Q1 2027 Aethlon Medical Inc Earnings Call

August 13, 2026

Operator: Good day, and welcome to the Aethlon Medical Q1 Fiscal 2027 Earnings and Corporate Update Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jim Frakes, CEO and CFO of Aethlon Medical. Please go ahead.

Speaker #1: Good day, and welcome to the Aethlon Medical first quarter fiscal 2027 earnings and corporate update conference call. All participants will be in listen-only mode.

Speaker #1: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

Speaker #1: To ask a question, you may press star, then one, on a touchtone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded.

Speaker #1: I would now like to turn the conference over to Jim Frakes, CEO and CFO of ATHLON MEDICAL. Please go ahead.

Speaker #2: Thank you, operator. And good afternoon, everyone. Welcome to ATHLON MEDICAL's first fiscal quarter ended June 30, 2026, earnings conference call. My name is Jim Frakes, and I'm the Chief Executive Officer and Chief Financial Officer of ATHLON MEDICAL.

James B. Frakes: Thank you, operator, and good afternoon, everyone. Welcome to Aethlon Medical's first fiscal quarter ended 30 June 2026 earnings conference call. My name is Jim Frakes, and I'm the Chief Executive Officer and Chief Financial Officer of Aethlon Medical. At 4:15 PM Eastern Time today, Aethlon Medical released financial results for its first fiscal quarter ended 30 June 2026. If you have not seen or received Aethlon Medical's earnings release, please visit the investors page at www.aethlonmedical.com to view it. Following this introduction and the reading of the company's forward-looking statement disclaimer, Dr. Steven LaRosa, our Chief Medical Officer, and I will provide an overview of Aethlon's strategy and recent developments. I will then make some brief remarks on Aethlon's financials. We will then open up the call for the Q&A session.

Jim Frakes: Thank you, operator, and good afternoon, everyone. Welcome to Aethlon Medical's first fiscal quarter ended 30 June 2026 earnings conference call. My name is Jim Frakes, and I'm the Chief Executive Officer and Chief Financial Officer of Aethlon Medical. At 4:15 PM Eastern Time today, Aethlon Medical released financial results for its first fiscal quarter ended 30 June 2026. If you have not seen or received Aethlon Medical's earnings release, please visit the investors page at www.aethlonmedical.com to view it. Following this introduction and the reading of the company's forward-looking statement disclaimer, Dr. Steven LaRosa, our Chief Medical Officer, and I will provide an overview of Aethlon's strategy and recent developments. I will then make some brief remarks on Aethlon's financials. We will then open up the call for the Q&A session.

Speaker #2: At 4:15 PM Eastern Time today, ATHLON MEDICAL released financial results for its first fiscal quarter ended June 30, 2026. If you have not seen or received ATHLON MEDICAL's earnings release, please visit the investors page at www.athlonmedical.com to view it.

Speaker #2: Following this introduction and the reading of the company's forward-looking statement disclaimer, Dr. Steven Larosa, our Chief Medical Officer, and I will provide an overview of ATHLON's strategy and recent developments.

Speaker #2: I will then make some brief remarks on ATHLON's financials. We will then open up the call for the Q&A session. Before we start the business portion of the call, please note that the news release today and this call contain forward-looking statements within the meaning of the securities act of 1933 as amended, and the securities exchange act of 1934 as amended.

James B. Frakes: Before we start the business portion of the call, please note that the news release today and this call contain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The company cautions you that any statement that is not a statement of historical fact is a forward-looking statement. These statements are based on expectations and assumptions as of the date of this conference call. Such forward-looking statements are subject to significant risks and uncertainties, and actual results may differ materially from the results anticipated in the forward-looking statements.

Jim Frakes: Before we start the business portion of the call, please note that the news release today and this call contain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The company cautions you that any statement that is not a statement of historical fact is a forward-looking statement. These statements are based on expectations and assumptions as of the date of this conference call. Such forward-looking statements are subject to significant risks and uncertainties, and actual results may differ materially from the results anticipated in the forward-looking statements.

Speaker #2: The company cautions you that any statement that is not a statement of historical fact is a forward-looking statement. These statements are based on expectations and assumptions as of the date of this conference call.

Speaker #2: Such forward-looking statements are subject to significant risks and uncertainties, and actual results may differ materially from the results anticipated in the forward-looking statements. Factors that could cause results to differ materially from those anticipated in forward-looking statements can be found under the caption "Risk Factors" in the company's annual report on Form 10-K for the fiscal year ended March 31, 2026.

