Company: AEMD
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001683168-25-006049
Chunk: 36

Company: AETHLON MEDICAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 36
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 of the reverse
stock split.

LIQUIDITY AND GOING CONCERN

Management expects existing cash as of June 30, 2025
to not be sufficient to fund the Company’s operations for at least twelve months from the issuance date of these condensed consolidated
financial statements. As a result, there is substantial doubt about the Company’s ability to continue as a going concern.

We are actively evaluating a range of strategic and
financing options to extend our cash runway and support our ongoing operations, including clinical development activities. These options
include potential equity offerings and other funding opportunities. However, there can be no assurance that any such financing will be
available on acceptable terms, or at all.

Our ability to continue as a going concern is dependent
upon securing additional capital and successfully executing our business plans. If we are unable to raise additional capital when needed,
we may be forced to significantly curtail or cease operations, including research and development programs and clinical trials.

The accompanying unaudited condensed consolidated
financial statements have been prepared assuming that we will continue as a going concern, which contemplates, among other things, the
realization of assets and satisfaction of liabilities in the ordinary course of business.

Restricted Cash

As of June 30, 2025, we maintained a restricted cash balance of $98,130
in an interest-bearing money market deposit account with JPMorgan Chase, which supports our lease obligations. This balance includes a
$5,000 buffer above the required security amount. 

     10 

2. LOSS PER COMMON SHARE

Basic loss per share is computed by dividing net loss
by the weighted average number of common shares outstanding during the period of computation. Diluted loss per share is computed similar
to basic loss per share, except that the denominator is increased to include the number of additional dilutive 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 June 30, 2025 and 2024, an aggregate of 2,189,307
and 1,649,429 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 EXP