Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 536

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1C
Chunk 536
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 portions of the insurance policies.

LEGAL MATTERS

From time to time, claims are made against us
in the ordinary course of business, which could result in litigation. Claims and associated litigation are subject to inherent uncertainties
and unfavorable outcomes could occur, such as monetary damages, fines, penalties or injunctions prohibiting us from selling one or more
products or engaging in other activities.

The occurrence of an unfavorable outcome in any
specific period could have a material adverse effect on our results of operations for that period or future periods. We are not presently
a party to any pending or threatened legal proceedings.

9. SEGMENT REPORTING

The Company operates as a single operating and reportable segment,
which reflects the manner in which the Chief Operating Decision Maker (CODM), the Company’s Chief Executive Officer, manages the
business and allocates resources. The Company is a development-stage medical technology company focused on advancing a clinical-stage
therapeutic device, with key operational decisions based on cash availability, development milestones, and return on investment associated
with future manufacturing and commercialization opportunities.

Although the Company has no commercial revenue, the CODM regularly
reviews certain expense categories and cash flow metrics to assess progress and allocate resources. The primary internal measure of performance
used by the CODM is cash used in operating activities, rather than traditional profit or loss measures.

In accordance with ASU 2023-07, which the Company adopted for the
year ended March 31, 2025, the following significant expense categories and internal performance measures were reviewed by the CODM during
the fiscal year ended March 31, 2025 and March 31, 2024:

    Schedule of significant expense categories 

    Category 
    Year Ended March 31, 2025  
    Year Ended 
March 31, 2024 
  
    Research and development1 
    $2,212,000  
    $2,520,000 
  
    General and administrative2 
    $3,243,000  
    $3,903,000 
  
    Cash used in operating activities3 
    $7,646,000  
    $10,130,000 

  1
  Research
  and development expenses consist primarily of costs related to laboratory operations, clinical trial execution, investigational
  device testing, design iterations, and personnel-related expenses associated with research activities. These costs are not confined
  to a single financial statement line item and may be classified within general and administrative expense