Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 656

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 3
Chunk 656
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 procedures, management recognizes that any controls and procedures, no matter how well designed and operated,
can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures. We have carried out an evaluation as of the end of the period
covered by this Annual Report under the supervision and with the participation of our management, including our Chief Executive Officer,
who also serves as our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures.

Internal Control over Financial Reporting

    (a)
    Management’s Report on Internal Control Over Financial Reporting 

Our management is responsible
for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under
the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles.

Under the supervision and
with the participation of our management, including our Chief Executive Officer, who also serves as our Chief Financial Officer, we conducted
an evaluation of the effectiveness of our internal control over financial reporting as of March 31, 2025. The evaluation was conducted
in accordance with the guidelines established by the Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). Based on this evaluation, and the successful implementation of remediation measures addressing
the previously identified material weaknesses, management concluded that our internal control over financial reporting was effective as
of March 31, 2025.

Remediation of Previously
Reported Material Weaknesses

Segregation of Duties and
User Access Controls

As previously disclosed, management
identified a material weakness in internal control over financial reporting related to segregation of duties and user access controls
within our financial systems. Specifically, the Company had not adequately maintained user access controls to restrict both user and privileged
access to financial applications, allowing the same individual to initiate, record, and approve accounting entries. Additionally, check
stock was stored in the office of an authorized signatory, representing a weakness in physical access control.

This control deficiency was
due in part to our limited accounting and finance staff, which hindered the design and implementation of effective segregation of duties.
The lack of adequate user access controls and the absence of sufficient compensating controls could