Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 29

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 1
Chunk 29
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MBER 31, 2024 COMPARED TO THE THREE MONTHS ENDED
DECEMBER 31, 2023

Operating Expenses

Consolidated operating expenses for the three
months ended December 31, 2024, decreased by $1,752,341 or 49.1% to $1,814,747 compared to $3,567,088 for the same period in 2023. This
reduction was driven by a $1,298,818 decrease in payroll and related expenses, a $290,709 decrease in professional fees, and a $162,815
decrease in general and administrative expenses.

For the three months ended December 31, 2024,
payroll and related expenses decreased by $1,298,818. This decrease was primarily attributable to a reduction of $872,763 in separation
expenses related to the Separation Agreement with the former Chief Executive Officer that had been recorded in the December 2023 period,
as well as a decrease of $426,055 due to a reduction in headcount. Of the $872,763 of separation expenses related to the departure of
the former Chief Executive Officer, $393,139 related to the acceleration of vesting of stock options.

Professional fees decreased by $290,709, primarily
due to a reduction of $181,380 in legal fees which includes $148,696 decrease resulting from the transition to a new legal firm and $44,000
decrease related to fees incurred for the stock split with no comparable expense in the current period. Additionally, there was a decrease
of $176,434 in scientific and operational consulting fees largely attributable to completed projects. These decreases were partially offset
by a $64,487 increase in investor relations and accounting fees, an $11,101 increase in legal fees related to patent matters, as well
as a $2,618 increase in website services.

The $162,814 decrease in general and administrative
expenses for the quarter was primarily driven by a $253,297 reduction in supplies, largely related to the raw materials and components
used in the manufacturing of the Hemopurifier, with no comparable purchases during the current period. Additionally, there was a $63,686
decrease in insurance expenses associated with a reduced headcount and a $22,708 reduction in various other operating expenses. These
reductions were partially offset by a $176,877 increase in expenses related to our ongoing oncology clinical trials in Australia and India.