Aethlon Medical(US:AEMD)2024-08-14 21:10Financial Performance - Consolidated operating expenses for Q2 2024 were $2,620,858, a decrease of $787,302 or 23.1% compared to $3,408,716 in Q2 2023[107]. - Net loss for Q2 2024 decreased to $2,571,440 from $3,282,179 in Q2 2023, with basic and diluted loss per share improving to ($0.34) from ($1.35)[111]. - A significant decrease in general and administrative expenses of $556,309 was attributed to reduced supply costs and other operational efficiencies[107]. - For the three months ended June 30, 2024, expenses decreased by approximately $787,000 compared to the same period in 2023, with cash used in operating and investing activities decreasing by approximately $964,000[114]. - Net cash used in operating activities was approximately $1,748,000 for the three months ended June 30, 2024, a decrease of $734,000 from $2,482,000 in the same period in 2023[129]. - The company anticipates continuing to incur increasing negative cash flows and net losses for the foreseeable future, necessitating additional capital raises[132]. Liquidity and Capital Raising - Cash balance as of June 30, 2024, was $9,072,379, up from $5,441,978 at March 31, 2024, indicating improved liquidity[112]. - The company closed a public offering on May 17, 2024, raising approximately $4.7 million in gross proceeds, with net proceeds around $3.5 million after expenses[113]. - As of June 30, 2024, the company raised $5,379,229 net through equity offerings and warrant exercises, alleviating substantial doubt about its ability to continue as a going concern[114]. - The company raised approximately $5,384,000 from financing activities during the three months ended June 30, 2024, primarily from the sale and issuance of common stock and warrants[130]. - The gross proceeds from the May 2024 public offering were approximately $4.7 million, with net proceeds of approximately $3.5 million after deducting fees and expenses[125]. - As of June 30, 2024, $5,302,617 of 2022 ATM Shares remained available for sale under the 2022 ATM Agreement[118]. - The Class A and Class B warrants from the May 2024 offering have an exercise price of $0.58 per share and are immediately exercisable[123]. Clinical Development - The Hemopurifier has received FDA designation as a "Breakthrough Device" for treating advanced cancer and life-threatening viral infections[90]. - Clinical trials for the Hemopurifier are planned in Australia and India, with ethics approvals obtained for trials involving solid tumors[93][101]. - The company is investigating the use of the Hemopurifier in organ transplant settings to reduce complications from viral infections[103]. - The company is working with NAMSA to manage clinical trials for the Hemopurifier in oncology indications in the U.S. and Australia[92]. - The Hemopurifier has shown potential in capturing various viruses in vitro, including HIV, Ebola, and Zika virus, indicating broad therapeutic applications[96]. - The company expects clinical trial expenses for planned oncology trials in Australia and India to increase for the foreseeable future[131]. Legal and Compliance Risks - The company has identified a material weakness in internal control over financial reporting and is actively implementing measures to remediate it[140]. - The company is not currently involved in any pending or threatened legal proceedings[143]. - Claims made against the company in the ordinary course of business may lead to litigation[143]. - Unfavorable outcomes from litigation could result in monetary damages, fines, or penalties[143]. - The occurrence of adverse outcomes could materially affect the company's operational results[143]. - The company acknowledges the inherent uncertainties associated with litigation[143]. - Potential injunctions could prohibit the company from selling certain products or engaging in specific activities[143]. - The impact of legal proceedings may affect future periods' results of operations[143]. - The company is monitoring claims and litigation risks as part of its business strategy[143]. - Legal proceedings are considered a normal risk in the company's business operations[143]. - The company remains vigilant in managing potential legal challenges[143].