Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to __________ COMMISSION FILE NUMBER 001-37487 AETHLON MEDICAL, INC. (Exact name of registrant as specified in its charter) NEVADA 13-36328 ...

Financial Performance - Total current assets increased to $25,547,766 as of June 30, 2021, compared to $10,351,738 as of March 31, 2021, representing a 147% increase[8] - Government contract revenue for the three months ended June 30, 2021, was $131,966, while there was no revenue reported for the same period in 2020[12] - Total operating expenses for the three months ended June 30, 2021, were $2,230,279, up from $1,410,418 in the same period of 2020, marking a 58% increase[12] - The net loss attributable to Aethlon Medical, Inc. for the three months ended June 30, 2021, was $2,097,303, compared to a net loss of $1,410,283 for the same period in 2020, reflecting a 48% increase in losses[12] - The company reported a basic and diluted loss per common share of $0.16 for the three months ended June 30, 2021, compared to a loss of $0.15 for the same period in 2020[12] - Net loss for the three months ended June 30, 2021, was $2,098,438, compared to a net loss of $1,411,146 for the same period in 2020, representing an increase of 48.5%[18] Cash and Equity - Cash and cash equivalents increased significantly to $25,171,679 as of June 30, 2021, from $9,861,575 as of March 31, 2021, indicating a 155% growth[8] - Total stockholders' equity rose to $24,735,712 as of June 30, 2021, compared to $9,293,690 as of March 31, 2021, representing a 167% increase[10] - Cash at the end of the period on June 30, 2021, was $25,171,679, compared to $15,721,616 at the end of June 30, 2020, reflecting a 60.0% increase[18] - Total cash balance as of June 30, 2021, was $25,171,679, significantly up from $15,721,616 as of March 31, 2021[73] Shareholder Information - The weighted average number of common shares outstanding increased to 12,828,816 for the three months ended June 30, 2021, from 9,632,977 in the same period of 2020, a 33% increase[12] - The company raised aggregate net proceeds of $4,947,785 from the sale of 626,000 shares of common stock at an average price of $7.90 per share during the three months ended June 30, 2021[43] - The company sold 1,380,555 shares of common stock at a purchase price of $9.00, resulting in net proceeds of $11,659,044 after fees during the same period[44] - The company received proceeds of $820,938 from the exercise of 531,167 shares of common stock warrants during the three months ended June 30, 2021[45] Expenses - Professional fees for the three months ended June 30, 2021, were $583,469, compared to $564,284 in the same period of 2020, showing a 3% increase[12] - Payroll and related expenses surged to $1,016,742 for the three months ended June 30, 2021, up from $436,911 in the same period of 2020, a 132% increase[12] - Research and development expenses for the three months ended June 30, 2021, were $587,687, up from $377,167 in the same period of 2020, indicating a 55.6% increase[36] - Total stock-based compensation expense for the three months ended June 30, 2021 was $120,154, compared to $84,207 for the same period in 2020[56] Government Contracts and Revenue - The company recorded $114,849 in government contract revenue from the Phase 2 Melanoma Cancer Contract for the three months ended June 30, 2021, following the achievement of previously deferred milestones[69] - Total revenues for the Aethlon segment were $131,966 for the three months ended June 30, 2021, compared to $0 for the same period in 2020[73] - Aethlon's operating loss for the three months ended June 30, 2021, was $(2,092,638), an increase from $(1,406,103) in the same period of 2020[73] Clinical Trials and Product Development - The company is preparing to initiate clinical trials for the Hemopurifier in patients with advanced and metastatic cancers, focusing on solid tumors[21] - The FDA has designated the Hemopurifier as a "Breakthrough Device" for treating advanced or metastatic cancer and life-threatening viral infections[20] - An Early Feasibility Study for the Hemopurifier in head and neck cancer has been approved, enrolling 10 to 12 subjects with safety as the primary endpoint[22] - The company has received FDA approval to test the Hemopurifier in COVID-19 patients, aiming to enroll up to 40 subjects across 20 centers[24] Assets and Liabilities - The company has a total asset value of $25,867,011 as of June 30, 2021, compared to $16,427,254 as of March 31, 2021[73] - Total current liabilities decreased to $1,131,299 as of June 30, 2021, from $1,375,226 as of March 31, 2021, showing a reduction of approximately 18%[9] - Other current liabilities totaled $636,387 as of June 30, 2021, down from $761,636 as of March 31, 2021[54] Lease Commitments - The company has lease commitments totaling approximately $806,000 for new office and laboratory spaces, with occupancy expected in the second half of 2021[81] - The company has lease commitments for approximately 2,600 square feet of office space at a rental rate of $8,265 per month, extended to September 30, 2021[77] - A new lease agreement for approximately 2,823 square feet of office space and 1,807 square feet of laboratory space is expected to commence in the second half of 2021, with an estimated present value of $806,000[81]

