Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 411

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1B
Chunk 411
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 Company has incurred losses since inception
in devoting substantially all of its efforts toward research and development and has an accumulated deficit of $167,954,817 as of March
31, 2025. During the year ended March 31, 2025, the Company generated a net loss of approximately $13,388,000 and the Company expects
that it will continue to generate operating losses for the foreseeable future. While the Company has been carrying out certain expense
reductions since November 2023; our planned additional expense reductions may not materialize and/or our patient recruitment may occur
more rapidly than expected along with the concomitant increases in expenses, therefore there is substantial doubt that our cash on hand
will carry the company for 12 months beyond the filing date of the financial statements included in this Annual Report.

The Company’s ability to execute its current
operating plan depends on its ability to reduce expenses and obtain additional funding via the sale of equity, or other sources of capital.
The Company plans to continue actively pursuing financing alternatives, however, there can be no assurance that it will obtain the necessary
funding, raising substantial doubt about the Company’s ability to continue as a going concern within one year of the date these
financial statements are issued. The accompanying financial statements do not include any adjustments that might result from the outcome
of this uncertainty.

PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements
include the accounts of Aethlon Medical, Inc. and its wholly owned subsidiary, Aethlon Medical Australia Pty Ltd.. Operations in our Australian
subsidiary is recorded in their functional currency. The results of operations for our Australian subsidiary are translated from functional
currency into U.S. dollars. Expenses originally incurred in U.S. dollars are translated using the exchange rate on the transaction date.
For expenses in the subsidiary’s functional currency, we use the average exchange rate for the period, as it is not practical to
determine the exact rate for each transaction date. Assets and liabilities are translated using the period end exchange rates. The U.S
dollar effects that arise from translating the net assets of are recorded in other comprehensive income (loss). All significant inter-company
transactions and balances have been eliminated in consolidation. The consolidated financial statements contain all normal recurring accruals
and adjustments that, in the opinion of management, are necessary to present fairly the consolidated financial statements as of and for
the fiscal years ended March 31, 2025 and 2024, and the consolidated