Aethlon Medical Reports Second Quarter Fiscal 2027 Results and Provides Corporate Update

Rhea-AI Summary

Aethlon Medical (AEMD) reported fiscal second-quarter results for the period ended September 30, 2026, alongside its proposed North Immunology merger.

Quarterly operating expenses rose 77.2% to $2,675,028, while net loss widened to $2,617,507 from $1,487,100 a year earlier. Loss per share narrowed to $2.60 from $18.70. Cash was $6,486,639, versus $5,026,458 at March 31, 2026.

The September 17 merger agreement provides for a two-step transaction; the combined company is expected to use the North Immunology name. Common shareholders are expected to receive contingent rights to potential proceeds from monetizing the legacy Hemopurifier business. Aethlon reduced its workforce, and certain legacy activities would wind down subject to closing.

The Australian Phase 1 oncology study has treated eight patients. Aethlon seeks one more patient but plans to conclude recruitment in connection with the proposed merger, then analyze available data.

8 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNorth Immunology merger agreement signed September 17, 2026, provides for a two-step transaction.
• Moderate pointCash increased to $6,486,639 at September 30, 2026, from $5,026,458 at March 31, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Contingent value rights expected for common shareholders offer participation in potential legacy Hemopurifier monetization proceeds.
• Minor pointEight patients treated across three Phase 1 oncology cohorts, including the second participant in the final cohort.
• Minor pointQuarterly loss per share narrowed to $2.60 from $18.70; six-month loss per share narrowed to $5.97 from $53.27.

3 minor points

• Minor pointOther income rose to $57,521 quarterly from $22,730; six-month income increased to $88,812 from $53,262.
• Minor pointTotal liabilities declined to $1,278,389 at September 30, 2026, from $1,446,835 at March 31, 2026.
• Minor pointStockholders’ equity increased to $6,052,835 at September 30, 2026, from $4,886,272 at March 31, 2026.

Negative

• Major pointCommon shares outstanding increased to 1,607,367 at September 30, 2026, from 314,100 at March 31, 2026.
• Moderate pointQuarterly net loss widened to $2,617,507 from $1,487,100 in the prior-year quarter.
• Moderate pointQuarterly operating expenses increased 77.2% to $2,675,028; six-month expenses rose to $4,254,231 from $3,302,220.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed merger remains uncompleted; the agreement contemplates winding down certain legacy activities subject to closing.
• Minor pointSix-month net loss widened to $4,165,419 from $3,248,958 in the prior-year period.

3 minor points

• Minor pointWorkforce reductions were implemented near quarter-end in connection with the proposed merger.
• Minor point. Forward-looking: it has not happened yet and may not happen.Trial enrollment faces a limited window; Aethlon seeks one additional patient before concluding recruitment with the proposed merger.
• Minor point. Forward-looking: it has not happened yet and may not happen.CVR payments depend on potential monetization and agreement terms; neither a monetization transaction nor payments are assured.

News Explained

Aethlon Medical reported 1,607,367 common shares outstanding at September 30, 2026, up from 314,100 at March 31, 2026; the higher share count reduces an unchanged holder’s percentage ownership, absent offsetting changes.

Key Figures

Cash and cash equivalents: approximately $6.5 million Operating expenses: approximately $2.7 million; up 77.2% Patients treated: 8 patients +1 more

Cash and cash equivalents

approximately $6.5 million

As of September 30, 2026

Operating expenses

approximately $2.7 million; up 77.2%

Fiscal Q2 2027, versus approximately $1.5 million in the prior-year quarter

Patients treated

8 patients

Across three dosing cohorts to date in the Phase 1 Australian oncology study

Additional patient enrollment

1 patient

The company continues to pursue enrollment in the Phase 1 oncology study

Historical Context

1 past event · Latest: Sep 17

1 event

1. Sep 17

   Merger agreement

   24h Move

   +374.1%

   Merger projected Aethlon holders at approximately 4.75%, with CVRs tied to legacy Hemopurifier monetization.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

contingent value right, extracellular vesicles, breakthrough device designation

3 terms

contingent value right financial

"holders of Aethlon's common stock are expected to receive a contingent value right"

