Emmaus Life Sciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INVESTMENTS (Tables)

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2023 and 2022 (in thousands):


Investment in convertible bonds	December 31, 2023			December 31, 2022
Balance, beginning of year	$	19,971		$	26,100
Sales of convertible bond		(2,232	)		(2,919	)
Net gain (loss) on investment in convertible bond		106			(126	)
Change in fair value included in the statement of other comprehensive loss		3,133			(3,084	)
Balance, end of year	$	20,978		$	19,971

Schedule of Fair Value Based Upon Assumptions

The fair values as of December 31, 2023 and December 31, 2022 were based upon following assumptions:


	December 31, 2023			December 31, 2022
Principal outstanding (South Korean won)	KRW 23.6 billion			KRW 26.5 billion
Stock price	KRW 873			KRW 1,015
Expected life (in years)		6.79			7.79
Selected yield		12.25	%		13.50	%
Expected volatility (Telcon common stock)		71.90	%		78.50	%
Risk-free interest rate (South Korea government bond)		3.16	%		3.74	%
Expected dividend yield		0.00	%		0.00	%
Conversion price	KRW705(US$0.54)			KRW1,068(US$0.85)

Schedule of Certain Unaudited Financial Information of EJ Holdings

The following table sets forth certain unaudited financial information of EJ Holdings as of December 31, 2023 and 2022 and for the years ended December 31, 2023 and 2022 (in thousands). As noted below, the Company sold EJ Holdings shares on December 28, 2023, however, the Company management determines the balances as of December 31, 2023 would not materially differ from the balances at disposal date:


	As of December 31,
	2023 (Unaudited)			2022 (Unaudited)
ASSETS
Current assets	$	395		$	797
Other assets		8,793			9,573
Total assets	$	9,188		$	10,370
LIABILITIES
Current liabilities	$	964		$	794
Long-term liabilities		26,692			25,017
Total liabilities	$	27,656		$	25,811
Total stockholders' deficit	$	(18,468	)	$	(15,441	)

	Years Ended December 31,
	2023 (Unaudited)			2022 (Unaudited)
Revenue, net	$	143		$	193
Net loss	$	(4,282	)	$	(4,782	)
Net loss attributable to the Company	$	(1,713	)	$	(1,913	)