Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 81

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 2
Chunk 81
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 the informational requirements
of the Exchange Act, and must file reports, proxy statements and other information with the SEC. The SEC maintains a website (http://www.sec.gov)
that contains reports, proxy and information statements and other information regarding registrants, like us, which file electronically
with the SEC.

RESULTS OF OPERATIONS

THREE MONTHS ENDED DECEMBER 31, 2024 COMPARED TO THE THREE MONTHS ENDED
DECEMBER 31, 2023

Operating Expenses

Consolidated operating expenses for the three
months ended December 31, 2024, decreased by $1,752,341 or 49.1% to $1,814,747 compared to $3,567,088 for the same period in 2023. This
reduction was driven by a $1,298,818 decrease in payroll and related expenses, a $290,709 decrease in professional fees, and a $162,815
decrease in general and administrative expenses.

For the three months ended December 31, 2024,
payroll and related expenses decreased by $1,298,818. This decrease was primarily attributable to a reduction of $872,763 in separation
expenses related to the Separation Agreement with the former Chief Executive Officer that had been recorded in the December 2023 period,
as well as a decrease of $426,055 due to a reduction in headcount. Of the $872,763 of separation expenses related to the departure of
the former Chief Executive Officer, $393,139 related to the acceleration of vesting of stock options.

Professional fees decreased by $290,709, primarily
due to a reduction of $181,380 in legal fees which includes $148,696 decrease resulting from the transition to a new legal firm and $44,000
decrease related to fees incurred for the stock split with no comparable expense in the current period. Additionally, there was a decrease
of $176,434 in scientific and operational consulting fees largely attributable to completed projects. These decreases were partially offset
by a $64,487 increase in investor relations and accounting fees, an $11,101 increase in legal fees related to patent matters, as well
as a $2,618 increase in website services.

The $162,814 decrease in general and administrative
expenses for the quarter was primarily driven by a $253,297 reduction in supplies, largely related to the raw materials and components
used in the manufacturing of the Hemopurifier