Aethlon Medical(AEMD) - 2021 Q3 - Quarterly Report

Financial Performance - Total assets increased to $12,669,749 as of December 31, 2020, up from $10,387,686 as of March 31, 2020, representing a growth of approximately 21.9%[6] - Government contract revenue for the three months ended December 31, 2020, was $624,871, compared to $413,458 for the same period in 2019, reflecting a year-over-year increase of 51%[10] - Total revenues for the nine months ended December 31, 2020, were $624,871, compared to $443,458 for the same period in 2019, representing an increase of 41%[82] - Total operating losses for the nine months ended December 31, 2020, were $(5,625,395), compared to $(4,144,797) for the same period in 2019, reflecting an increase in losses of 36%[82] - The net loss attributable to Aethlon Medical, Inc. for the nine months ended December 31, 2020, was $5,623,739, compared to a net loss of $4,591,042 for the same period in 2019, indicating a decline of 22.4%[10] Expenses - Total operating expenses for the three months ended December 31, 2020, were $3,068,459, significantly higher than $1,289,864 for the same period in 2019, marking an increase of approximately 138.5%[10] - The company reported a significant increase in payroll and related expenses, which rose to $1,523,650 for the three months ended December 31, 2020, compared to $406,421 for the same period in 2019, an increase of approximately 274%[10] - Research and development expenses for the three months ended December 31, 2020, were $461,176, compared to $218,571 for the same period in 2019, representing an increase of 111%[42] - For the nine months ended December 31, 2020, research and development expenses totaled $1,367,333, up from $692,022 in the prior year, indicating a 97% increase[42] Cash and Liquidity - Cash and cash equivalents increased to $12,131,593 as of December 31, 2020, from $9,604,780 as of March 31, 2020, representing a growth of approximately 26.5%[6] - Cash and restricted cash at the end of the period was $12,178,319, significantly up from $4,058,653 at the end of December 31, 2019, reflecting an increase of approximately 200%[19] - As of December 31, 2020, the company expects existing cash to be sufficient to fund operations for at least twelve months[38] Stock and Equity - Total stockholders' equity increased to $11,434,186 as of December 31, 2020, up from $9,277,426 as of March 31, 2020, reflecting an increase of about 23.3%[8] - The weighted average number of common shares outstanding for the three months ended December 31, 2020, was 12,093,361, compared to 2,887,883 for the same period in 2019, indicating a significant increase in shares outstanding[10] - The company raised net proceeds of $7,260,869 in the three months ended June 30, 2020, through the sale of 2,685,600 shares at an average price of $2.70 per share[47] Clinical Trials and FDA Approvals - The company is preparing to initiate clinical trials for the Hemopurifier in patients with advanced and metastatic cancers, focusing initially on solid tumors[22] - The FDA has designated the Hemopurifier as a "Breakthrough Device" for treating advanced or metastatic cancer and life-threatening viral infections[22] - The company has received FDA approval for an Early Feasibility Study of the Hemopurifier in patients with head and neck cancer, with a planned enrollment of 10-12 subjects[24] - The FDA approved a supplement to the company's open IDE for the Hemopurifier to test it in patients with COVID-19, with plans to enroll up to 40 subjects[26] Related Party Transactions - As of December 31, 2020, total amounts due to related parties were $131,746, an increase from $111,707 as of March 31, 2020[55] - The total expense accrued relating to the Separation Agreement with the former CEO was $400,578 as of December 31, 2020[85] Lease Agreements - The company entered into a new lease agreement for approximately 2,823 square feet of office space and 1,807 square feet of laboratory space, with an estimated present value of contractual payments of approximately $806,000[92] - Rent expense for the three months ended December 31, 2020, was approximately $50,000, compared to $44,000 for the same period in 2019, an increase of 14%[88] Stock Options and Compensation - The company had 602,323 stock options outstanding as of December 31, 2020, with a weighted average exercise price of $3.29[67] - The company has a total of 32,189 restricted stock units (RSUs) expected to vest, reflecting ongoing equity compensation strategies[53] - The company recorded stock-based compensation expense of $629,207 for the nine months ended December 31, 2020, compared to $755,648 in the same period of 2019, indicating a decrease of about 16.7%[19] COVID-19 Impact - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and financial condition, with uncertainty regarding future capital access[30] - The company treated a patient with COVID-19 under Single Patient Emergency Use regulations, who successfully completed eight daily treatments with the Hemopurifier[26]