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Aethlon Medical Inc (AEMD)
NASDAQ:AEMD

Aethlon Medical (AEMD) AI Stock Analysis

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Aethlon Medical

(NASDAQ:AEMD)

Rating:38Underperform
Price Target:
Aethlon Medical's overall stock score is low due to significant financial challenges, including persistent losses and cash flow issues. The technical indicators suggest negative momentum, and the valuation is unattractive given the negative P/E ratio and lack of dividends. While the earnings call presented some positive strategic efforts, such as cost reduction and trial advancements, the hurdles in clinical trials and financial constraints weigh heavily on the stock's outlook.
Positive Factors
Clinical Trials
Significant progress was made with Aethlon's oncology program, including the first treatment of a patient with the company's Hemopurifier.
Product Innovation
The Hemopurifier's potential to improve outcomes in the treatment of people with viral infections, cancer, and now results with perfusion of discarded kidneys is underappreciated.
Regulatory Approvals
AEMD received formal approval from India's Central Drugs Standard Control Organization to initiate a similar oncology trial at Medanta Medicity Hospital.
Negative Factors
Commercialization Challenges
The path to commercialization for the Hemopurifier remains long and uncertain.
Financial Performance
The company reported a GAAP loss per share wider than expectations and is pre-revenue.
Investment Risks
Risks to our investment thesis include failure of clinical trials, regulatory requirements for additional clinical studies, an untested commercialization strategy, failure of products to show sufficient competitive differentiation in targeted product indications, intellectual property expiry or invalidation, potential to raise additional funds under poor market conditions, and potential failure to meet Nasdaq minimum bid.

Aethlon Medical (AEMD) vs. SPDR S&P 500 ETF (SPY)

Aethlon Medical Business Overview & Revenue Model

Company DescriptionAethlon Medical, Inc., a medical technology company, focuses on developing products to diagnose and treat life and organ threatening diseases in the United States. The company develops Aethlon Hemopurifier, a clinical-stage immunotherapeutic device that removes tumor-derived exosomes and life-threatening viruses from the human circulatory system, including removal of COVID-19 virus, associated variants, and related exosomes. Aethlon Medical, Inc. has a collaboration with the University of Pittsburgh Medical Center Hillman Cancer Center for studies related to head and neck cancer. The company was founded in 1999 and is based in San Diego, California.
How the Company Makes MoneyAethlon Medical makes money through the development and commercialization of its Hemopurifier product, targeting both therapeutic and diagnostic markets. Revenue is primarily generated from grants, research and development contracts, and potential sales or licensing of its proprietary technology. As a company focused on early-stage biotechnology, Aethlon also relies on government funding and partnerships with research institutions to support its development efforts. Key factors contributing to its earnings include the expansion of its product applications, regulatory approvals, and strategic collaborations that enhance its market reach and product development pipeline.

Aethlon Medical Earnings Call Summary

Earnings Call Date:Jun 26, 2025
(Q4-2025)
|
% Change Since: -38.66%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in clinical trials, regulatory approvals, and collaboration efforts, particularly in oncology and long COVID research. However, financial challenges persist, with reliance on external funding and the impact of noncash charges and nonrecurring costs. While the achievements indicate a strong strategic direction, financial sustainability remains a concern.
Q4-2025 Updates
Positive Updates
Oncology Trial Progress in Australia
Aethlon Medical treated the first 3 patients in its oncology trial using the Hemopurifier at clinical sites in Australia. The trial completed Hemopurifier treatments without device deficiencies or immediate complications, and the prespecified 7-day safety follow-up was completed.
Regulatory Approval in India
The company received regulatory approval in India to initiate a similar oncology study at Medanta Medicity Hospital, marking a significant step in expanding their clinical trials globally.
Collaboration with UCSF on Long COVID
Aethlon Medical is collaborating with University of California, San Francisco on long COVID research, with findings to be presented at the Keystone Symposium, potentially opening avenues for addressing long COVID.
Significant Reduction in Operating Expenses
Operating expenses were significantly reduced by 26% year-over-year, from $12.6 million to $9.3 million, highlighting effective cost management strategies.
Preclinical Data on Hemopurifier
Preclinical data demonstrated a 98.5% removal of platelet-derived extracellular vesicles in simulated Hemopurifier treatments, reinforcing the potential therapeutic applications of the product.
Negative Updates
Noncash Charge Due to Warrant Inducement
Aethlon Medical recorded a $4.6 million noncash charge related to a warrant inducement offer, impacting the income statement despite raising $2.3 million in cash.
Dependency on External Funding
The company acknowledged the need for continued equity financing and potential grant funding to sustain operations, indicating financial challenges.
Ongoing Nonrecurring Costs
The company incurred nonrecurring expenses related to terminated senior executives, with payouts extending into September 2025, affecting financial stability.
Company Guidance
During the Aethlon Medical Fourth Quarter Fiscal 2025 Earnings and Corporate Update Conference Call, CEO and CFO Jim Frakes provided guidance on the company's recent progress and financial performance. Notably, Aethlon treated the first three patients in its oncology trial in Australia using the Hemopurifier, with regulatory approval received to initiate a similar study in India. The company also expanded its trial protocol and reported a significant 98.5% removal of platelet-derived extracellular vesicles in preclinical studies. Collaborations with UCSF on long COVID research and streamlined operations led to reduced operating expenses of $9.3 million, a 26% decrease from the previous year. Financially, the company ended the fiscal year with a cash balance of $5.5 million, but recorded a $4.6 million noncash charge from a warrant inducement offer, which raised $2.3 million in cash. Aethlon emphasized its primary focus on oncology, while also exploring opportunities in long COVID research through potential nondilutive grants.