Hemopurifier Device - The Hemopurifier is a clinical-stage immunotherapeutic device designed to combat cancer and life-threatening viral infections, with FDA designation as a "Breakthrough Device" for two indications[12]. - The company is conducting a clinical trial for the Hemopurifier in patients with advanced and metastatic head and neck cancer, with a primary endpoint focused on safety and secondary endpoints including exosome clearance and survival rates[15]. - The FDA approved a New Feasibility Study for the Hemopurifier in COVID-19 patients, aiming to enroll up to 40 subjects across 20 centers in the U.S., with endpoints including reduction in circulating virus and clinical outcomes[17]. - The Hemopurifier has shown efficacy in capturing various viruses, including HIV, hepatitis C, and Ebola, with significant viral load reductions reported in clinical cases[24]. - The Hemopurifier is designed for use with existing dialysis infrastructure, potentially allowing for broader application in hospitals and clinics worldwide[23]. - The Hemopurifier device is positioned as a first-in-class therapeutic candidate, with no known competing devices cleared for the single-use removal of circulating viruses or tumor-derived exosomes[65]. - The Hemopurifier is expected to be classified as a Class III device, requiring a pre-market approval (PMA) submission and approval from the FDA[68]. - The Hemopurifier has been approved for testing in patients with SARS-CoV-2/COVID-19, with a plan to enroll up to 40 subjects at 20 centers in the U.S.[146]. - The company has a limited supply of Hemopurifiers, which restricts its use in the pandemic to a very small number of patients[147]. Clinical Trials and Research - The company has treated two critically ill COVID-19 patients with the Hemopurifier, demonstrating significant removal of exosomes and improvement in one patient's condition[29]. - Twelve HCV-infected individuals were treated with Hemopurifier therapy, with ten completing the treatment protocol, resulting in an 80% sustained virologic response rate[33]. - The Hemopurifier treatment for HIV resulted in a 93% reduction in viral load after 12 treatments over one month[34]. - An EFS study for the Hemopurifier in head and neck cancer is underway, enrolling 10 to 12 subjects, with safety as the primary endpoint[35]. - The company is currently conducting an Early Feasibility trial involving 10 to 12 patients with head and neck cancer and a study in Covid-19 patients, which are critical for obtaining regulatory approvals[117]. - Delays in clinical trials due to slow patient enrollment or adverse events could jeopardize the ability to obtain regulatory approval and harm financial results[118]. - The results of clinical trials may not support product candidate claims or may reveal adverse side effects, potentially delaying commercialization[149]. Regulatory and Compliance - The company faces significant regulatory challenges, primarily from the FDA, which oversees the development and approval of the Hemopurifier as a medical device[66]. - The PMA application process is more demanding than the 510(k) pre-market notification process, requiring extensive data to demonstrate safety and effectiveness[69]. - The FDA has 45 days to determine if a PMA application is complete and 180 days for the review, although the process can take several years[70]. - The FDA may issue an approvable letter indicating additional information is needed or a not approvable letter outlining steps required for approval[72]. - Emergency Use Authorizations (EUAs) allow device use during public health emergencies but do not replace the need for PMA approval[74]. - Ongoing regulation by the FDA includes compliance with Quality System Regulation (QSR) and medical device reporting regulations[76]. - Changes to an approved PMA device may require submission of a new PMA or PMA supplement for FDA approval[77]. - Regulatory actions due to non-compliance could significantly impact the company's