Aethlon Medical(AEMD) - 2021 Q1 - Quarterly Report

Financial Performance - Net loss for the three months ended June 30, 2020, was $1,411,146, a decrease from a net loss of $2,067,284 for the same period in 2019, reflecting a 31.7% improvement[10] - Total revenues for the three months ended June 30, 2020, were $30,000, compared to $30,000 for the same period in 2019, indicating no growth[62] - Total operating loss for the three months ended June 30, 2020, was $(1,410,418), a decrease from $(1,566,188) in the same period of 2019, representing a 10% improvement[62] - Net loss before non-controlling interests for the three months ended June 30, 2020, was $(1,411,146), compared to $(2,067,284) for the same period in 2019, reflecting a 32% reduction in losses[62] - Basic and diluted loss per common share for the three months ended June 30, 2020, was $(0.15), significantly improved from $(1.63) in the same period of 2019[10] Assets and Liabilities - Total current assets increased to $16,095,289 as of June 30, 2020, up from $10,041,113 on March 31, 2020, representing a 60.5% increase[6] - Total liabilities rose to $1,240,149 as of June 30, 2020, compared to $1,110,260 on March 31, 2020, indicating an increase of 11.7%[7] - Total stockholders' equity increased to $15,187,105 as of June 30, 2020, compared to $9,277,426 on March 31, 2020, reflecting a 63.8% increase[8] - Total current liabilities as of June 30, 2020, were $1,223,317, an increase from $1,067,720 as of March 31, 2020[7] - Cash balance as of June 30, 2020, was $15,721,616, significantly up from $2,492,354 as of June 30, 2019, showing a 532% increase[62] Cash Flow and Financing - Cash at the end of the period increased to $15,721,616, up from $9,604,780 at the beginning of the period, marking a 63.5% increase[12] - Proceeds from the issuance of common stock amounted to $7,260,869 during the three months ended June 30, 2020, compared to $36,622 in the same period of 2019[12] - Aethlon Medical raised net proceeds of $7,260,869 from the sale of 2,685,600 shares at an average price of $2.70 per share during the three months ended June 30, 2020[39] - The company expects existing cash as of June 30, 2020, to be sufficient to fund operations for at least twelve months[27] - Net cash used in operating activities for the three months ended June 30, 2020, was $1,101,973, a decrease from $1,247,685 in the same period of 2019[12] Research and Development - The Hemopurifier is designated as a "Breakthrough Device" by the FDA for treating advanced or metastatic cancer and life-threatening viral infections[13] - Aethlon Medical plans to initiate clinical trials for the Hemopurifier in patients with advanced cancers, focusing on solid tumors such as head and neck cancer and gastrointestinal cancers[14] - The FDA approved an Early Feasibility Study for the Hemopurifier in head and neck cancer, enrolling 10-12 subjects, with safety as the primary endpoint[15] - A new feasibility study for the Hemopurifier in COVID-19 patients will enroll up to 40 subjects across 20 centers in the U.S., focusing on safety and reduction in circulating virus[18] - Research and development expenses for the three months ended June 30, 2020, were $377,167, compared to $248,871 for the same period in 2019, reflecting a 51.5% increase[30] Stock and Compensation - The weighted average number of common shares outstanding increased to 9,632,977 for the three months ended June 30, 2020, from 1,270,484 in the prior year[10] - Stock-based compensation expense for the three months ended June 30, 2020 was $84,207, compared to $326,536 for the same period in 2019, impacting basic and diluted loss per share by $(0.01) and $(0.26) respectively[46] - As of June 30, 2020, there were 51,124 stock options outstanding, with 28,098 options vested and a weighted average exercise price of $44.12[50] - The Compensation Committee granted RSUs to each non-employee director with a total value of $35,000, resulting in 24,822 shares at a price of $1.41 per share[41] - As of June 30, 2020, there were 89,599 RSUs expected to vest, with no RSUs having vested at that time[43] Legal and Regulatory - The company has not reported any pending or threatened legal proceedings that could materially affect its operations[69] - The company did not record any government contract revenue for the Phase 2 Melanoma Cancer Contract during the three months ended June 30, 2020, despite invoicing $206,729, which was recorded as deferred revenue[56] - The total amount of the Phase 2 Melanoma Cancer Contract awarded by the NCI is $1,860,561, running from September 16, 2019, through September 15, 2021[54] - The company recognized $30,000 in government contract revenue under the Breast Cancer Grant during the three months ended June 30, 2019[58] - Aethlon's revenue is primarily generated from government contracts, while Exosome Sciences, Inc. (ESI) does not yet have any revenues[60]