Aethlon Medical, Inc. (AEMD) FY2026 Earnings: Revenue $0K
AEMD — FY2026 Annual Report Analysis
Full Year · Fiscal year 2026 · Published by Pham Hop
Aethlon Medical (no revenue) cut its fiscal 2026 net loss to $7.15M from $13.39M, largely on lower payroll and a one-time charge not repeating, but burned $7.0M in cash, ended with $5.03M, carried a going-concern warning and grew its share count about 7.8x.
Revenue
$0K
Net income
-$7.2M
-46.6% YoY
Diluted EPS
$-10.61
-87.6% YoY
Loss nearly halves, but the business still runs on new share sales
Aethlon Medical is a San Diego company developing the Hemopurifier, a blood-filtering cartridge meant to pull viruses and tumor-shed particles called extracellular vesicles (tiny packets that cancer cells release, which may help tumors dodge the immune system) out of a patient's blood. It has no product on the market and reported no revenue in the fiscal year ended March 31, 2026 (its "fiscal 2026"). The year's news is about spending and funding: net loss fell to $7.15 million from $13.39 million, but more than half of that improvement is an accounting charge from the prior year not repeating, and the company again paid its bills by issuing large amounts of new stock. It ended the year with $5.03 million of cash against $7.0 million of cash burned in operations during the year, and its auditors attached a going-concern warning (doubt that the company can keep operating for the next 12 months without new money).
At a glance
$7.0 million used in operations (vs $7.6 million a year earlier): the real cost of running the company, and the number that decides how long the cash lasts. Year-end cash covered about 8-9 months of it.
Operating expenses down 21.9% to $7.29 million: mostly lower payroll after 2024 executive departures and layoffs, plus lower investor-relations and accounting fees. Research spend fell less, by 13.6% to $1.91 million.
Shares outstanding rose from 201,074 to 1,570,449 (about 7.8x) over the year, even after two reverse stock splits. Loss per share fell 88% mainly because the loss was spread over far more shares, not because the loss itself fell that much.
The numbers
Metric
FY2026 (to Mar 31, 2026)
FY2025
YoY Change
Revenue
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$0
$0
n/a
Total operating expenses
$7.29M
$9.34M
-21.9%
of which research & development
$1.91M
$2.21M
-13.6%
Operating loss
$(7.29)M
$(9.34)M
narrowed 21.9%
Other income (expense), net
$0.14M
$(4.05)M
n/a
Net loss
$(7.15)M
$(13.39)M
narrowed 46.6%
Loss per share (basic & diluted)
$(10.61)
$(85.77)
narrowed 87.6%
Cash used in operations
$(7.00)M
$(7.65)M
-8.5%
Cash at year end
$5.03M
$5.50M
-8.6%
Weighted average shares
673,945
156,085
+332%
Per-share figures are as reported in the 10-K, adjusted for the June 2025 (1-for-8) and October 2025 (1-for-10) reverse splits but not for the later 1-for-5 split in July 2026.
The company does not show research and development as its own line: it reports expenses by type (payroll, professional fees, general and administrative) and discloses R&D separately in a note, so the $1.91 million is spread across those three lines.
Where the savings came from
Operating expenses fell by $2.05 million. The filing attributes it to three lines:
Payroll, down $1.09 million to $2.79 million. Fiscal 2025 carried partial-year salary and severance for two executives who left in July and October 2024 and for staff cut in an August 2024 workforce reduction; none of that recurred. Stock-based pay also fell by $137,000.
Professional fees, down $415,000 to $1.81 million, from less investor-relations activity, a switch to new accounting service providers, and some non-recurring accounting and audit work in the prior year.
General and administrative, down $547,000 to $2.70 million. This line holds much of the clinical-trial cost. It fell because the company wound down its COVID-19 and oncology trial work in India, spent less on Hemopurifier raw materials, insurance and software, and booked a $218,000 Australian R&D tax credit as a reduction of expense. Pushing the other way: costs of appealing a Nasdaq delisting and a forfeited deposit on a previously rented mobile clean room.
Most of this is cost that has already been cut out, not a sign the program is getting cheaper to run. Research spend itself fell only $300,000.
What the headline numbers hide
More than half the drop in net loss is a prior-year charge not repeating. Fiscal 2025's net loss included a $4.66 million non-cash "warrant inducement" expense (the accounting value of new warrants and repriced old ones handed to an investor in March 2025 to get them to exercise early) and $324,000 of one-time Employee Retention Tax Credit income. Strip both out and the underlying loss improved from about $9.05 million to $7.15 million, roughly 21%, in line with the drop in operating expenses.
Cash burn fell much less than the loss. Operating cash outflow was $7.0 million, almost equal to the $7.15 million net loss (non-cash depreciation of $324,000 and stock pay of $279,000 were mostly offset by paying down bills; amounts owed to related parties fell from $580,000 to $68,000). Year over year, cash burn fell only 8.5% versus the 46.6% narrowing in net loss.
