Company: AEMD
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001683168-25-006049
Chunk: 10

Company: AETHLON MEDICAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 10
---
 operations, including clinical development activities. These options
include potential equity offerings and other funding opportunities. However, there can be no assurance that any such financing will be
available on acceptable terms, or at all.

Our ability to continue as a going concern is dependent
upon securing additional capital and successfully executing our business plans. If we are unable to raise additional capital when needed,
we may be forced to significantly curtail or cease operations, including research and development programs and clinical trials.

The accompanying unaudited condensed consolidated
financial statements have been prepared assuming that we will continue as a going concern, which contemplates, among other things, the
realization of assets and satisfaction of liabilities in the ordinary course of business.

Restricted Cash

As of June 30, 2025, we maintained a restricted cash balance of $98,130
in an interest-bearing money market deposit account with JPMorgan Chase, which supports our lease obligations. This balance includes a
$5,000 buffer above the required security amount. 

     10 

2. LOSS PER COMMON SHARE

Basic loss per share is computed by dividing net loss
by the weighted average number of common shares outstanding during the period of computation. Diluted loss per share is computed similar
to basic loss per share, except that the denominator is increased to include the number of additional dilutive common shares that would
have been outstanding if potential common shares had been issued, if such additional common shares were dilutive. Since we had net losses
for all periods presented, basic and diluted loss per share are the same, and additional potential common shares have been excluded, as
their effect would be antidilutive.

As of June 30, 2025 and 2024, an aggregate of 2,189,307
and 1,649,429 potential common shares, respectively, consisting of shares underlying outstanding stock options, warrants, and restricted
stock units were excluded, as their inclusion would be antidilutive.

3. RESEARCH AND DEVELOPMENT EXPENSES

Our
research and development costs are expensed as incurred. We incurred research and development expenses during the three-month periods
ended June 30, 2025 and 2024, which are included in various operating expense line items in the accompanying condensed consolidated statements
of operations. The increase in research and development expenses for the three months ended June 30, 2025, compared to the same period
in 2024, primarily reflects higher spending associated with our ongoing clinical trial in