Emmaus Life Sciences 10-Q: Financials and Derivatives

TL;DR

Emmaus Life Sciences 10-Q shows Q1 2024 net loss on investments & derivative gains/losses. Related party info included.

AI Summary

Emmaus Life Sciences, Inc. filed its 10-Q for the period ending March 31, 2024. The company reported a net loss on investment in a convertible bond and a gain/loss on a conversion feature derivative note payable. The filing also details notes payable and other payables as of March 31, 2024, and includes information on related party transactions.

Why It Matters

This filing provides insight into Emmaus Life Sciences' financial performance and its exposure to market fluctuations through its investments and derivative instruments.

Risk Assessment

Risk Level: medium — The company's financial results are subject to market volatility and the complexities of derivative instruments, indicating a medium level of risk.

Key Numbers

• 2024-01-01 to 2024-03-31 — Q1 2024 Period (Reporting period for the 10-Q)

Key Players & Entities

• Emmaus Life Sciences, Inc. (company) — Filer of the 10-Q
• 20240331 (date) — End of reporting period
• 20240910 (date) — Filing date
• 21250 HAWTHORNE BOULEVARD, SUITE 800 (address) — Company business and mailing address
• TORRANCE, CA (location) — Company business and mailing city/state
• MYnd Analytics, Inc. (company) — Former company name
• CNS RESPONSE, INC. (company) — Former company name
• STRATIVATION, INC. (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — 5,571 shares of common stock, par value $0.001 per share, outstanding as of A ugust 12

Filing Documents

• emma-20240331.htm (10-Q) — 2285KB
• emma-ex10_4.htm (EX-10.4) — 95KB
• emma-ex31_1.htm (EX-31.1) — 11KB
• emma-ex31_2.htm (EX-31.2) — 11KB
• emma-ex32_1.htm (EX-32.1) — 10KB
• 0000950170-24-105004.txt ( ) — 12714KB
• emma-20240331.xsd (EX-101.SCH) — 1686KB
• emma-20240331_htm.xml (XML) — 3101KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 (a) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 1 (b) Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2024 and 2023 2 (c) Condensed Consolidated Statements of Changes in Stockholders' Deficit for the three months ended March 31, 2024 and 2023 3 (d) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 4 (e) Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 27

Other Information

Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 29 Item 4. Mine Safety Disclosures 29 Item 5. Other Information 30 Item 6. Exhibits 31

Signatures

Signatures 32 I tem 1. Financial Statements EMMAUS LIFE SCIENCES, INC. CONDENSED CONSOL IDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) As of March 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,712 $ 2,547 Accounts receivable, net 2,990 5,524 Inventories, net 1,527 1,711 Prepaid expenses and other current assets 1,615 1,727 Total current assets 7,844 11,509 Property and equipment, net 57 59 Right of use assets 2,082 2,337 Investment in convertible bond 19,250 20,978 Other assets 310 296 Total assets $ 29,543 $ 35,179 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Accounts payable and accrued expenses $ 18,187 $ 17,725 Operating lease liabilities, current portion 869 865 Conversion feature derivative, notes payable 1,360 451 Other current liabilities 14,858 14,681 Warrant derivative liabilities 74 65 Notes payable, current portion, net of discount 7,720 8,215 Notes payable to related parties 2,772 3,122 Convertible notes payable, net of discount 16,588 16,383 Total current liabilities 62,428 61,507 Operating lease liabilities, less current portion 1,561 1,839 Other long-term liabilities 16,967 17,363 Notes payable to related parties, net of discount 2,231 2,226 Total liabilities 83,187 82,935 STOCKHOLDERS' DEFICIT Preferred stock, par value $ 0.001 per share, 15,000,000 shares authorized, none issued or outstanding — — Common stock, par value $ 0.001 per share, 250,000,000 shares authorized, 61,845,963 shares issued and outstanding at March 31, 2024 and December 31, 2023 62 62 Additional paid-in capital 225,503 225,333 Net loan receivable from EJ Holdings ( 16,869 ) ( 16,869 ) Accumulated other comprehensive loss ( 1,870 ) ( 160 ) Accumulated deficit ( 260,470 ) ( 256

View Full Filing

View this 10-Q filing on SEC EDGAR