Tue, Sep 10, 5:28 PM (101 days ago)
For the quarter ended June 30, 2024, Emmaus Life Sciences, Inc. reported a substantial decline in net revenues, totaling $5.4 million, down 50% from $10.8 million in the same quarter of 2023. This drop was primarily due to a shortage of finished goods caused by production delays. The company anticipates ongoing challenges from new FDA inventory tracking requirements and increased competition from generic products, notably ANI Pharmaceuticals' recently launched generic L-Glutamine Oral Powder. The gross profit margin also decreased, reflecting lower revenues despite a slight reduction in cost of goods sold. Total operating expenses fell 34% to $4.6 million, driven by decreases in research, selling, and administrative costs. However, the net loss widened to $2.2 million from $1.6 million year-over-year. As of June 30, 2024, Emmaus held $1.5 million in cash and reported a working capital deficit of $55 million, raising substantial doubt about its ability to continue as a going concern. The company plans to finance operations through loans and other capital raises but faces uncertainties regarding future profitability and cash flow sustainability.