AETHLON MEDICAL INC

Current report

Aethlon Medical, Inc. is a clinical-stage medical therapeutic company focused on developing the Hemopurifier®, an investigational immunotherapeutic device for the treatment of oncology, life-threatening viral infections and other disease states where extracellular vesicles are believed to contribute to disease progression.

Current report

Our primary focus remains advancing the Phase 1 oncology clinical trial in Australia. Following the completion of the first two treatment cohorts, preliminary observations demonstrated generally consistent directional changes across multiple biomarkers associated with tumor-derived extracellular vesicles, immune function and response to immunotherapy. While these findings remain preliminary and await formal statistical analysis following completion of the study, they support the continued evaluation of the Hemopurifier in the ongoing trial.

Current report

We also treated the first participant in Cohort 3, and enrollment in the study continues across our three clinical sites in Australia. In addition, our manuscript describing extracellular vesicle characteristics in patients with Long COVID was accepted for publication in theInternational Journal of Molecular Sciences. To support our ongoing clinical development activities, we continued to access capital through our At-the-MarketATM offering program.

Current report

Professional fees decreased by $142,463 for the three months ended June 30, 2026, compared to the prior-year period. The decrease was primarily attributable to lower investor relations expenses resulting from costs incurred in the prior-year period in connection with a special meeting of stockholders that did not recur in the current-year period, together with lower accounting fees due to fewer filings requiring audit consent procedures by our predecessor and current independent registered public accounting firms during the current-year period.

Current report

General and administrative expenses decreased by $72,907 for the three months ended June 30, 2026, compared to the prior-year period. The decrease primarily reflected lower clinical trial expenses resulting from the timing of trial participant treatment activities between the current-year and prior-year periods, as well as lower costs associated with our preclinical research activities. These decreases were partially offset by normal fluctuations in other general and administrative expenses.

Current report

We recorded other income of $31,290 for the three months ended June 30, 2026 compared to other income of $30,532 for the three months ended June 30, 2025. Other income in both periods was primarily interest income.

Current report

We believe that our cash and cash equivalents as of June 30, 2026, together with the proceeds received from sales of our common stock under our S-1 registration statement ATM program subsequent to June 30, 2026, will be sufficient to fund our planned operations for at least twelve months from the date these condensed consolidated financial statements are issued.

Current report

Although we believe our current cash resources, together with proceeds received subsequent to June 30, 2026, are sufficient to fund our planned operations for at least the next twelve months, we will likely require additional capital in the future to continue advancing the clinical development of the Hemopurifier beyond that period. The timing and amount of future capital requirements will depend on numerous factors, including the progress of our clinical and preclinical development programs, regulatory activities, manufacturing requirements, and other operating expenditures.

Current report

NET CASH USED IN INVESTING ACTIVITIES. Capital expenditures during the three months ended June 30, 2026 consisted of the purchase and installation of an HVAC system for our laboratory facility at a cost of approximately $9,000.

Current report

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES. Net cash provided by financing activities was approximately $1.8 million for the three months ended June 30, 2026, compared to net cash used in financing activities of approximately $5,000 for the same period in 2025. The increase was primarily attributable to net proceeds from sales of common stock under our ATM offering program, partially offset by offering costs associated with those sales, including deferred offering costs incurred in connection with future equity issuances. Financing activities during the current-year period also included tax withholding payments related to the net share settlement of restricted stock units.

Current report

We expect to continue to incur expenditures related to our ongoing Phase 1 oncology clinical trial in Australia, including costs associated with clinical trial activities, manufacturing of Hemopurifier devices and related research and development activities.

Current report

In addition, we maintain leases for our headquarters, laboratory and manufacturing facilities, all of which expire in March 2027. We are evaluating our future facility requirements, including whether to renew or modify certain lease arrangements as we continue to assess our operational needs.

Current report

Our future capital requirements will depend on numerous factors, including the progress and results of our clinical development programs, the costs of manufacturing Hemopurifier devices, regulatory activities, the protection of our intellectual property, and our ability to establish strategic collaborations or obtain additional financing.

