Aethlon Medical(AEMD) - 2020 Q3 - Quarterly Report

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]