Funding came entirely from selling stock. Financing brought in a net $6.5 million: about $7.8 million from new shares and warrant exercises, less $1.2 million of fees. The main deals were a September 2025 registered direct offering (about $4.5 million gross, $3.7 million net) and a December 2025 private placement (about $3.3 million gross) plus a warrant exercise at a cut price of $4.03 that raised $849,000. Even after all that, cash still fell $474,000 over the year.
Dilution is heavy and ongoing. Share count rose about 7.8x during the year despite two reverse splits (which combine old shares into fewer new ones, usually to keep the price above Nasdaq's $1 minimum; the October 2025 split was a response to a Nasdaq bid-price notice). Stockholders in February 2026 approved raising authorized shares from 6 million to 100 million. At year end there were 1,957,490 warrants outstanding (rights to buy new shares at a set price, mostly at or below $9) — more than the 1,570,449 shares then outstanding. The company is exposed to further dilution if those are exercised.
Going-concern warning. The auditors' opinion and management both say there is substantial doubt about the company's ability to continue for a year from the filing date without additional capital.
After the year closed: fresh cash, a third reverse split
The 10-Q for the quarter ended June 30, 2026 (filed August 13, 2026) shows what happened next:
The company sold stock through its at-the-market program (selling shares into the market over time), raising about $1.85 million net per the 10-K's subsequent-events note, and ended June with $4.93 million in cash. The quarter's net loss was $1.55 million (vs $1.76 million a year earlier) and cash used in operations was $1.90 million.
On July 7, 2026 it closed another offering of shares, pre-funded warrants and new warrants at a $3.55 exercise price, for about $4.0 million gross before fees.
On July 31, 2026 it carried out a 1-for-5 reverse split, its third in about 14 months. Taken together, the three splits combine 400 old shares into one.
With the July money, management now states that cash will fund planned operations for at least twelve months from the 10-Q date, while saying it will likely need more capital after that to keep developing the Hemopurifier.
Takeaway: The smaller loss is real but mostly reflects costs already cut and a one-time charge dropping out of the comparison; cash burn is still about $7 million a year and the only source of money is new stock. Shareholders' stakes are shrinking fast (share count up about 7.8x in a year, a third reverse split in July 2026, and outstanding warrants exceeding the share count at year end) while the one clinical program is still in its first, small safety study.
Clinical and regulatory status
Australian cancer trial (the main program). A safety, feasibility and dose-finding study in patients with solid tumors whose disease is stable or getting worse on anti-PD-1 drugs (immunotherapies such as Keytruda or Opdivo), designed to enroll about 9 to 18 people across three hospitals. The main goal is safety; how many treatments it takes to lower extracellular-vesicle levels and improve immune-cell activity is exploratory. Cohort 1 (three patients, one 4-hour treatment each) and Cohort 2 (two treatments within a week) are complete, with the independent safety board clearing each step. The first Cohort 3 patient (three treatments in a week) was treated on June 4, 2026; two more are needed to complete that cohort. The company reports no device-related serious adverse events or dose-limiting toxicities so far. The 10-Q describes "preliminary observations" of consistent biomarker changes in the first two cohorts but notes they await formal statistical analysis.
India trial dropped. Approved by Indian regulators in July 2025, but the company chose not to run it to save money.
Viral infections. The U.S. and India COVID-19 studies were terminated for low patient numbers; an FDA investigational device exemption (permission to test an unapproved device in people) for viral indications stays open for future outbreaks. The device holds FDA "Breakthrough Device" designations in advanced cancer and in life-threatening viruses without approved therapies; that status speeds FDA interaction but is not an approval.
Manufacturing. The FDA has approved manufacturing at the San Diego facility, but the company is still waiting on FDA approval to qualify an additional supplier of a key Hemopurifier component. It says it has enough devices on hand for the Australian trial.
What to watch next
Cohort 3 completion and the full data readout. The next concrete milestone is treating the remaining two Cohort 3 patients and the safety board's review. A small safety study is not evidence the device helps cancer patients; any efficacy question needs a larger, later trial the company has not yet disclosed plans or funding for.
Quarterly cash burn against the new cash. Quarterly operating cash outflow has been running around $1.7-1.9 million. On that pace, June cash plus the July raise covers roughly the 12 months management cites, so another raise is likely by mid-to-late 2027 unless spending falls further.
Further dilution and listing status. Watch for more at-the-market sales, warrant exercises, and any new Nasdaq notices. The company also flags a pending Nasdaq proposal (not yet approved by the SEC) that would require at least $5 million of market value of listed securities.
Next filing: the 10-Q for the quarter ending September 30, 2026, likely around mid-November 2026 based on last year's November 12 filing.