Current report

Although we believe that our cash and cash equivalents as of June 30, 2026, together with the proceeds received from sales of common stock subsequent to quarter end, will be sufficient to fund our planned operations for at least twelve months from the date of issuance of these condensed consolidated financial statements, we expect to require additional capital to continue advancing the clinical development of the Hemopurifier beyond that period. Additional financing may be sought through equity offerings, debt financings, strategic collaborations or other financing arrangements. There can be no assurance that such financing will be available on acceptable terms, or at all.

Current report

The preparation of our condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Actual results could differ from those estimates.

Previous report

Aethlon Medical, Inc., or Aethlon, the Company, we or us, is a medical therapeutic company focused on developing the Hemopurifier® (HP), a clinical-stage immunotherapeutic device intended for applications in cancer, life-threatening viral infections, and organ transplantation and other areas of significant unmet needs. In human studies (168 sessions with 42 patients), the Hemopurifier was used safely and demonstrated the potential to remove enveloped viruses. In pre-clinical studies, the Hemopurifier has exhibited the capacity to remove harmful extracellular vesicles (EVs) and enveloped viruses from biological fluids, utilizing its proprietary lectin-based mechanism. These extracellular vesicles have been implicated in disease processes such as immune suppression and metastasis in cancer as well as in the progression of severe life-threatening infectious diseases. The U.S. Food and Drug Administration (“FDA”) has designated the Hemopurifier as a “Breakthrough Device” for two independent indications:

Previous report

We are also evaluating the Hemopurifier’s potential in additional clinical contexts based on its mechanism of action and preclinical findings.

Previous report

Three clinical sites in Australia—Royal Adelaide Hospital in Adelaide, Pindara Private Hospital in the Gold Coast, and GenesisCare North Shore Hospital in Sydney—are currently open for enrollment in our safety, feasibility and dose-finding oncology trial in patients with solid tumors not responding to treatment including either Keytruda® or Opdivo®. This trial aims to enroll 9-18 patients.

Previous report

In 2025, we completed the first of three planned cohorts, comprising three participants. Each of the three participants received a single 4-hour Hemopurifier treatment. The Data Safety Monitoring Board (DSMB), comprising independent medical experts in nephrology and oncology, reviewed the data from the initial cohort. Based on their evaluation, the DSMB found no safety concerns and confirmed that the Hemopurifier continues to demonstrate a favorable safety and tolerability profile. To date, no serious adverse events (SAEs) or Dose-Limiting Toxicities (DLTs) related to the Hemopurifier have been reported.

Previous report

Following the DSMB review of the first cohort and their recommendation to proceed onto the second cohort, we began enrollment in the second Cohort 2. In this phase, participants receive two Hemopurifier treatments over a one-week period at the study's three active clinical sites in Australia. To date, we have treated two participants in Cohort 2 and are continuing to recruit additional participants

Previous report

We previously planned a similar clinical trial in India and received formal approval from the Indian regulatory agency, the Central Drugs Standard Control Organization (CDSCO), on July 7, 2025. After reviewing extended timelines for site activation and trial execution, we decided to cancel the Indian trial to conserve resources and focus on the Australian oncology trial.

Previous report

The Hemopurifier is designed to address life-threatening viral infections, particularly those involving highly glycosylated viruses for which there are no approved therapies. It has previously been used under FDA and international regulatory frameworks to treat individuals infected with HIV, hepatitis C, Ebola, and SARS-CoV-2. While our COVID-19 clinical trials in the U.S. and India were terminated due to low ICU enrollment, these programs provided real-world evidence of Hemopurifier use in critically ill patients. We maintain an open IDE for viral indications, preserving the ability to respond to future outbreaks or emerging pathogens.

