Emmaus Life Sciences Reports Second Quarter 2022 Results and Provides Business Update

Torrance, California, August 15, 2022 /PR Newswire/ — Emmaus Life Science Co., Ltd. (OTCQX: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported three- and six-month financial results. June 30, 2022 and business updates.

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“After sales were negatively impacted by COVID-19 related travel issues and lockdowns for most of 2021, we are pleased to deliver two consecutive quarters of strong net sales growth, and North Middle East We look forward to continued growth in sales in the African region, where a decision on the marketing authorization application for Endari is due. Kingdom of Saudi Arabia “By the end of the year and probably at the end of the third quarter.” Yutaka NiiharaMD, MPH, Chairman and CEO of Emmaus.

“In connection with our efforts to improve sales, we are also discussing the possibility of restructuring or refinancing outstanding debt and other current liabilities,” Dr. Niihara added.

Financial and operating results

net income. 3-month and 6-month net earnings June 30, 2022 It was $4.3 million When $7.5 millionrespectively, compared to $6.5 million When $11.8 million, respectively, for the same period in 2021. The decrease was primarily due to overstocking by US distributors in 2021, which reduced his bulk order purchases in 2022 compared to the same period in 2021. Q2 2022 net revenue is $1.1 millionor nearly 33% from Q1 2022 net revenues $3.2 millionNet revenues were positively impacted by second quarter sales of Endari in the second quarter. United Arab Emirateswhere Endari is approved for marketing May 2022and to a lesser extent, sold on an Early Access basis Kingdom of Saudi Arabia.

operating expensesTotal operating expenses for the three months ended June 30, 2022 It was $5.3 millioncompared to $5.6 million Of the cost reductions in Q2, $500,000 was attributed to reduced professional fees, but $200,000 Increased labor and travel costs.Total operating expenses for the first half ended June 30, 2022 It was $10.6 millioncompared to $12.1 million Decrease for the same period in 2021. $1.8 million Decrease in R&D expenses related to $500,000 cash and $500,000 Our common stock paid and issued in 2021 to Kainos Medicine, Inc. (“Kainos”) to lead the clinical development of Kainos’ patented IRAK4 inhibitor. Total operating expenses in Q2 2022 were substantially unchanged from Q1 2022.

Operational losses. Operating loss for 3 months June 30, 2022 was $1.4 millioncompared to $500,000 Operating loss in the first half of 2021 operating profit ended June 30, 2022 increased to $4.5 millioncompared to $1.1 million Same time last year. The increase in operating loss is due to his lower net revenue in 2022 compared to 2021. Operating loss in Q2 2022 is $1.6 millionor from 53.1% $3.1 million In the first quarter of 2022 as a result of the increase in net revenue in the second quarter.

Other Income (Expenses). Increase in other expenses $9from 1 million $7.3 million 3 months ended June 30, 2022compared to other income $1.8 million Other expenses in the second quarter included: $6.3 million Decrease in changes in fair value of conversion feature derivatives and $2.4 million Increased foreign exchange losses compared to Q1 2021.

Net profit (loss)The company posted a net loss of the following in the quarter. $8.9 millionAlso $0.18 Per share is based on approximately 49.3 million weighted average basic shares and diluted common shares.This compares to net income $2.5 million and earnings per share $0.05 Based on approximately 49.3 million weighted average basic shares and diluted common shares in Q2 2021. The net loss was mainly $9.1 million other expenses and $1.9 million Increased losses due to the above operations.6 months ended June 30, 2022, the company reported a net loss of $10.4 million, or $0.21 per share, based on approximately 49.3 million weighted-average basic shares and diluted common shares. This compares to a net loss of $5.9 million, or $0.12 per his share, based on approximately 49.2 million weighted average basic shares and diluted common shares for the six months ended June 30, 2021. increase. The net loss for the second quarter of 2022 was $7.4 millionor from 477% $1.5 million in Q1 2022 due to an increase in $8.7 million is partially offset by the decrease in $1.6 million Losses from business, as described above.

Liquidity and funding sources. and June 30, 2022the company had cash and cash equivalents $ 1,000,000compared to $2.3 million and December 31, 2021. Cash and cash equivalents June 30th including the net earnings of $1.8 million Short-term loans from third-party financial institutions. Based on the company’s cash and cash equivalents, expected future earnings, current liabilities, and expected operating expenses, management determines that the company’s working capital will be used to restructure or restructure existing and other current liabilities. We believe it will not be sufficient to meet our needs for the next 12 months without refinancing. Additional financing from related parties, debt or equity financing from third parties, or curtailment of certain operations or activities.

About Emmaus Life Science
Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease. The company currently markets and markets Endari® (L-glutamine oral powder) in the United States and United States, which has been shown to reduce acute complications of sickle cell disease in adults and children 5 years and older. United Arab Emiratesor seeking marketing authorization for Endari® in the UAE. Kingdom of Saudi Arabia, bahrain and other Gulf Cooperation Council countries. The company is also committed to discovering and developing innovative treatments and cures for certain rare and rare diseases that affect more people, such as diverticulosis and 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, is approved for sale 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 named patient or early access basis. France, Netherlands, England, Saudi Arabia, bahrain, Qatar, OmanWhen Kuwait.

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Endari® has been shown to reduce acute complications of sickle cell disease in adult and pediatric patients aged 5 years and older.

Important safety information
The most common adverse reactions (incidence >10%) in clinical trials were constipation, nausea, headache, abdominal pain, cough, pain in extremities, back pain, and chest pain.

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

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

For more information, see full prescribing information for Endari® at www.ENDARIrx.com/PI.

Forward-Looking Statements
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. Kingdom of Saudi Arabia Perhaps other countries in the Middle East and North Africa (MENA) region, debt restructuring or refinancing, or potential equity or debt financing. These forward-looking statements are subject to a number of assumptions, risks and uncertainties that change over time. This includes the risks and uncertainties associated with the company’s working capital and ability to raise necessary capital, the regulatory approval process and the risks inherent in the commercialization of Endari®. MENA region and other factors disclosed in the Company’s 2021 Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission and actual results can vary greatly. Such forward-looking statements speak only as of the date they are made, and Emmaus undertakes no obligation to update them, except as required by law.

Company Contact:
Emmaus Life Science Co., Ltd.
willis lee
chief operating officer
(310) 214-0065, ext. 1130
[email protected]

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Source Emmaus Life Sciences