Aethlon Medical Announces Fiscal 2016 Second Quarter Results

Nov 16, 2015, 16:01 ET from Aethlon Medical, Inc.

SAN DIEGO, Nov. 16, 2015 /PRNewswire/ -- Aethlon Medical, Inc. (Nasdaq: AEMD), the pioneer in creating affinity biofiltration devices to treat life-threatening diseases, today announced results for the second quarter of fiscal 2016 ended September 30, 2015.

"Beyond achieving the short-term objectives set forth in our last quarterly call, we also made material advancements that should benefit our long-term clinical and commercialization endeavors," stated Jim Joyce, Chairman and CEO of Aethlon Medical. "We transitioned to a new Principal Investigator to support our clinical study in Houston, we secured year 5 approval of our primary DARPA contract, kicked-off a cancer related study at UC Irvine Medical Center, launched two new virus study collaborations, and our Exosome Sciences subsidiary submitted a manuscript for publication with our CTE study collaborators. We also made manufacturing related advances and introduced a partnering program to establish new Aethlon ADAPT™ based therapies that target disease indications not addressed by our Hemopurifier®."

Financial Results

At September 30, 2015, we had a cash balance of approximately $4.2 million. Our cash position will be used to fund our FDA-approved feasibility study in the U.S. and our operations over the current fiscal year.

We recorded revenues from our government contracts of $188 thousand in the second quarter of fiscal 2016 compared to $479 thousand in the second quarter of fiscal 2015.  The decrease was due to achieving a lower number of milestones under our DARPA contract in the September 2015 period compared to the September 2014 period.

Consolidated operating expenses were $1.3 million in the second quarter of fiscal 2016 compared to $1.1 million in the second quarter of last year.

Professional fees were $389 thousand in the second quarter of fiscal 2016 compared to $309 thousand in the second quarter of last year, an increase of $80 thousand.  The increase in professional fees was primarily due to an increase in our non-DARPA-related professional fees of $85 thousand and an increase in our DARPA-related professional fees of $1 thousand  Those increases were partially offset by a reduction in our professional fees at Exosome Sciences, Inc. (our majority owned subsidiary) (ESI) of $7 thousand. The $85 thousand increase in our non-DARPA-related professional fees was primarily due to a $57 thousand increase in legal fees largely related to work on several registration statements related to our financings, a $20 thousand increase in investor relations fees and a $13 thousand  increase in scientific consulting fees.

Payroll and related expenses were $598 thousand in the second quarter of fiscal 2016 compared to $544 thousand in the second quarter of last year, an increase of $54 thousand. The increase in payroll and related expenses was primarily due to a $93 thousand increase in cash-based compensation, which was partially offset by a $39 thousand decrease in stock-based compensation due to vesting of stock option grants issued in July 2013 and June 2014.  The increase in cash-based compensation was primarily due to established milestone-based bonus payments at Aethlon of $175,000 which were partially offset by headcount reductions.

General and administrative expenses were $326 thousand in the second quarter of fiscal 2016 compared to $227 thousand in the second quarter of last year, an increase of $99 thousand.  The $99 thousand increase in general and administrative expenses was primarily due an increase of $121 thousand in our non-DARPA-related general and administrative expenses, which was partially offset by a $6 thousand decrease in the general and administrative expenses at ESI and a $16 thousand decrease in our DARPA-related general and administrative expenses.  The primary factor in the $121 thousand increase in our non-DARPA-related general and administrative expenses was a $115 thousand increase in the cost of our U.S. clinical trial.

Net loss for the second quarter of fiscal 2016 was $1.2 million, or $0.16 per share, compared to net loss of $0.8 million, or $0.16 per share, for the second quarter of fiscal 2015.

Our unaudited condensed consolidated balance sheet for September 30, 2015 and our unaudited condensed consolidated statements of operations for the three and six month periods ended September 30, 2015 and 2014 follow at the end of this release.

Conference Call

Aethlon will hold a conference call for investors on November 16, 2015 at 1:30 p.m. PT (4:30 p.m. ET). Investors may access the call by dialing 412-902-6510 (domestic) or 877-270-2148 (International). A live webcast of the call will be available from the Investor Relations section of www.aethlonmedical.com. A recording of the call will also be available by calling 412-317-0088; access code 10075367 beginning approximately two hours after the call, and will be available for one week. A webcast replay from today's call will also be available from the Investor Relations section of www.aethlonmedical.com approximately one hour after the call and will be available for up to thirty days.

About Aethlon Medical, Inc.

