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Aethlon Medical Announces Fiscal Year End Financial Results and Provides Corporate Update

SAN DIEGO, July 1, 2019 /PRNewswire/ -- Aethlon Medical, Inc. (AEMD), a therapeutic technology company focused on unmet needs in global health, today reported financial results for its fiscal year ended March 31, 2019 and provided an update on recent developments.

Company Updates

Aethlon Medical, Inc. (Company) is continuing the development of its proprietary Hemopurifier, which is a first in class therapeutic device designed for the single use depletion of circulating viruses and cancer-promoting exosomes.  The Hemopurifier has previously been designated a Breakthrough Device by the FDA for the treatment of glycosylated viruses, including Ebola and other hemorrhagic fever viruses, and in late 2018 was additionally designated as a Breakthrough Device "…for the treatment of individuals with advanced or metastatic cancer who are either unresponsive to or intolerant of standard of care therapy, and with cancer types in which exosomes have been shown to participate in the development or severity of the disease…."

Aethlon is currently preparing for the initiation of clinical trials in patients with advanced and metastatic cancers. The Company is initially focused on the treatment of solid tumors, including head and neck cancer, gastrointestinal cancers and other cancers. Aethlon is in active communication with FDA in preparation for the initiation of an early clinical trial in one of these areas.

On June 30, 2019, the Company entered into a cross-licensing agreement with SeaStar Medical, Inc. to jointly develop Aethlon's and SeaStar's combined medical devices to address the care and management of critically ill patients.

Financial Results for Fiscal Year Ended March 31, 2019

Aethlon's net loss was approximately $6.2 million, or $(0.34) per share for the fiscal year ended March 31, 2019, compared to a net loss of approximately $5.7 million, or $(0.46) per share for the fiscal year ended March 31, 2019.

At March 31, 2019, the Company had a cash balance of approximately $3.8 million.

Aethlon's consolidated operating expenses for the fiscal year ended March 31, 2019 were approximately $6.2 million, compared to $5.0 million for the prior fiscal year. This increase of approximately $1.2 million, was in part due to an accrual of approximately $517,000 to cover separation payments to be paid over calendar 2019 to Aethlon's former CEO and to its former President. The Company recorded approximately $473,000 of that accrual as payroll and related expenses and the remaining $44,000 fell into the general and administrative expense area.

Net of the $517,000 accrual, the Company's operating expenses increased by approximately $700,000.  The primary driver of the $700,000 increase was a net increase in professional fees of approximately $639,000, primarily due to increased scientific consulting fees related to ongoing studies and increased legal fees.

Aethlon had other expense of approximately $220,000 in the fiscal year ended March 31, 2019, compared to other expense of approximately $869,000 in the fiscal year ended March 31, 2018.

The Company recorded government contract and grant revenue in the fiscal years ended March 31, 2019 and 2018.  This revenue arose from work performed under two government contracts with the National Institutes of Health (NIH).  In the fiscal year ended March 31, 2018, the Company recorded approximately $150,000 in revenue from its Melanoma Cancer contract with the NIH and in the fiscal year ended March 31, 2019, Aethlon recorded approximately $230,000 in aggregate revenue from the Melanoma Cancer contract and its new Breast Cancer grant.

The unaudited condensed consolidated balance sheet for March 31, 2019 and the unaudited condensed consolidated statements of operations for the fiscal year ended March 31, 2019 and 2018 follow at the end of this release.

Conference Call

Aethlon will hold a conference call today, Monday, July 1, 2019 at 4:30 p.m. Eastern Time to review financial results and recent corporate developments. Following management's formal remarks, there will be a question and answer session.

To listen to the call by phone, interested parties within the U.S. should call 1-844-836-8741 and International callers should call 1-412-317-5442. All callers should ask for the Aethlon Medical, Inc. conference call.

A replay of the call will be available approximately one hour after the end of the call through July 8, 2019. The replay can be accessed via Aethlon's website or by dialing 1-877-344-7529 (domestic) or 1-412-317-0088 (international) or Canada Toll Free at 1-855-669-9658. The replay conference ID number is 10132719.

About Aethlon Medical, Inc.

Aethlon Medical is focused on addressing unmet needs in global health.  The Aethlon Hemopurifier® is a clinical-stage immunotherapeutic device designed to combat cancer and life-threatening viral infections. In cancer, the Hemopurifier® depletes the presence of circulating tumor-derived exosomes that promote immune suppression, seed the spread of metastasis and inhibit the benefit of leading cancer therapies. The Hemopurifier® is an FDA designated "Breakthrough Device" related to the treatment of individuals with advanced or metastatic cancer who are either unresponsive to or intolerant of standard of care therapy, and with cancer types in which exosomes have been shown to participate in the development or severity of the disease cancer. The Hemopurifier also holds a Breakthrough Device designation related to life-threatening viruses that are not addressed with approved therapies.