James B. Frakes: Factors that could cause results to differ materially from those anticipated in forward-looking statements can be found under the caption Risk Factors in the company's annual report on Form 10-K for the fiscal year ended 31 March 2026, the company's most recent quarterly report on Form 10-Q, and in the company's other filings with the Securities and Exchange Commission. Except as may be required by law, the company does not intend, nor does it undertake any duty, to update this information to reflect future events or circumstances. I'd like to begin by highlighting progress during the first fiscal quarter ended 30 June, as we continue to execute against our strategy of advancing the Hemopurifier platform while maintaining disciplined cost control. During the period, we achieved important clinical, research, and intellectual property milestones.

Jim Frakes: Factors that could cause results to differ materially from those anticipated in forward-looking statements can be found under the caption Risk Factors in the company's annual report on Form 10-K for the fiscal year ended 31 March 2026, the company's most recent quarterly report on Form 10-Q, and in the company's other filings with the Securities and Exchange Commission. Except as may be required by law, the company does not intend, nor does it undertake any duty, to update this information to reflect future events or circumstances. I'd like to begin by highlighting progress during the first fiscal quarter ended 30 June, as we continue to execute against our strategy of advancing the Hemopurifier platform while maintaining disciplined cost control. During the period, we achieved important clinical, research, and intellectual property milestones.

Speaker #2: The company's most recent quarterly report on Form 10-Q, and then the company's other filings with the Securities and Exchange Commission. Except as may be required by law, the company does not intend, nor does it undertake any duty, to update this information to reflect future events or circumstances.

Speaker #2: I'd like to begin by highlighting progress during the first fiscal quarter ended June 30. As we continue to execute against our strategy of advancing the Hemopurifier platform while maintaining disciplined cost control.

Speaker #2: During the period, we achieved important clinical, research, and intellectual property milestones. We continued to advance our oncology program while also expanding our evaluation of Hemopurifier applications into additional disease areas through preclinical research.

James B. Frakes: We continued to advance our oncology program while also expanding our evaluation of Hemopurifier applications into additional disease areas through preclinical research. As Steve will discuss, we are now in the final cohort of our oncology trial. We continue to generate encouraging preliminary biomarker observations, and we are expanding our research into potential applications beyond oncology. Taken together, we believe these achievements demonstrate continued execution against our key priorities of clinical development, platform expansion, intellectual property growth, and disciplined resource management. I will turn the call over to Dr. LaRosa, who will cover updates on the Australian oncology trial and then on our R&D efforts. Steve?

Jim Frakes: We continued to advance our oncology program while also expanding our evaluation of Hemopurifier applications into additional disease areas through preclinical research. As Steve will discuss, we are now in the final cohort of our oncology trial. We continue to generate encouraging preliminary biomarker observations, and we are expanding our research into potential applications beyond oncology. Taken together, we believe these achievements demonstrate continued execution against our key priorities of clinical development, platform expansion, intellectual property growth, and disciplined resource management. I will turn the call over to Dr. LaRosa, who will cover updates on the Australian oncology trial and then on our R&D efforts. Steve?

Speaker #2: As Steve will discuss, we are now in the final cohort of our oncology trial. We continue to generate encouraging preliminary biomarker observations, and we are expanding our research into potential applications beyond oncology.

Speaker #2: Taken together, we believe these achievements demonstrate continued execution against our key priorities of clinical development, platform expansion, intellectual property growth, and disciplined resource management.

Speaker #2: And now, I will turn the call over to Dr. Larosa, who will cover updates on the Australian oncology trial and then on our R&D efforts.

Speaker #2: Steve?

Speaker #3: Thank you, Jim. Before discussing our clinical observations, I want to emphasize that the hemopurifier remains in investigational device. Any biomarker observations discussed today are preliminary, and are based on a limited number of participants, and should not be interpreted as evidence of safety or effectiveness or of clinical benefit.

Steven LaRosa: Thank you, Jim. Before discussing our clinical observations, I want to emphasize that the Hemopurifier remains an investigational device. Any biomarker observations discussed today are preliminary and are based on a limited number of participants and should not be interpreted as evidence of safety or effectiveness or of clinical benefit. The first participants in our third and final cohort of our Australian oncology trial have been enrolled and treated. This participant received three four-hour Hemopurifier treatments over the course of a one-week period. The participant is now two months into the follow-up period and has not experienced any device-related serious adverse events or dose-limiting toxicities. We need to only treat two additional participants to complete the trial, provided that none of the future participants develops any of these safety events. The three investigative sites remain engaged and are actively pre-screening potential participants.

