Company: AEMD
Filing Date: 2025-07-25
Form Type: DRS
Source: 0001683168-25-005397
Chunk: 62

Company: AETHLON MEDICAL INC
Filing Date: 2025-07-25
Form: DRS
Chunk 62
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ERAL NON-INCOME, STATE, LOCAL, AND NON-U.S. TAX LAWS.

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U.S. holders

This section applies to you if you are a “U.S.
holder.” A U.S. holder is a beneficial owner of our shares of common stock who or that is, for U.S. federal income tax purposes:

| · | an individual who is a citizen or resident of the United States;                                                                          |
| · | a corporation (or other entity taxable as a corporation) organized in or                                                                  
 under the laws of the United States, any state thereof or the District of Columbia;                                                       |
| · | an estate the income of which is includible in gross income for U.S. federal                                                              
 income tax purposes regardless of its source; or                                                                                          |
| · | a trust, if (i) a court within the United States is able                                                                                  
 to exercise primary supervision over the administration of the trust and one or more U.S. persons (as defined in the Code) have authority 
 to control all substantial decisions of the trust or (ii) it has a valid election in effect under Treasury Regulations to be treated as   
 a U.S. person.                                                                                                                            |

Taxation of Distributions.
If we pay distributions in cash or other property (other than certain distributions of our stock or rights to acquire our stock) to U.S.
holders of shares of our common stock, such distributions generally will constitute dividends for U.S. federal income tax purposes to
the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions
in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce
(but not below zero) the U.S. holder’s adjusted tax basis in our common stock. Any remaining excess will be treated as gain realized
on the sale or other disposition of the common stock and will be treated as described under “U.S. Holders—Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of common stock” below.

Dividends we pay to a U.S.
holder that is a taxable corporation generally will qualify for the dividends received deduction if the requisite 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