A contingent value right is a special security that gives its holder the right to receive one or more future payments only if specified events happen, such as a product reaching a sales target or getting regulatory approval. It matters to investors because it offers potential extra payout tied to uncertain outcomes—like a bet that a project will succeed—so it can add upside to a deal while also carrying extra risk and valuation uncertainty.

extracellular vesicles medical

"remove enveloped viruses and tumor-derived extracellular vesicles (EVs) from circulation"

Extracellular vesicles are tiny, cell-made particles—think microscopic bubbles—that carry proteins, genetic material and signals between cells. Investors care because these vesicles can be used as disease markers, drug-delivery vehicles, or therapeutic products; that creates opportunities and risks around clinical validation, manufacturing scale-up, intellectual property and regulatory approval that can materially affect the value of biotech and diagnostics companies.

breakthrough device designation regulatory

"The Hemopurifier holds a U.S. Food and Drug Administration Breakthrough Device Designation"

A breakthrough device designation is a regulatory program that gives promising medical devices for serious or life‑threatening conditions priority support and faster review from a health authority (e.g., the U.S. FDA). Think of it as a “fast lane” or VIP pass through development and review: it can shorten time to market, lower regulatory uncertainty, and boost a company’s commercial prospects — but it is not an approval by itself.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN DIEGO, Nov. 12, 2026 /PRNewswire/ -- Aethlon Medical, Inc. (the Company or Aethlon) (Nasdaq: AEMD), a clinical-stage medical therapeutic company, today announced financial results for fiscal second quarter ended September 30, 2026, and provided a corporate update. 

Corporate Updates

Merger

On September 17, 2026, we entered into a Plan of Merger and Reorganization (the "Merger Agreement") with North Immunology, Inc. ("North Immunology") and two wholly owned subsidiaries of the Company, pursuant to which the parties agreed to effect a two-step merger transaction (the "Merger"). Upon completion of the proposed Merger, the combined company is expected to operate under the name North Immunology, Inc.

In connection with the proposed Merger we implemented workforce reductions near the end of the second fiscal quarter.  We have retained key personnel necessary to maintain our corporate and regulatory obligations and continue management of our Australian oncology clinical trial. We remain operational and continue to evaluate our activities and resource requirements in light of the proposed Merger and our available financial resources. The Merger Agreement contemplates the wind-down of certain activities associated with our legacy business upon and subject to the closing of the transaction. The timing and extent of any further changes to our operations will depend on the progress and outcome of the proposed Merger, our available resources and other factors. There can be no assurance that the Merger will be completed on the anticipated terms or within the anticipated timeframe, or at all.

In connection with the Merger, holders of Aethlon's common stock are expected to receive a contingent value right ("CVR") pursuant to a contingent value rights agreement to be entered into at closing. The CVRs are intended to provide shareholders with the opportunity to participate in future potential proceeds,  if any, resulting from the monetization of Aethlon's legacy Hemopurifier business.  Any payments under the CVR will be subject to the terms and conditions of the CVR agreement. There can be no assurance that any monetization transaction will occur or that CVR holders will receive any payments.

Clinical Highlights

Phase 1 oncology study: "We advanced our clinical program during the quarter," said James Frakes, CEO and CFO. "We treated the second participant in the third and final dosing cohort of our Phase 1 oncology study in Australia. We have treated eight patients across the three dosing cohorts to date and continue to pursue enrollment of one additional patient.  Given the anticipated timing of the proposed Merger with North Immunology, we have a limited window in which to complete enrollment.  We intend to conclude patient recruitment in connection with the proposed Merger and subsequently compile the available clinical data for analysis.

Financial Highlights

• Cash and liquidity: Cash and cash equivalents were approximately $6.5 million as of September 30, 2026.
• Operating expenses: Consolidated operating expenses for quarter increased 77.2% to approximately $2.7 million versus approximately $1.5 million in the prior-year quarter. This increase was primarily attributable to higher professional fees associated with the proposed Merger and the lack of recognition of a research and development tax credit in the current period due to timing, which resulted in higher general and administrative expenses in the current-year period compared to the prior-year period.

