Aethlon Medical, Inc. (AEMD) Earnings

Management highlights

• Clinical Development Progress - Enrollment and treatment of Cohort 2 of the Australian oncology trial have been completed, with 3 participants receiving 2 Hemopurifier treatments within a 1-week period. The independent data safety monitoring board identified no safety concerns and approved advancement to the third and final cohort with no protocol changes. - The first participant in Cohort 3 has been enrolled and treated with 3 weekly Hemopurifier sessions, with no device deficiencies or immediate complications, and is now in safety follow-up. Screening for additional Cohort 3 participants is active across all 3 trial sites, with good site engagement. - This dose-finding trial enrolls 9-18 patients with solid tumors progressing or stable on anti-PD-1 therapy (KEYTRUDA or Opdivo), to evaluate safety, feasibility, and optimal dosing. Central lab measurement of Cohort 2 serum extracellular vesicles (EV) and T cell parameters is complete, with formal statistical analysis of dosing regimens planned after trial completion. - Preliminary results from Cohort 1 showed positive directional changes in EV and T cell markers, including reduced levels of PDL1-carrying EVs, which are linked to anti-PD-1 therapy resistance. • Platform Expansion and Preclinical Research - Preclinical research is expanding Hemopurifier EV removal applications to new disease areas: rheumatoid arthritis (where platelet-derived EVs drive pathogenesis) and chronic kidney disease (where patient EVs contribute to congestive heart failure). All preclinical testing is conducted in-house in a cost-efficient manner. - Successful initial testing has been completed for Hemopurifier compatibility with a simplified blood pump system developed by Sabre Medical. Future testing will evaluate performance with blood/plasma and EV removal; compatibility with this simplified system would expand access to Hemopurifier treatment by enabling use outside dialysis units, with less invasive catheters and at-home treatment options. - The company is monitoring the ongoing Ebola outbreak in Central Africa. Existing preclinical data confirms Hemopurifier can reduce Ebola viral load, and a single compassionate use treatment during the 2014 outbreak was associated with a 2 log viral load reduction and patient recovery. The FDA-approved compassionate use protocol for up to 20 Ebola patients at 10 U.S. institutions remains active, and Aethlon has shared this capability with global public health bodies. • Intellectual Property and Financial Discipline - The company achieved key intellectual property milestones during the fiscal year, and maintains a strategy of disciplined cost control to support extended operations while advancing the Hemopurifier platform. Operating expense reductions were driven by lower payroll, general and administrative, and professional fee costs year-over-year.

Guidance

Management did not provide explicit numeric revenue or earnings guidance for future periods. The company confirmed that it has sufficient cash resources to support ongoing clinical and preclinical activities, and recently strengthened its balance sheet via an at-the-market offering. The next earnings call for the first fiscal quarter ending June 30, 2026 is scheduled to coincide with the Form 10-Q filing in August 2026. Preclinical research for new indications and the oncology trial are expected to progress per their current timelines, with publication of preclinical data planned for peer-reviewed journals and scientific meetings after data collection is complete.

Segment performance

Aethlon Medical is a clinical-stage biotech focused on the single Hemopurifier platform technology, and does not report separate product segment financial performance. For the full fiscal year ended March 31, 2026, consolidated operating expenses totaled $7.3 million, a 21.9% year-over-year decrease from $9.3 million in FY2025. The operating loss for FY2026 was $7.3 million, down from $9.3 million in FY2025. Net loss attributable to common stockholders was $7.2 million in FY2026, compared to a $13.4 million net loss in FY2025. Other income totaled $142,000 in FY2026 (primarily interest on cash balances), versus a $4 million other expense in FY2025 which included $4.7 million in noncash financing-related charges. As of March 31, 2026, the company held $5 million in cash and cash equivalents, and raised an additional $1.85 million in net proceeds via its at-the-market program shortly after fiscal year-end.

Risks & headwinds

All forward-looking statements regarding clinical trial progress, future product applications, and operational timelines are subject to significant risks and uncertainties that could cause actual results to differ materially from expectations. These risks are detailed in the company's Form 10-K, recent Form 10-Q filings, and other SEC filings. Key specific risks noted on the call include: clinical trial screening failures (some patients have already failed enrollment screening for Cohort 3, which is common and can impact trial timelines), the small size of the ongoing oncology trial means it is not powered to draw conclusions about clinical efficacy, and positive preliminary signals from early cohorts require confirmation in larger trials before any claims of clinical benefit can be made.

Analyst Q&A

• Q: Marla Marin asked for details on the cost structure and timeline for the new rheumatoid arthritis and chronic kidney disease preclinical programs, and what the next steps are after initial testing. /

  A: Management confirmed all preclinical work is done in-house in a highly cost-efficient manner. The team is currently testing EV binding and removal in patient plasma samples from both indications, after completing initial testing on healthy donor samples. Positive results will be used to submit to peer-reviewed publications and abstracts for scientific meetings, to build out the company's preclinical pipeline at low incremental cost.

• Q: Anthony Vendetti asked what efficacy and biomarker endpoints the company is tracking in the small oncology dose-finding trial, and whether any efficacy signals have been observed to date. /

  A: Management explained the primary endpoint of the trial is safety; secondary endpoints are changes in surrogate markers: EV reduction (especially PDL1-carrying EVs linked to anti-PD-1 resistance) and improvements to anti-tumor T cell counts. The small non-randomized trial is not powered to measure clinical efficacy outcomes. Cohort 1 data, already published in a prior press release, showed positive signals: EV and PDL1-EV levels fell, and T cell activity improved, which will need to be confirmed across all cohorts.

• Q: Marla Marin asked if trial site engagement for the final oncology cohort remains strong after enrollment of the first participant, matching the positive interest reported on the prior call. /

  A: Management confirmed that the three trial sites maintain strong engagement and active screening for eligible participants. A small number of patients have been screen failures due to not meeting inclusion/exclusion criteria, which is an unavoidable normal occurrence in early-stage clinical trials, and does not impact ongoing enrollment progress.