Previous report

In addition to ongoing clinical trials, we continue to explore potential new applications for the Hemopurifier through internal pre-clinical research and academic collaborations. During the first fiscal quarter of 2026, results of our pre-clinical ex-vivo study entitled “Ex Vivo Removal of CD41 positive platelet microparticles from Plasma by a Medical Device containing a Galanthus nivalis agglutinin (GNA) affinity resin” were made publicly available as a pre-print on bioRxiv. The study valuated the Hemopurifier’s ability to bind and remove disease-relevant EVs, including those derived from platelets, which are implicated in cancer, autoimmune disease, and neurological disorders. The study demonstrated greater than 98% removal of platelet-derived EVs from healthy human plasma in a simulated clinical session.

Previous report

In November 2025 we also made publicly available a separate pre-clinical preprint entitled “Increased mannosylation of extracellular vesicles in Long COVID plasma provides a potential therapeutic target for Galanthus nivalis agglutinin (GNA) affinity resin,” which describes exploratory ex vivo laboratory research conducted in collaboration with the University of California, San Francisco Long COVID Clinic. This study examined EV characteristics in plasma samples from individuals with Long COVID. The findings have not been peer reviewed and are based on laboratory analysis rather than clinical studies.

Previous report

These exploratory programs, together with our academic collaborations, are intended to inform potential future clinical indications and research directions, evaluate the broader applicability of the Hemopurifier platform, and may not be indicative of clinical outcomes.

Previous report

We have sufficient inventory of Hemopurifiers to support our ongoing oncology trial in Australia as well as any near-term trial expansions. While FDA approval to begin manufacturing at our San Diego facility under our IDE supplement, we are still awaiting approval of a separate supplement to qualify an additional key component supplier and continue to work with the FDA on this process.

Previous report

Successful outcomes of human trials will also be required by the regulatory agencies of certain foreign countries where we plan to market and sell the Hemopurifier. Some of our patents may expire before FDA approval or approval in a foreign country, if any, is obtained. However, we believe that certain patent applications and/or other patents issued to us more recently will help protect the proprietary nature of our Hemopurifier treatment technology.

Previous report

We continue to monitor the impact of inflation, recent bank failures and ongoing geopolitical conflicts including the war in Ukraine and the military actions in Israel and the surrounding areas, on our business. Given the level of uncertainty regarding the duration and impact of these events on capital markets and the U.S. economy, we are currently unable to assess their full impact on our timelines and access to capital.

Previous report

The Company was incorporated in Nevada on March 10, 1999. Our executive offices are located at 11555 Sorrento Valley Road, Suite 203, San Diego, California 92121. Our telephone number is (619) 941-0360. Our website address is www.aethlonmedical.com.

Previous report

Our common stock is listed on the Nasdaq Capital Market under the symbol “AEMD.”

Previous report

WHERE YOU CAN FIND MORE INFORMATION

Previous report

We are subject to 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.

Previous report

Payroll and related expenses increased by approximately $367,000, primarily due to bonus expense and related payroll taxes, partially offset by a decrease in stock-based compensation expense associated with options that became fully amortized. Other changes in payroll costs were not material.

Previous report

General and administrative expenses decreased by approximately $75,000, primarily due to lower clinical trial expenses of approximately $57,000, reflecting the timing of trial-related activities and the impact of the previously disclosed decision to cancel the planned trial in India. Expenses also decreased by approximately $66,000 in supplies due to the timing of production-related activities and $12,000 in software subscription costs, largely due to a reduced number of software licenses. These decreases were partially offset by increases in regulatory and listing-related fees of approximately $37,000, insurance of approximately $15,000, largely related to medical coverage, and $7,000 of other expenses.

Previous report

The approximate $45,000 decrease in professional fees for the three months ended December 31, 2025, was primarily due to a $45,000 decrease in investor relations expenses, reflecting prior year engagement of an investor relations firm with no comparable activities in the current period, and a $18,000 decrease in accounting fees, partially offset by an approximately $19,000 increase in legal and related fees, primarily associated with Nasdaq compliance.

Previous report

Other income, primarily interest income, totaled $43,871 for the three months ended December 31, 2025 and $59,964 for the three months ended December 31, 2024 and is presented net of interest expense.

