Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 417

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1B
Chunk 417
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 policy above.

STOCK PURCHASE WARRANTS

In the past we issued warrants for the purchase
of shares of our common stock in connection with the issuance of common stock for cash. Warrants issued in connection with common stock
for cash, if classified as equity, are considered issued in connection with equity transactions and the warrant fair value is recorded
to additional paid-in-capital.

RESEARCH AND DEVELOPMENT EXPENSES

Our research and development costs are expensed
as incurred. We incurred approximately $2,212,000 and $2,520,000 of research and development expenses for the years ended March 31, 2025
and 2024, respectively, which are included in various operating expenses in the accompanying consolidated statements of operations.

     F-14 

OFF-BALANCE SHEET ARRANGEMENTS

We have not entered into any off-balance sheet
arrangements that have or are reasonably likely to have a current or future material effect on our consolidated financial statements.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

In fiscal year 2025, the Company adopted Accounting
Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires
public entities to disclose significant segment expense categories that are regularly provided to the Chief Operating Decision Maker (CODM)
and included in the measure of segment profit or loss.

The Company
operates as a single reportable segment. The adoption of ASU 2023-07 did not impact the Company’s consolidated financial
statements but resulted in enhanced footnote disclosures regarding significant segment expenses, as reflected in Note 9 –
Segment Reporting.

In
March 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (“ASU 2024-03”), which requires public business entities to provide enhanced annual and interim
disclosures that disaggregate specified income statement expense categories. ASU 2024-03 is effective for annual periods beginning after
December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is evaluating whether the adoption
of this new standard will have a material impact on our disclosures.

In March 2024, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update No. 2024-02, Codification Improvements—