Company: AEMD
Filing Date: 2025-04-08
Form Type: PRE 14A
Source: 0001683168-25-002332
Chunk: 29

Company: AETHLON MEDICAL INC
Filing Date: 2025-04-08
Form: PRE 14A
Chunk 29
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 its shares of common stock held immediately prior to the Reverse Stock Split, and such
stockholder’s holding period in the reduced number of shares will include the holding period in its shares held immediately prior
to the Reverse Stock Split. The tax treatment of the increase of a fractional share of our common stock to a whole share is not certain.
We intend to treat the issuance of such a whole share as a non-recognition event, but there can be no assurances that the Internal Revenue
Service or a court would not successfully assert otherwise. Treasury Regulations provide detailed rules for allocating the tax basis and
holding period of the shares of common stock surrendered to the shares of common stock received in a recapitalization pursuant to the
Reverse Stock Split. U.S. Holders should consult their tax advisors as to application of the foregoing rules where shares of common stock
were acquired at different times or at different prices. Stockholders should consult their own tax advisors regarding the tax consequences
to them of the Reverse Stock Split.

THE PRECEDING DISCUSSION IS INTENDED ONLY AS A SUMMARY
OF CERTAIN MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE REVERSE STOCK SPLIT TO U.S. HOLDERS. IT IS NOT A COMPLETE ANALYSIS OR
DISCUSSION OF ALL POTENTIAL TAX EFFECTS THAT MAY BE IMPORTANT TO A PARTICULAR HOLDER. ALL HOLDERS OF OUR COMMON STOCK SHOULD CONSULT THEIR
OWN TAX ADVISORS AS TO THE SPECIFIC TAX CONSEQUENCES OF THE REVERSE STOCK SPLIT TO THEM, INCLUDING RECORD RETENTION AND TAX-REPORTING
REQUIREMENTS, AND THE APPLICABILITY AND EFFECT OF ANY U.S. FEDERAL, STATE, LOCAL AND NON-U.S. TAX LAWS.

Required Vote

The Reverse Stock Split would
be effectuated pursuant to NRS 78.2055, which was amended by the Nevada Legislature effective May 30, 2023, pursuant to Assembly Bill
No. 126. Pursuant to such amendment, the Reverse Stock Split will be approved, in accordance with our amended and restated bylaws, if
more votes are cast in favor of this proposal than are cast against it. Abstentions and broker non-votes on this proposal will have no
effect on the outcome.

As noted above, in the event that our stockholders do not approve this Proposal 1, our Board of Directors may take action in accordance with NRS 78.207 to effect a reverse split of our common stock without stockholder approval if required to