Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 50

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 50
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 annual periods beginning after December 15, 2024. The Company is evaluating if the adoption of this new
standard will have a material effect on our disclosures.

In March 2024, the FASB issued ASU 2024-01 –
Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. This update introduces illustrative
examples to clarify how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar
awards fall under the requirements of Topic 718, Compensation—Stock Compensation. ASU 2024-01 becomes effective for fiscal years
starting after December 15, 2024. The Company does not anticipate any impact from ASU 2024-01, as it does not currently issue profits
interest awards.

In November 2024, the FASB issued ASU 2024-03,
titled Reporting Comprehensive Income–Expense Disaggregation Disclosures, Disaggregation of Income Statement Expense (ASU 2024-03).
The objective of ASU 2024-03 is to improve transparency in the reporting of a public business entity’s expenses and address investor
requests for more granular insights into the breakdown of expense line items typically reported in financial statements, such as cost
of sales, SG&A, and research and development. The update requires greater detail on specific expense categories,
including inventory purchases, employee compensation, depreciation, amortization, and depletion. ASU 2024-03 is effective for public business
entities for annual periods beginning after December 15, 2026, and interim periods within the annual reporting periods beginning after
December 15, 2027. The Company expects to adopt ASU 2024-03, a disclosure-only standard, April 1, 2027.

In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The adoption of ASU No. 2016-13
for smaller reporting companies that did not previously early adopt was January 1, 2023. The Company maintained US Treasury bills with
maturities of less than three months and anticipates no credit losses from these securities. Additionally, the Company does not have any
revenue or accounts receivables. As a result, the Company did not establish an allowance for expected credit losses