Emmaus Life Sciences Reports Financial Results for the Six Months Ended June 30, 2021
Company Now Current with SEC Reporting Obligations
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, 2021
Net 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 Stock
The 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 Meeting
The 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 Sciences
Emmaus 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 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, 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 Loss | (6,107) | (4,177) | |
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 (Unaudited) | December 31, | ||
Assets | |||
Current Assets: | |||
Cash and cash equivalents | $1,671 | $2,487 | |
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 bond | 28,671 | 27,866 | |
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 | |
SOURCE Emmaus Life Sciences, Inc.
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