Company: AEMD
Filing Date: 2025-06-26
Form Type: 10-K
Source: 0001683168-25-004780
Chunk: 1417

Company: AETHLON MEDICAL INC
Filing Date: 2025-06-26
Form: 10-K
Item: Item 9A
Chunk 1417
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 statements included in this Annual Report.

The Company’s ability to execute its current
operating plan depends on its ability to reduce expenses and obtain additional funding via the sale of equity, or other sources of capital.
The Company plans to continue actively pursuing financing alternatives, however, there can be no assurance that it will obtain the necessary
funding, raising substantial doubt about the Company’s ability to continue as a going concern within one year of the date these
financial statements are issued. The accompanying financial statements do not include any adjustments that might result from the outcome
of this uncertainty.

PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements
include the accounts of Aethlon Medical, Inc. and its wholly owned subsidiary, Aethlon Medical Australia Pty Ltd.. Operations in our Australian
subsidiary is recorded in their functional currency. The results of operations for our Australian subsidiary are translated from functional
currency into U.S. dollars. Expenses originally incurred in U.S. dollars are translated using the exchange rate on the transaction date.
For expenses in the subsidiary’s functional currency, we use the average exchange rate for the period, as it is not practical to
determine the exact rate for each transaction date. Assets and liabilities are translated using the period end exchange rates. The U.S
dollar effects that arise from translating the net assets of are recorded in other comprehensive income (loss). All significant inter-company
transactions and balances have been eliminated in consolidation. The consolidated financial statements contain all normal recurring accruals
and adjustments that, in the opinion of management, are necessary to present fairly the consolidated financial statements as of and for
the fiscal years ended March 31, 2025 and 2024, and the consolidated statement of cash flows for the fiscal years ended March 31, 2025
and 2024.

RISKS AND UNCERTAINTIES

We operate in an industry that is subject to intense
competition, government regulation and rapid technological change. Our operations are subject to significant risk and uncertainties including
financial, operational, technological, regulatory, and including the potential risk of business failure.

     F-11 

USE OF ESTIMATES

We prepare our consolidated financial statements
in conformity with accounting principles generally accepted in the United States of America, or GAAP, which 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. Such estimates and assumptions affect the