Previous report

NINE MONTHS ENDED DECEMBER 31, 2025 COMPARED TO THE NINE MONTHS ENDED DECEMBER 31, 2024

Previous report

Operating Expenses

Previous report

Consolidated operating expenses for the nine months ended December 31, 2025 were approximately $5,364,000 compared to approximately $7,337,000 for the nine months ended December 31, 2025. This decrease of approximately $1,973,000, or 26.9%, in the 2025 period was due to decreases in payroll and related expenses of approximately $1,085,000, general and administrative expenses of $527,000 and professional fees of $361,000.

Previous report

The $1,085,000 decrease in payroll and related expenses was primarily due to an $826,000 charge in the prior period related to severance agreements and workforce reductions, a $432,000 decrease due to lower headcount, and a $125,000 reduction in stock-based compensation associated with reduced headcount and fully amortized options, partially offset by an approximately $300,000 increase in bonus expense.

Previous report

General and administrative expenses decreased by approximately $527,000 for the nine months ended December 31, 2025, primarily reflecting lower clinical trial expenses of approximately $348,000, which includes the recognition of a $218,000 Australian R&D tax incentive and the impact of the previously disclosed decision to cancel the planned India trial. Expenses also benefited from decreases of approximately $137,000 related to the timing of production activities, $50,000 in insurance primarily due to medical and D&O coverage, $25,000 in software subscriptions, $17,000 in utilities, and $12,000 in depreciation, along with approximately $16,000 across other miscellaneous categories. These decreases were partially offset by higher rent of approximately $41,000 associated with a lost deposit on a previously rented mobile cleanroom and $38,000 in regulatory and listing-related fees.

Previous report

Professional fees decreased by approximately $361,000, primarily reflecting a $268,000 reduction in investor relations expenses. Additional decreases included approximately $35,000 in contract labor for regulatory consulting, $34,000 in scientific consulting from completed projects, and $26,000 in accounting fees, partially offset by minor increases in other professional services.

Previous report

Net Loss

Previous report

As a result of the expense reductions described above, our net loss improved by approximately $1,865,993 decreasing from approximately $7,133,000 for the nine months ended December 31, 2024, to $5,267,203 for the nine months ended December 31, 2025.

Previous report

We do not expect our existing cash as of December 31, 2025, to be sufficient to fund our operations for at least twelve months from the issuance date of these financial statements.

Previous report

As we expand our activities, our overhead costs to support personnel, laboratory materials and infrastructure will increase and significant additional financing must be obtained to provide a sufficient source of operating capital. Should the financing we require to sustain our working capital needs be unavailable to us on reasonable terms, if at all, when we require it, we may be unable to support our research and our planned clinical trials. The failure to implement our research and clinical trials would have a material adverse effect on our ability to conduct planned clinical trials and commercialize our products.

Previous report

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 associated with intellectual property protection and enforcement, regulatory and compliance obligations, the competitive landscape, and our ability to enter into strategic partnerships or other collaborative arrangements. We expect to continue to incur increasing negative cash flows and net losses for the foreseeable future.

Previous report

NET CASH PROVIDED BY FINANCING ACTIVITIES. During the nine months ended December 31, 2025, we raised approximately $6,728,000, net of placement agent fees and offering costs, primarily through a single transaction combining a PIPE financing with a warrant inducement as well as a separate registered offering, partially offset by approximately $10,000 used for tax withholding on restricted stock unit settlements. This represents an increase of approximately $1,350,000 compared to $5,368,000 provided by financing activities for the same period in the prior year.

Previous report

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.

Previous report

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.

Previous report

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.

Previous report

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.

Previous report

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.

Previous report

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 of expenses during the reporting period. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

Previous report

We believe that the estimates and assumptions most critical to the portrayal of our financial condition and results of operations—because they involve the most difficult, subjective, or complex judgments—form the basis of our most critical accounting policies. These critical estimates relate to long-lived assets, stock-based compensation, the valuation allowance for deferred tax assets, contingencies, and clinical trial accruals.

Previous report — wording carried elsewhere

Basic and diluted loss attributable to common stockholders was ($11.01) for the nine months ended December 31, 2025, compared to ($48.35) for the nine-month period ended December 31, 2024.