Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 71

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 71
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 in Australia and India to increase for the foreseeable future. Those increases in clinical trial expenses include the
cost of manufacturing additional Hemopurifiers.

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In addition, we are obligated under lease agreements
for our headquarters, laboratory and manufacturing facilities. We expect our rent payments to continue to increase for the foreseeable
future.

Future capital requirements will depend upon many
factors, including progress with pre-clinical testing and clinical trials, the number and breadth of our clinical programs, the time and
costs involved in preparing, filing, prosecuting, maintaining and enforcing patent claims and other proprietary rights, the time and costs
involved in obtaining regulatory approvals, competing technological and market developments, as well as our ability to establish collaborative
arrangements, effective commercialization, marketing activities and other arrangements. We expect to continue to incur increasing negative
cash flows and net losses for the foreseeable future. We will continue to need to raise additional capital either through equity and/or
debt financing for the foreseeable future.

We plan to access the equity markets for additional
capital, however, there can be no assurance that we will be able to access such additional capital on favorable terms, or at all.

Our ability to raise additional funds may be adversely
impacted by potential worsening global economic conditions and disruptions to and volatility in the credit and financial markets in the
United States, including due to actual or perceived changes in interest rates and economic inflation, and worldwide resulting from macroeconomic
factors. Because of the numerous risks and uncertainties associated with product development, we cannot predict the timing or amount of
increased expenses and we may never be profitable or generate positive cash flow from operating activities.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s discussion and analysis of
financial condition and results of operations is based on our interim condensed consolidated financial statements, that we prepared in
accordance with accounting principles generally accepted in the United States (“GAAP”). Preparing these financial statements
requires management to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses, and related
disclosures. We base our estimates on historical experience and on various assumptions we believe to be reasonable under the circumstances.
We believe our judgment is applied consistently and produces financial information that fairly depicts our results of operations for all
periods. Actual results may differ materially from these estimates.

We believe that the estimates and assumptions
that are most important to the portrayal of our financial condition and results of operations, in that they require the most difficult