Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 447

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1C
Chunk 447
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 accessed through, our website is not part of, and is not incorporated
into, this Annual Report.

Our common stock is listed
on the Nasdaq Capital Market under the symbol “AEMD.”

 52 

Fiscal Years Ended March 31, 2025 and 2024

Results of Operations

Government Contract Revenues

For the fiscal years ended March 31, 2025
and 2024, we did not have any active revenue-generating government contracts and, consequently, did not record any government contract
revenue for that period.

Operating Costs and Expenses

Consolidated operating expenses
were $9,341,364 for the fiscal year ended March 31, 2025, compared to $12,636,568 for the fiscal year ended March 31, 2024, a decrease
of $3,295,203. The $3,295,203 decrease in the fiscal year ended March 31, 2025 was due to a decrease in payroll and related expenses of
$1,332,359, a decrease of $1,302,834 in professional fees and a decrease of $660,010 in general and administrative expenses.

Payroll and related expenses
decreased by $1,332,359 for the fiscal year ended March 31, 2025, compared to the prior year. The decrease was driven by a $876,511 reduction
in salaries and related expenses and a $804,136 decrease in stock-based compensation. The reduction in salary expense reflects the termination
of three executives—one in the prior year, one in July 2024, and one in October 2024—as well as a workforce reduction of non-executive
employees implemented in August 2024. The decrease in stock-based compensation was primarily due to the absence of accelerated vesting
charges recognized in the prior year in connection with the termination of our former Chief Executive Officer, as well as lower stock-based
compensation expense associated with the departure of executives and non-executive staff. The overall decrease was partially offset by
an increase of $348,287 in severance expenses mostly related to the termination of two former executives.

Professional
fees decreased by $1,302,834 for the fiscal year ended March 31, 2025, compared to the prior year. The decrease was primarily driven by
a $553,377 reduction in legal fees related to the transition to a new legal firm, a $462,154 decrease primarily attributable to the