Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 840

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 5
Chunk 840
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 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 termination
of services with a contract manufacturing organization and the completion of a project involving outside laboratory services. In
addition, consulting fees related to scientific projects and regulatory projects decreased by $239,640 and $125,478 respectively. These
decreases were partially offset by $84,900 increase in accounting fees associated with obtaining consents from prior audit firm for various
SEC filings. 

General and administrative
expenses decreased by $660,010 for the fiscal year ended March 31, 2025, compared to the prior year. The decrease was primarily driven
by a $534,069 reduction in costs related to lower purchases of raw materials for the production of Hemopurifiers, reduced cleanroom certification
expenses, and fewer outside services for maintenance of the manufacturing facility. Laboratory supplies and testing costs also declined
by $337,109 following the completion of oncology and transplant-related projects. Insurance expenses decreased by $141,453, including
reductions in medical and workers’ compensation premiums due to lower headcount, as well as overall decrease in business insurance
costs. Additional decreases included $44,122 in travel and entertainment expenses, $24,356 decrease in office supplies and $19,498 in
depreciation expense related to the disposal of certain equipment. These decreases were partially offset by a $466,661 increase in clinical
trial expenses related to our ongoing oncology study in Australia.

As a result of the above factors,
our operating loss decreased to $9,341,364 for the fiscal year ended March 31, 2025, from $12,636,568 for the fiscal year ended March
31, 2024.

Other Income (Expense)

Other
expense for the year ended March 31, 2025, included a non-cash charge of $4,612,862 related to a warrant inducement offer. In March 2025,
the Company offered certain warrant holders the