Company: AEMD
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001683168-25-000960
Chunk: 65

Company: AETHLON MEDICAL INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 65
---
ARED TO THE NINE MONTHS ENDED
DECEMBER 31, 2023

Operating Expenses

Consolidated operating expenses for the nine months
ended December 31, 2024 decreased by $2,813,192 to $7,337,402 compared to $10,150,594 for the nine months ended December 31, 2023. This
decrease of $2,813,192, or 27.7%, in the 2024 period was due to decreases in our professional fees of $1,214,340, payroll and related
expenses of $985,783 and general and administrative expenses of $613,069.

The $1,214,340 decrease in professional fees was
mainly due to a $654,232 reduction in contract labor costs related to completed projects with a contract manufacturing organization, as
well as with outside research and development and regulatory and quality management consultants. Additional decreases included $525,035
in legal fees which includes $503,769 decrease following a transition to a new legal firm, $13,952 decrease in fees related to stock split
with no comparable expense in current period, and a $7,315 decrease in legal fees related to patent matters as well as a $62,500 reduction
in recruiting fees. These decreases were offset by a $33,428 increase in investor relation fees.

The $985,783 decrease in payroll and related expenses
was primarily driven by a $737,458 reduction in stock-based compensation which includes $393,139 related to the acceleration of vesting
of stock options associated with the departure of our former Chief Executive Officer as well as expired or canceled employee stock options
and a $594,889 decrease resulting from a reduction in headcount. These reductions were partially offset by an increase of $346,566 in
separation expenses related to agreements with former executives. .

The $613,069 decrease in general and administrative
expenses was primarily driven by a $733,242 reduction in supplies, including raw materials and components required for manufacturing the
Hemopurifier, as well as laboratory materials for research and development. Additional reductions included an $84,583 decrease in insurance
expenses, a $48,725 decrease in repairs and maintenance primarily related to the cleanroom certification, a $27,779 reduction related
to travel and conferences, an $18,434 decrease in office supplies, a $17,529 decrease in depreciation. These decreases were partially
offset by a $317,