The consolidated balance sheets for September 30, 2026, and March 31, 2026 and the consolidated statements of operations for the fiscal quarters and six-month periods ended September 30, 2026, and 2025, are included at the end of this release.

About the Hemopurifier®

The Aethlon Hemopurifier is an investigational medical device designed to remove enveloped viruses and tumor-derived extracellular vesicles (EVs) from circulation. It is used extracorporeally with a blood pump and combines plasma separation, size exclusion, and affinity binding using a plant lectin resin that targets mannose-rich surfaces found on EVs and viruses. EVs released by solid tumors are believed to play a role in metastasis and the resistance to immunotherapies and chemotherapy. Removal of enveloped viruses and extracellular vesicles has been demonstrated in both in vitro studies and human subjects.

The Hemopurifier holds a U.S. Food and Drug Administration Breakthrough Device Designation for:

The treatment of individuals with advanced or metastatic cancer unresponsive to or intolerant of standard-of-care therapy; and the treatment of life-threatening viruses not addressed with approved therapies.

About Aethlon Medical, Inc.

Aethlon Medical, Inc. (Nasdaq: AEMD) is a clinical-stage medical therapeutic company headquartered in San Diego, California. The Company is advancing the Hemopurifier®, an investigational extracorporeal immunotherapeutic platform designed to remove tumor-derived extracellular vesicles and enveloped viruses from circulation for potential applications in oncology, infectious disease, and other disease states.

For more information, visit www.AethlonMedical.com and follow the Company on LinkedIn.

Forward-Looking Statements

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," "potentially" or similar expressions constitute forward-looking statements.
Forward-looking statements in this release include, among others, statements regarding: the anticipated timing, completion and potential benefits of the proposed Merger with North Immunology, Inc.; the satisfaction of closing conditions, including obtaining required stockholder approvals and completion of the contemplated financing; the anticipated operations and business of the combined company following the Merger; the Company's planned workforce reductions, operational changes and potential wind-down of its legacy business activities; the potential monetization of the Company's legacy Hemopurifier business and any payments that may become payable under the contemplated contingent value rights agreement; the Company's ability to continue enrollment in and complete its Phase 1 oncology clinical trial in Australia, including the anticipated conclusion of patient recruitment and subsequent analysis of available clinical data; and the availability and adequacy of capital to support the Company's ongoing operations and obligations pending completion of the Merger. Such forward-looking statements are subject to significant risks and uncertainties, and actual results may differ materially from those anticipated in the forward-looking statements. These forward-looking statements are based upon Aethlon's current expectations and involve assumptions that may never materialize or may prove to be incorrect. Factors that may contribute to such differences include, without limitation, the risk that the proposed Merger with North Immunology, Inc. may not be completed on the anticipated terms or within the anticipated timeframe, or at all; the failure to obtain required stockholder approvals or satisfy other closing conditions, including completion of the contemplated financing; the potential termination of the Merger Agreement and the consequences thereof; the ability of the combined company to satisfy applicable Nasdaq listing requirements; the Company's ability to manage its operations, expenses and liquidity pending completion of the Merger; the availability and adequacy of capital to support the Company's ongoing obligations; the Company's ability to implement planned operational changes and wind down certain legacy business activities; the Company's ability to enroll additional patients in its Phase 1 oncology clinical trial in Australia and compile and analyze available clinical data; uncertainties regarding the timing and results of its clinical activities; the Company's ability to monetize its legacy Hemopurifier business; the possibility that holders of contingent value rights may not receive any payments; and unforeseen changes in regulatory requirements or other circumstances affecting the Company's operations.  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, 2026, and in the Company's other filings with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q. All forward-looking statements contained in this press release speak only as of the date on which they were made. 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. Because the Hemopurifier® is an investigational device, its safety and effectiveness have not been established, and no conclusions should be drawn regarding clinical benefit.

