Company: AEMD
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001683168-25-006049
Chunk: 53

Company: AETHLON MEDICAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 53
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 stock and warrants in a public offering, as well as the exercise of 300,000 Class A warrants
and 1,880,000 Class B warrants. This was partially offset by approximately $5,000 used for tax withholding on restricted stock unit settlements,
resulting in net cash provided by financing activities of approximately $5,379,000 in the prior year.

Material Cash Requirements 

We expect our clinical trial expenses for the planned
oncology trial in Australia to increase for the foreseeable future. Those increases in clinical trial expenses include the cost of manufacturing
additional Hemopurifiers.

In addition, we have entered into leases 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 do 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 bank failures, 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

The preparation
of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP,
requires us to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements. These estimates and assumptions affect the reported amounts