Aethlon Medical Inc (AEMD) Q4 2025 Earnings Report

Summary of key quarterly metrics (USD, unless noted otherwise):
- Revenue: Not reported in Q4 2025 (No product revenue yet).
- Operating income: $7,338,000 for Q4 2025 (positive due to operating activities in a low-revenue period; note that this is offset by a large net expense line and one-off items in the quarter).
- Net income: -$6,254,893 for Q4 2025 (YoY -157.9%; QoQ -256.4%).
- EPS (diluted): -$4.01 per share for Q4 2025 (YoY -335.9%; QoQ -2,984.6%).
- EBITDA: $7,421,864 for Q4 2025 (positive, aided by non-operational items in the period).
- Cash, end of period: $5,599,074 (approx. $5.6 million).
- Cash burn from operating activities: -$1,672,649 in Q4 2025.
- Net cash provided by/used in financing activities: +$2,359,060.
- Change in cash: +$686,181.
- Weighted average shares outstanding: 1,561,000; Diluted: 1,561,000.
- G&A expenses (quarterly): approximately $4.0965 million; Selling & Marketing: $1.3639 million; Combined SG&A: ~$5.4599 million for the period (subject to rounding and line-item presentation).
- R&D: not disclosed as a separate line in the quarter (management notes emphasis on oncology; annual R&D spend disclosed in annual filings).

Notes: Revenue and some expense line items in the data set show signs of potential rounding or formatting inconsistencies (e.g., G&A line items that seem high given the company’s revenue profile). Management commentary in the earnings call corroborates a significant operating expense reduction for the year (approx. 26% year-over-year) with a $4.6 million noncash warrant inducement charge. The reported Q4 EBITDA and operating income illustrate the impact of one-time items and the timing of cash flows in a pre-revenue clinical-stage company.

Key insights from management on the earnings call, grouped by themes:
- Strategy and clinical focus
- Oncological program is the core focus; India trial is running in parallel with the Australian program. Quote: “Our focus remains almost entirely on oncology. The upcoming trial in India is virtually parallel to the Australian trial.” (James B. Frakes)
- Long COVID collaboration with UCSF is exploratory and cost-efficient, aimed at data collection and potential grant opportunities, with a Keystone Symposium poster planned for August.
- Clear emphasis on advancing in-clinic data and preparing for a potential premarket strategy depending on DSMB outcomes.
- Clinical progression and governance
- Australia: first three patients completed a single 4-hour Hemopurifier treatment with no device deficiencies; DSMB meeting anticipated in July to authorize the next cohort (2 treatments over one week). Data on EV/T cell modulation expected later in summer.
- India: CDSCO approval received; Medanta Medicity Hospital site initiation pending, reflecting a near-term international expansion plan.
- Preclinical PD-EV removal results reported (98.5% PD-EV removal in ex vivo study); supports the mechanistic rationale for the oncology program and potential new therapeutic applications.
- Operations and financials
- Management highlighted a substantial reduction in operating expenses for the year (approx. 26% year-over-year) and a focus on cost discipline to preserve cash while pursuing clinical milestones.
- A warrant inducement in March 2025 generated roughly $2.3 million in cash but included a $4.6 million noncash accounting charge; management notes this did not impact net worth on the balance sheet.
- Additional income in the quarter from CARES Act employee retention credits (~$324k) and IRS interest (~$36k); some of these items were recorded as receivables in current assets.
- Financial outlook and fundraising
- Management reiterated the need to continue fundraising given the absence of revenue; potential for nondilutive government grants or research contracts, but acknowledged that such opportunities depend on alignment with corporate goals and regulatory pathways.
- They expect ongoing equity financing and possibly government grants to support expansion and operation of multi-site clinical trials.
- Management tone and cadence
- Jim Frakes emphasized progress in the clinic and lab as the most meaningful advancement in the period, a departure from prior quarters, and indicated a favorable trajectory for data readouts in the coming months.

Aethlon Medical presents a high-risk, potentially high-reward setup anchored on a novel Hemopurifier device with a plausible mechanism to enhance cancer immunotherapy through EV removal. Near-term catalysts are largely clinical and regulatory: DSMB review for Australia Cohort 2 in July 2025, subsequent readouts on EV/T-cell dynamics, and the India trial initiation. The absence of revenue and the need for ongoing fundraising imply a fragile financial runway unless data readouts translate into a timely partnering or grant opportunity. The company’s strategic focus on oncology, coupled with exploratory long COVID work, creates optionality but also adds execution risk. An investment thesis would consider allocating only to higher-risk biotech portfolios with line-of-sight to translational readouts, potential strategic partnerships, and significant upside if oncology data demonstrate meaningful EV-related efficacy signals. Key monitoring items include readouts from the Australian cohort, enrollment pace and regulatory updates in India, any signs of non-dilutive funding, and the pace of cash burn versus availability of new capital.