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Aethlon Medical(AEMD) - 2023 Q4 - Annual Report
AEMDAethlon Medical(AEMD)2023-06-27 16:00

Financial Performance - The company recorded government contract revenue of 574,245forthefiscalyearendedMarch31,2023,comparedto574,245 for the fiscal year ended March 31, 2023, compared to 294,165 for the fiscal year ended March 31, 2022, representing an increase of 280,080[301].−Consolidatedoperatingexpensesincreasedto280,080[301]. - Consolidated operating expenses increased to 12,472,883 for the fiscal year ended March 31, 2023, from 10,715,050forthefiscalyearendedMarch31,2022,anincreaseof10,715,050 for the fiscal year ended March 31, 2022, an increase of 1,757,833[306]. - The net loss before noncontrolling interests increased to 12,029,786forthefiscalyearendedMarch31,2023,from12,029,786 for the fiscal year ended March 31, 2023, from 10,420,885 for the fiscal year ended March 31, 2022[308]. - The company reported a net cash used in operating activities of approximately 10,505,000forfiscal2023,anincreaseofapproximately10,505,000 for fiscal 2023, an increase of approximately 738,000 compared to 9,767,000infiscal2022[326].−Thecompanyraisedapproximately9,767,000 in fiscal 2022[326]. - The company raised approximately 8,915,000 from financing activities in fiscal 2023, a decrease from 17,368,000infiscal2022[327].CashandCapitalManagement−AsofMarch31,2023,thecompanyhadacashbalanceof17,368,000 in fiscal 2022[327]. Cash and Capital Management - As of March 31, 2023, the company had a cash balance of 14,532,943 and working capital of 13,585,477,comparedto13,585,477, compared to 17,072,419 and 16,332,958,respectively,atMarch31,2022[309].−Thecompanyanticipatescontinuednegativecashflowsandnetlossesfortheforeseeablefuture,necessitatingadditionalcapitalraisesthroughequityand/ordebtfinancing[320].−Thecompanyexpectsfuturecapitalrequirementstodependonvariousfactors,includingprogresswithclinicaltrialsandregulatoryapprovals[320].−Thecompanyhasnoobligationtosellanysharesunderthe2022ATMAgreement,andsalescanbesuspendedorterminatedatanytime[317].−InthefiscalyearendedMarch31,2023,thecompanyraisednetproceedsof16,332,958, respectively, at March 31, 2022[309]. - The company anticipates continued negative cash flows and net losses for the foreseeable future, necessitating additional capital raises through equity and/or debt financing[320]. - The company expects future capital requirements to depend on various factors, including progress with clinical trials and regulatory approvals[320]. - The company has no obligation to sell any shares under the 2022 ATM Agreement, and sales can be suspended or terminated at any time[317]. - In the fiscal year ended March 31, 2023, the company raised net proceeds of 8,927,211 from the sale of 7,480,836 shares at an average price of 1.19pershareunderthe2022ATMAgreement[313].−Thecompanyraisednetproceedsof1.19 per share under the 2022 ATM Agreement[313]. - The company raised net proceeds of 1,086,119 from the sale of 1,778,901 shares at an average price of 0.61pershareunderthe2022ATMAgreement[340].−Thecompanyraisedapproximately0.61 per share under the 2022 ATM Agreement[340]. - The company raised approximately 11,659,044 from the sale of 1,380,555 shares at a purchase price of 9.00pershareinaregistereddirectfinancingduringfiscal2022[318].ClinicalTrialsandResearch−ThecompanyenteredintoanagreementwithNAMSAtooverseeclinicaltrialsfortheHemopurifierinoncologyindications,withinitialtrialsanticipatedtobegininAustralia[289].−TheFDAapprovedasupplementtothecompany′sopenIDEfortheHemopurifiertotestitinpatientswithCOVID−19,withastudydesignedtoenrollupto40subjects[292].−ThecompanylaunchedawhollyownedsubsidiaryinAustraliatoconductclinicalresearchandseekregulatoryapprovalfortheHemopurifier[293].−ThecompanyisinvestigatingtheuseoftheHemopurifierinorgantransplantsettingstopotentiallyreducecomplicationsfollowingtransplantation[295].−ClinicaltrialexpensesforthepreparationoftheplannedoncologytrialinAustraliawere9.00 per share in a registered direct financing during fiscal 2022[318]. Clinical Trials and Research - The company entered into an agreement with NAMSA to oversee clinical trials for the Hemopurifier in oncology indications, with initial trials anticipated to begin in Australia[289]. - The FDA approved a supplement to the company's open IDE for the Hemopurifier to test it in patients with COVID-19, with a study designed to enroll up to 40 subjects[292]. - The company launched a wholly owned subsidiary in Australia to conduct clinical research and seek regulatory approval for the Hemopurifier[293]. - The company is investigating the use of the Hemopurifier in organ transplant settings to potentially reduce complications following transplantation[295]. - Clinical trial expenses for the preparation of the planned oncology trial in Australia were 103,602 in fiscal 2023, with expectations for continued increases in these expenses[319]. - The company terminated its subaward arrangement with the University of Pittsburgh due to inability to recruit patients for the clinical trial[305]. Operational Challenges - The company is monitoring the impact of inflation, recent bank failures, and the war in Ukraine on its business and capital access[299]. - Rent expense increased by 117,772infiscal2023,withexpectationsforfurtherincreasesintheforeseeablefuture[319].DirectorCompensation−InApril2023,threenon−employeedirectorsweregranted116,279RSUseach,pricedat117,772 in fiscal 2023, with expectations for further increases in the foreseeable future[319]. Director Compensation - In April 2023, three non-employee directors were granted 116,279 RSUs each, priced at 0.43 per share, under the Director Compensation Policy[341]. - The RSUs granted to directors are subject to vesting in four equal installments, with 25% vesting on June 30, September 30, December 31, 2023, and March 31, 2024[341].