Emmaus Life Sciences Reports Quarterly Financial Results

TORRANCE, Calif.--(BUSINESS WIRE)--Emmaus Life Sciences, Inc. (OTCQB: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the three months ended March 31, 2026.

Highlights

“We realized an 18% decline in net revenues for three month ended March 31, 2026 as compared to the same period in 2025 primarily driven by a 33% decrease in U.S. sales amid ongoing competition from generic L-Glutamine. The decline was partially offset by a 94% increase in sales in the Middle East North Africa, or MENA, region,” commented Willis Lee, Chairman and Chief Executive Officer of Emmaus. “Our loss from operations improved by 16% year-over-year, reflecting the impact of our cost reduction initiatives,” he added.

Financial and Operating Results

Net Revenues. Net revenues for the three months ended March 31, 2026 were $2.0 million, compared to $2.4 million in the same period in 2025. The decrease was due to a decrease in U.S. sales which management attributes to competition from the generic version of L-Glutamine introduced in the market in mid-2024, partially offset by an increase of sales in the MENA region.

Operating Expenses. Total operating expenses for the three months were $2.6 million compared to $3.2 million in the comparable period in 2025. The decrease was due primarily to decreases in research and development expenses and general and administrative expenses attributable to a reduction in headcount and other cost cutting measures initiated in the second half of 2024.

Loss From Operations. Loss from operations for the three months was $0.8 million compared to $1.0 million in the same period in 2025. This was due to the decrease in net revenues, which was more than offset by lower operating expenses.

Other Expense. The company realized other expense of $2.3 million for the three months compared to $1.3 million in the same period in 2025. The increase was primarily due to increases in interest expense and change in fair value of conversion feature derivative.

Net Loss. For the three months, the company realized a net loss of $3.3 million, or $0.05 basic earnings per share based on approximately 70.2 million weighted-average common shares, compared to net loss of $2.3 million, or $0.04 basic earnings per share based on approximately 63.9 million weighted-average common shares in the comparable period in 2025. The increase in net loss was attributable primarily to the increase in other expense.

Liquidity and Capital Resources. At March 31, 2026, the company had cash and cash equivalents of $1.1 million, compared to $2.1 million at December 31, 2025.

About Emmaus Life Sciences

Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease. Endari^® (L-glutamine oral powder), indicated to reduce the acute complications of sickle cell disease in adults and children 5 years and older, is approved for marketing in the United States, Israel, Kuwait, Qatar, the United Arab Emirates, Bahrain and Oman and is available on a named patient or early access basis in France, the Netherlands, and the Kingdom of Saudi Arabia, where Emmaus’ application for marketing authorization is awaiting final action by the Saudi Food & Drug Authority. For more information, please visit www.emmausmedical.com.

About Endari^® (prescription grade L-glutamine oral powder)

Endari^®, Emmaus’ prescription grade L-glutamine oral powder, was approved by the U.S. Food and Drug Administration (FDA) in July 2017 for treating sickle cell disease in adult and pediatric patients five years of age and older.

Indication

Endari^® is indicated to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older.

Important Safety Information

The most common adverse reactions (incidence >10 percent) in clinical studies were constipation, nausea, headache, abdominal pain, cough, pain in extremities, back pain, and chest pain.

Adverse reactions leading to treatment discontinuation included one case each of hypersplenism, abdominal pain, dyspepsia, burning sensation, and hot flash.

The safety and efficacy of Endari^® in pediatric patients with sickle cell disease younger than five years of age has not been established.

For more information, please see full Prescribing Information of Endari^® at: www.ENDARIrx.com/PI.

About Sickle Cell Disease

There are approximately 100,000 people living with sickle cell disease (SCD) in the United States and millions more globally. The sickle gene is found in every ethnic group, not just among those of African descent; and in the United States an estimated 1-in-365 African Americans and 1-in-16,300 Hispanic Americans are born with SCD.¹ The genetic mutation responsible for SCD causes an individual's red blood cells to distort into a "C" or a sickle shape, reducing their ability to transport oxygen throughout the body. These sickled red blood cells break down rapidly, become very sticky, and develop a propensity to clump together, which causes them to become stuck and cause damage within blood vessels. The result is reduced blood flow to distal organs, which leads to physical symptoms of incapacitating pain, tissue and organ damage, and early death.²

¹Source: Data & Statistics on Sickle Cell Disease – National Center on Birth Defects and Developmental Disabilities, Centers for Disease Control and Prevention, December 2020.

²Source: Committee on Addressing Sickle Cell Disease – A Strategic Plan and Blueprint for Action -- National Academy of Sciences Press, 2020.

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. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time, including doubt about the company’s ability to continue as a going concern and other factors disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 31, 2026 and Quarterly Report on Form 10-Q filed on May 15, 2026, 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.

Emmaus Life Sciences, Inc.
Condensed Consolidated Statement of Operations and Comprehensive Income (Loss)
(In thousands, except share and per share amounts)
	Three Months Ended March 31,
	2026			2025
Revenue, Net	$	1,982		$	2,406
Cost of Goods Sold		168			225
Gross Profit		1,814			2,181
Operating Expenses		2,637			3,161
Income (Loss) from Operations		(823	)		(980	)
Net Loss		(3,335	)		(2,330	)
Comprehensive Loss		(4,253	)		(2,132	)
Net Loss per Share	$	(0.05	)	$	(0.04	)
Weighted Average Common Shares Outstanding		70,188,263			63,865,571

Emmaus Life Sciences, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
	As of
	March 31, 2026			December 31, 2025
Assets
Current Assets:
Cash and cash equivalents	$	1,072		$	2,127
Accounts receivable, net		2,048			2,804
Inventories, net		1,909			1,555
Prepaid expenses and other current assets		966			1,260
Total Current Assets		5,995			7,746
Property and Equipment, net		98			113
Right of use assets		736			766
Investment in convertible bond		11,664			12,604
Other Assets		203			207
Total Assets	$	18,696		$	21,436
Liabilities and Stockholders’ Deficit
Current Liabilities:
Accounts payable and accrued expenses	$	24,487		$	22,615
Operating lease liabilities, current portion		349			348
Conversion feature derivative, notes payable		235			-
Notes payable, current portion		10,696			11,151
Convertible notes payable, net of discount		17,356			17,380
Other current liabilities		17,458			17,578
Total Current Liabilities		70,581			69,072
Other long-term liabilities		15,975			15,972
Total Liabilities		86,556			85,044
Stockholders’ Deficit		(67,860	)		(63,608	)
Total Liabilities & Stockholders’ Deficit	$	18,696		$	21,436