Thu, May 15, 7:54 PM (59 days ago)
**Emmaus Life Sciences, Inc. (EMMA) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2.4 million, down 4% YoY due to U.S. sales decline from generic competition, partially offset by MENA region sales. - **Gross Profit Margin:** 90.6%, improved from 89.7% YoY due to lower cost of goods sold. - **Operating Expenses:** $3.2 million, down 34.6% YoY, with significant reductions in selling and general & administrative expenses. - **Net Loss:** $2.3 million, improved from $4.3 million YoY due to lower operating and other expenses. - **Cash Flow:** Positive operating cash flow of $0.3 million, improved from $0.1 million YoY. **Profit Margins & Cash Flow:** - **Gross Margin:** 90.6% (up from 89.7% YoY). - **Operating Margin:** -39.9% (improved from -109.3% YoY). - **Net Margin:** -96.8% (improved from -173.5% YoY). - **Operating Cash Flow:** $0.3 million (up from $0.1 million YoY). - **Capital Expenditures:** $0 (down from $4,000 YoY). **Earnings Changes & Trends:** - **Revenue Trend:** Decreasing due to generic competition in the U.S. - **Expense Trend:** Decreasing due to cost-cutting measures. - **Net Loss Trend:** Improving due to lower expenses. **Uncertainties & Future Operations:** - **Liquidity Concerns:** $1.3 million in cash, substantial debt, and working capital deficit of $59.3 million. - **Going Concern Uncertainty:** Substantial doubt about the ability to continue as a going concern for 12 months. - **Debt Restructuring:** Needs to restructure or refinance existing indebtedness and raise additional funds. - **Generic Competition:** Adverse effect on sales and reimbursement rates from generic L-Glutamine oral powder. - **Legal Proceedings:** Pending appeal in Dubai related to a former employee's lawsuit. **Future Operations Impact:** - **Cost-Cutting:** Continued reduction in headcount and expenses. - **Fundraising:** Need to raise additional capital through loans, equity, or debt financings. - **Market Expansion:** Focus on MENA region sales and pending approvals in Saudi Arabia. - **Debt Management:** Manage debt repayment obligations and API supply agreement with Telcon.