Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 334

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1A
Chunk 334
---
824.

The office, lab and manufacturing leases are coterminous
with a remaining term of 24 months. The weighted average discount rate is 4.25%.

As of March 31, 2025, we have right-of-use lease
assets of $601,846.

The following table presents a maturity analysis
of expected undiscounted cash flows for operating leases on an annual basis for the next two fiscal years. All of our leases conterminously
expire during the fiscal year ending March 31, 2027.

    Schedule of lease maturity 

    Fiscal Years Ended March 31, 

    2026 
    $333,462 
  
    2027 
     343,353 
  
    Total minimum lease payments 
     676,815 
  
    Less amount representing imputed interest 
     (27,064)
  
    Present value of minimum lease payments 
    $649,751 

Overall, our rent expense, which is included in
general and administrative expenses, approximated $421,789 and $420,353 for the fiscal years ended March 31, 2025 and 2024, respectively.

     F-24 

Premium Financing Agreement

In January 2025, the Company entered into a short-term premium financing
agreement with FIRST Insurance Funding, a division of Lake Forest Bank & Trust Company, N.A., to finance a portion of its Directors
& Officers (D&O) and other insurance premiums. The total amount financed under the agreement was approximately $220,984, with
an associated finance charge of approximately $9,995, resulting in a total repayment obligation of approximately $230,979.30. The annual
percentage rate is 9.75%, and the loan is payable in 10 monthly installments of approximately $23,097.93 beginning February 28, 2025.

As collateral for the financing, the Company granted the lender a first
priority security interest in the financed insurance policies, including all unearned premiums, dividends, credits, and certain loss payments.
In the event of default, cancellation, or early termination of the policies, the lender has the right to collect any unearned premiums
and apply them against the remaining loan balance.

This arrangement is classified as a short-term liability within other
liabilities on the balance sheet (See Note 6) and is recorded net of any prepaid portions of the insurance policies.

LEGAL MATTERS

From time to time, claims are made