Aethlon Medical(US:AEMD)2022-08-08 16:00Financial Performance - Total current assets decreased from $18,157,007 as of March 31, 2022, to $15,893,911 as of June 30, 2022, representing a decline of approximately 7%[9] - Total liabilities decreased from $2,426,554 as of March 31, 2022, to $2,212,020 as of June 30, 2022, a reduction of about 9%[10] - The company reported no revenue for the three months ended June 30, 2022, compared to $131,966 in government contract revenue for the same period in 2021, indicating a 100% decrease[14] - Total operating expenses increased from $2,230,404 in Q2 2021 to $2,906,081 in Q2 2022, reflecting an increase of approximately 30%[14] - The net loss attributable to Aethlon Medical for the three months ended June 30, 2022, was $2,905,668, compared to a net loss of $2,097,303 for the same period in 2021, representing an increase of about 38%[14] - Basic loss per share for Q2 2022 was $0.19, compared to $0.16 for Q2 2021, indicating a deterioration in earnings per share[14] - Total operating losses for the three months ended June 30, 2022, were $(2,906,081), an increase from $(2,098,438) in the same period of 2021[72] - Net losses before non-controlling interests for the three months ended June 30, 2022, were $(2,906,081), compared to $(2,098,438) for the same period in 2021[72] Cash Flow and Liquidity - Cash flows used in operating activities for the three months ended June 30, 2022, were $2,728,917, compared to $2,071,828 for the same period in 2021, an increase of approximately 32%[20] - The company had cash and cash equivalents of $14,921,775 as of June 30, 2022, down from $17,072,419 as of March 31, 2022, a decrease of about 13%[9] - The company reported a net cash decrease of $2,150,644, resulting in cash and restricted cash at the end of the period totaling $15,009,281[21] - Cash balance as of June 30, 2022, was $14,921,775, down from $17,072,419 at March 31, 2022, indicating a decrease of 12.6%[115] - Cash used in operating activities was approximately $2,729,000 for the three months ended June 30, 2022, compared to $2,072,000 for the same period in 2021, reflecting an increase of $657,000[120] Shareholder Equity and Stock Information - Total stockholders' equity decreased from $16,991,400 as of March 31, 2022, to $14,920,198 as of June 30, 2022, a decline of about 12%[11] - The weighted average number of common shares outstanding increased from 12,828,816 in Q2 2021 to 15,486,621 in Q2 2022, an increase of approximately 21%[14] - The weighted average number of common shares outstanding increased to 15,486,621 for the three months ended June 30, 2022, from 12,828,816 in the prior year[54] - The company raised net proceeds of $619,442 from the sale of 574,560 shares at an average price of $1.08 per share under the 2022 ATM Agreement[45] - The company raised net proceeds of $8,307,769 through the sale of 6,906,276 shares at an average price of $1.20 per share under the 2022 ATM Agreement[85] Research and Development - Research and development expenses for the three months ended June 30, 2022, were $858,347, compared to $587,687 for the same period in 2021, reflecting a 46% increase[41] - The company has initiated a clinical trial for the Hemopurifier in patients with advanced and metastatic head and neck cancer, with a primary endpoint focused on safety[27] - The company is conducting a New Feasibility Study for the Hemopurifier in COVID-19 patients, with a target enrollment of up to 40 subjects across 20 centers in the U.S.[29] - 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[31] - Clinical trial expenses increased by $161,262 in the three months ended June 30, 2022, and are expected to continue to rise in the foreseeable future[123] Regulatory and Market Challenges - The Hemopurifier has received FDA designation as a "Breakthrough Device" for treating advanced cancer and life-threatening viral infections[25] - The FDA approved a study for the Hemopurifier in COVID-19 patients, with the first patient enrolled in June 2022[94] - The company needs to secure large-scale manufacturing agreements to commercialize its Hemopurifier product, which requires compliance with good manufacturing practice standards[133] - The Hemopurifier product candidate may become unmarketable due to new scientific developments by competitors, which could render the technology obsolete[134] - Extensive government regulations related to development, testing, and commercialization could delay or prevent the commercialization of the Hemopurifier product[134] Future Outlook and Funding Needs - The company expects existing cash to be sufficient to fund operations for at least twelve months from the issuance date of the financial statements[37] - Company expects to incur increasing negative cash flows and net losses for the foreseeable future, necessitating additional capital through equity and/or debt financing[124] - Substantial additional funding will be required to sustain operations, with potential delays or reductions in research and development if capital cannot be raised on favorable terms[133] - Significant expansion of operations will be necessary to implement long-term business plans and growth strategies, which may strain management and resources[136] - Successful commercial development of the Hemopurifier product depends on completing studies and obtaining regulatory approvals, with delays jeopardizing approval[136] Management and Governance - The company is not currently a party to any pending or threatened legal proceedings, but claims could arise in the ordinary course of business[131] - There have been no changes in internal control over financial reporting that materially affect the company's reporting[129] - The company may face challenges in attracting and retaining executive management and directors due to limited financial resources[134]