Speaker #3: The first participant in our third and final cohort of our Australian Oncology Trial has been enrolled and treated. This participant received three four-hour hemopurifier treatments over the course of a one-week period.

Speaker #3: The participant is now two months into the follow-up period and has not experienced any device-related serious adverse events or dose-limiting toxicities. We need only treat two additional participants to complete the trial, provided that none of the future participants develops any of these safety events.

Speaker #3: The three investigative sites remain engaged and are actively pre-screening potential participants. Our goal remains to complete all HP treatments and the eight-week follow-up central lab measurements period by the end of this year, 2026.

Steven LaRosa: Our goal remains to complete all HP treatments and the eight-week follow-up central lab measurements period by the end of this year, 2026. The next steps would be analysis of the data, clinical study report completion, and pre-registration clinical trial discussions with regulatory authorities. Central lab measurements of extracellular vesicles, microRNAs, and lymphocyte subsets have been completed by The University of Sydney on the samples from cohort 2 of the clinical trial, where participants received two four-hour Hemopurifier treatments over the course of one week. A review of the raw data has taken place. As stated in the press release on 13 July 2026, we continue to see decreases in total extracellular vesicle counts, including tumor-derived extracellular vesicles and microRNAs linked to cancer progression following the HP treatment.

Speaker #3: The next steps would be analysis of the data, clinical study report completion, and pre-registration clinical trial discussions with regulatory authorities. Central lab measurements of extracellular vesicles, microRNAs, and lymphocyte subsets have been completed by the University of Sydney on the samples from cohort two of the clinical trial.

Speaker #3: For participants received two four-hour hemopurifier treatments over the course of one week. A review of the raw data has taken place. As stated in the press release on July 13, 2026, we continue to see decreases in total extracellular vesicle counts including tumor-derived extracellular vesicles, and microRNAs linked to cancer progression following the HP treatments.

Speaker #3: Additionally, we observed increases in lymphocyte subsets as well as positive directional changes in laboratory parameter ratios that have been associated with responses to immunotherapy.

Steven LaRosa: Additionally, we observed increases in lymphocyte subsets, as well as positive directional changes in laboratory parameter ratios that have been associated with responses to immunotherapy. The changes appeared to be more consistent across participants and persisted for longer in cohort 2 compared with cohort 1, where participants received a single Hemopurifier treatment. Independent formal statistical analyses, including a dose-response analysis, will be performed upon completion of the trial. A segue now to preclinical R&D activities. Our prior work in long COVID was published in the peer-reviewed journal, International Journal of Molecular Sciences, on 25 June 2026.

Speaker #3: The changes appeared to be more consistent across participants and persisted for longer in cohort two compared with cohort one where participants received a single hemopurifier treatment.

Speaker #3: Independent formal statistical analyses, including a dose-response analysis, will be performed upon completion of the trial. In a segue now to preclinical R&D activities, our prior work in long COVID was published in the peer-reviewed journal International Journal of Molecular Sciences on June 25, 2026.

Speaker #3: In this publication, we present data demonstrating that both small and large EV extracellular vesicles in long COVID patient plasma samples bind to the proprietary GNA affinity resin within our ATHLON Hemopurifier.

Steven LaRosa: In this publication, we present data demonstrating that both small and large EV, extracellular vesicles in long COVID patient plasma samples bind to the proprietary GNA affinity resin within our Aethlon Hemopurifier. Furthermore, following exposure of the patient plasma to the resin, a decrease in microRNAs associated with immune dysregulation and inflammation was observed. This data, coupled with the data from an outside group demonstrating the presence of the COVID spike protein and proteins associated with inflammation and abnormal clotting within the EVs of long COVID patients, raises the possibility of EV removal as a potential experimental therapeutic strategy in long COVID. We plan discussions with academic institutions as well as regulatory agencies to see if there's a clinical development path forward or if additional preclinical work will be necessary.

Speaker #3: Furthermore, following exposure of the patient plasma to the resin, a decrease in microRNAs associated with immune dysregulation and inflammation was observed. These data, coupled with data from an outside group demonstrating the presence of the COVID spike protein, as well as proteins associated with inflammation and abnormal clotting within the EVs of long COVID patients, raise the possibility of EV removal as a potential experimental therapeutic strategy in long COVID.