Aethlon Medical Financial Statement Overview

Summary
Aethlon Medical faces significant financial challenges, with no revenue growth and persistent losses. The balance sheet suggests limited financial flexibility despite low leverage. Cash flow issues exacerbate these concerns, with substantial cash outflows overshadowing financing efforts. The company needs to address its revenue generation and operational efficiency to improve its financial standing.
Income Statement
10
Very Negative
Aethlon Medical's income statement reveals significant challenges, with consistent negative gross profit and net income across both TTM and annual reports. The absence of revenue in the latest TTM indicates a severe downturn. Persistent negative EBIT and EBITDA margins highlight ongoing operational inefficiencies, with no visible improvement in revenue growth.
Balance Sheet
30
Negative
The balance sheet shows a moderate equity position with a relatively stable debt level. The Debt-to-Equity ratio remains low, indicating conservative leverage. However, the equity ratio suggests reliance on stockholder equity for asset financing, which could limit future growth potential. Despite a sizable cash position, the company's assets are declining, hinting at potential liquidity concerns.
Cash Flow
20
Very Negative
Cash flow analysis indicates severe cash management issues, with negative free cash flow and operating cash flow across periods. The large discrepancy between operating cash flow and net income raises concerns about the sustainability of operations. Despite positive financing cash flow, likely from equity issuance, the free cash flow remains negative, reflecting ongoing cash burn.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue0.000.00574.25K294.17K659.10K
Gross Profit0.00-359.00K308.94K139.95K659.10K
EBITDA0.00-11.85M-11.66M-10.30M-7.85M
Net Income-13.39B-12.21M-12.03M-10.42M-7.89M
Balance Sheet
Total Assets7.36B8.25M17.51M19.42M10.67M
Cash, Cash Equivalents and Short-Term Investments5.50B5.44M14.53M17.07M9.86M
Total Debt649.75M940.32K1.21M729.41K42.54K
Total Liabilities2.24B2.48M2.44M2.43M1.38M
Stockholders Equity5.12B5.77M15.06M17.13M9.43M
Cash Flow
Free Cash Flow-7.65B-10.38M-11.45M-10.12M-6.82M
Operating Cash Flow-7.65B-10.13M-10.51M-9.77M-6.76M
Investing Cash Flow0.00-250.87K-943.11K-349.19K-59.88K
Financing Cash Flow7.73B1.29M8.91M17.37M7.13M

Aethlon Medical Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.19
Price Trends
50DMA
2.48
Negative
100DMA
3.00
Negative
200DMA
3.49
Negative
Market Momentum
MACD
-0.39
Positive
RSI
30.37
Neutral
STOCH
11.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEMD, the sentiment is Negative. The current price of 1.19 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 2.48, and below the 200-day MA of 3.49, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 30.37 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AEMD.

Aethlon Medical Risk Analysis

Aethlon Medical disclosed 59 risk factors in its most recent earnings report. Aethlon Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Aethlon Medical Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$14.50M3.29%-26.17%
52
Neutral
$7.45B0.27-61.87%2.30%16.62%1.04%
49
Neutral
$13.66M77.20%8.31%9.98%
41
Neutral
$11.07M-127.82%-24.04%84.11%
41
Neutral
$5.34M-809.29%
38
Underperform
$3.02M-245.88%-100.00%68.26%
35
Underperform
$6.96M-12.35%71.57%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AEMD
Aethlon Medical
1.19
-2.05
-63.27%
TRIB
Trinity Biotech
0.75
-2.13
-73.96%
PPBT
Purple Biotech
2.41
2.00
487.80%
AYTU
Aytu BioScience
2.34
-0.49
-17.31%
BNGO
BioNano Genomics
3.32
-35.54
-91.46%
MYNZ
Mainz Biomed B.V.
1.45
-14.77
-91.06%

Aethlon Medical Corporate Events

Business Operations and StrategyFinancial Disclosures
Aethlon Medical Achieves Milestone in Oncology Trials
Positive
Feb 12, 2025

In its recent financial release, Aethlon Medical reported a significant milestone in its oncology trials in Australia, announcing the first patient treated with the Hemopurifier for solid tumors not responding to anti-PD-1 antibodies on January 29, 2025. The company has also implemented strategic cost-cutting measures, reducing operating expenses by 50% from the previous year, and made protocol amendments to accelerate trial timelines and improve patient enrollment. These developments are crucial for enhancing the company’s clinical program efficiency and potentially improving therapeutic responses in future oncology efficacy trials.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025