Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 48

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 48
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 as a going concern within one year of the date these financial statements are issued.
A significant amount of additional capital will be necessary to advance the development of our products to the point at which they may
become commercially viable. We intend to fund operations, working capital and other cash requirements for the twelve-month period subsequent
to December 31, 2024 through a combination of debt and/or equity financing arrangements and potentially from collaborations or strategic
partnerships.

     10 

The successful outcome of future activities cannot
be determined at this time and there is no assurance that, if achieved, we will have sufficient funds to execute our intended business
plan or generate positive operating results.

The condensed consolidated financial statements
do not include any adjustments related to this uncertainty and as to the recoverability and classification of asset carrying amounts or
the amount and classification of liabilities that might result should we be unable to continue as a going concern.

Management expects that existing cash as of December
31, 2024 will not be sufficient to fund the Company’s operations for at least twelve months from the issuance date of these condensed
consolidated financial statements.

The accompanying unaudited condensed consolidated
financial statements have been prepared assuming that we will continue as a going concern, which contemplates, among other things, the
realization of assets and satisfaction of liabilities in the ordinary course of business.

Restricted Cash

To comply with the terms of our laboratory and
office lease and our lease for our manufacturing space (see Note 9), we caused our bank to issue two standby letters of credit (“L/Cs”)
in the aggregate amount of $87,506 in favor of our landlord. The L/Cs are in lieu of a security deposit. In order to support the L/Cs,
we agreed to have our bank withdraw $87,506 from our operating accounts and to place that amount in a restricted certificate of deposit.
We have classified that amount as restricted cash, a long-term asset, on our balance sheet.

2. LOSS PER COMMON SHARE

Basic loss per share is computed by dividing net
loss 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 dilutive 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