Speaker #3: We plan discussions with academic institutions as well as regulatory agencies to see if there's a clinical development path forward or if additional preclinical work will be necessary.

Speaker #3: Finally, our lab continues to perform experiments exploring the ability of the Hemopurifier technology to bind or remove EVs implicated in other diseases, such as lupus and heart disease, in those with chronic kidney disease.

Steven LaRosa: Finally, our lab continues to perform experiments exploring the ability of the Hemopurifier technology to bind and remove EVs implicated in other diseases such as lupus and heart disease in those with chronic kidney disease. With that, I'll turn the call back over to Jim for the financial discussion and the questions.

Speaker #3: With that, I'll turn the call back over to Jim for the financial discussion and questions.

Speaker #2: Thanks, Steve, and good afternoon again, everyone. Let me turn briefly to our financial position and our focus on disciplined spending. At June 30, 2026, we had approximately $4.9 million in cash and cash equivalents, providing resources to support ongoing clinical and research activities.

James B. Frakes: Thanks, Steve, and good afternoon again, everyone. Let me turn briefly to our financial position and our focus on disciplined spending. At 30 June 2026, we had approximately $4.9 million in cash and cash equivalents, providing resources to support ongoing clinical and research activities. Subsequent to quarter end, we further strengthened our balance sheet by raising approximately $4 million in gross proceeds through a public offering of common stock. Based on current plans, we believe our cash resources are sufficient to fund operations for at least the next 12 months. Our consolidated operating expenses for the quarter decreased 11.9% to approximately $1.6 million, compared with $1.8 million in the prior year quarter. That decrease was driven by lower professional fees and reduced general and administrative and preclinical research costs, and our operating loss declined accordingly.

Jim Frakes: Thanks, Steve, and good afternoon again, everyone. Let me turn briefly to our financial position and our focus on disciplined spending. At 30 June 2026, we had approximately $4.9 million in cash and cash equivalents, providing resources to support ongoing clinical and research activities. Subsequent to quarter end, we further strengthened our balance sheet by raising approximately $4 million in gross proceeds through a public offering of common stock. Based on current plans, we believe our cash resources are sufficient to fund operations for at least the next 12 months. Our consolidated operating expenses for the quarter decreased 11.9% to approximately $1.6 million, compared with $1.8 million in the prior year quarter. That decrease was driven by lower professional fees and reduced general and administrative and preclinical research costs, and our operating loss declined accordingly.

Speaker #2: Subsequent to quarter-end, we further strengthened our balance sheet by raising approximately $4 million in gross proceeds to a public offering of common stock. Based on current plans, we believe our cash resources are sufficient to fund operations for at least the next 12 months.

Speaker #2: Our consolidated operating expenses for the quarter decreased 11.9% to approximately $1.6 million, compared with $1.8 million in the prior-year quarter. That decrease was driven by lower professional fees and reduced general and administrative and preclinical research costs, and our operating loss declined accordingly.

Speaker #2: You will find additional detail on these expense changes in our 10-Q, which breaks down specific drivers by category. We included these earnings results and related commentary in our press release issued this afternoon.

James B. Frakes: You will find additional detail on these expense changes in our 10-Q, which breaks down specific drivers by category. We included these earnings results and related commentary in our press release issued this afternoon. The release also included the balance sheet for 30 June 2026 and 31 March 2026, and the consolidated statements of operations for the fiscal quarters ended 30 June 2026 and 2025. We will file our quarterly report on Form 10-Q following this call. Our next earnings call for the fiscal Q2 ending 30 September 2026, will coincide with the filing of our quarterly report on Form 10-Q in November 2026. We would be happy to answer any questions that you may have. Operator, please open the call for questions.

Jim Frakes: You will find additional detail on these expense changes in our 10-Q, which breaks down specific drivers by category. We included these earnings results and related commentary in our press release issued this afternoon. The release also included the balance sheet for 30 June 2026 and 31 March 2026, and the consolidated statements of operations for the fiscal quarters ended 30 June 2026 and 2025. We will file our quarterly report on Form 10-Q following this call. Our next earnings call for the fiscal Q2 ending 30 September 2026, will coincide with the filing of our quarterly report on Form 10-Q in November 2026. We would be happy to answer any questions that you may have. Operator, please open the call for questions.

Speaker #2: The release also included the balance sheet for June 30, 2026, and March 31, 2026. And the consolidated statements of operations for the fiscal quarters ended June 30, 2026, and 2025.

