Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 1419

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 9A
Chunk 1419
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5.2 million in US Treasury bills with maturities of less than three months.
We do not believe that the Company is exposed to any significant risk with respect to its cash equivalents since they represent US government
risk.

Cash is maintained at one Australian financial
institution in checking accounts. Accounts at this institution are secured by the Financial Claims Scheme for up to Australian $250,000.
Our March 31, 2025 Australian cash balance was below that threshold.

RESTRICTED CASH

To comply with the terms
of our laboratory, office, and manufacturing space leases, we arranged for our former bank, First Republic Bank, to issue two standby
letters of credit (L/Cs) totaling $87,506 in favor of the landlord, in lieu of a security deposit. To support the L/Cs, we authorized
the withdrawal of $87,506 from our operating accounts and placed the funds in restricted certificates of deposit, which we classified
as restricted cash, a long-term asset on our balance sheet. Following the transition of our banking relationship from First Republic Bank
to JPMorgan Chase, the standby letters of credit were converted to a money market deposit account with an additional $5,000 buffer. This
interest-bearing account had a balance of $97,813 as of March 31, 2025, which we continue to classify as restricted cash. 

     F-12 

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost. Depreciation
is computed using the straight-line method over the estimated useful lives of the related assets, which range from two to five years.
Repairs and maintenance are charged to expense as incurred while improvements are capitalized. Upon the sale or retirement of property
and equipment, the accounts are relieved of the cost and the related accumulated depreciation with any gain or loss included in the consolidated
statements of operations.

INCOME TAXES

Deferred tax assets and liabilities are recognized
for the future tax consequences attributable to the difference between the consolidated financial statements and their respective tax
basis. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts reported for income tax purposes, and (b) tax credit carryforwards. We record a valuation
allowance for deferred tax assets when, based on our best estimate of taxable income (if any) in the foreseeable future, it is more likely
than not that some portion of the deferred tax assets may not be realized.