Company: AEMD
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001683168-25-006049
Chunk: 65

Company: AETHLON MEDICAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 65
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 and our planned clinical trials. The failure
to implement our research and clinical trials would have a material adverse effect on our ability to conduct planned clinical trials and
commercialize our products.

Future capital requirements will depend upon many
factors, including progress with pre-clinical testing and clinical trials, the number and breadth of our clinical programs, the time and
costs associated with intellectual property protection and enforcement, regulatory and compliance obligations, the competitive landscape,
and our ability to enter into strategic partnerships or other collaborative arrangements. We expect to continue to incur increasing negative
cash flows and net losses for the foreseeable future.

Cash Flows

Cash flows from operating, investing and financing
activities, as reflected in the accompanying Condensed Consolidated Statements of Cash Flows, are summarized as follows:

    (In thousands) For the three months ended 

    June 30,  2025  
    June 30,  2024 
  
    Cash (used in) provided by: 

    Operating activities 
    $(1,715) 
    $(1,748)
  
    Investing activities 
     –  
     – 
  
    Financing activities 
     (5) 
     5,379 
  
    Effect of exchange rate changes on cash 
     (15) 
     (1)
  
    Net decrease in cash and restricted cash 
    $(1,735) 
    $(3,630)

NET CASH USED IN OPERATING ACTIVITIES. Net cash used
in operating activities was approximately $1,715,000 for the three months ended June 30, 2025, compared to approximately $1,748,000 for
the same period in 2024. The decrease was primarily driven by a lower net loss in the current period. However, this improvement was largely
offset by unfavorable changes in working capital, including decreases of approximately $393,000 in amounts due to related parties and
$461,268 in accounts payable and other current liabilities. These were partially offset by modest increases in non-cash charges and favorable
changes in prepaid expenses and other current assets.

NET CASH USED IN INVESTING ACTIVITIES. We did not
use cash for investing activities in the three months ended June 30, 2025 and June 30, 2024.

 21 

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES.
Net cash provided by financing activities decreased by approximately $5.4 million