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

Company: AETHLON MEDICAL INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 12
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utive common shares that
would have been outstanding if potential common shares had been issued, if such additional common shares were dilutive. Since we had net
losses for all periods presented, basic and diluted loss per share are the same, and additional potential common shares have been excluded,
as their effect would be antidilutive.

As of September 30, 2025 and 2024, an aggregate
of 737,149 and 169,016 potential common shares, respectively, consisting of shares underlying outstanding stock options, warrants, and
restricted stock units were excluded, as their inclusion would be antidilutive.

3. RESEARCH AND DEVELOPMENT EXPENSES

Our research and development costs are expensed
as incurred. We incurred research and development expenses during the three- and six-month periods ended September 30, 2025 and 2024,
which are included in various operating expense line items in the accompanying condensed consolidated statements of operations. Our research
and development expenses in those periods were as follows:

    Schedule of research and development
expenses 

    September 30,  
    September 30, 

    2025  
    2024 
  
    Three months ended 
    $294,318  
    $261,486 
  
    Six months ended 
     818,686  
     702,115 

     10 

During the three and six months ended September 30, 2025, we recognized
an R&D tax incentive related to our clinical trial activities conducted in Australia. The Australian R&D incentive is a government
program that provides refundable tax offsets for eligible research and development expenditures incurred in Australia. The incentive is
recorded as a reduction of research and development expense when the related qualifying expenditures are incurred and receipt of the credit
is considered probable. We recognized approximately $218,000 related to this incentive during the current quarter, which reduced reported
R&D expense for both the three- and six-month periods ended September 30, 2025 (see Note 11).

4. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2023, the FASB issued Accounting Standards
Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhanced annual disclosures related
to tax rate reconciliation and income taxes paid disaggregated by federal, state and foreign taxes. ASU 2023-09 is effective for the Company
for annual periods beginning on