Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 16

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 1
Chunk 16
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, the FASB issued ASU No. 2016-13,
Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The adoption of ASU No. 2016-13
for smaller reporting companies that did not previously early adopt was January 1, 2023. The Company maintained US Treasury bills with
maturities of less than three months and anticipates no credit losses from these securities. Additionally, the Company does not have any
revenue or accounts receivables. As a result, the Company did not establish an allowance for expected credit losses.

5. EQUITY TRANSACTIONS IN THE NINE MONTHS ENDED DECEMBER 31, 2024

May 2024 Public Offering

On May 17, 2024, we closed a public offering pursuant
to which we sold an aggregate of: (i) 2,450,000 shares of our common stock and accompanying Class A warrants to purchase up to 2,450,000
shares of common stock and Class B warrants to purchase up to 2,450,000 shares of common stock, at a combined public offering price of
$0.58 per share and accompanying warrants; and (ii) in lieu of common stock, pre-funded warrants to purchase 5,650,000 shares of common
stock and accompanying Class A warrants to purchase up to 5,650,000 shares of common stock and Class B warrants to purchase up to 5,650,000
shares of common stock, at a combined public offering price of $0.579 per pre-funded warrant and accompanying warrants, which is equal
to the public offering price per share of common stock, and accompanying warrants less the $0.001 per share exercise price of each such
pre-funded warrant.

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All pre-funded warrants issued in the offering
were exercised in the quarter ended June 30, 2024. The Class A and Class B warrants each have an
exercise price of $0.58 per share, are immediately exercisable, and, in the case of Class A warrants, will expire on May 17, 2029, and
in the case of Class B warrants, will expire on May 19, 2025. The exercise price of the Class A and Class B warrants is also subject to
adjustment for stock splits, reverse splits, and similar capital transactions as described in such warrants.

Maxim Group LLC (“Max