quarterly reports on Form 10-Q for 2020 and the first two quarters of 2021, we are now current and compliant with SEC requirements," said Dr. Yutaka Niihara, M.D., M.P.H., Chairman and Chief Executive Officer. "We very much appreciate the patience and support of our long-term stockholders and other investors and are now on a footing to file our future SEC reports in a timely manner."

Financial Results for the Six Months Ended June 30, 2021Net revenues for the six months ended June 30, 2021 increased by 5% to $11.8 million compared to the same period in 2020. When compared to the first quarter of 2021, net revenues increased by 22%. The increase in net revenues in the second quarter of 2021 was primarily attributable to bulk order purchases in the second quarter and recovery from the temporary disruptions in sales related to the COVID-19 pandemic and weather-related supply chain interruptions that affected certain key customers in the first quarter of 2021.

Total operating expenses for the first half of 2021 increased by $1.3 million, or 12%, to $12.1 million from $10.8 million for the half of 2020, primarily as a result of increased selling expenses and research and development expenses of $0.5 million and $1.4 million, respectively. The increase in selling expenses was due to compensation attributable to the company's in-house sales team. The increase in research and development expenses was attributable to the Pilot/Phase 1 study of the company's prescription grade L-glutamine oral powder to treat diverticulosis and the preclinical development of the IRAK4 inhibitor, under the company's previously announced collaboration agreement with Kainos Medicine, Inc.

Operating loss for the first half of 2021 was $1.1 million compared to $0.4 million for the first half of 2020. The operating loss for the half of 2021 was attributable to the increase in operating expenses as noted above.

Net loss for the first half of 2021 was $5.9 million compared to a net loss of $4.0 million for the first half of 2020. The increase in net loss for the first half of 2021 compared to the first half of 2020 was primarily a result of increases of $1.2 million in other expenses and $0.7 million in loss from operations as discussed above.

Total net cash flow from operating, investing and financing activities decreased by $0.1 million for the first half of 2021 compared to the same period in 2020. Cash and cash equivalents were $1.7 million as of June 30, 2021 compared to $2.5 million as of December 31, 2020.

Trading and Quotation of the Company's Common StockThe company has applied to the OTC Markets Group for the resumption of quotations of its common stock on the OTCQX tier now that it is current in its SEC reporting, which application is under review by the OTC Markets Group. In the meantime, quotes for the common stock continue to be available on the OTC Pink tier.

2021 Annual Stockholders MeetingThe company intends to hold its next Annual Stockholders Meeting in the coming months to elect directors, to vote on certain other matters and to review operating results for 2020 and the interim period in 2021.

About Emmaus Life SciencesEmmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company engaged in the discovery, development, marketing and sale of innovative treatments and therapies, including those in the rare and orphan disease categories. For more information, please visit www.emmauslifesciences.com.

Forward-looking StatementsThis 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 statements regarding the company's business and operations and the filing of future SEC reports. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time, including uncertainties and risk factors disclosed in the company's 2020 Annual Report on Form 10-K/A filed with the SEC on August 10, 2021, and actual results may differ materially. Such forward-looking statements speak only as of the date they are made, and Emmaus assumes no duty to update them, except as may be required by law.

(Selected Condensed Consolidated Financial Data Follows)

Emmaus Life Sciences, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In thousands, except share and per share amounts)

(Unaudited)

Six Months Ended June 30

2021 2020

Revenues, Net $11,824 $11,314

Cost of Goods Sold 866 924

Gross Profit 10,958 10,390

Operating Expenses 12,090 10,791

Loss from Operations (1,132) (401)

Total Other Expense (4,975) (3,776)

Net (6,107) (4,177)Loss

Comprehensive Loss (5,172) (3,936)

Net Loss per Share ($0.12) ($0.08)

Weighted Average Common Shares Outstanding 49,193,474 48,805,829

Emmaus Life Sciences, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

As of

June 30, 2021 December 31, 2020 (Unaudited)

Assets

Current Assets:

Cash and cash $1,671 $2,487equivalents

Accounts receivable, net 3,359 198

Inventories, net 6,543 7,087

Prepaid expenses and other current assets 1,467 1,485

Total Current Assets 13,040 11,257

Property and equipment, net 99 120

Equity method investment 17,383 15,925

Right of use assets 3,796 4,072

Investment in convertible 28,671 27,866bond

Other assets 290 296

Total Assets $63,279 $59,536

Liabilities and Stockholders' Equity (Deficit)

Current Liabilities:

Accounts payable and accrued expenses $6,301 $7,460

Notes payable 3,291 4,588

Convertible debentures, net of discount -- 5,480

Other current liabilities 10,921 5,854

Total Current Liabilities 20,513 23,382

Notes payable, less current portion 1500 222

Convertible notes payable 12,526 3,150

Other long-term liabilities 38,115 37,940

Total Liabilities 72,654 64,694

Stockholders' Equity (Deficit) (9,375) (5,158)

Total Liabilities & Stockholders' Equity (Deficit) $63,279 $59,536

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SOURCE Emmaus Life Sciences, Inc.