Speaker #2: We will file our quarterly report on Form 10-Q following this call. Our next earnings call for the fiscal second quarter, ending September 30, 2026, will coincide with the filing of our quarterly report on Form 10-Q in November 2026.

Speaker #2: And now, we would be happy to answer any questions that you may have. Operator, please open the call for questions.

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchstone phone.

Operator 3: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Marla Marin with Zacks. Please go ahead.

Operator: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Marla Marin with Zacks. Please go ahead.

Speaker #1: If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Speaker #1: At this time, we will pause momentarily to assemble our roster. The first question today comes from Marla Marin with Zacks. Please go ahead.

Speaker #4: Thank you. So I want to go back to something, Steve, that you said in your prepared remarks. I want to make sure that I understood.

M. Marin: Thank you. I want to go back to something, Steve, that you said in your prepared remarks. I want to make sure that I understood. The three different cohorts of The University of Sydney study, increase dosage, increase treatments with the Hemopurifier. I think what you said was currently, even though it's early in terms of a full data set, you're thinking that phase II participants exhibit a longer benefit than those who participated in phase I. Is that the right way to think about what your comments were?

Marla Marin: Thank you. I want to go back to something, Steve, that you said in your prepared remarks. I want to make sure that I understood. The three different cohorts of The University of Sydney study, increase dosage, increase treatments with the Hemopurifier. I think what you said was currently, even though it's early in terms of a full data set, you're thinking that phase II participants exhibit a longer benefit than those who participated in phase I. Is that the right way to think about what your comments were?

Speaker #4: So, the three different cohorts of the Australian study increased dosage, increased treatments with the hemopurifier. And I think what you said was, currently—even though it's early in terms of the full data set—you were thinking that phase two participants exhibit a longer benefit than those who participated in phase one.

Speaker #4: Is that the right way to think about what your comments were?

Speaker #3: Right. So, hi Marla. In cohort one, the participants received only a single four-hour HP treatment. In cohort two, they received two four-hour treatments.

Steven LaRosa: Right. Hi, Marla. In cohort 1, the participants received only a single four-hour HP treatment. In cohort 2, they received two four-hour treatments. Cohort 1 would be on Friday, four hours, whereas cohort 2 would be Monday and Friday for four hours. All cohorts were then had samples done before and after the Hemopurifier treatments, and then weekly in the follow-up period for four weeks, so week 1, 2, 3, and 4, and 8. We looked at EVs, T cells, as well as microRNAs over the course of all those time points. When you look at the raw data, and again, this is based purely on observations of the raw data, this is not looking at change from baseline, percent change from baseline or a formal statistical analysis. You look purely at the raw data.

Speaker #3: So cohort one would be like on a Friday, four hours, whereas cohort two would be Monday and Friday. For four hours. All cohorts were then had samples done before and after the hemopurifier treatments, and then weekly in the follow-up period for four weeks.

Speaker #3: So week one, two, three, and four, and eight. And we looked at EVs, T cells, as well as microRNAs over the course of all those time points.

Speaker #3: When you look at the raw data and again, this is based purely on observations of the raw data. This is not looking at change from baseline, percent change from baseline, or a formal statistical analysis.

Speaker #3: You look purely at the raw data. Typically, in cohort one, we were seeing changes in two out of three participants, where in cohort two, we tended to see it more consistent across the three participants.

Steven LaRosa: Typically, in cohort 1, we were seeing changes in 2 out of 3 participants, where in cohort 2, we tended to see it more consistent across the 3 participants. If you looked at the positive directional change in those parameters, where in cohort 1, you see those changes go out, say 2, 3 weeks, we are seeing more times in cohort 2 where we are seeing the positive directional change go out as far as the 8-week time period. So at least what I can say is it looks like the biologic signal is more consistent across 3 participants in cohort 2, and that it seems the positive directional change seems to last longer.

Speaker #3: And then if you looked at the positive directional change in those parameters, where in cohort one, you could see those changes go out, say, two, three weeks.

Speaker #3: We're seeing more times in cohort two where we're seeing the positive directional change go out as far as the eight-week time period. So, at least what I can say is it looks like the biologic signal is more consistent across three participants in cohort two, and that it seems the positive directional change seems to last longer.

Speaker #3: So really, cohort three will tell the tale if we continue to see that kind of increased magnitude and change as well as duration of change.

Steven LaRosa: Really, cohort 3 will tell the tale if we continue to see that kind of increased magnitude and change as well as duration of change, it will tell us that what we have seen to date is real, but encouraged nonetheless by at least the signal in the raw data that we are seeing.

