James Frakes
CEO & CFO at Aethlon Medical
I will keep our financial overview brief with a focus on key points. For a more detailed analysis, you can refer to the financial statements attached to our earnings release that has hit the wire or in our soon to be filed quarterly report on Form 10 Q. As of 12/31/2024, Athlon had a cash balance of approximately $4,800,000 Our consolidated operating expenses for the fiscal quarter ended 12/31/2024 decreased by approximately $1,800,000 or approximately 50% to $1,800,000 compared to $3,600,000 for the fiscal quarter ended 12/31/2023. This reduction was driven by a $1,300,000 decrease in payroll and related expenses, a $300,000 decrease in professional fees and a $200,000 decrease in general and administrative expenses or G and A expenses. The approximate $1,300,000 decrease in payroll and related expenses was primarily attributable to a reduction of $900,000 in separation expenses related to the separation agreement with our former CEO that had been recorded in the December 2023 period, as well as a decrease of approximately $400,000 due to a reduction in headcount. Of the approximate $900,000 of separation expenses related to the departure of the former CEO, approximately $400,000 related to the acceleration of vesting of stock options. The approximate $300,000 decrease in professional fees was primarily due to an approximate reduction of $200,000 in legal fees resulting from the transition to a new legal firm and a decrease of $200,000 in scientific and operational consulting fees, largely attributable to completed projects. These decreases were partially offset by an approximate $100,000 increase in investor relations and accounting fees. The approximate $200,000 decrease in G and A expenses was primarily driven by a $300,000 reduction in supplies, largely related to the raw materials and components used in the manufacturing of the Hemo Purifier with no comparable purchases during the current period. Additionally, there was an approximate $100,000 decrease in insurance expenses associated with a reduced headcount and various other operating expenses. These reductions were partially offset by a $200,000 increase in clinical trial expenses related to our ongoing clinical trials in Australia and India. As a result of the factors I just noticed I just noted, our net loss decreased to approximately $1,800,000 in the fiscal quarter ended 12/31/2024 from approximately $3,500,000 in the fiscal year ended 12/31/2023. We included these earnings results and related commentary in our press release issued this afternoon.
