SAN DIEGO — November 12, 2026 -- Aethlon Medical (Nasdaq: AEMD) reported operating expenses of about $2.7 million for the fiscal second quarter ended September 30, 2026, up 77.2% from about $1.5 million a year earlier. The company cut its workforce near the end of the quarter as it prepares a merger with North Immunology, Inc.
Cash and cash equivalents stood at about $6.5 million on September 30, 2026. By FairsOnline's calculation, that is roughly 2.4 times the quarter's operating expenses.
Higher merger fees and a missing tax credit drive the $1.2 million cost increase
The quarterly increase works out to about $1.2 million. The company attributes it mainly to higher professional fees tied to the proposed merger. It also cites the lack of a research and development tax credit in the period, which it says was a timing issue and raised general and administrative expenses.
The company says it kept the personnel needed to meet its corporate and regulatory obligations and to run its Australian oncology trial. It did not state how many positions were cut.
Aethlon shareholders would receive a contingent value right if the North Immunology merger closes
Aethlon signed a Plan of Merger and Reorganization with North Immunology and two wholly owned Aethlon subsidiaries on September 17, 2026. The deal is a two-step merger, and the combined company is expected to operate as North Immunology, Inc.
Holders of Aethlon common stock are expected to receive a contingent value right at closing. It would let them share in any proceeds from monetizing the legacy Hemopurifier business. The company says there is no assurance that a monetization will occur or that any payment will follow. The agreement also contemplates winding down certain legacy activities on closing.
Closing depends on stockholder approvals and on completion of a contemplated financing. The company did not disclose the size of that financing.
Aethlon treats eight patients in its Phase 1 cancer trial and seeks a ninth
The Australian Phase 1 oncology study has treated eight patients across three dosing cohorts. The second participant in the third and final cohort was dosed during the quarter, which by calculation puts six patients in the first two cohorts. The company continues to pursue one more patient, which would bring the total to nine.
CEO and CFO James Frakes said the company has "a limited window in which to complete enrollment" given the expected merger timing. The company intends to end recruitment in connection with the merger and then compile the available clinical data for analysis.