Speaker #3: It will tell us that what we've seen to date is real. But encouraged, nonetheless, by at least the signal in the raw data that we're seeing.

Speaker #4: Got it, got it. And you can't really comment yet on cohort three because it's so early, correct?

M. Marin: Got it. You cannot really comment yet on cohort 3 because it is so early. Correct?

Marla Marin: Got it. You cannot really comment yet on cohort 3 because it is so early. Correct?

Speaker #3: Yeah. We don't have any results. The first patient, as I said, just finished their two-month, or their eight-week, follow-up period. So, we don't have any data back yet on that patient.

Steven LaRosa: Well, we do not have any result. The first patient is, like I said, just finished their 2-month or their 8-week follow-up period, so we do not have any data back yet on that patient in terms of their.

Speaker #3: In terms of the EVs, T cells, or microRNAs.

M. Marin: Right

Marla Marin: Right

Steven LaRosa: EV T cell or microRNAs.

Speaker #4: But let's say that the trajectory continues along the same lines as you just described. In cohort three, participants show an even longer duration of improvement, and it's more consistent across the participants.

M. Marin: But let's say that the trajectory continues along the same lines as you just described in cohort 3. Participants show an even longer duration of improvement and more consistent across the participants. Would there be a reason to think that you should, if and when you move forward and design the next set of research parameters, would it make any sense to design a cohort that gets four treatments weekly, or you think that three treatments?

Marla Marin: But let's say that the trajectory continues along the same lines as you just described in cohort 3. Participants show an even longer duration of improvement and more consistent across the participants. Would there be a reason to think that you should, if and when you move forward and design the next set of research parameters, would it make any sense to design a cohort that gets four treatments weekly, or you think that three treatments?

Speaker #4: Would there be a reason to think that you should, if and when you move forward and design the next set of research parameters, would it make any sense to design a cohort that gets four treatments weekly?

Speaker #4: Or do you think that's three treatments?

Speaker #3: No, I think it's an excellent question. The thing you start running up against is tolerability and feasibility. So what we thought, based on clinical medicine, and then we're drawing on the experience from hemodialysis mostly, that anything more than four hours of treatment three times a week, say, a Monday, Wednesday, Friday, schedule just will not be tolerable to patients.

Steven LaRosa: No, I think it's an excellent question. The thing you start running up against is tolerability and feasibility.

Steven LaRosa: No, I think it's an excellent question. The thing you start running up against is tolerability and feasibility. So what we thought, based on clinical medicine, and then we're drawing on the experience from hemodialysis mostly, that anything more than four hours of treatment, three times a week, say a Monday, Wednesday, Friday schedule, just will not be tolerable to patients. That's about as much as people will tolerate. We're not considering going to four treatments in one week.

Steven LaRosa: So what we thought, based on clinical medicine, and then we're drawing on the experience from hemodialysis mostly, that anything more than four hours of treatment, three times a week, say a Monday, Wednesday, Friday schedule, just will not be tolerable to patients. That's about as much as people will tolerate. We're not considering going to four treatments in one week.

Speaker #3: That's about as much as people will tolerate. And so, no, we're not considering going to four treatments in a week.

Speaker #4: Okay. And that is not a function of the way the hemopurifier treatment is currently administered that could possibly change if you do move to a simplified treatment streamline treatment system.

M. Marin: Okay. That is not a function of the way the Hemopurifier treatment is currently administered. That could possibly change if you do move to a simplified streamlined treatment system. Is that correct? It has nothing to do with the way you are treating people. It really is just having that treatment in and of itself probably cannot be tolerated more than 3 times a week.

Marla Marin: Okay. That is not a function of the way the Hemopurifier treatment is currently administered. That could possibly change if you do move to a simplified streamlined treatment system. Is that correct? It has nothing to do with the way you are treating people. It really is just having that treatment in and of itself probably cannot be tolerated more than 3 times a week.

Speaker #4: Is that correct? It's not has nothing to do with the way you're treating people. It really is just having that treatment in and of itself probably cannot be tolerated more than three times a week.

Speaker #3: Yeah. Well, tolerated both just in terms of logistics and what patients themselves— I mean, you talk about four hours, but there's also time in terms of hooking the patient up, priming the system, and taking them off.