Aethlon Medical creates affinity biofiltration devices to treat life-threatening diseases. Our lead therapeutic candidate is the Aethlon Hemopurifier®, a first-in-class device that targets the rapid elimination of infectious viruses and cancer-promoting exosomes from the circulatory system of treated individuals. U.S. clinical progression of Hemopurifier therapy is being advanced under an FDA approved clinical study. We also provide government contracting services to the Defense Advanced Research Projects Agency related to the development of a biofiltration device to treat sepsis. Additional information can be found online at www.AethlonMedical.com or you can connect with us on Twitter, LinkedIn, Facebook and Google+.

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 maintain its listing on the Nasdaq Capital Market, or any other national securities exchange, that the Company or its subsidiary will not be able to commercialize its products, 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 raise capital when needed, the Company's ability to complete the development of its 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, the ability of the Company to meet the milestones contemplated in its contract with DARPA, 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, 2015, and in the Company's other filings with the Securities and Exchange Commission. 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.

Contacts:

Mike Smargiassi/Brad Edwards
Brainerd Communicators, Inc.
212-986-6667
smarg@braincomm.com
edwards@braincomm.com

 

AETHLON MEDICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheet








ASSETS




September 30, 2015


March 31, 2015





(unaudited)




CURRENT ASSETS







Cash


$4,209,356


$855,596



Accounts receivable


186,808


193,341



Deferred financing costs


42,883


82,324



Prepaid expenses


108,245


73,135









TOTAL CURRENT ASSETS


4,547,292


1,204,396










Property and equipment, net


41,997


56,091



Patents, net


98,743


103,325



Other assets


17,443


16,776









TOTAL NONCURRENT ASSETS


158,183


176,192










TOTAL ASSETS


$4,705,475


$1,380,588
















LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES







Accounts payable 


217,594


342,133



Due to related parties


204,112


146,112



Convertible notes payable, net


341,505


-



Other current liabilities


65,737


85,731









TOTAL CURRENT LIABILITIES


828,948


573,976









NONCURRENT LIABILITIES







Convertible notes payable, non-current portion, net


-


155,229


TOTAL NONCURRENT LIABILITIES


-


155,229









TOTAL LIABILITIES


828,948


729,205









COMMITMENTS AND CONTINGENCIES













EQUITY














Common stock, par value of $0.001, 10,000,000 shares authorized; 7,615,636 and 6,657,046 issued and outstanding


7,614


6,657



Additional paid in capital


87,930,959


82,238,507



Deficit accumulated during the development stage


(84,037,356)


(81,629,714)









TOTAL STOCKHOLDERS' EQUITY BEFORE NONCONTROLLING INTERESTS

3,901,217


615,450









Noncontrolling interests


(24,690)


35,933









TOTAL STOCKHOLDERS' EQUITY


3,876,527


651,383










TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$4,705,475


$1,380,588
















 

AETHLON MEDICAL, INC. AND SUBSIDIARIES





Condensed Consolidated Statements of Operations





For three and six months ended September 30, 2015 and 2014

































Three Months


Three Months


Six Months


Six Months



Ended 9/30/15


Ended 9/30/15


Ended 9/30/15


Ended 9/30/15



(unaudited)


(unaudited)


(unaudited)


(unaudited)










Government contract revenue


$188,366


$479,075


$380,874


$530,371










OPERATING EXPENSES









     Professional fees


389,207


308,821


927,433


710,434

     Payroll and related


597,850


544,354


1,056,078


1,165,040

     General and administrative


325,670


227,092


611,695


428,097



1,312,727


1,080,267


2,595,206


2,303,571










OPERATING LOSS


(1,124,361)


(601,192)


(2,214,332)


(1,773,200)










OTHER (INCOME) EXPENSE









Loss on extinguishment of debt


-


65,493


-


2,531,123

Interest and other debt expenses


127,245


78,145


253,933


144,799

Loss on extension of warrants


-


143,363


-


143,363



127,245


287,001


253,933


2,819,285










NET LOSS BEFORE NONCONTROLLING INTERESTS


$(1,251,606)


$(888,193)


$(2,468,265)


$(4,592,485)










Loss attributable to noncontrolling interests


(27,000)


(40,784)


(60,623)


(89,135)










NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$(1,224,606)


$(847,409)


$(2,407,642)


$(4,503,350)










Basic and diluted net loss available to common stockholders per share


$              (0.16)


$              (0.16)


$          (0.34)


$          (0.92)










Weighted average number of common shares outstanding


7,610,459


5,187,398


7,167,903


4,869,898

 

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SOURCE Aethlon Medical, Inc.



RELATED LINKS

http://www.aethlonmedical.com