Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 847

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 5
Chunk 847
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Net Cash Used in Operating Activities

We used cash in our operating
activities due to our losses from operations. Net cash used in operating activities was approximately $7,646,000 in fiscal 2025, compared
to net cash used in operating activities of approximately $10,130,000 in fiscal 2024, a decrease of approximately $2,484,000. The decrease
in cash flows was primarily driven by a decrease of $2,869,000 in net loss after non-cash charges partially offset by a negative change
in our working capital items of $385,000 mainly from the approximately $210,000 decrease in accounts payable and other current liabilities
and approximately $299,000 decrease in due to related parties. These decreases were partially offset by a decrease of approximately $124,000
in prepaids.

Net Cash Used in Investing Activities

During the fiscal year ended
March 31, 2025 we did not purchase equipment. For the year ended March 31, 2024, we purchased approximately $251,000 of equipment, respectively.

Net Cash from Financing Activities

Net cash generated from financing
activities increased from approximately $1,288,000 in the fiscal year ended March 31, 2024 to approximately $7,277,000 in the fiscal year
ended March 31, 2025.

In the fiscal year ended March
31, 2025, we raised approximately $3,540,000 from the issuance of common stock. We also raised approximately $2,055,000 from the exercise
of warrants under standard terms and approximately $2,316,000 from the exercise of warrants under induced terms. These proceeds were partially
offset by $154,000 in commissions and $11,000 in legal fees related to the induced warrant exercises. Additionally, we used approximately
$19,000 used to satisfy tax withholding obligations associated with the issuance of restricted stock units (RSUs).

During the fiscal year ended
March 31, 2024, we raised $1,322,383 from the issuance of common stock, which was partially offset by the use of approximately
$35,000 to pay for the tax withholding on the issuance of restricted stock units, or RSUs.

Critical Accounting Policies and Significant Judgments and Estimates

The preparation of consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires us
to make a number of estimates and assumptions that affect the reported amounts of