Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 24

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 1
Chunk 24
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 We arranged for our bank to issue standby L/Cs for the new office and lab in the amounts of $46,726 in the fiscal
year ended March 31, 2021 and for the manufacturing space in the amount of $40,780 in the fiscal year ended March 31, 2022. We transferred
like amounts to a restricted certificate of deposit which secured the bank’s risk in issuing those L/Cs. We have classified those
restricted certificates of deposit on our balance sheet as restricted cash with a balance of $87,506.

Overall, our rent expense, which is included in
general and administrative expenses, approximated $106,000 and $105,000 for the three- month periods ended December 31, 2024 and 2023,
respectively. Rent expense for the nine-month periods ending December 31, 2024 and December 31, 2023 was approximately $317,000 and $315,000
respectively.

LEGAL MATTERS

We may be involved from time to time in various
claims, lawsuits, and/or disputes with third parties or breach of contract actions incidental to the normal course of our business operations.
We are currently not involved in any litigation or any pending legal proceedings.

10. SUBSEQUENT EVENTS

Management has evaluated events subsequent to
December 31, 2024 through the date that the accompanying consolidated financial statements were filed with the SEC for transactions and
other events which may require adjustment of and/or disclosure in such financial statements.

In January 2025, the holder of Class A warrants
exercised 20,000 shares for total proceeds of $11,600. Additionally, 107,427 shares of placement warrants were exercised through a cashless
exercise.

In February 2025, holders of Class A warrants exercised 46,500 shares
and holders of Class B warrants exercised 296,500 shares, for an aggregate issuance of 343,000 shares in exchange for total proceeds of
$198,940.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion of our financial condition
and results of operations should be read in conjunction with, and is qualified in its entirety by, the condensed consolidated financial
statements and notes thereto included in Item 1 in this Quarterly Report on Form 10-Q (this “Quarterly Report”). Some of the
information contained in this discussion and analysis or set forth elsewhere in