Aethlon Medical(AEMD) - 2022 Q3 - Quarterly Report

Financial Performance - Revenue from government contracts for the three months ended December 31, 2021, was $17,117, down 97.4% from $624,871 in the same period of 2020[11]. - Operating expenses for the three months ended December 31, 2021, totaled $2.55 million, a decrease of 17% compared to $3.07 million in the prior year[11]. - Net loss for the three months ended December 31, 2021, was $2.53 million, compared to a net loss of $2.44 million for the same period in 2020, reflecting a 3.7% increase in losses[11]. - Total revenues for the nine months ended December 31, 2021, were $281,049, a decrease from $624,871 for the same period in 2020, representing a decline of approximately 55%[78]. - Aethlon reported an operating loss of $6,614,318 for the nine months ended December 31, 2021, compared to an operating loss of $5,610,994 for the same period in 2020, indicating an increase in losses of about 18%[78]. Assets and Liabilities - Total assets increased to $21.92 million as of December 31, 2021, compared to $10.67 million on March 31, 2021, reflecting a growth of 105.8%[7]. - Total liabilities decreased to $1.36 million from $1.38 million, a reduction of 1.3%[8]. - Stockholders' equity increased to $20.56 million as of December 31, 2021, from $9.29 million on March 31, 2021, representing a growth of 121.5%[9]. - Total other current liabilities amounted to $421,956 as of December 31, 2021, down from $761,636 as of March 31, 2021[55]. Cash Position - Cash reserves rose significantly to $20.39 million from $9.86 million, marking an increase of 106.5%[7]. - Cash and cash equivalents as of December 31, 2021, totaled $20,394,339, an increase from $12,131,396 as of December 31, 2020, representing a growth of approximately 68%[78]. - Cash used in operating activities for the nine months ended December 31, 2021, was $6,668,079, up from $4,526,309 in 2020, indicating a year-over-year increase of approximately 47%[18]. - Cash provided by financing activities increased significantly to $17,378,615 for the nine months ended December 31, 2021, compared to $7,154,478 in 2020, reflecting an increase of approximately 143%[18]. Stock and Compensation - The weighted average number of common shares outstanding increased to 15,397,418 for the three months ended December 31, 2021, from 12,093,361 in the same period of 2020[11]. - The company reported a total of 15,408,231 shares issued and outstanding as of December 31, 2021, compared to 12,150,597 shares on March 31, 2021[9]. - The company issued a stock option grant to the CEO for the purchase of 266,888 shares at a price of $5.17 per share, with a vesting schedule over four years[60]. - The Compensation Committee approved cash bonuses totaling $215,000 for the CEO and $160,000 for the CMO, based on performance metrics for 2021[94]. Research and Development - The company is conducting a clinical trial for the Hemopurifier in patients with advanced and metastatic head and neck cancer, with a primary endpoint focused on safety[21]. - Research and development expenses for the three months ended December 31, 2021, were $354,571, compared to $461,176 for the same period in 2020, representing a decrease of approximately 23.2%[36]. - For the nine months ended December 31, 2021, research and development expenses totaled $1,403,891, slightly increasing from $1,367,333 in the same period of 2020, reflecting an increase of about 2.7%[36]. Clinical Trials and Regulatory Progress - The FDA has designated the Hemopurifier as a "Breakthrough Device" for treating advanced or metastatic cancer and life-threatening viral infections[20]. - The company has entered into an agreement with PPD, Inc. to oversee U.S. clinical studies for the Hemopurifier in critically ill COVID-19 patients, with three hospitals currently activated for patient enrollment[26]. - The company has treated two patients with COVID-19 under Single Patient Emergency Use regulations using the Hemopurifier[24]. - The company is monitoring the impact of the COVID-19 pandemic on its operations and clinical trials, with uncertainty regarding future timelines and access to capital[29]. Lease Agreements - The company entered into a lease for manufacturing space of approximately 22,260 square feet with an initial base rent of $12,080 per month, expected to be occupied in the second or third quarter of 2022[87]. - The total rent expense for the nine months ended December 31, 2021, was approximately $288,000, compared to $144,000 for the same period in 2020, indicating a 100% increase[89]. - The company entered into a lease agreement for approximately 2,823 square feet of office space and 1,807 square feet of laboratory space, with a total lease liability of $400,797 recorded for the lab space[93].