Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 1182

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 7A
Chunk 1182
---
ed average number of common shares outstanding – basic and diluted 
     1,560,839  
     314,097 

    Basic and diluted loss per common share 
    $(0.27) 
    $(3.88)

We record share-based compensation expenses for awards of stock options
and RSUs under ASC 718, Share-based compensation, or ASC 718. For awards to non-employees for periods prior to the adoption of ASU 2018-07,
Compensation-Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting, on April 1, 2019, the Company had applied
ASC 505-50, Equity – Equity-based payments to non-employees, or ASC 505-50. ASC 718 establishes guidance for the recognition of
expenses arising from the issuance of share-based compensation awards at their fair value at the grant date.

We recognize share-based compensation expense
related to stock options and stock appreciation rights granted to employees, directors and consultants based on the estimated fair value
of the awards on the date of grant. We estimate the grant date fair value, and the resulting share-based compensation expense, for stock
options that only have service vesting requirements or performance-based vesting requirements without market conditions using the binomial
lattice option-pricing model. The grant date fair value of the share-based awards with service vesting requirements is generally recognized
on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. Determining
the appropriate amount to expense for performance-based awards based on the achievement of stated goals requires judgment. The estimate
of expense is revised periodically based on the probability of achieving the required performance targets and adjustments are made as
appropriate. The cumulative impact of any revisions is reflected in the period of change. If any applicable financial performance goals
are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. For performance-based awards
with market conditions, we determine the fair value of awards as of the grant date using a Monte Carlo simulation model.

We review share-based compensation on a quarterly
basis for changes to the estimate of expected award forfeitures based on actual forfeiture experience. The effect of adjusting the forfeiture
rate for all expense amortization after March 31, 2007 is recognized in the period the forfeiture estimate is changed. The effect of forfeiture
adjustments for the fiscal year ended March 31, 2025 was insignificant.

PATENTS

Patents include