Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 1197

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 7A
Chunk 1197
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    $415,234  
    $1,219,370 

     F-21 

We review share-based compensation on a quarterly
basis for changes to the estimate of expected award forfeitures based on actual forfeiture experience. The cumulative effect of adjusting
the forfeiture rate for all expense amortization 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.

On March 31, 2025, our outstanding stock options
had no intrinsic value since the closing price on that date of $2.86 per share was below the weighted average exercise price of our outstanding
stock options.

At March 31, 2025, there was $78,548
of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted average period of
0.875 years.

5. RELATED PARTY TRANSACTIONS

DUE TO RELATED PARTIES

For the fiscal year ended
March 31, 2025 we accrued unpaid fees of $68,250 owed to our non-employee directors.

As a result of entering
into separation agreements with two former executives, we paid out accrued vacation totaling $27,126 during the fiscal year ended March
31, 2025. These amounts were previously recorded in the "due to related parties" account. In addition, pursuant to the terms
of their respective Executive Employment Agreements, we accrued a total of $809,782 for cash severance and COBRA payments, which are payable
monthly over 12-month periods beginning on July 1, 2024, and October 15, 2024, respectively.

Separately, in connection
with a reduction in force in August 2024, we paid out an additional $13,419 in accrued vacation, which was also previously recorded in
the "due to related parties" account.

Amounts
due to related parties were comprised of the following items:

    Schedule of amounts
due to related parties 

    March 31,   2025  
    March 31,  2024 
  
    Accrued Board fees 
    $68,250  
    $68,250 
  
    Accrued vacation to all employees 
     165,029  
     167,973 
  
    Accrued separation expenses 
     346,286  
     310,211 
  
    Total due to