Company: AEMD
Filing Date: 2025-08-29
Form Type: S-1/A
Source: 0001683168-25-006537
Chunk: 65

Company: AETHLON MEDICAL INC
Filing Date: 2025-08-29
Form: S-1/A
Chunk 65
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 holding period is satisfied.
With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment interest deduction
limitations), and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. holder may constitute
“qualified dividends” that will be subject to tax at the maximum tax rate accorded to long-term capital gains. If the holding
period requirements are not satisfied, then a corporation may not be able to qualify for the dividends received deduction and would have
taxable income equal to the entire dividend amount, and non-corporate holders may be subject to tax on such dividend at regular ordinary
income tax rates instead of the preferential rate that applies to qualified dividend income.

Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of common stock. Upon a sale or other taxable disposition of our common stock, a U.S. holder
generally will recognize capital gain or loss in an amount equal to the difference between the amount realized and the U.S. holder’s
adjusted tax basis in the common stock. Any such capital gain or loss generally will be long-term capital gain or loss if the U.S. holder’s
holding period for the common stock so disposed of exceeds one year. If the holding period requirements are not satisfied, any gain on
a sale or taxable disposition of the shares would be subject to short-term capital gain treatment and would be taxed at regular ordinary
income tax rates. Long-term capital gains recognized by non-corporate U.S. holders will be eligible to be taxed at reduced rates. The
deductibility of capital losses is subject to limitations.

Generally, the amount of gain
or loss recognized by a U.S. holder is an amount equal to the difference between (i) the sum of the amount of cash and the fair market
value of any property received in such disposition and (ii) the U.S. holder’s adjusted tax basis in its common stock so disposed
of. A U.S. holder’s adjusted tax basis in its common stock generally will equal the U.S. holder’s acquisition cost for the
common stock or less, in the case of a share of common stock, any prior distributions treated as a return of capital. In the case of any
shares of common stock originally acquired as part of an investment unit, the acquisition cost for the share of common stock that were
part of such unit would equal an allocable portion of the acquisition cost of the unit based on the relative fair market