Aethlon Medical(AEMD) - 2019 Q3 - Quarterly Report

Financial Performance - Total revenues for the nine months ended December 31, 2018, were $149,625, compared to $74,813 for the same period in 2017, representing a 99% increase[6] - The net loss attributable to Aethlon Medical, Inc. for the nine months ended December 31, 2018, was $4,552,613, compared to a net loss of $4,360,695 for the same period in 2017, reflecting a 4% increase in losses[6] - Total operating expenses for the nine months ended December 31, 2018, were $4,557,724, up from $3,634,862 in the same period of 2017, indicating a 25% increase[6] - Operating losses for Aethlon were $4,304,082, an increase from $3,495,189 in the prior year, while ESI reported operating losses of $104,017[74] - The net loss for Aethlon was $4,469,399 for the nine months ended December 31, 2018, compared to $4,308,807 for the same period in 2017, reflecting an increase of about 4%[74] Cash and Equity - Cash at the end of the period on December 31, 2018, was $4,824,901, down from $5,610,799 at the end of the same period in 2017, showing a decrease of 14%[7] - Total stockholders' equity decreased to $3,170,030 as of December 31, 2018, from $6,032,794 as of March 31, 2018, a decline of 47%[5] - Total cash as of December 31, 2018, was $4,824,901, down from $5,610,799 at the end of the previous year[74] - Cash reserves for Aethlon decreased to $4,824,225 as of December 31, 2018, down from $5,610,061 at the end of 2017, a decline of approximately 14%[74] Research and Development - Research and development expenses for the three months ended December 31, 2018, were $243,843, a significant increase from $129,207 for the same period in 2017, representing an increase of approximately 88.5%[19] - For the nine months ended December 31, 2018, research and development expenses totaled $655,760, compared to $462,640 for the same period in 2017, reflecting an increase of about 41.7%[19] Debt and Liabilities - Total current liabilities as of December 31, 2018, were $1,780,725, significantly higher than $477,957 reported on March 31, 2018[4] - The total convertible notes payable, net, as of December 31, 2018, amounted to $932,014, with accrued interest of $34,758[20] - The company recorded a loss on debt extinguishment of $536,889 related to modifications of the November 2014 10% Convertible Notes[30] - The company recorded a loss on debt extinguishment of $198,254 due to the modification of the December 2016 Notes[40] - The company accrued unpaid Board fees of $69,750 owed to non-employee directors as of December 31, 2018[50] Stock and Compensation - The total stock-based compensation expense for the nine months ended December 31, 2018 was $944,512, impacting the basic and diluted loss per common share by $(0.05)[52] - The company issued 250,676 Restricted Stock Units (RSUs) during the nine months ended December 31, 2018, resulting in a net issuance of 138,311 shares after cancellations[57] - The company issued a total of 107,196 RSUs to independent directors, with a total expense of $928,762 related to RSU grants during the nine months ended December 31, 2018[57] - The company has approximately $1,740,025 of unrecognized compensation cost related to share-based payments expected to be recognized over a weighted average period of 1.3 years[62] Grants and Contracts - The total amount of the Breast Cancer Grant awarded by NCI is $298,444, with the grant period running from September 14, 2018, through August 31, 2019[65] - As of December 31, 2018, the company had not recognized any revenue under the Breast Cancer Grant[66] - The company entered into a contract with the NCI with potential total payments of $299,250 over nine months, requiring achievement of specific milestones[67] FDA Designation and Product Development - Aethlon Medical's Hemopurifier device has received FDA designation as a "Breakthrough Device" for treating life-threatening viruses and advanced cancer[8] - The company is focused on advancing the Hemopurifier through investigational device exemptions (IDEs) approved by the FDA, with recent feasibility studies demonstrating safety in health-compromised individuals[9] - The company has not recognized any revenue under the $298,444 government grant awarded by the National Cancer Institute for the Hemopurifier Device as of December 31, 2018[66] Subsequent Events - Subsequent to December 31, 2018, the company raised net proceeds of $290,954 from the sale of 210,271 shares of common stock[82] - The company received a disbursement of $50,000 from the NCI under a grant agreement subsequent to December 31, 2018[83]