Company: AEMD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008271
Chunk: 21

Company: AETHLON MEDICAL INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 21
---
2021 for the office and lab space, and $40,780 in fiscal year 2022 for the manufacturing space.
Equivalent funds were transferred into restricted certificates of deposit to secure the bank’s risk.

Following the transition of our banking relationship
to JPMorgan Chase, the L/Cs were replaced with an interest-bearing money market deposit account. As of September 30, 2025, we maintained
a restricted cash balance of $98,448 in this account, which includes a $5,000 buffer above the required security amount. This balance
continues to support our lease obligations and is classified as restricted cash on our balance sheet.

Overall, our rent expense, which is included in
general and administrative expenses, approximated $140,229 for the three months ended September 30, 2025. This amount includes a nonrecurring
charge of $33,305 related to a forfeiture of a deposit of a previously rented mobile clean room. Excluding this one-time item, recurring
rent expense was approximately $107,000. Rent expense for the three-month period ending September 30, 2024 was approximately $108,000.

     15 

For the six months ended September 30, 2025, rent
expense totaled approximately $249,418, which includes the same $33,305 nonrecurring charge. Excluding this item, recurring rent expense
for the six-month period was approximately $216,113, compared to approximately $210,000 for the six months ended September 30, 2024.

In January 2025, the Company entered into a short-term
premium financing agreement with FIRST Insurance Funding, a division of Lake Forest Bank & Trust Company, N.A., to finance a portion
of its Directors & Officers (D&O) and other insurance premiums. The total amount financed under the agreement was approximately
$220,984 with an associated finance charge of approximately $9,995 resulting in a total repayment obligation of approximately $230,979.
The annual percentage rate is 9.75%, and the loan is payable in 10 monthly installments of approximately $23,098 beginning February 28,
2025.

As collateral for the financing, the Company granted
the lender a first priority security interest in the financed insurance policies, including all unearned premiums, dividends, credits,
and certain loss payments. In the event of default, cancellation, or early termination of the policies, the lender has the right to collect
any unearned premiums and apply