Aethlon Medical(AEMD) - 2020 Q1 - Quarterly Report

Financial Performance - Total current assets decreased from $4,038,116 as of March 31, 2019, to $2,644,071 as of June 30, 2019, representing a decline of approximately 34.4%[4] - Government contract revenue for the three months ended June 30, 2019, was $30,000, down 79.9% from $149,625 in the same period of 2018[6] - Total revenues for the three months ended June 30, 2019, were $30,000, a decrease of 80% from $149,625 in the same period of 2018[66] - The net loss for the three months ended June 30, 2019, was $2,067,284, compared to a net loss of $1,152,376 for the same period in 2018, indicating an increase in loss of 79.2%[6] - Basic and diluted loss per common share was $0.11 for the three months ended June 30, 2019, compared to $0.06 in the same period of 2018[6] - Total operating losses for the three months ended June 30, 2019, were $(1,566,188), compared to $(1,097,272) for the same period in 2018, representing a 43% increase in losses[66] - Cash reserves as of June 30, 2019, were $2,492,354, down from $6,122,902 a year earlier, reflecting a decrease of 59%[66] Operating Expenses - Total operating expenses increased to $1,596,188 for the three months ended June 30, 2019, compared to $1,246,897 in the prior year, marking a rise of 28.0%[6] - Professional fees increased to $607,578 for the three months ended June 30, 2019, from $449,435 in the same period of 2018, an increase of 35.3%[6] - Other expenses for the three months ended June 30, 2019, totaled $501,096, a significant increase from $55,104 in the same period in 2018, primarily due to a loss on debt extinguishment of $447,011[99] Cash Flow and Liquidity - Cash at the end of the period decreased to $2,492,354 from $3,828,074 at the beginning of the period, reflecting a decrease of 34.9%[12] - Cash used in operating activities was approximately $1,248,000 for the three months ended June 30, 2019, compared to approximately $818,000 for the same period in 2018, driven by a $915,000 increase in net loss[110] - The company is addressing liquidity issues by seeking additional investment capital through common stock issuances and government grants[25] Stockholder Equity - Total stockholders' equity decreased from $2,299,078 as of March 31, 2019, to $1,018,192 as of June 30, 2019, a decline of approximately 55.7%[5] - The weighted average number of common shares outstanding increased to 19,057,255 for the three months ended June 30, 2019, from 17,754,728 in the same period of 2018, an increase of 7.3%[6] - The company raised aggregate net proceeds of $36,622 from the sale of 46,300 shares at an average price of $0.79 per share during the three months ended June 30, 2019[41] Research and Development - The company is preparing to initiate clinical trials for the Hemopurifier, focusing on advanced and metastatic cancers, particularly solid tumors[15] - Aethlon Medical's Hemopurifier has been validated to capture multiple life-threatening viruses, including HIV, Ebola, and Zika virus, through early feasibility studies[16] - The company incurred research and development expenses during the three months ended June 30, 2019, but specific figures were not disclosed in the provided content[30] Debt and Financing - The company incurred a loss on debt extinguishment of $447,011 during the three months ended June 30, 2019[6] - The conversion price on the convertible notes was reduced from $3.00 per share to $0.68 per share, resulting in a loss on debt extinguishment of $447,011[36] - Aethlon Medical recorded total interest expense of $54,046 related to its convertible notes for the three months ended June 30, 2019[35] Compliance and Risks - The company faces risks related to compliance with Nasdaq continued listing requirements, including a minimum closing bid price of $1.00 per share and minimum stockholder's equity of $2,500,000[124] - Failure to meet Nasdaq's listing requirements could lead to a de-listing of the company's common stock, negatively impacting stock price and trading ability[124] - The company is not currently involved in any pending or threatened legal proceedings that could materially affect its operations[121] Other Information - Aethlon Medical reported an accumulated deficit of approximately $107.72 million as of June 30, 2019, raising concerns about its ability to continue as a going concern[23] - The company is the majority owner of Exosome Sciences, Inc., which is focused on discovering exosomal biomarkers for diagnosing life-threatening diseases[17] - Exosome Sciences, Inc. (ESI) is advancing a TauSomeTM biomarker candidate to diagnose chronic traumatic encephalopathy, with documented levels in former NFL players being nine times higher than controls[84] - The company has effective disclosure controls and procedures in place for timely reporting as required by the Securities Exchange Act of 1934[118] - There have been no changes in internal control over financial reporting that materially affected the company during the last fiscal quarter[119]