On July 1, 2019 Aethlon Medical, Inc. (Nasdaq: AEMD), a therapeutic technology company focused on unmet needs in global health, reported financial results for its fiscal year ended March 31, 2019 and provided an update on recent developments (Press release, Aethlon Medical, JUL 1, 2019, View Source [SID1234537351]).

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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.