Aethlon Medical(AEMD) - 2022 Q4 - Annual Report

Financial Performance - Government contract revenue decreased to $294,165 for the fiscal year ended March 31, 2022, down from $659,104 in the previous year, a decline of 44%[264] - Operating expenses increased to $10,715,050 for the fiscal year ended March 31, 2022, compared to $8,550,603 in the prior year, reflecting a rise of 25%[275] - Net loss before noncontrolling interests increased to $10,420,885 for the fiscal year ended March 31, 2022, up from $7,891,499 in the previous year, representing a 32% increase[277] - The company recorded $64,467 in revenue from a subaward with the University of Pittsburgh for the fiscal year ended March 31, 2022, compared to $34,233 in the previous year, marking an increase of 88%[274] - The company reported a net cash used in operating activities of approximately $9,767,000 for fiscal 2022, an increase of approximately $3,002,000 compared to fiscal 2021[298] - Net cash generated from financing activities increased from approximately $7,128,000 in fiscal 2021 to approximately $17,368,000 in fiscal 2022[300] - The company raised approximately $17,456,000 from the issuance of common stock in the fiscal year ended March 31, 2022[301] Clinical Trials and Research - The company is conducting a clinical trial for the Hemopurifier in patients with advanced head and neck cancer, with a primary endpoint focused on safety and secondary endpoints including exosome clearance and survival rates[251] - The Hemopurifier has been used in small-scale studies to treat individuals infected with HIV, HCV, and Ebola, demonstrating its potential in addressing life-threatening viral infections[252] - The FDA approved a new feasibility study for the Hemopurifier in COVID-19 patients, aiming to enroll up to 40 subjects across 20 centers in the U.S.[254] - The company has entered into a clinical trial agreement with Medanta Medicity Hospital in India for a COVID-19 clinical trial, which is now open for patient enrollment[256] - The company has nine hospitals activated for patient enrollment in the U.S. clinical studies investigating the Hemopurifier for critically ill COVID-19 patients[255] - Clinical trial expenses increased by $453,254 in the fiscal year ended March 31, 2022, and are expected to continue to rise in the foreseeable future[292] Operational Costs - Rent expense increased by $209,082 in the fiscal year ended March 31, 2022, with expectations for continued increases[293] - The company has entered into leases for new headquarters, laboratory, and manufacturing facilities, contributing to increased operational costs[292] Future Outlook - The company anticipates continued negative cash flows and net losses for the foreseeable future, necessitating additional capital raises through equity and/or debt financing[295] Stock and Compensation - On April 1, 2021, the Compensation Committee granted RSUs to each non-employee director, with each receiving 24,295 shares priced at $2.06 per share[316] - In June 2021, non-employee directors exchanged 18,221 vested RSUs for common stock, with 40% returned for cash, resulting in 7,289 RSUs cancelled for $35,786[317] - In September 2021, the same exchange occurred, with 7,289 RSUs cancelled for $28,134 in cash proceeds[319] - In December 2021, 7,289 RSUs were cancelled for $13,557 in cash proceeds[320] - In March 2022, 7,289 RSUs were cancelled for $10,641 in cash proceeds[321] - As of March 31, 2022, there were no vested RSUs outstanding[322]