Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 88

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 2
Chunk 88
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 stock and warrants in connection with a public offering and the exercise of 300,000 and 2,880,000 Class
A and Class B warrants, respectively, by holders thereof. The source of cash from our financing activities was partially offset by the
use of approximately $16,000 to pay for the tax withholding upon settlement of on restricted stock units, for a net aggregate amount of
cash provided by financing activities of approximately $5,368,000.

During the nine months ended December 31, 2023,
we raised approximately $1,273,000 from the issuance of our common stock under our at the market facility. That source of cash from our
financing activities was partially offset by the use of approximately $28,000 to pay for the tax withholding on restricted stock units,
for a net aggregate amount of cash provided by financing activities of approximately $1,245,000.

Material Cash Requirements 

We expect our clinical trial expenses for our
oncology trials in Australia and India to increase for the foreseeable future. Those increases in clinical trial expenses include the
cost of manufacturing additional Hemopurifiers.

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In addition, we are obligated under lease agreements
for our headquarters, laboratory and manufacturing facilities. We expect our rent payments to continue to increase for the foreseeable
future.

Future capital requirements will depend upon many
factors, including progress with pre-clinical testing and clinical trials, the number and breadth of our clinical programs, the time and
costs involved in preparing, filing, prosecuting, maintaining and enforcing patent claims and other proprietary rights, the time and costs
involved in obtaining regulatory approvals, competing technological and market developments, as well as our ability to establish collaborative
arrangements, effective commercialization, marketing activities and other arrangements. We expect to continue to incur increasing negative
cash flows and net losses for the foreseeable future. We will continue to need to raise additional capital either through equity and/or
debt financing for the foreseeable future.

We plan to access the equity markets for additional
capital, however, there can be no assurance that we will be able to access such additional capital on favorable terms, or at all.

Our ability to raise additional funds may be adversely
impacted by potential worsening global economic conditions and disruptions to and volatility in the credit and financial markets in the
United States, including due to actual or perceived changes in interest rates and economic inflation, and worldwide resulting from macroeconomic
factors. Because of the numerous risks and uncertainties associated with product