ability to market and sell its product candidates[135]. - The Hemopurifier is an investigational device that has not yet received FDA approval for any indication, and its approval process may take many years and substantial resources[141]. - The FDA's PMA process, which is required for class III devices like the Hemopurifier, can take from one to three years or longer, and involves proving safety and effectiveness[142]. Financial Performance and Funding - The company generated revenues of $659,104 and $650,187 for the fiscal years ended March 31, 2021, and March 31, 2020, respectively, primarily from contracts with the NIH[94]. - The company has incurred significant losses and expects to continue incurring losses for the foreseeable future, indicating a lack of profitability[94]. - The company will require significant additional financing to sustain operations and fund future clinical trials and research activities[95]. - The company may need to raise additional funds through debt or equity financings, which could dilute existing stockholders' ownership[96]. - The approval and commercialization of products like the Hemopurifier depend on third-party reimbursement, which may not be available or sufficient[167]. - The process for obtaining coverage and reimbursement from payors, including CMS, is lengthy and expensive, impacting product adoption[168]. - Adverse changes in reimbursement policies could significantly affect the company's ability to market and sell its products[169]. Intellectual Property and Competition - The company holds over 50 issued patents and pending applications worldwide, including five issued U.S. patents and 35 issued patents in other countries[51]. - The company holds a total of 8 issued patents in the United States related to the extracorporeal removal of microvesicular particles and virus removal from blood, with expiration dates ranging from 2024 to 2029[57][60]. - The company has 5 pending patent applications in the United States, focusing on various diagnostic and therapeutic methods, including brain-specific exosome diagnostics and virus removal techniques[58][62]. - The company has secured foreign patents in multiple countries, including Denmark, France, Germany, and the UK, for its brain-specific exosome diagnostics, with expiration dates set for 2036[60]. - The company has entered into confidentiality agreements with employees and advisors to protect intellectual property, but enforcement may be challenging[200]. - The company may face claims of patent infringement from third parties, which could result in costly litigation and hinder product development[207]. - Competitors may develop superior products that could reduce demand for the company's offerings, impacting market position[202]. Operational Risks - The company relies on critical components for its Hemopurifier from limited suppliers, which poses a risk to manufacturing if any supplier faces a business interruption[88]. - The company has identified issues with a critical supplier's component, which could limit the ability to meet demand for the Hemopurifier and delay clinical trials[126]. - Outsourcing of manufacturing and clinical development is essential for the company, and any failure by third-party vendors could adversely affect product development timelines[137]. - The company does not have the required financial and human resources to conduct all development in-house, making reliance on third parties critical for success[137]. - The company is subject to risks from the COVID-19 pandemic, which may disrupt clinical trials and supply chains[179]. - Potential delays in clinical trials and manufacturing could arise from COVID-19-related restrictions and resource diversions[180]. - The company relies on specialty suppliers for raw materials, which may limit access to necessary materials for product manufacturing[183]. Cybersecurity and Data Protection - The company is facing increasing threats from cyberattacks, including sophisticated nation-state actors and various forms of malicious activity[163]. - Significant resources may be required to protect against security breaches, which could fundamentally change business operations and practices[164]. - The company may not have adequate insurance coverage to mitigate liabilities arising from security breaches, which could have a material adverse impact[166]. - Compliance with data protection laws, such as the CCPA and GDPR, is critical, as violations could lead to fines and operational disruptions[159][160]. - Security breaches involving sensitive information could result in material adverse impacts on the company's operations and financial results[162].

