Aethlon Medical, Inc. Q1 FY2027 earnings call

• Core Strategy and Discipline

  • Management's top priorities are advancing the hemopurifier platform clinical development, expanding platform applications, growing intellectual property, and maintaining disciplined cost and resource management
  • Operating expenses were reduced year-over-year through lower professional fees, reduced general and administrative costs, and lower preclinical research costs
  • The company currently has sufficient cash to fund operations for at least the next 12 months post-quarter-end offering

• Clinical Development Progress

  • The Australian oncology trial is now enrolling its third and final cohort; one participant has been treated and is in follow-up with no device-related serious adverse events or dose-limiting events, and only two additional participants are needed to complete trial enrollment
  • All three trial sites remain active and are pre-screening candidates, with a goal to complete all treatments and 8-week follow-up lab testing by the end of calendar 2026
  • Preliminary raw data analysis from cohort 2 (two weekly hemopurifier treatments) shows more consistent and longer-lasting positive biomarker changes compared to cohort 1 (single treatment): consistent decreases in total and tumor-derived extracellular vesicles, cancer-linked microRNAs, plus increases in beneficial lymphocyte subsets and favorable changes in immunotherapy response-associated lab ratios

• Preclinical and Research Expansion

  • Preclinical long COVID research was published in the International Journal of Molecular Sciences in June 2026, demonstrating that the hemopurifier's proprietary resin binds extracellular vesicles from long COVID patient plasma and reduces inflammation and immune dysregulation-linked microRNAs
  • The company is planning discussions with academic institutions and regulators to evaluate a clinical development path for long COVID, or identify if additional preclinical work is needed
  • In-house preclinical research is ongoing to evaluate hemopurifier utility for other extracellular vesicle-linked diseases including lupus, heart disease, and chronic kidney disease

Athlon Medical is a single-segment clinical-stage biotechnology company focused on the hemopurifier platform. The company reported consolidated operating expenses of $1.6 million for Q1 FY2027, an 11.9% decrease from $1.8 million in the prior year quarter. Operating loss declined in line with the reduction in expenses. As of June 30, 2026, the company held $4.9 million in cash and cash equivalents; an additional $4 million in gross proceeds from a public common stock offering was raised after quarter end. There are no multiple product segments to report separate performance for.

• Management reaffirms the goal to complete all hemopurifier treatments and 8-week follow-up lab testing for the Australian oncology trial by the end of calendar 2026, with potential completion moving to early 2027 if needed
• Based on current operational plans and the post-quarter equity offering proceeds, the company expects existing cash resources to fund operations for at least the next 12 months from the date of the call
• After trial completion, management will conduct full formal data analysis, finalize the clinical study report, and hold pre-registration discussions with regulatory advisors, with no changes to this timeline guidance provided
• The next earnings call for Q2 FY2027 (ending September 30, 2026) is scheduled to coincide with the Form 10-Q filing in November 2026, maintaining the previously planned guidance timeline

• All biomarker observations from the ongoing oncology trial are preliminary, based on a small number of participants, and not confirmed via formal statistical analysis; actual trial outcomes may differ from current early observations
• Forward-looking statements regarding clinical progress, platform expansion, and funding duration are subject to significant inherent uncertainties, and actual results may differ materially from expectations, as detailed in the company's SEC filings
• Expanding hemopurifier development into new indications (including long COVID) requires external financing, partnership, or grant funding that the company cannot guarantee it will obtain
• The hemopurifier is still an investigational device, and no claims of safety, effectiveness, or clinical benefit can be made at this stage of development
• There is no guarantee that regulatory bodies will approve expanded breakthrough device designation for long COVID or support future clinical development plans for new indications

Q: An analyst confirms the interpretation of early trial data: did cohort 2 (higher treatment dose) show longer positive biomarker benefit than cohort 1? What are the plans for future dosing if this trajectory continues in cohort 3? / A: Preliminary raw data shows more consistent positive changes across all cohort 2 participants, and these changes persist up to 8 weeks, compared to only 2-3 weeks for most cohort 1 participants. Management notes that more than 3 weekly treatments would not be tolerable for patients, as each full treatment session (including setup/removal) takes an entire day. If the current trajectory holds in cohort 3, the 3-treatments-per-week schedule will be carried forward for future efficacy trials.

Q: Can Athlon continue to expand research into new indications in a cost-effective way without immediate large clinical spending? / A: The company can continue low-cost in-house preclinical research, scientific publications, and hypothesis testing using internal staff, existing equipment, and low-cost sample acquisition for the foreseeable future. To advance any new indication to formal clinical trials, additional capital, a partnership, or government grant funding will be required. This low-cost preclinical work maintains optionality for future partnerships or development.

Q: Is there a path to get early human data for long COVID via regulatory flexibility? / A: The company currently holds breakthrough device designation for life-threatening viral indications; long COVID is not currently classified as such. Management notes that expanded designation could open the door for emergency use single-patient treatments to generate early human data, but this is only a possibility and not a guaranteed outcome.