Additionally, Aethlon owns 80% of Exosome Sciences, Inc., which is focused on the discovery of exosomal biomarkers to diagnose and monitor cancer and neurological disease progression. Additional information can be found online at www.AethlonMedical.com and www.ExosomeSciences.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "will," "projections," "estimate," or similar expressions constitute forward-looking statements. Such forward-looking statements are subject to significant risks and uncertainties and actual results may differ materially from the results anticipated in the forward-looking statements. Factors that may contribute to such differences include, without limitation, the Company's ability to raise additional funds and maintain its listing on the Nasdaq Capital Market, or any other national securities exchange, the risk that the Company's collaboration with SeaStar will  not be successful, or its subsidiary will not be able to commercialize its products, including the Hemopurifier, that the FDA will not approve the initiation or continuation of the Company's clinical programs or provide market clearance of the Company's products, the Company's ability to complete the development of the Hemopurifier and other planned products, the Company's ability to manufacture its products either internally or through outside companies, the impact of government regulations, patent protection on the Company's proprietary technology, product liability exposure, uncertainty of market acceptance, competition, technological change, and other risk factors. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. Additional factors that could cause results to differ materially from those anticipated in forward-looking statements can be found under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended March 31, 2019, and in the Company's other filings with the Securities and Exchange Commission, including its quarterly Reports on Form 10-Q. Except as may be required by law, the Company does not intend, nor does it undertake any duty, to update this information to reflect future events or circumstances.

Company Contact:

Jim Frakes, CFO
jfrakes@aethlonmedical.com 
858-459-7800 extension 3300


AETHLON MEDICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheet


ASSETS




March 31, 2019


March 31, 2018







CURRENT ASSETS






Cash


$3,828,074


$6,974,070


Accounts receivable


-


74,813


Prepaid expenses


210,042


181,367







TOTAL CURRENT ASSETS


4,038,116


7,230,250








Property and equipment, net


6,021


27,552


Patents, net


66,668


75,832


Deposits


12,159


18,270







TOTAL NONCURRENT ASSETS


84,848


121,654








TOTAL ASSETS


$4,122,964


$7,351,904













LIABILITIES AND STOCKHOLDERS' EQUITY







CURRENT LIABILITIES






Accounts payable 


131,931


124,450


Due to related parties


83,654


90,366


Convertible notes payable, net


962,301


-


Other current liabilities


646,000


263,141







TOTAL CURRENT LIABILITIES


1,823,886


477,957







NONCURRENT LIABILITIES






Convertible notes payable, net


-


841,153

TOTAL NONCURRENT LIABILITIES


-


841,153







TOTAL LIABILITIES


1,823,886


1,319,110







COMMITMENTS AND CONTINGENCIES











EQUITY












Common stock, par value of $0.001, 30,000,000 shares authorized; 19,004,253 and 17,739,511 issued and outstanding


19,004


17,740


Additional-paid in capital


108,058,538


105,574,014


Accumulated deficit


(105,652,433)


(99,457,714)







TOTAL STOCKHOLDERS' EQUITY BEFORE NONCONTROLLING INTERESTS

2,425,109


6,134,040







Noncontrolling interests


(126,031)


(101,246)







TOTAL STOCKHOLDERS' EQUITY


2,299,078


6,032,794








TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$4,122,964


$7,351,904

 



AETHLON MEDICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

For the fiscal years ended March 31, 2019 and 2018

















Fiscal Year


Fiscal Year



Ended 3/31/19


Ended 3/31/18






Government contract revenue


$229,625


$149,625






OPERATING COSTS AND EXPENSES





Professional fees


2,192,048


1,553,204

Payroll and related


3,083,116


2,634,937

General and administrative


953,478


792,600



6,228,642


4,980,741






OPERATING LOSS


(5,999,017)


(4,831,116)






OTHER (INCOME) EXPENSE





Loss on debt extinguishment


-


376,909

Loss on share for warrant exchanges


-


130,215

Interest and other debt expenses


220,487


361,597



220,487


868,721






NET LOSS 


$(6,219,504)


$(5,699,837)






Loss attributable to noncontrolling interests


(24,785)


(20,279)






NET LOSS ATTRIBUTABLE TO AETHLON MEDICAL, INC.

$(6,194,719)


$(5,679,558)






Basic and diluted net loss available to common stockholders per share


$          (0.34)


$          (0.46)






Weighted average number of common shares outstanding


18,124,707


12,317,074

 

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