Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 73

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1
Chunk 73
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 attention
and resources. In addition, any settlement or adverse determination of such lawsuits could subject us to significant liability.

 42 

If at any time our common stock is subject
to the SEC’s penny stock rules, broker-dealers may experience difficulty in completing customer transactions and trading activity
in our securities may be adversely affected.

If at any time our common
stock is not listed on a national securities exchange or we have net tangible assets of $2,000,000 or less, or we have an average revenue
of less than $6,000,000 for the last three years, and our common stock has a market price per share of less than $5.00, transactions in
our common stock will be subject to the SEC’s “penny stock” rules. Currently, our common stock is subject to the SEC’s
“penny stock” rules promulgated under the Exchange Act and as a result, broker-dealers may find it difficult to effectuate
customer transactions and trading activity in our securities may be adversely affected. For any transaction involving a penny stock, unless
exempt, the rules require:

    ·
    that a broker or dealer approve a person’s account for transactions in penny stocks; 

    ·
    furnish the investor a disclosure document describing the risks of investing in penny stocks; 

    ·
    disclose to the investor the current market quotation, if any, for the penny stock; 

    ·
    disclose to the investor the amount of compensation the firm and its broker will receive for the trade; and

    ·
    The broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.

In order to approve a person’s
account for transactions in penny stocks, the broker or dealer must:

    ·
    obtain financial information and investment experience objectives of the person; and

    ·
    make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

The broker or dealer must
also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to the penny stock market,
which, in highlight form:

    ·
    sets forth the basis on which the broker or dealer made the suitability determination; and

    ·
    that the broker or dealer received a signed, written agreement from the investor prior to the