Financial Performance - Total assets increased to $12,669,749 as of December 31, 2020, up from $10,387,686 as of March 31, 2020, representing a growth of approximately 21.9%[6] - Government contract revenue for the three months ended December 31, 2020, was $624,871, compared to $413,458 for the same period in 2019, reflecting a year-over-year increase of 51%[10] - Total revenues for the nine months ended December 31, 2020, were $624,871, compared to $443,458 for the same period in 2019, representing an increase of 41%[82] - Total operating losses for the nine months ended December 31, 2020, were $(5,625,395), compared to $(4,144,797) for the same period in 2019, reflecting an increase in losses of 36%[82] - The net loss attributable to Aethlon Medical, Inc. for the nine months ended December 31, 2020, was $5,623,739, compared to a net loss of $4,591,042 for the same period in 2019, indicating a decline of 22.4%[10] Expenses - Total operating expenses for the three months ended December 31, 2020, were $3,068,459, significantly higher than $1,289,864 for the same period in 2019, marking an increase of approximately 138.5%[10] - The company reported a significant increase in payroll and related expenses, which rose to $1,523,650 for the three months ended December 31, 2020, compared to $406,421 for the same period in 2019, an increase of approximately 274%[10] - Research and development expenses for the three months ended December 31, 2020, were $461,176, compared to $218,571 for the same period in 2019, representing an increase of 111%[42] - For the nine months ended December 31, 2020, research and development expenses totaled $1,367,333, up from $692,022 in the prior year, indicating a 97% increase[42] Cash and Liquidity - Cash and cash equivalents increased to $12,131,593 as of December 31, 2020, from $9,604,780 as of March 31, 2020, representing a growth of approximately 26.5%[6] - Cash and restricted cash at the end of the period was $12,178,319, significantly up from $4,058,653 at the end of December 31, 2019, reflecting an increase of approximately 200%[19] - As of December 31, 2020, the company expects existing cash to be sufficient to fund operations for at least twelve months[38] Stock and Equity - Total stockholders' equity increased to $11,434,186 as of December 31, 2020, up from $9,277,426 as of March 31, 2020, reflecting an increase of about 23.3%[8] - The weighted average number of common shares outstanding for the three months ended December 31, 2020, was 12,093,361, compared to 2,887,883 for the same period in 2019, indicating a significant increase in shares outstanding[10] - The company raised net proceeds of $7,260,869 in the three months ended June 30, 2020, through the sale of 2,685,600 shares at an average price of $2.70 per share[47] Clinical Trials and FDA Approvals - The company is preparing to initiate clinical trials for the Hemopurifier in patients with advanced and metastatic cancers, focusing initially on solid tumors[22] - The FDA has designated the Hemopurifier as a "Breakthrough Device" for treating advanced or metastatic cancer and life-threatening viral infections[22] - The company has received FDA approval for an Early Feasibility Study of the Hemopurifier in patients with head and neck cancer, with a planned enrollment of 10-12 subjects[24] - The FDA approved a supplement to the company's open IDE for the Hemopurifier to test it in patients with COVID-19, with plans to enroll up to 40 subjects[26] Related Party Transactions - As of December 31, 2020, total amounts due to related parties were $131,746, an increase from $111,707 as of March 31, 2020[55] - The total expense accrued relating to the Separation Agreement with the former CEO was $400,578 as of December 31, 2020[85] Lease Agreements - The company entered into a new lease agreement for approximately 2,823 square feet of office space and 1,807 square feet of laboratory space, with an estimated present value of contractual payments of approximately $806,000[92] - Rent expense for the three months ended December 31, 2020, was approximately $50,000, compared to $44,000 for the same period in 2019, an increase of 14%[88] Stock Options and Compensation - The company had 602,323 stock options outstanding as of December 31, 2020, with a weighted average exercise price of $3.29[67] - The company has a total of 32,189 restricted stock units (RSUs) expected to vest, reflecting ongoing equity compensation strategies[53] - The company recorded stock-based compensation expense of $629,207 for the nine months ended December 31, 2020, compared to $755,648 in the same period of 2019, indicating a decrease of about 16.7%[19] COVID-19 Impact - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and financial condition, with uncertainty regarding future capital access[30] - The company treated a patient with COVID-19 under Single Patient Emergency Use regulations, who successfully completed eight daily treatments with the Hemopurifier[26]

