Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 69

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 1
Chunk 69
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 adverse effects. In addition, under U.S. Government purchasing regulations, some
of our costs, including most financing costs, amortization of intangible assets, portions of our research and development costs, and some
marketing expenses, would possibly not be reimbursable or allowed under such contracts. Further, as a former and potential future U.S.
Government contractor, we would be subject to an increased risk of investigations, criminal prosecution, civil fraud, whistleblower lawsuits
and other legal actions and liabilities. Moreover, recent actions by the U.S. Congress and executive agencies to reduce discretionary
spending, impose funding constraints, or shift policy priorities could limit the availability of government funding for programs that
might otherwise support the development or acquisition of our technology. These developments could reduce the likelihood of future contract
opportunities or result in the modification, delay, or cancellation of existing or anticipated government solicitations involving our
products.

As a potential future U.S. Government contractor, we would be
subject to a number of procurement rules and regulations.

Government contractors must
comply with specific procurement regulations and other requirements. These requirements, although customary in government contracts, would
impact our performance and compliance costs. In addition, current U.S. Government budgetary constraints could lead to changes in the procurement
environment, including the Department of Defense’s initiative focused on efficiencies, affordability and cost growth and other changes
to its procurement practices. If and to the extent such changes occur, they could affect whether and, if so, how we pursue certain opportunities
and the terms under which we are able to do so.

In addition, failure to comply
with these regulations and requirements could result in reductions of the value of contracts, contract modifications or termination, and
the assessment of penalties and fines, which could negatively impact our results of operations and financial condition. Our failure to
comply with these regulations and requirements could also lead to suspension or debarment, for cause, from government contracting or subcontracting
for a period of time. Among the causes for debarment are violations of various statutes, including those related to procurement integrity,
export control, government security regulations, employment practices, protection of the environment, accuracy of records and the recording
of costs, and foreign corruption. The termination of any government contract we may obtain as a result of any of these acts could have
a negative impact on our results of operations and financial condition and could have a negative impact on our reputation and ability
to procure other government contracts in the future.

Risks Relating