Steven LaRosa: Well, tolerated both just in terms of logistics and with patients themselves. You talk about 4 hours, but there is also time in terms of hooking the patient up, priming the system, taking them off. So it ends up being a complete day. It is not just 4 hours. So, anything more than 3 days. If we see in cohort 3 what we are seeing in cohort 2, where we are seeing the directional changes we want, hopefully of even greater magnitude with 3 treatments, then we would take that 3-treatment in a week strategy forward for an efficacy trial. But just kind of getting a little bit ahead of ourselves. We have to see the data first.

Speaker #3: So it ends up being it ends up being a complete day. It's not just four hours. So yeah, anything more than three days. And again, and if we see in cohort three, what we're seeing in cohort two, where we're seeing the directional changes we want, hopefully even greater magnitude with three treatments, then we would take that three treatment in a week strategy forward for an efficacy trial.

Speaker #3: But that's kind of getting a little bit of ahead of ourselves. We have to see the data first.

M. Marin: Mm-hmm. Okay. One last question. You mentioned also that there are many other conditions and diseases where EVs are indicated. So you have been really good in the past, and Jim, I think that this is more of a question for you probably. You have been very good in the past at maintaining research on the Hemopurifier without incurring significant costs. Not actual clinical testing, but publishing papers, speaking at medical conventions, and other ways of trying to test the hypothesis that the Hemopurifier can be beneficial across a spectrum of different indications. Are there other opportunities, do you think, for doing more and broader work about the Hemopurifier in an extremely cost-effective way?

Marla Marin: Mm-hmm. Okay. One last question. You mentioned also that there are many other conditions and diseases where EVs are indicated. So you have been really good in the past, and Jim, I think that this is more of a question for you probably. You have been very good in the past at maintaining research on the Hemopurifier without incurring significant costs. Not actual clinical testing, but publishing papers, speaking at medical conventions, and other ways of trying to test the hypothesis that the Hemopurifier can be beneficial across a spectrum of different indications. Are there other opportunities, do you think, for doing more and broader work about the Hemopurifier in an extremely cost-effective way?

Speaker #4: Okay. One last question. You mentioned that there are many other conditions and diseases where EVs are indicated. You've been really good in the past.

Speaker #4: And Jim, I think this is probably more of a question for you. You've been very good in the past at maintaining research on the Hemopurifier without incurring significant costs.

Speaker #4: Not actual clinical testing, but publishing papers, speaking at medical conventions, and other ways of trying to test the hypothesis that the Hemopurifier can be beneficial across the spectrum of different indications.

Speaker #4: Are there other opportunities do you think for doing more and broader work about the hemopurifier in an extremely cost-effective way?

Speaker #3: Well, we can continue to do what we're doing, which is exactly as you described, Marla. Using our in-house scientists, our in-house equipment, buying reagents and things, but that's not expensive.

James B. Frakes: Well, we can continue to do what we are doing, which is exactly as you described, Marla, using our in-house scientists, our in-house equipment, buying reagents and things, but that is not expensive. Trying to get samples either given to us or inexpensively purchased. We can continue to do that, continue to write articles. But to really move forward, eventually we would need to either bring in more capital to finance a clinical trial in one or more of these diseases or partner up with somebody, get a government grant or two. There are options out there, but I think we would need support in one of those ways to actually conduct a clinical trial in one of these things. So we will continue to do what we are doing and try to find the right opportunities to move forward.

Jim Frakes: Well, we can continue to do what we are doing, which is exactly as you described, Marla, using our in-house scientists, our in-house equipment, buying reagents and things, but that is not expensive. Trying to get samples either given to us or inexpensively purchased. We can continue to do that, continue to write articles. But to really move forward, eventually we would need to either bring in more capital to finance a clinical trial in one or more of these diseases or partner up with somebody, get a government grant or two. There are options out there, but I think we would need support in one of those ways to actually conduct a clinical trial in one of these things. So we will continue to do what we are doing and try to find the right opportunities to move forward.

Speaker #3: And trying to get samples either given to us or inexpensively purchased. And we can continue to do that, continue to write articles. But to really move forward eventually, we would need to either bring in more capital to finance a clinical trial in one of these one or more of these diseases.

Speaker #3: Or so, partner up with somebody, get a government grant or two—there are options out there. But I think we would need support in one of those ways to actually conduct a clinical trial in one of these things.

Speaker #3: So, we will continue to do what we're doing, and we'll try to find the right opportunities to move forward.

M. Marin: Mm-hmm. Okay, that makes sense. Is it also fair to say that what you are doing, even though it is clear that you need to proceed to more structured clinical research, is it fair to think that what you are doing gives you much more optionality in terms of finding a potential partner for certain or a variety of indications?

