Company: AEMD
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001683168-25-006049
Chunk: 37

Company: AETHLON MEDICAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 37
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ENSES

Our
research and development costs are expensed as incurred. We incurred research and development expenses during the three-month periods
ended June 30, 2025 and 2024, which are included in various operating expense line items in the accompanying condensed consolidated statements
of operations. The increase in research and development expenses for the three months ended June 30, 2025, compared to the same period
in 2024, primarily reflects higher spending associated with our ongoing clinical trial in Australia evaluating the Hemopurifier in oncology
patients. The current period also includes expenses related to preclinical studies supporting potential new indications, including work
conducted in partnership with UCSF’s Long COVID Clinic and internal lab activities targeting platelet-derived extracellular vesicles
and transplant-related applications. These initiatives are part of our broader strategy to expand the therapeutic potential of the Hemopurifier
beyond viral pathogens and support future regulatory submissions. We expect R&D expenses to continue to fluctuate based on the timing
and scale of future clinical trial activity and internal development efforts. Our
research and development expenses in those periods were as follows:

    Schedule of research and development
expenses 

    June 30,  
    June 30, 

    2025  
    2024 
  
    Three months ended 
    $524,368  
    $414,658 

4. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2023, the FASB issued Accounting Standards
Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhanced annual disclosures related to
tax rate reconciliation and income taxes paid disaggregated by federal, state and foreign taxes. ASU 2023-09 is effective for the Company
for annual periods beginning on or after April 1, 2025. The Company maintains a full valuation allowance against its deferred assets and
does not have current income tax expense nor material income taxes paid. While the Company is evaluating the impact of this new standard
on its income tax disclosures, it does not expect the adoption of ASU 2023-09 to have material impact on its consolidated financial statements,
as the amendments relate to disclosures only.

In
March 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (“ASU 2024-03”), which requires