Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 38

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 1
Chunk 38
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 that, as of the end of such period, our disclosure controls and procedures
are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in the
reports that we file or submit under the Exchange Act and are effective in ensuring that information required to be disclosed by us in
the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As previously reported in our Annual Report on
Form 10-K for the year ended March 31, 2024, we identified a material weakness in our internal control over financial reporting related
to segregation of duties within our financial systems. Specifically, user access controls were not sufficiently maintained to properly
restrict both user and privileged access to financial applications within our accounting software system to initiate, record and approve
entries. Also noted that check stock was secured in an authorized signatory’s office.

Since identifying the material weakness, we have
been actively engaged in implementing measures to remediate the weakness and enhance our internal control over financial reporting. These
measures include but are not limited to updating the accounting software and creating distinct user roles. Transactions are recorded by
personnel who are independent of those who initiate them and are approved by separate personnel who are independent of those who record
them. Additionally, check stock had been relocated in November 2023.

We believe that these
measures, once fully implemented and operational for a sufficient period of time, will effectively remediate the material weakness. We
are committed to maintaining a strong internal control environment and will continue to monitor the effectiveness of these controls and
procedures.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Other than the changes to remediate the material
weakness noted above, there were no changes in our internal control over financial reporting during the quarter ending December 31, 2024
that have materially affected, or reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

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