Marla Marin: Mm-hmm. Okay, that makes sense. Is it also fair to say that what you are doing, even though it is clear that you need to proceed to more structured clinical research, is it fair to think that what you are doing gives you much more optionality in terms of finding a potential partner for certain or a variety of indications?

Speaker #4: Okay. That makes sense. But is it also fair to say that what you're doing, even though it's clear that you'd need to proceed to more structured clinical research, is it fair to think that what you are doing gives you much more optionality in terms of finding a potential partner for certain or a variety of indications?

Speaker #3: It's possible. We are talking to people. If another option is in future discussions with the FDA, if they chose to broaden or add to our breakthrough device designation, in viruses, right now it's just for life-threatening viruses.

James B. Frakes: It is possible. We are talking to people. If another option is in future discussions with the FDA, if they chose to broaden or add to our breakthrough device designation in viruses. Right now, it is just for life-threatening viruses, which long COVID is not considered a life-threatening virus. But if they were to expand it to include that, then we could do potential emergency use, the one-off treatments to actually get some human data. Again, that is just a possibility. I am not promising anything.

Jim Frakes: It is possible. We are talking to people. If another option is in future discussions with the FDA, if they chose to broaden or add to our breakthrough device designation in viruses. Right now, it is just for life-threatening viruses, which long COVID is not considered a life-threatening virus. But if they were to expand it to include that, then we could do potential emergency use, the one-off treatments to actually get some human data. Again, that is just a possibility. I am not promising anything. But those options could happen.

Speaker #3: With long COVID, it's not considered a life-threatening virus. But if they were to expand it to include that, then we could do potential emergency use.

Speaker #3: The one-off treatments actually get some human data. But again, that's just a possibility. I'm not promising anything. But those options could happen.

James B. Frakes: But those options could happen.

M. Marin: Mm-hmm. Okay. Thank you.

Marla Marin: Mm-hmm. Okay. Thank you.

Speaker #4: Okay. Thank you.

Speaker #2: This concludes our question and answer session. I would like to turn the conference back over to Jim Frakes for any closing remarks.

Operator 3: This concludes our question and answer session. I would like to turn the conference back over to Jim Frakes for any closing remarks.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Jim Frakes for any closing remarks.

Speaker #3: Thank you. In closing, I'd like to recap some items to keep on your radar screens. First, we are now in the final cohort of our Australian oncology trial.

James B. Frakes: Thank you. In closing, I'd like to recap some items to keep on your radar screens. First, we are now in the final cohort of our Australian oncology trial, with the goal of completing treatment and related follow-up by the end of calendar 2026 or early 2027. Second, the preliminary cohort 2 biomarker observations provide additional data for us to analyze as we complete the trial and move toward our next regulatory discussions. And third, as just discussed, we continue to explore the broader potential of the Hemopurifier platform, including in long COVID and in other diseases in which extracellular vesicles may play a role. We remain focused on advancing the Hemopurifier platform through disciplined clinical execution, rigorous analysis of our data, and careful capital management. We appreciate your continued interest and support. Thank you for attending our call.

Jim Frakes: Thank you. In closing, I'd like to recap some items to keep on your radar screens. First, we are now in the final cohort of our Australian oncology trial, with the goal of completing treatment and related follow-up by the end of calendar 2026 or early 2027. Second, the preliminary cohort 2 biomarker observations provide additional data for us to analyze as we complete the trial and move toward our next regulatory discussions. And third, as just discussed, we continue to explore the broader potential of the Hemopurifier platform, including in long COVID and in other diseases in which extracellular vesicles may play a role. We remain focused on advancing the Hemopurifier platform through disciplined clinical execution, rigorous analysis of our data, and careful capital management. We appreciate your continued interest and support. Thank you for attending our call.

Speaker #3: With the goal of completing treatment and related follow-up by the end of calendar 2026 or early 2027. Second, the preliminary cohort two biomarker observations provide additional data for us to analyze.

Speaker #3: As we complete the trial and move toward our next regulatory discussions. And third, as just discussed, we continue to explore the broader potential of the Hemopurifier platform, including in long COVID and in other diseases in which extracellular vesicles may play a role.

Speaker #3: We've remained focused on advancing the Hemopurifier platform through disciplined clinical execution, rigorous analysis of our data, and careful capital management. We appreciate your continued interest and support.

Speaker #3: Thank you for attending our call.

Operator 3: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.