News Spotlight: Aethlon Medical (NASDAQ:AEMD)

Aethlon Medical (NASDAQ:AEMD) stock observed trading -84.97% off 52-week high price. On the other end, the stock has been noted 29.14% away from low price over the last 52-weeks. The stock disclosed a move of -19.28% away from 50 day moving average and -69.70% away from 200 day moving average. Moving closer, we can see that shares have been trading -3.26% off 20-day moving average. It has market cap of $5.37M.

On Aug. 14, 2019, Aethlon Medical (NASDAQ:AEMD) a therapeutic technology company focused on unmet needs in global health, revealed financial results for its first quarter ended June 30, 2019 and provided an update on recent developments.

Company Updates

Aethlon Medical (Company or Aethlon) is continuing the development of its proprietary Hemopurifier, which is a first in class therapeutic device designed for the single use depletion of circulating viruses and cancer-promoting exosomes.  The Hemopurifier has previously been designated a Breakthrough Device by the FDA for the treatment of glycosylated viruses, including Ebola and other hemorrhagic fever viruses, and in late 2018 was additionally designated as a Breakthrough Device …for the treatment of individuals with advanced or metastatic cancer who are either unresponsive to or intolerant of standard of care therapy, and with cancer types in which exosomes have been shown to participate in the development or severity of the disease…..

Aethlon is currently preparing for the initiation of clinical trials in patients with advanced and metastatic cancers. The Company is initially focused on the treatment of solid tumors, including head and neck cancer, gastrointestinal cancers and other cancers. Following discussions and a meeting with the FDA, the Company is preparing to file an Investigational Device Exemption (IDE) application with the FDA to initiate clinical trials in cancer.

On June 30, 2019, the Company entered into a cross-licensing agreement with SeaStar Medical to jointly develop Aethlon’s and SeaStar’s combined medical devices to address the care and management of critically ill patients. Under this agreement, Aethlon and SeaStar are now initiating development of systems for the transplant, oncology and infectious disease settings.

Financial Results for First Quarter Ended June 30, 2019

The Company’s net loss was approximately $2.1 million, or $(0.11) per share, for the first quarter ended June 30, 2019, compared to a net loss of approximately $1.1 million, or $(0.06) per share, for the quarter ended June 30, 2019.

At June 30, 2019, the Company had a cash balance of approximately $2.5 million.

The Company’s consolidated operating expenses for the quarter ended June 30, 2019 were approximately $1.6 million, compared to $1.25 million for the June 2018 quarter. This increase of approximately $350,000, in 2019 was due to increases in general and administrative expenses of approximately $188,000, professional fees of approximately $158,000 and payroll and related expenses of approximately $3,000.

The $188,000 increase in general and administrative expenses in 2019 was primarily due to the combination of a $120,000 increase in our clinical trial expense, primarily costs associated with the manufacturing of Hemopurifiers for an expected clinical trial in the cancer space, a $39,000 increase in our lab supplies expense, primarily related to our breast cancer grant, and a $39,000 increase in travel expense.

The $158,000 increase in our professional fees in 2019 was primarily due to a $152,534 increase in our legal fees.

The $3,000 increase in payroll and related expenses was primarily due to a $63,374 increase in stock-based compensation, which was partially offset by a $59,944 reduction in our cash-based compensation expense.

The Company’s other expense during the quarter ended June 30, 2019 consisted of interest expense and a loss on debt extinguishment and, during the three months ended June 30, 2018, consisted of interest expense only.  Other expense for the three months ended June 30, 2019 was approximately $501,000, in comparison with other expense of approximately $55,000 for the quarter ended June 30, 2018.

The Company recorded government contract and grant revenue in the first quarters ended June 30, 2019 and 2018.  This revenue arose from work performed under two government contracts with the National Institutes of Health (NIH).  In the quarter ended June 30, 2019, the Company recorded $30,000 in aggregate revenue from its Breast Cancer grant and in the quarter ended June 30, 2018, the Company recorded approximately $150,000 in revenue from its Melanoma Cancer contract with the NIH.

The unaudited condensed consolidated balance sheet for June 30, 2019 and the unaudited condensed consolidated statements of operations for the first quarter ended June 30, 2019 and 2018 follow at the end of this release.

The USA based company Aethlon Medical moved with change of 12.67% to $0.26 with the total traded volume of 116386 shares in recent session versus to an average volume of 261.18K. The stock was observed in the 5 days activity at 0.58%. The one month performance of stock was -18.28%. AEMD’s shares are at -41.97% for the quarter and driving a -77.26% return over the course of the past year and is now at -84.25% since this point in 2018.  Right now the stock beta is 1.15. The average volatility for the week and month was at 15.64% and 14.91% respectively. There are 20.54M shares outstanding and 17.82M shares are floated in market.

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