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Aethlon Medical Reports Financial and Corporate Update for Q2 Fiscal 2027

Aethlon Medical, Inc. (Nasdaq: AEMD) has shared its financial results for the second fiscal quarter ending September 30, 2026, alongside vital corporate updates, particularly relating to its merger with North Immunology, Inc. This merger marks a significant step in restructuring and enhancing Aethlon's capabilities.

Corporate Updates on the Merger

On September 17, 2026, Aethlon entered a Plan of Merger and Reorganization with North Immunology, which involves a two-step merger process. Upon completion, the new entity will operate under the name North Immunology, Inc. To facilitate this transition, Aethlon has downsized its workforce while ensuring the retention of essential personnel to manage ongoing clinical obligations, particularly the Australian oncology trial.

The company is currently assessing its activities and resource needs in light of the merger, which may lead to a wind-down of certain legacy operations. This strategic move aims to streamline the company’s focus and potential for long-term growth, although it also introduces uncertainties regarding the merger’s timeline and conditions.

Aethlon’s shareholders are set to receive a contingent value right (CVR) once the merger closes, granting them a stake in potential future earnings from Aethlon's legacy Hemopurifier business. However, the realization of these payments is contingent upon favorable conditions.

Clinical Highlights

The CEO and CFO, James Frakes, provided insights into the current clinical programs, stating, “During the quarter, we advanced our clinical program significantly.”

In Australia, Aethlon has treated eight patients across three dosing cohorts in its Phase 1 oncology study, bringing them closer to finalizing patient enrollment. The timeline for completing recruitment is critical, coinciding with the expected merger, after which the results will be systematically analyzed.

Financial Performance Overview

As of September 30, 2026, Aethlon reported cash and cash equivalents totaling approximately $6.5 million. However, the fiscal quarter reflected a staggering increase of 77.2% in operating expenses, which surged to approximately $2.7 million compared to $1.5 million in Q2 of the previous year. This increase is mainly attributed to professional fees related to the merger process and the absence of certain tax credits that ordinarily offset research and development expenses.

The detailed financial reports encompass consolidated balance sheets and operational statements comparing fiscal quarters and six-month periods, which highlight both the challenges and strategic choices faced by Aethlon. While these results reflect a tough financial landscape, they also serve as a foundation for the proposed changes and reorganization.

About the Aethlon Hemopurifier®

The Hemopurifier is a significant innovation within Aethlon’s portfolio, being designed as an investigational medical device aimed at eliminating enveloped viruses and tumor-derived extracellular vesicles (EVs) from the bloodstream. It employs a combination of plasma separation and affinity binding to target harmful agents in the body, a functionality particularly relevant in oncology and infectious diseases. The Hemopurifier holds a U.S. FDA Breakthrough Device Designation, signifying its potential impact in treating advanced cancers and life-threatening viruses.

About Aethlon Medical, Inc.

Based in San Diego, California, Aethlon is pioneering advancements in medical therapeutic technologies targeting crucial areas in healthcare. They continue to explore new avenues in the medical field while addressing complex challenges in oncology and infectious diseases.

For more details on Aethlon Medical and to follow their progress, visit their website or LinkedIn page.

Conclusion

As the company navigates through this transformative period, stakeholders are invited to stay informed about its developments regarding the merger, clinical trials, and overall strategy. Aethlon Medical’s commitment to innovating healthcare solutions mirrors its dedication to advancing through strategic partnerships and clinical advancements.