AETHLON MEDICAL INC Segments Disclosure
9. SEGMENT REPORTING
The Company operates as a single operating and reportable segment, which reflects the manner in which the Chief Operating Decision Maker (CODM), the Company’s Chief Executive Officer, manages the business and allocates resources. The Company is a development-stage medical technology company focused on advancing a clinical-stage therapeutic device, with key operational decisions based on cash availability, development milestones, and return on investment associated with future manufacturing and commercialization opportunities.
Although the Company has no commercial revenue, the CODM regularly reviews certain expense categories and cash flow metrics to assess progress and allocate resources. The primary internal measure of performance used by the CODM is cash used in operating activities, rather than traditional profit or loss measures.
In accordance with ASU 2023-07, which the Company adopted for the year ended March 31, 2025, the following significant expense categories and internal performance measures were reviewed by the CODM during the fiscal year ended March 31, 2025 and March 31, 2024:
| Category | Year Ended March 31, 2025 | Year Ended March 31, 2024 | ||||||
| Research and development1 | $ | 2,212,000 | $ | 2,520,000 | ||||
| General and administrative2 | $ | 3,243,000 | $ | 3,903,000 | ||||
| Cash used in operating activities3 | $ | 7,646,000 | $ | 10,130,000 | ||||
| 1 | Research and development expenses consist primarily of costs related to laboratory operations, clinical trial execution, investigational device testing, design iterations, and personnel-related expenses associated with research activities. These costs are not confined to a single financial statement line item and may be classified within general and administrative expense, professional fees, or payroll, depending on their nature. These expenses are regularly reviewed by the CODM as a single category for internal decision-making purposes. |
| 2 | General and administrative expense includes overhead, clinical trial-related administrative and planning costs, and manufacturing-related costs such as raw materials. These are not separately reviewed by the CODM and are assessed as part of the broader G&A category for decision-making purposes. |
| 3 | Cash used in operating activities is a key metric monitored by the CODM in evaluating resource needs, development pacing, and investment feasibility in the absence of revenue. |
The Company does not allocate assets by segment, and the CODM does not use a measure of segment profit or loss to evaluate performance. There were no changes to the internal reports provided to or reviewed by the CODM during the years presented.
Entity-Wide Information:
| · | The Company did not recognize revenue during the fiscal year ended March 31, 2025. | |
| · | All long-lived assets are located in the United States. | |
| · | A significant portion of clinical trial activity is conducted through the Company’s wholly owned subsidiary based in Australia. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 26, 2025 | Showing above |
| 2022 | Jun 28, 2022 | |
| 2021 | Jun 24, 2021 | |
| 2020 | Jun 25, 2020 | |
| 2019 | Jul 1, 2019 | |
| 2018 | Jun 8, 2018 | |
| 2017 | Jun 28, 2017 | |
| 2016 | Jun 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.