Emmaus Life Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS (Tables)

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Fair Value and Changes in Fair Value of Investment in Convertible Bonds

The following table sets forth the fair value and changes in fair value of the investment in the Telcon convertible bond as of September 30, 2023 and December 31, 2022 (in thousands):


Investment in convertible bond	September 30, 2023			December 31, 2022
Balance, beginning of period	$	19,971		$	26,100
Sale of convertible bond		(2,232	)		(2,919	)
Net gain (loss) on investment on convertible bond		106			(126	)
Change in fair value included in the statement of other comprehensive income		(249	)		(3,084	)
Balance, end of period	$	17,596		$	19,971

Schedule of Fair Value Based upon Assumptions

The fair value as of September 30, 2023 and December 31, 2022 was based upon following assumptions:


	September 30, 2023			December 31, 2022
Principal outstanding (South Korean won)	KRW 23.6 billion			KRW 26.5 billion
Stock price	KRW 790			KRW 1,015
Expected life (in years)		7.04			7.79
Selected yield		13.25	%		13.50	%
Expected volatility (Telcon common stock)		75.50	%		78.50	%
Risk-free interest rate (South Korea government bond)		3.96	%		3.74	%
Expected dividend yield		—			—
Conversion price	KRW818(US$0.60)			KRW1,068(US$0.85)

Schedule of Certain Financial Information of EJ Holdings

The following table sets forth certain unaudited financial information of EJ Holdings for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three Month Ended September 30,						Nine Month Ended September 30,
	2023 (Unaudited)			2022 (Unaudited)			2023 (Unaudited)			2022 (Unaudited)
Revenue, net	$	43		$	46		$	143		$	148
Net loss	$	(952	)	$	(1,077	)	$	(3,367	)	$	(3,725	)
Net loss attributable to the Company (40%)	$	(381	)	$	(431	)	$	(1,347	)	$	(1,490	)