Aethlon Medical(AEMD) - 2023 Q3 - Quarterly Report

Financial Performance - Net loss for the three months ended December 31, 2022, was $2.85 million, compared to a net loss of $2.53 million for the same period in 2021, representing a decline of approximately 12.5%[11] - Operating expenses for the three months ended December 31, 2022, totaled $2.85 million, an increase from $2.55 million in the same period of 2021, marking a rise of about 12%[11] - Basic loss per share for the three months ended December 31, 2022, was $0.12, compared to a loss of $0.16 per share in the same period of 2021, showing an improvement of 25%[11] - Net loss for the nine months ended December 31, 2022, was $9,562,851, compared to $6,635,187 for the same period in 2021, representing an increase of approximately 44%[14] - Cash flows used in operating activities for the nine months ended December 31, 2022, were $7,558,412, slightly lower than $6,668,079 in 2021[14] Assets and Liabilities - Total assets increased to $20.72 million as of December 31, 2022, compared to $19.42 million on March 31, 2022, reflecting a growth of approximately 6.7%[7] - Total liabilities rose to $3.45 million as of December 31, 2022, up from $2.43 million on March 31, 2022, indicating an increase of about 42%[8] - Total stockholders' equity increased to $17.28 million as of December 31, 2022, compared to $16.99 million on March 31, 2022, reflecting a growth of about 1.7%[9] - Cash and cash equivalents stood at $17.50 million as of December 31, 2022, slightly up from $17.07 million on March 31, 2022, indicating a growth of approximately 2.5%[7] Expenses - Professional fees for the three months ended December 31, 2022, were $729,665, up from $433,404 in the same period of 2021, representing an increase of approximately 68%[11] - Payroll and related expenses for the three months ended December 31, 2022, were $1.05 million, compared to $999,500 in the same period of 2021, showing a rise of about 5.5%[11] - Research and development expenses for the three months ended December 31, 2022, were $558,223, compared to $354,571 for the same period in 2021, representing a 57.5% increase[34] - The company incurred stock-based compensation expenses of $791,588 for the nine months ended December 31, 2022, compared to $522,234 for the same period in 2021, reflecting a 51.5% increase[47] Clinical Trials and Product Development - The Hemopurifier is designated as a "Breakthrough Device" by the FDA for treating advanced cancer and life-threatening viral infections[16] - Aethlon is preparing to conduct a clinical trial in Australia for the Hemopurifier targeting solid tumors, including head and neck cancers[17] - The company has treated two patients with COVID-19 under Single Patient Emergency Use regulations using the Hemopurifier[20] - The Hemopurifier has shown in vitro effectiveness against multiple viruses, including HIV, Ebola, and Zika virus[19] - Aethlon's clinical trial for the Hemopurifier in patients with head and neck cancer was terminated due to lack of patient enrollment[18] Cash and Funding - The company raised net proceeds of $8,927,211 through the sale of 7,480,836 shares at an average price of $1.19 per share under the 2022 ATM Agreement[37] - The company reported a net cash increase of $427,122 for the nine months ended December 31, 2022, compared to a significant increase of $10,573,741 in 2021[14] - The company expects existing cash as of December 31, 2022, to be sufficient to fund operations for at least twelve months[29] Operational Challenges - The company is currently experiencing a disruption in Hemopurifier supply due to expired inventory and is awaiting FDA approval for new suppliers[22] - The company is closely monitoring the impact of COVID-19, inflation, and the war in Ukraine on its business and financial condition[25] Corporate Developments - The company launched a wholly owned subsidiary in Australia to focus on the oncology market, with insignificant expenses reported for the three months ended December 31, 2022[22] - The company appointed Dr. Lee Arnold as the new Chief Scientific Officer effective February 1, 2023[70] - The company eliminated Exosome Sciences, Inc. from its balance sheet following its dissolution in September 2022[23] - The company terminated a subaward arrangement with the University of Pittsburgh effective November 10, 2022, due to recruitment challenges[63]