Financial Performance - The net loss for the three months ended September 30, 2020, was $1,771,389, compared to a net loss of $1,706,626 for the same period in 2019, representing a slight increase in losses[10]. - For the six months ended September 30, 2020, net loss was $(3,182,535), compared to $(3,773,911) for the same period in 2019, showing a decrease in losses[15]. - The company reported a total operating loss of $3,181,807 for the six months ended September 30, 2020, compared to a loss of $3,268,391 for the same period in 2019[73]. Assets and Liabilities - Total current assets increased to $14,752,259 as of September 30, 2020, compared to $10,041,113 as of March 31, 2020, reflecting a growth of approximately 47%[6]. - Total liabilities rose to $1,489,760 as of September 30, 2020, up from $1,110,260 as of March 31, 2020, indicating an increase of about 34%[7]. - Total stockholders' equity increased to $13,566,630 as of September 30, 2020, from $9,277,426 as of March 31, 2020, reflecting an increase of approximately 46%[8]. - The accumulated deficit as of September 30, 2020, was $(115,207,228), compared to $(112,026,381) as of March 31, 2020, reflecting an increase in the deficit of about 3%[8]. - Total assets for the company as of September 30, 2020, were $15,056,390, compared to $1,281,790 a year earlier[73]. Cash Flow and Reserves - Cash reserves increased to $14,473,232 as of September 30, 2020, compared to $9,604,780 as of March 31, 2020, marking a growth of about 51%[6]. - Aethlon's cash balance as of September 30, 2020, was $14,473,035, significantly up from $785,461 a year earlier[73]. - The company expects existing cash as of September 30, 2020, to be sufficient to fund operations for at least twelve months from the issuance date of the financial statements[31]. Shareholder Information - The weighted average number of common shares outstanding for the three months ended September 30, 2020, was 12,070,592, compared to 10,845,049 for the same period in 2019, indicating an increase of about 11%[10]. - The company issued 2,685,600 common shares for cash under the at-the-market program, raising approximately $7,258,183[11]. - The company raised $7,260,869 from the issuance of common stock during the reporting period, compared to $423,234 in the previous year[16]. - The company executed a Common Stock Sales Agreement with H.C. Wainwright & Co., LLC, allowing for the sale of shares with an aggregate offering price of up to $12,500,000[39]. Research and Development - Research and development expenses for the three months ended September 30, 2020, were $508,897, compared to $222,857 for the same period in 2019, representing an increase of 128%[34]. - For the six months ended September 30, 2020, research and development expenses totaled $884,985, up from $470,882 in 2019, indicating an increase of 88%[34]. Clinical Trials and Product Development - The Hemopurifier has received FDA designation as a "Breakthrough Device" for treating advanced cancer and life-threatening viral infections[17]. - The company is preparing to initiate clinical trials for the Hemopurifier in patients with advanced and metastatic cancers, focusing on solid tumors[18]. - An Early Feasibility Study for the Hemopurifier in head and neck cancer has been approved, aiming to enroll 10-12 subjects[19]. - The FDA approved a supplement to test the Hemopurifier in COVID-19 patients, with plans to enroll up to 40 subjects across 20 centers[22]. - Exosome Sciences, Inc., a majority-owned subsidiary, is developing biomarkers for diagnosing life-threatening diseases, including a TauSome™ biomarker for chronic traumatic encephalopathy[23]. Impact of COVID-19 - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and financial condition, with uncertainty regarding future capital access[25]. - The company is monitoring the impact of the COVID-19 pandemic on its operations and clinical trials, indicating potential delays in timelines[25]. - The company has taken steps to protect employee health while continuing operations amid the COVID-19 pandemic[25]. Other Financial Information - Cash flows used in investing activities for the six months ended September 30, 2020, were $(23,137), significantly lower than $(119,981) in 2019[13]. - The company accrued unpaid fees of $86,375 owed to non-employee directors as of September 30, 2020, an increase from $69,750 as of March 31, 2020[51]. - Total other current liabilities as of September 30, 2020, were $421,502, down from $472,420 as of March 31, 2020[52]. - Stock-based compensation expense for the six months ended September 30, 2020, was $251,249, compared to $653,072 for the same period in 2019, reflecting a decrease of 62%[54]. - Basic and diluted loss per common share attributable to stock-based compensation expense for the six months ended September 30, 2020, was $(0.02), compared to $(0.50) for the same period in 2019[54]. - The company has approximately $1,989,000 of unrecognized compensation cost related to share-based payments expected to be recognized over a weighted average period of 3.0 years[61]. - The company did not record any government contract revenue on the Phase 2 Melanoma Cancer Contract for the six months ended September 30, 2020, and invoiced $114,849 as deferred revenue[65]. - The Breast Cancer Grant total amount is $298,444, with all funds received as of September 30, 2020, and the company is composing final reports applicable to this grant[68]. - Future minimum lease payments total $94,996, with a total lease liability of $92,603 as of September 30, 2020[79]. - The company did not issue any warrants during the six months ended September 30, 2020, with 2,007,848 warrants outstanding as of that date[62].

