Company: AEMD
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001683168-25-002685
Chunk: 30

Company: AETHLON MEDICAL INC
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 30
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 be treated as a United States person.

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The Reverse Stock Split is intended to be treated
as a recapitalization for U.S. federal income tax purposes that is not part of a plan to increase periodically a stockholder’s proportionate
interest in our assets or earnings and profits, and that, taken together with other relevant transactions, if any, will not have the effect
of the receipt of money or other property by some stockholders and an increase in the proportionate interest of other stockholders in
our assets or earnings and profits. Assuming that is the case, a U.S. Holder that receives a reduced number of shares of common stock
will not recognize income, gain or loss. In the aggregate, such a stockholder’s basis in the reduced number of shares of common
stock will equal the stockholder’s basis in its shares of common stock held immediately prior to the Reverse Stock Split, and such
stockholder’s holding period in the reduced number of shares will include the holding period in its shares held immediately prior
to the Reverse Stock Split. The tax treatment of the increase of a fractional share of our common stock to a whole share is not certain.
We intend to treat the issuance of such a whole share as a non-recognition event, but there can be no assurances that the Internal Revenue
Service or a court would not successfully assert otherwise. Treasury Regulations provide detailed rules for allocating the tax basis and
holding period of the shares of common stock surrendered to the shares of common stock received in a recapitalization pursuant to the
Reverse Stock Split. U.S. Holders should consult their tax advisors as to application of the foregoing rules where shares of common stock
were acquired at different times or at different prices. Stockholders should consult their own tax advisors regarding the tax consequences
to them of the Reverse Stock Split.

THE PRECEDING DISCUSSION IS INTENDED ONLY AS A SUMMARY
OF CERTAIN MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE REVERSE STOCK SPLIT TO U.S. HOLDERS. IT IS NOT A COMPLETE ANALYSIS OR
DISCUSSION OF ALL POTENTIAL TAX EFFECTS THAT MAY BE IMPORTANT TO A PARTICULAR HOLDER. ALL HOLDERS OF OUR COMMON STOCK SHOULD CONSULT THEIR
OWN TAX ADVISORS AS TO THE SPECIFIC TAX CONSEQUENCES OF THE REVERSE STOCK SPLIT TO THEM, INCLUDING RECORD RETENTION AND TAX-REPORTING
REQUIREMENTS, AND THE APPLICABILITY AND EFFECT OF ANY U.S. FEDERAL, STATE