Aethlon Medical(AEMD) - 2023 Q4 - Annual Report

Financial Performance - The company recorded government contract revenue of $574,245 for the fiscal year ended March 31, 2023, compared to $294,165 for the fiscal year ended March 31, 2022, representing an increase of $280,080[301]. - Consolidated operating expenses increased to $12,472,883 for the fiscal year ended March 31, 2023, from $10,715,050 for the fiscal year ended March 31, 2022, an increase of $1,757,833[306]. - The net loss before noncontrolling interests increased to $12,029,786 for the fiscal year ended March 31, 2023, from $10,420,885 for the fiscal year ended March 31, 2022[308]. - The company reported a net cash used in operating activities of approximately $10,505,000 for fiscal 2023, an increase of approximately $738,000 compared to $9,767,000 in fiscal 2022[326]. - The company raised approximately $8,915,000 from financing activities in fiscal 2023, a decrease from $17,368,000 in fiscal 2022[327]. Cash and Capital Management - As of March 31, 2023, the company had a cash balance of $14,532,943 and working capital of $13,585,477, compared to $17,072,419 and $16,332,958, respectively, at March 31, 2022[309]. - The company anticipates continued negative cash flows and net losses for the foreseeable future, necessitating additional capital raises through equity and/or debt financing[320]. - The company expects future capital requirements to depend on various factors, including progress with clinical trials and regulatory approvals[320]. - The company has no obligation to sell any shares under the 2022 ATM Agreement, and sales can be suspended or terminated at any time[317]. - In the fiscal year ended March 31, 2023, the company raised net proceeds of $8,927,211 from the sale of 7,480,836 shares at an average price of $1.19 per share under the 2022 ATM Agreement[313]. - The company raised net proceeds of $1,086,119 from the sale of 1,778,901 shares at an average price of $0.61 per share under the 2022 ATM Agreement[340]. - The company raised approximately $11,659,044 from the sale of 1,380,555 shares at a purchase price of $9.00 per share in a registered direct financing during fiscal 2022[318]. Clinical Trials and Research - The company entered into an agreement with NAMSA to oversee clinical trials for the Hemopurifier in oncology indications, with initial trials anticipated to begin in Australia[289]. - The FDA approved a supplement to the company's open IDE for the Hemopurifier to test it in patients with COVID-19, with a study designed to enroll up to 40 subjects[292]. - The company launched a wholly owned subsidiary in Australia to conduct clinical research and seek regulatory approval for the Hemopurifier[293]. - The company is investigating the use of the Hemopurifier in organ transplant settings to potentially reduce complications following transplantation[295]. - Clinical trial expenses for the preparation of the planned oncology trial in Australia were $103,602 in fiscal 2023, with expectations for continued increases in these expenses[319]. - The company terminated its subaward arrangement with the University of Pittsburgh due to inability to recruit patients for the clinical trial[305]. Operational Challenges - The company is monitoring the impact of inflation, recent bank failures, and the war in Ukraine on its business and capital access[299]. - Rent expense increased by $117,772 in fiscal 2023, with expectations for further increases in the foreseeable future[319]. Director Compensation - In April 2023, three non-employee directors were granted 116,279 RSUs each, priced at $0.43 per share, under the Director Compensation Policy[341]. - The RSUs granted to directors are subject to vesting in four equal installments, with 25% vesting on June 30, September 30, December 31, 2023, and March 31, 2024[341].