Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 176

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1
Chunk 176
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     – 

    Net deferred tax assets 
     34,398,000  
     33,259,000 
  
    Valuation allowance for deferred tax assets 
     (34,398,000) 
     (33,259,000)

    Net deferred tax assets 
    $–  
    $– 

 ______________

    (1)
    Pursuant to Internal Revenue Code Section 382, use of our tax net operating loss carryforwards may be limited. The amount of the annual limitation, if any, will be determined based on the value of the Company immediately prior to an ownership change. Subsequent ownership changes may further affect the limitation in future years. If and when the Company utilizes the NOL carryforwards in a future period, it will perform an analysis to determine the effect, if any, of these loss limitation rules on the NOL carryforward balances.

At March 31, 2025, we had tax net operating loss
carryforwards for federal and state purposes approximating $97 million and $91 million, respectively, portions of which began to expire
in the year 2021. The indefinite position is approximately $36 million. Research and Development credits begin to expire in 2025.

The provision for income taxes on earnings subject
to income taxes differs from the statutory federal rate for the years ended March 31, 2025 and 2024 due to the following:

    Schedule of provision for income taxes 

    2025  
    2024 

    Income taxes (benefit) at federal statutory rate of 21.00% 
    $(2,811,000) 
    $(2,564,000)
  
    Tax effect on non-deductible expenses and credits 
     1,000  
     2,000 
  
    True up items 
     132,000  
     (29,000)
  
    Expiration of net operating loss carryforwards (1) 
     204,000  
     204,000 
  
    Change in valuation allowance 
     2,474,000  
     2,387,000 
  
    Income Tax Expense (Benefit) 
    $–  
    $– 

 ______________

    (1)
    Pursuant to Internal Revenue Code Section 382, use of our tax net operating loss carryforwards may be limited.

     F-23 

ASC