SAN DIEGO, Aug. 13, 2015 /PRNewswire/ -- Aethlon Medical, Inc. (Nasdaq:AEMD), the pioneer in creating affinity biofiltration devices to treat life-threatening diseases, today announced results for the first quarter of fiscal 2016 ended June 30, 2015.
“In recent months, we executed a series a corporate milestones that improve the future outlook for our organization,” stated Jim Joyce, Chairman and CEO of Aethlon Medical. “We continued to strengthen our balance sheet through the completion of a $6 million equity financing and our shares began trading on Nasdaq, which broadens our access to the capital markets. As a result of the financing, we have the capital resources to support the FDA-approved study we initiated to advance Hemopurifier® therapy as a candidate to treat a broad-spectrum of viral pathogens. Additionally, we are better positioned to pursue clinical opportunities that exist for our Hemopurifier® in cancer care.”
Recent Events
On June 24, 2015 we successfully completed a $6 million private equity offering which yielded net proceeds of approximately $5.6 million.
On July 13, 2015, an application to list our common stock on the Nasdaq Capital Market was approved and our common stock began trading on the Nasdaq Capital Market on July 13, 2015.
Financial Results
At June 30, 2015, we had a cash balance of approximately $5.65 million. Our cash position will be used to fund our FDA-approved feasibility study in the U.S. and our operations over the current fiscal year.
We recorded revenues from our government contracts of $192 thousand in the first quarter of fiscal 2016 compared to $51 thousand in the first quarter of fiscal 2015. The increase was due to achieving a milestone under our DARPA contract in the 2016 period.
Consolidated operating expenses were $1.3 million in the first quarter of fiscal 2016 compared to $1.2 million in the first quarter of last year.
Professional fees were $538 thousand in the first quarter of fiscal 2016 compared to $402 thousand in the first quarter of last year, an increase of $136 thousand. The $136 thousand increase in our professional fees was primarily due to an increase in our non-DARPA-related professional fees of $237 thousand, which was partially offset by a reduction in our professional fees at our ESI subsidiary of $55 thousand and in our DARPA-related professional fees of $45 thousand. The $237 thousand increase in our non-DARPA-related professional fees was primarily due to a $213 thousand increase in legal fees and a $65 thousand increase in accounting fees, both of which are largely related to work on registration statements related to our financings. Those increases were partially offset by a $60 thousand decrease in scientific consulting fees.
Payroll and related expenses were $458 thousand in the first quarter of fiscal 2016 compared to $621 thousand in the first quarter of last year, a decrease of $163 thousand. The $163 thousand decrease in payroll and related expenses was primarily due to a $120 thousand decrease in stock-based compensation due to vesting of stock option grants issued in July 2013 and June 2014 and to a $42 thousand reduction in cash-based compensation due to headcount reductions from the 2014 period.
General and administrative expenses were $286 thousand in the first quarter of fiscal 2016 compared to $201 thousand in the first quarter of last year, an increase of $85 thousand. The $85 thousand increase in general and administrative expenses was primarily due an increase of $110 thousand in our non-DARPA-related general and administrative expenses, which was partially offset by a $19 thousand decrease in the general and administrative expenses at ESI and a $6 thousand decrease in our DARPA-related general and administrative expenses. The primary factors in the $110 thousand increase in our non-DARPA-related general and administrative expenses were a $42 thousand increase in the cost of our U.S. clinical trial, a $26 thousand increase in our conference expense and a related $16 thousand increase in our travel expense largely related to increased participation in investor and industry conferences, and a $14 thousand increase in our investor relations expenses.
Net loss for the first quarter of fiscal 2016 was $1.2 million, or $0.18 per share, compared to net loss of $3.7 million, or $0.80 per share, for the first quarter of fiscal 2015.
Our unaudited condensed consolidated balance sheet for June 30, 2015 and our unaudited condensed consolidated statements of operations for the three month periods ended June 30, 2015 and 2014 follow at the end of this release.
Conference Call
Aethlon will hold a conference call for investors on August 13, 2015 at 1:30 p.m. PT (4:30 p.m. ET).
To read full press release, please click here.
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