- Emmaus Life Sciences (EMMA, Financial) reported a 43.6% decline in net revenues for 2024, attributed to inventory shortages.
- The company reduced operating expenses by nearly 30% to $17.3 million.
- Emmaus ended 2024 with a $1.4 million cash position, expecting 2025 revenues to match or exceed 2024 levels.
Emmaus Life Sciences, Inc. (OTCQB: EMMA) announced its financial results for 2024, indicating significant financial challenges due to inventory shortages that persisted through the third quarter. The company's net revenues for 2024 were $16.7 million, a substantial decrease from $29.6 million in 2023. This nearly 44% decline in revenue was primarily caused by the unavailability of inventory early in the year, which was only resolved later, impacting sales.
To counterbalance the revenue decline, Emmaus successfully reduced its operating expenses by approximately 30%, bringing them down to $17.3 million from $24.7 million in the previous year. This reduction was achieved through decreased headcount and the suspension of research and development activities. Despite these efforts, Emmaus posted a loss from operations of $1.9 million, contrasting with an income from operations of $3.5 million in 2023. The net loss per share widened to $0.10 from $0.07 in 2023, with a total net loss of $6.5 million.
Emmaus' financial position showed a decrease in cash and cash equivalents, ending the year with $1.4 million compared to $2.5 million at the close of 2023. Looking to 2025, the management remains optimistic, expecting net revenues to reach or surpass 2024 levels, citing adequate inventory to support sales throughout the year, barring any unforeseen circumstances.