Financial Performance - Net loss for the three months ended June 30, 2020, was $1,411,146, a decrease from a net loss of $2,067,284 for the same period in 2019, reflecting a 31.7% improvement[10] - Total revenues for the three months ended June 30, 2020, were $30,000, compared to $30,000 for the same period in 2019, indicating no growth[62] - Total operating loss for the three months ended June 30, 2020, was $(1,410,418), a decrease from $(1,566,188) in the same period of 2019, representing a 10% improvement[62] - Net loss before non-controlling interests for the three months ended June 30, 2020, was $(1,411,146), compared to $(2,067,284) for the same period in 2019, reflecting a 32% reduction in losses[62] - Basic and diluted loss per common share for the three months ended June 30, 2020, was $(0.15), significantly improved from $(1.63) in the same period of 2019[10] Assets and Liabilities - Total current assets increased to $16,095,289 as of June 30, 2020, up from $10,041,113 on March 31, 2020, representing a 60.5% increase[6] - Total liabilities rose to $1,240,149 as of June 30, 2020, compared to $1,110,260 on March 31, 2020, indicating an increase of 11.7%[7] - Total stockholders' equity increased to $15,187,105 as of June 30, 2020, compared to $9,277,426 on March 31, 2020, reflecting a 63.8% increase[8] - Total current liabilities as of June 30, 2020, were $1,223,317, an increase from $1,067,720 as of March 31, 2020[7] - Cash balance as of June 30, 2020, was $15,721,616, significantly up from $2,492,354 as of June 30, 2019, showing a 532% increase[62] Cash Flow and Financing - Cash at the end of the period increased to $15,721,616, up from $9,604,780 at the beginning of the period, marking a 63.5% increase[12] - Proceeds from the issuance of common stock amounted to $7,260,869 during the three months ended June 30, 2020, compared to $36,622 in the same period of 2019[12] - Aethlon Medical raised net proceeds of $7,260,869 from the sale of 2,685,600 shares at an average price of $2.70 per share during the three months ended June 30, 2020[39] - The company expects existing cash as of June 30, 2020, to be sufficient to fund operations for at least twelve months[27] - Net cash used in operating activities for the three months ended June 30, 2020, was $1,101,973, a decrease from $1,247,685 in the same period of 2019[12] Research and Development - The Hemopurifier is designated as a "Breakthrough Device" by the FDA for treating advanced or metastatic cancer and life-threatening viral infections[13] - Aethlon Medical plans to initiate clinical trials for the Hemopurifier in patients with advanced cancers, focusing on solid tumors such as head and neck cancer and gastrointestinal cancers[14] - The FDA approved an Early Feasibility Study for the Hemopurifier in head and neck cancer, enrolling 10-12 subjects, with safety as the primary endpoint[15] - A new feasibility study for the Hemopurifier in COVID-19 patients will enroll up to 40 subjects across 20 centers in the U.S., focusing on safety and reduction in circulating virus[18] - Research and development expenses for the three months ended June 30, 2020, were $377,167, compared to $248,871 for the same period in 2019, reflecting a 51.5% increase[30] Stock and Compensation - The weighted average number of common shares outstanding increased to 9,632,977 for the three months ended June 30, 2020, from 1,270,484 in the prior year[10] - Stock-based compensation expense for the three months ended June 30, 2020 was $84,207, compared to $326,536 for the same period in 2019, impacting basic and diluted loss per share by $(0.01) and $(0.26) respectively[46] - As of June 30, 2020, there were 51,124 stock options outstanding, with 28,098 options vested and a weighted average exercise price of $44.12[50] - The Compensation Committee granted RSUs to each non-employee director with a total value of $35,000, resulting in 24,822 shares at a price of $1.41 per share[41] - As of June 30, 2020, there were 89,599 RSUs expected to vest, with no RSUs having vested at that time[43] Legal and Regulatory - The company has not reported any pending or threatened legal proceedings that could materially affect its operations[69] - The company did not record any government contract revenue for the Phase 2 Melanoma Cancer Contract during the three months ended June 30, 2020, despite invoicing $206,729, which was recorded as deferred revenue[56] - The total amount of the Phase 2 Melanoma Cancer Contract awarded by the NCI is $1,860,561, running from September 16, 2019, through September 15, 2021[54] - The company recognized $30,000 in government contract revenue under the Breast Cancer Grant during the three months ended June 30, 2019[58] - Aethlon's revenue is primarily generated from government contracts, while Exosome Sciences, Inc. (ESI) does not yet have any revenues[60]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (MARK ONE) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2020 OR [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |---------------------------------------------------------------------------------------------------------------------------|------------------------------------ ...

