Aethlon Medical (AEMD) Q2 2025 earnings summary

Executive summary

• Permanent CEO James Frakes appointed, with a focus on advancing Hemopurifier oncology trials and reducing expenses.

• First two patients enrolled in Australian Hemopurifier oncology trial; two sites open, third pending ethics approval.

• Indian oncology trial received ethics approval and is preparing for enrollment; regulatory submission underway.

• Hemopurifier holds FDA Breakthrough Device designation for cancer and viral infections; ongoing research in oncology and infectious diseases.

• Cost-cutting measures implemented, including workforce reduction and lower professional fees.

Financial highlights

• Cash and cash equivalents were $6.9 million as of September 30, 2024, up from $5.4 million at March 31, 2024.

• Operating expenses for Q2 FY2024 were $2.9 million, down 9% year-over-year, mainly due to reduced professional fees.

• Net loss for Q2 FY2024 was $2.8 million, down from $3.0 million in Q2 FY2023; net loss for six months was $5.4 million.

• Public offering in May 2024 raised $3.5 million net, with $1.84 million from warrant exercises in June 2024.

• Basic and diluted loss per share was $0.20 for Q2 FY2024, compared to $1.22 for Q2 FY2023.

Outlook and guidance

• Continued patient enrollment in Australian oncology trial expected, with safety data in early 2025 and further data in summer 2025.

• Anticipation of a 43% cash tax credit from Australian R&D expenditures to offset trial costs.

• Third Australian trial site expected to be operational soon, pending final ethics approval.

• Management does not expect existing cash to fund operations for twelve months; significant additional financing is required.

• Clinical trial expenses and infrastructure costs are expected to increase.