Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 89

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 2
Chunk 89
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 development, we cannot predict the timing or amount of
increased expenses and we may never be profitable or generate positive cash flow from operating activities.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s discussion and analysis of
financial condition and results of operations is based on our interim condensed consolidated financial statements, that we prepared in
accordance with accounting principles generally accepted in the United States (“GAAP”). Preparing these financial statements
requires management to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses, and related
disclosures. We base our estimates on historical experience and on various assumptions we believe to be reasonable under the circumstances.
We believe our judgment is applied consistently and produces financial information that fairly depicts our results of operations for all
periods. Actual results may differ materially from these estimates.

We believe that the estimates and assumptions
that are most important to the portrayal of our financial condition and results of operations, in that they require the most difficult,
subjective or complex judgments, form the basis for the accounting policies deemed to be most critical to us. These critical accounting
estimates relate to long lived assets, stock compensation, deferred tax asset valuation allowance, contingencies and clinical trial accruals.

There have been no changes to our critical accounting
policies and estimates as disclosed in our Annual Report on Form 10-K for the year ended March 31, 2024.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK.

As a smaller reporting company, as defined by
Item 10(f)(1) of Regulation S-K, we are not required to provide the information required by this item.

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ITEM 4. CONTROLS AND PROCEDURES.

DISCLOSURE CONTROLS AND PROCEDURES

We maintain “disclosure controls and procedures”
(as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed,
in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules
and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief
Financial Officer (who is our principal executive officer and principal financial officer), to allow timely decisions regarding required
disclosures.

Under the supervision
and with the participation of our management, including our Chief Executive Officer, who also serves as