Aethlon Medical(AEMD) - 2025 Q4 - Annual Report

Financial Performance - The consolidated operating expenses for the fiscal year ended March 31, 2025, were $9,341,364, a decrease of $3,295,203 from $12,636,568 in the prior year[300]. - Payroll and related expenses decreased by $1,332,359, driven by a reduction in salaries and related expenses and stock-based compensation[301]. - Professional fees decreased by $1,302,834, primarily due to a reduction in legal fees and the termination of services with a contract manufacturing organization[302]. - General and administrative expenses decreased by $660,010, with significant reductions in raw material purchases and laboratory supplies[303]. - The operating loss decreased to $9,341,364 for the fiscal year ended March 31, 2025, from $12,636,568 in the prior year[304]. - Other expense included a non-cash charge of $4,612,862 related to a warrant inducement offer[305]. - The company recognized $324,450 in other income related to the Employee Retention Tax Credit during the fiscal year ended March 31, 2025[306]. Cash and Capital Management - As of March 31, 2025, the company had a cash balance of $5,501,261 and working capital of $4,050,514, compared to $5,441,978 and $4,395,889, respectively, at March 31, 2024[307]. - The company raised capital through a warrant inducement offer and a public offering during the fiscal year ended March 31, 2025[309]. - The company raised aggregate net proceeds of $7,746,311 during the fiscal year ended March 31, 2025, after deducting $405,002 in commissions and legal expenses[310]. - The company raised approximately $3,540,000 from the issuance of common stock and approximately $2,316,000 from the exercise of warrants under induced terms in the fiscal year ended March 31, 2025[335]. - Net cash used in operating activities was approximately $7,646,000 in fiscal 2025, a decrease of approximately $2,484,000 compared to $10,130,000 in fiscal 2024[332]. - The company intends to use the net proceeds from the warrant exercise for working capital and general corporate purposes[312]. - The company generated approximately $7,727,000 from financing activities in the fiscal year ended March 31, 2025, compared to $1,288,000 in the previous fiscal year[334]. - The company may face challenges in accessing additional capital due to potential worsening global economic conditions and market volatility[330]. Clinical Trials and Product Development - The Hemopurifier has demonstrated a 98.5% removal of platelet-derived extracellular vesicles in a pre-clinical study, supporting its ongoing clinical trials[293]. - The company expects clinical trial expenses for planned oncology trials to increase for the foreseeable future, along with rent payments for headquarters and manufacturing facilities[325]. - The company anticipates continuing to incur increasing negative cash flows and net losses for the foreseeable future, necessitating additional capital raises[326]. - A second patient was treated with the Hemopurifier at GenesisCare North Shore Hospital in Sydney, Australia, with the procedure lasting 4 hours[346]. Stock and Compensation - The Company granted 4,112 RSUs to each of the four non-employee directors in April 2024, with each RSU priced at $12.16 per share[343]. - In April 2025, the Company granted 17,858 RSUs to each of the four non-employee directors, with each RSU priced at $2.80 per share[347]. - A reverse stock split of 1-for-8 was approved, effective June 6, 2023, combining every 8 shares of common stock into one share[345]. - The Company's authorized common stock remained at 60,000,000 shares following the reverse stock split[345]. - As of March 31, 2025, there were no vested RSUs outstanding[344]. - The RSUs granted in April 2024 are subject to vesting in four equal installments, with 25% vesting on June 30, September 30, December 31, 2024, and March 31, 2025[343]. - The RSUs granted in April 2025 are also subject to vesting in four equal installments, with 25% vesting on June 30, September 30, December 31, 2025, and March 31, 2026[347]. - The Director Compensation Policy provides for a grant of stock options or $50,000 worth of RSUs for current non-employee directors at the beginning of each fiscal year[343]. - Newly elected non-employee directors receive stock options or $75,000 worth of RSUs upon election[343].