Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 1420

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 9A
Chunk 1420
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 Management has provided a full valuation allowance against
the Company’s net deferred tax asset. Tax positions taken or expected to be taken in the course of preparing tax returns are required
to be evaluated to determine whether the tax positions are more-likely-than-not to be sustained by the applicable tax authority. Tax positions
deemed to not meet a more-likely-than-not threshold would be recorded as tax expense in the current year. There were no uncertain tax
positions that require accrual to or disclosure in the consolidated financial statements as of March 31, 2025 and 2024.

LONG-LIVED ASSETS

Long-lived assets are reviewed for impairment
whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the cost basis of a long-lived
asset is greater than the projected future undiscounted net cash flows from such asset, an impairment loss is recognized. We believe no
impairment charges were necessary during the fiscal years ended March 31, 2025 and 2024.

LOSS PER SHARE

Basic loss per share is computed by dividing net
loss available to common stockholders by the weighted average number of common shares outstanding during the period of computation. Diluted
loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional
common shares that would have been outstanding if potential common shares had been issued, if such additional common shares were dilutive.
Since we had net losses for all periods presented, basic and diluted loss per share are the same, and additional potential common shares
have been excluded as their effect would be antidilutive.

As of March 31, 2025 and 2024, a total of 2,938,170
and 15,504 potential common shares, consisting of shares underlying outstanding stock options, restricted stock units, or RSUs, shares
held in abeyance and warrants were excluded as their inclusion would be antidilutive.

REVENUE RECOGNITION

We did not recognize revenue in fiscal year ended
March 31, 2025 or March 31, 2024. 

STOCK-BASED COMPENSATION

Employee stock options and rights to purchase
shares under stock participation plans are accounted for under the fair value method. Accordingly, share-based compensation is measured
when all granting activities have been completed, generally the grant date, based on the fair value of the award. The exercise price of
options is generally equal to the market price of