AEMD — Aethlon Medical, Inc.

Aethlon Medical (AEMD) Q3 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Cash Balance: Approximately $7 million as of December 31, 2025.
• Operating Expenses: $2.06 million for Q3 2026, a 13.6% increase from $1.81 million in Q3 2025, primarily due to higher payroll costs, offset by lower clinical trial expenses.
• Operating Loss: Increased to $2.06 million from $1.81 million year-over-year.
• Other Income: $44,000 in interest income, slightly down from $60,000 in the prior year.
• Year-to-Date Operating Expenses: Decreased to $5.36 million, down 27% from $7.34 million in the previous year, reflecting effective cost management.

2. Strategic Updates and Business Highlights

• Oncology Trial Progress: Continued enrollment in the Australian trial for the Hemopurifier, with the completion of the first cohort and ongoing treatments in the second cohort. Positive safety data reported with no serious adverse events.
• Extracellular Vesicle (EV) Research: Expansion of research supporting the Hemopurifier as a multi-indication therapeutic, with ongoing studies in Long COVID and other diseases.
• SLAMB System Compatibility: Research underway to evaluate compatibility with a simplified blood treatment system that could enhance clinical flexibility and reduce invasiveness for patients.
• Cost Management: Sustained focus on reducing operating expenses while advancing clinical and R&D initiatives.

3. Forward Guidance and Outlook

• Cohort 2 Completion: Anticipated completion of treatments for the second cohort by the end of February 2026, with safety data review by the Data Safety Monitoring Board expected in late March.
• Cohort 3 Planning: If approved, the third cohort could begin in April 2026, with a pool of potential participants already identified.
• Future Research Directions: Continued exploration of the Hemopurifier's applications in various diseases, including autoimmune conditions and Long COVID.

4. Challenges and Points of Concern

• Increased Operating Losses: The rise in operating losses may raise concerns about financial sustainability, especially with ongoing clinical trials.
• Regulatory Hurdles: Potential regulatory challenges related to the integration of the Hemopurifier with the SLAMB system, which is not yet approved and will require additional testing.
• Focus on Australia: Aethlon has decided to concentrate on the Australian trial, foregoing potential trials in India, which may limit geographical diversification and opportunities for data collection.

5. Notable Q&A Insights

• Cohort 2 Treatment Schedule: Clarification that Cohort 2 involves new patients receiving two treatments, with the same follow-up period as Cohort 1.
• Patient Recruitment: Increased interest in the trial noted, with a queue of potential participants ready for Cohort 3, which could expedite the process.
• Patient Experience Improvements: The SLAMB system's smaller catheter design is expected to enhance patient comfort and ease of administration, potentially expanding treatment settings beyond dialysis units.
• Cohort 3 Necessity: Emphasis on the importance of completing Cohort 3 to fully evaluate the efficacy of three treatments, based on prior research indicating the need for multiple treatments for optimal results.

In conclusion, Aethlon Medical is making progress in its clinical trials and research initiatives while maintaining a disciplined approach to cost management. However, the company faces challenges related to increasing operating losses and regulatory hurdles, which will need to be navigated as it advances its Hemopurifier platform.