Financial Performance - Total revenues for the three months ended December 31, 2019, were $413,458, compared to $149,625 for the same period in 2018, representing a significant increase[8] - The net loss attributable to Aethlon Medical, Inc. for the three months ended December 31, 2019, was $819,581, compared to a net loss of $2,013,040 for the same period in 2018, reflecting a reduction in losses[8] - Total revenues for the nine months ended December 31, 2019, were $443,458, a significant increase from $149,625 for the same period in 2018, representing a growth of approximately 196%[81] - Aethlon reported an operating loss of $(4,125,758) for the nine months ended December 31, 2019, compared to $(4,304,082) for the same period in 2018, showing a slight improvement[81] - The net loss for Aethlon was $(4,575,811) for the nine months ended December 31, 2019, compared to $(4,469,399) for the same period in 2018, indicating a marginal increase in losses[81] Expenses and Cost Management - Operating expenses for the three months ended December 31, 2019, totaled $1,289,864, a decrease from $1,963,873 in the same period of 2018, indicating improved cost management[8] - Total operating expenses for the nine months ended December 31, 2019, were $4,588,255, slightly up from $4,557,724 in the same period in 2018, indicating a marginal increase of 0.67%[8] - Research and development expenses for the three months ended December 31, 2019, were $218,571, a decrease of 10.4% from $243,843 in the same period in 2018[28] - For the nine months ended December 31, 2019, research and development expenses totaled $692,022, an increase of 5.5% compared to $655,760 for the same period in 2018[28] - Stock-based compensation expense for the nine months ended December 31, 2019 was $755,648, compared to $944,512 for the same period in 2018, impacting basic and diluted loss per share by $(0.41) and $(0.79) respectively[58] Cash Flow and Liquidity - Cash flows used in operating activities amounted to $3,577,253 for the nine months ended December 31, 2019, compared to $2,895,960 in the prior year[11] - The company’s cash at the end of the period was $4,058,653, down from $4,824,901 a year earlier[11] - Management expects existing cash and funds raised in January 2020 to be sufficient to support operations for at least twelve months[25] - The company raised $4,987,468 from the issuance of common stock during the nine months ended December 31, 2019, compared to $883,500 in the same period of 2018[11] Liabilities and Equity - Total current liabilities as of December 31, 2019, were $810,614, down from $1,823,886 as of March 31, 2019, showing a decrease in short-term obligations[6] - Stockholders' equity increased to $3,804,182 as of December 31, 2019, compared to $2,299,078 as of March 31, 2019, indicating a strengthening financial position[7] - Total liabilities decreased to $878,309 as of December 31, 2019, from $1,823,886 as of March 31, 2019, reflecting a reduction in overall debt[6] - Other current liabilities totaled $175,282 as of December 31, 2019, down from $646,000 on March 31, 2019[57] Clinical Developments - The Hemopurifier has received FDA designation as a "Breakthrough Device" for treating advanced cancer and life-threatening viral infections[12] - The company is preparing to initiate clinical trials for the Hemopurifier in patients with advanced and metastatic cancers, focusing initially on solid tumors[13] - An Early Feasibility Study for the Hemopurifier in head and neck cancer has been approved by the FDA, enrolling 10-12 subjects[14] - The company has a collaboration agreement with SeaStar Medical, Inc. for co-developing the Hemopurifier cartridge[17] Government Contracts and Grants - The company recognized $413,458 in government contract revenue during the nine months ended December 31, 2019, related to a Phase II contract with the National Cancer Institute[71] - The company recognized $30,000 in government contract revenue under a Breast Cancer Grant during the nine months ended December 31, 2019[76] - The company has a government grant totaling $298,444 for a Phase I project related to breast cancer exosomes, with a no-cost extension until August 31, 2020[75] Stock and Warrants - The weighted average number of common shares outstanding for the three months ended December 31, 2019, was 2,887,883, compared to 1,203,344 for the same period in 2018, indicating an increase in share issuance[8] - The company issued 3,333,334 common warrants with an exercise price of $1.50 per share during the nine months ended December 31, 2019[63] - The company issued 3,992 shares of common stock in exchange for the cancellation of warrants, recording a gain of $51,190 based on fair value changes[54] Future Commitments - The company intends to use approximately $700,000 of the net proceeds from the December 2019 Public Offering for planned clinical trials over the next 12 months[37] - Future minimum lease payments under the Granite Ridge Lease total $170,539 as of December 31, 2019[85] Market Activity - The SEC issued an Order of Suspension of Trading on February 7, 2020, due to concerns regarding market information accuracy and unusual market activity[94]