Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 47

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 47
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 been revised accordingly.

Basis of Presentation and Use of Estimates

Our accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim
financial information and with the instructions to Form 10-Q and Article 8 of the Securities and Exchange Commission (“SEC”)
Regulation S-X. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto for the fiscal
year ended March 31, 2024, included in our Annual Report on Form 10-K filed with the SEC on June 27, 2024. The accompanying unaudited
condensed consolidated financial statements include the accounts of Aethlon Medical, Inc. and its wholly owned subsidiary, Aethlon Medical
Australia Pty Ltd. All significant inter-company transactions and balances have been eliminated in consolidation. The accompanying unaudited
condensed consolidated financial statements, taken as a whole, contain all adjustments that are of a normal recurring nature necessary
to present fairly our operating results, cash flows, and financial position as of and for the period ended December 31, 2024. Estimates
were made relating to useful lives of fixed assets, impairment of assets, share-based compensation expense and accruals for clinical trial
and research and development expenses. Actual results could differ materially from those estimates. The accompanying condensed consolidated
balance sheet at March 31, 2024 has been derived from the audited consolidated balance sheet at March 31, 2024, contained in the above
referenced 10-K. The results of operations for the three and nine months ended December 31, 2024 are not necessarily indicative of the
results to be expected for the full year or any future interim periods.

Reclassifications

Certain prior year balances within the unaudited
condensed consolidated financial statements have been reclassified to conform to the current year presentation, including the impact of
the reverse stock split.

LIQUIDITY AND GOING CONCERN

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. We have incurred continuing losses from operations
and at December 31, 2024 had limited working capital and an accumulated deficit of $161,699,924. These factors, among other matters, raise
substantial doubt about our ability to continue