Aethlon Medical — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance:

• Cash and cash equivalents were approximately $6.5 million as of September 30, 2026, up from $5.0 million as of March 31, 2026.
• Consolidated operating expenses for the quarter ended September 30, 2026, increased 77.2% to approximately $2.7 million compared to $1.5 million in the prior-year quarter.
• Professional fees for the quarter were $1,326,456, up from $393,796 in the prior-year quarter.
• Payroll and related expenses for the quarter were $666,095, up from $594,611 in the prior-year quarter.
• General and administrative expenses for the quarter were $682,477, up from $521,423 in the prior-year quarter.
• The increase in operating expenses was primarily attributed to higher professional fees associated with the proposed Merger and the lack of recognition of a research and development tax credit in the current period.
• Net loss for the quarter ended September 30, 2026, was $2,617,507, compared to a net loss of $1,487,100 in the prior-year quarter.
• Net loss for the six months ended September 30, 2026, was $4,165,419, compared to $3,248,958 in the prior-year period.
• Basic and diluted loss per share for the quarter was $2.60, compared to $18.70 in the prior-year quarter.
• Total assets were $7,331,224 as of September 30, 2026, compared to $6,333,107 as of March 31, 2026.
• Total stockholders' equity was $6,052,835 as of September 30, 2026, compared to $4,886,272 as of March 31, 2026.
• Accumulated deficit was $(179,271,705) as of September 30, 2026, compared to $(175,106,286) as of March 31, 2026.

Business Segments and Product Lines:

• Advanced the clinical program by treating the second participant in the third and final dosing cohort of the Phase 1 oncology study in Australia.
• Treated eight patients across three dosing cohorts to date in the Phase 1 oncology study.
• The Hemopurifier is an investigational medical device designed to remove enveloped viruses and tumor-derived extracellular vesicles from circulation.
• The Hemopurifier holds a U.S. FDA Breakthrough Device Designation for the treatment of individuals with advanced or metastatic cancer unresponsive to standard-of-care therapy and for the treatment of life-threatening viruses not addressed with approved therapies.

Risks and Challenges:

• There is no assurance that the proposed Merger with North Immunology will be completed on anticipated terms, within the anticipated timeframe, or at all.
• There is no assurance that any monetization transaction of the legacy Hemopurifier business will occur or that CVR holders will receive any payments.
• The Company faces a limited window to complete enrollment in the Phase 1 oncology clinical trial in Australia due to the anticipated timing of the Merger.
• Actual results may differ materially from forward-looking statements regarding the Merger, closing conditions, financing, operational changes, and capital adequacy.
• The Company may face risks related to the ability to satisfy Nasdaq listing requirements for the combined company.

Management Commentary and Tone:

• James Frakes, CEO and CFO, stated the Company advanced its clinical program during the quarter.
• Management intends to conclude patient recruitment in connection with the proposed Merger and subsequently compile available clinical data for analysis.
• The Company has retained key personnel necessary to maintain corporate and regulatory obligations and continue management of the Australian oncology clinical trial.
• The Company remains operational and continues to evaluate activities and resource requirements in light of the proposed Merger and available financial resources.

Other Key Points:

• On September 17, 2026, the Company entered into a Plan of Merger and Reorganization with North Immunology, Inc. to effect a two-step merger transaction.
• Upon completion of the Merger, the combined company is expected to operate under the name North Immunology, Inc.
• Workforce reductions were implemented near the end of the second fiscal quarter in connection with the proposed Merger.
• The Merger Agreement contemplates the wind-down of certain activities associated with the legacy business upon and subject to the closing of the transaction.
• Holders of Aethlon's common stock are expected to receive a contingent value right (CVR) at closing, intended to provide an opportunity to participate in future potential proceeds from the monetization of the legacy Hemopurifier business.
• Common stock shares issued and outstanding increased to 1,607,367 as of September 30, 2026, from 314,100 as of March 31, 2026.
• Additional paid-in capital increased to $185,366,897 as of September 30, 2026, from $180,024,947 as of March 31, 2026.