Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 63

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1
Chunk 63
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 from third parties which
are subject to termination or expiration.

We rely in part upon third-party
licenses and ownership rights assigned from third parties for the development of specific uses for our Hemopurifier devices. We are researching,
developing and testing cancer-related applications for our devices under patents assigned from the London Health Science Center Research,
Inc. Under the assignment agreement, we own the patents outright for the life of the patent, which expires in May 2029. Under certain
circumstances, ownership of the patents may revert to the London Health Science Center Research, Inc. if there is an uncured substantial
breach of the assignment agreement. Should any of our licenses be prematurely terminated for any reason, or if the patents and intellectual
property assigned to us or owned by such entities that we have licensed are challenged or defeated by third parties, our research efforts
could be materially and adversely affected. Our licenses and patents assigned to us may not continue in force for as long as we require
for our research, development and testing of cancer treatments. It is possible that, if our licenses terminate or the underlying patents
and intellectual property is challenged or defeated or the patents and intellectual property assigned to us is challenged or defeated,
suitable replacements may not be obtained or developed on terms acceptable to us, if at all. There is also the related risk that we may
not be able to make the required payments under any patent license or assignment agreement, in which case we may lose ability to use one
or more of the licensed or assigned patents.

 36 

We could become subject to intellectual
property litigation that could be costly, result in the diversion of management’s time and efforts, require us to pay damages, prevent
us from selling our commercially available products and/or reduce the margins we may realize from our products.

The medical devices industry
is characterized by extensive litigation and administrative proceedings over patent and other intellectual property rights. Whether a
product infringes a patent involves complex legal and factual issues, and the determination is often uncertain. There may be existing
patents of which we are unaware that our products under development may inadvertently infringe. The likelihood that patent infringement
claims may be brought against us increases as the number of participants in the infectious market increases and as we achieve more visibility
in the marketplace and introduce products to market.

Any infringement claim against
us, even if without merit, may cause us to incur substantial costs, and would place a significant strain on our financial resources, divert
the attention of management from our