Company: AEMD
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001683168-25-006049
Chunk: 18

Company: AETHLON MEDICAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 18
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 is $12,824. Cash paid in the three months ended
June 30, 2025 for amounts included in the measurement of operating lease liabilities in operating cash flows was $82,245.

     15 

The office, lab and manufacturing leases are coterminous
with a remaining term of 21 months. The weighted average discount rate is 4.25%.

As of our June 30, 2025 balance sheet, we have an
operating lease right-of-use asset of $529,576 and operating lease liability of $573,852.

In connection with the lease agreements for our office,
lab, and manufacturing space, we were required to provide financial assurance to the landlord in lieu of a traditional security deposit.
To satisfy this requirement, we initially arranged for our former bank to issue two standby letters of credit (L/Cs) totaling $87,506
— $46,726 in fiscal year 2021 for the office and lab space, and $40,780 in fiscal year 2022 for the manufacturing space. Equivalent
funds were transferred into restricted certificates of deposit to secure the bank’s risk.

Following the transition of our banking relationship
to JPMorgan Chase, the L/Cs were replaced with an interest-bearing money market deposit account. As of June 30, 2025, we maintained a
restricted cash balance of $98,130 in this account, which includes a $5,000 buffer above the required security amount. This balance continues
to support our lease obligations and is classified as restricted cash on our balance sheet.

Overall, our rent expense, which is included in general
and administrative expenses, approximated $109,190 and $102,000 for the three-month periods ended June 30, 2025 and 2024, respectively.

In January 2025, the Company entered into a short-term
premium financing agreement with FIRST Insurance Funding, a division of Lake Forest Bank & Trust Company, N.A., to finance a portion
of its Directors & Officers (D&O) and other insurance premiums. The total amount financed under the agreement was approximately
$220,984 with an associated finance charge of approximately $9,995 resulting in a total repayment obligation of approximately $230,979.
The annual percentage rate is 9.75%, and the loan is payable in 10 monthly installments of approximately $23,098 beginning February 28,
2025.

As collateral for the financing, the Company granted
the lender a first