Company Contact:
Jim Frakes
Chief Executive Officer and Chief Financial Officer
Aethlon Medical, Inc.
Jfrakes@aethlonmedical.com

 

AETHLON MEDICAL, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
ASSETS
			September 30, 2026
			(Unaudited)		March 31, 2026
CURRENT ASSETS
	Cash and cash equivalents		$                  64,86,639		$                         50,26,458
	Deferred offering costs		2,06,216		2,10,985
	Prepaid expenses and other current assets		1,68,169		3,32,094
TOTAL CURRENT ASSETS			68,61,024		55,69,537
	Property and equipment, net		2,15,126		3,56,822
	Operating lease right-of-use asset, net		1,55,699		3,07,820
	Restricted cash		99,375		98,928
TOTAL ASSETS			$                  73,31,224		$                         63,33,107
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts payable		$                   7,43,525		$                           3,84,550
	Due to related parties		68,250		68,250
	Operating lease liability, current portion		1,72,116		3,36,718
	Other current liabilities		2,94,498		6,57,317
TOTAL LIABILITIES, ALL CURRENT			12,78,389		14,46,835
STOCKHOLDERS' EQUITY
	Common stock, $0.001 par value; 20,000,000 shares authorized as of September 30, 2026 and March 31, 2026; 1,607,367 shares issued and outstanding as of September 30, 2026 and 314,100 shares issued and outstanding at March 31, 2026		1,607		314
	Additional paid-in capital		18,53,66,897		18,00,24,947
	Accumulated other comprehensive loss		(43,964)		(32,703)
	Accumulated deficit		(17,92,71,705)		(17,51,06,286)
TOTAL STOCKHOLDERS' EQUITY			60,52,835		48,86,272
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$                  73,31,224		$                         63,33,107

 

AETHLON MEDICAL, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three and six months ended September 30, 2026 and 2025
(Unaudited)
		Three Months		Three Months		Six Months		Six Months
		Ended		Ended		Ended		Ended
		30-Sep-26		30-Sep-25		30-Sep-26		30-Sep-25
OPERATING EXPENSES
Professional fees		$    13,26,456		$      3,93,796		$ 16,60,025		$  8,69,828
Payroll and related expenses		6,66,095		5,94,611		12,49,278		11,75,611
General and administrative		6,82,477		5,21,423		13,44,928		12,56,781
Total operating expenses		26,75,028		15,09,830		42,54,231		33,02,220
OPERATING LOSS		(26,75,028)		(15,09,830)		(42,54,231)		(33,02,220)
Other income, net		57,521		22,730		88,812		53,262
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS		(26,17,507)		(14,87,100)		(41,65,419)		(32,48,958)
OTHER COMPREHENSIVE LOSS		(5,075)		(4,000)		(11,261)		(9,244)
COMPREHENSIVE LOSS		$   (26,22,582)		$   (14,91,100)		$(41,76,680)		$(32,58,202)
Basic and diluted net loss per share attributable to common stockholders		$           (2.60)		$          (18.70)		$        (5.97)		$      (53.27)
Weighted average number of common shares outstanding - basic and diluted		10,07,556		79,503		6,97,832		60,992

 

View original content:https://www.prnewswire.com/news-releases/aethlon-medical-reports-second-quarter-fiscal-2027-results-and-provides-corporate-update-302937989.html

SOURCE Aethlon Medical, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How far has Aethlon Medical’s Australian Phase 1 oncology study progressed?

Aethlon has treated eight patients across three dosing cohorts, including the second participant in the third and final cohort. The company is pursuing one additional patient and plans to conclude recruitment in connection with the proposed North Immunology merger, then compile available clinical data for analysis.

Why did Aethlon Medical’s quarterly operating expenses increase?

Aethlon attributed the increase primarily to higher professional fees associated with the proposed merger and the absence of a research and development tax credit in the current period due to timing. That credit timing resulted in higher general and administrative expenses compared with the prior-year period.

What operations is Aethlon Medical maintaining after its workforce reductions?

Aethlon retained personnel needed to maintain corporate and regulatory obligations and manage its Australian oncology clinical trial. It remains operational and is evaluating activities and resource requirements in light of the proposed merger and available financial resources.