Aethlon Medical(AEMD) - 2024 Q1 - Quarterly Report

Financial Performance - Total current assets decreased from $15,090,566 as of March 31, 2023, to $13,307,957 as of June 30, 2023, a decline of approximately 11.8%[10] - Total liabilities increased from $2,444,731 as of March 31, 2023, to $2,691,692 as of June 30, 2023, representing an increase of about 10.1%[11] - Operating expenses for the three months ended June 30, 2023, were $3,408,160, up from $2,906,081 for the same period in 2022, reflecting a year-over-year increase of approximately 17.2%[14] - The net loss for the three months ended June 30, 2023, was $3,282,179, compared to a net loss of $2,906,081 for the same period in 2022, indicating an increase in loss of about 12.9%[14] - Basic and diluted net loss per share attributable to common stockholders was $0.14 for the three months ended June 30, 2023, compared to $0.19 for the same period in 2022, showing an improvement of approximately 26.3%[14] - Cash and cash equivalents decreased from $14,532,943 as of March 31, 2023, to $12,897,734 as of June 30, 2023, a reduction of about 11.3%[10] - Total stockholders' equity decreased from $15,064,209 as of March 31, 2023, to $13,108,897 as of June 30, 2023, a decline of approximately 13.0%[12] - The accumulated deficit increased to $(145,640,734) as of June 30, 2023, compared to $(142,358,555) as of March 31, 2023, reflecting an increase of about 2.4%[12] Cash Flow and Financing - Cash used in operating activities for the three months ended June 30, 2023, was $2,482,387, a decrease from $2,728,917 in the same period of 2022, indicating improved cash management[19] - Proceeds from the issuance of common stock, net, amounted to $1,086,119 for the three months ended June 30, 2023, compared to $619,442 in the same period of 2022, reflecting a 75% increase in financing activities[19] - Cash and restricted cash at the end of the period was $12,985,240, down from $15,009,281 at the end of June 30, 2022, indicating a decrease in liquidity[19] - 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 during the three months ended June 30, 2023[44] - Management expects existing cash as of June 30, 2023, to be sufficient to fund operations for at least twelve months[36] Research and Development - The company is preparing to conduct clinical trials in Australia for the Hemopurifier, which has been designated as a "Breakthrough Device" by the FDA for treating advanced cancer and life-threatening viral infections[21] - Aethlon Medical has received ethics review board approval for a COVID-19 clinical trial in India, with one patient already completing participation[27] - The company is investigating the use of the Hemopurifier in organ transplant settings, aiming to reduce complications post-transplantation[28] - Research and development expenses for the three months ended June 30, 2023, were $678,922, a decrease from $858,347 in the same period of 2022[40] Operational Challenges - The company is experiencing a disruption in Hemopurifier supply due to expired inventory and is awaiting FDA approval for new suppliers, which may impact future operations[26] - The company has classified $87,506 as restricted cash on its balance sheet to comply with lease terms[37] - The company is closely monitoring the impact of inflation, recent bank failures, and geopolitical events on its business and capital access[30] Stock and Compensation - The weighted average number of common shares outstanding increased from 15,486,621 for the three months ended June 30, 2022, to 24,314,759 for the same period in 2023, an increase of about 57.1%[14] - The company recorded stock-based compensation expenses of $250,114 for the three months ended June 30, 2023, compared to $215,437 for the same period in 2022[54] - The basic and diluted loss per common share attributable to stock-based compensation expense was $(0.01) for both the three months ended June 30, 2023 and 2022[54] - The company has approximately $1,719,000 of unrecognized compensation cost related to share-based payments expected to be recognized over a weighted average period of 1.84 years[60] Lease and Rent Expenses - The company reported a right-of-use lease asset of $1,086,108 as of June 30, 2023, down from $1,151,909 as of March 31, 2023[10] - Rent expense for the three-month period ended June 30, 2023, was approximately $105,000, compared to $140,000 for the same period in 2022, indicating a decrease of about 25%[66] - The current monthly base rent under the office and laboratory lease is $13,772, while the manufacturing lease is $12,080[64] Legal and Compliance - The company is not currently involved in any litigation or pending legal proceedings[67]