Aethlon Medical (AEMD) 10-Q11 Feb 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
Document And Entity Information	Dec. 31, 2013	Feb. 17, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Aethlon Medical Inc	'
Entity Central Index Key	'0000882291	'
Document Type	'10-Q	'
Document Period End Date	31-Dec-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--03-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	209,509,599
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Dec. 31, 2013	Mar. 31, 2013
Current assets	'	'
Cash	$1,854,941	$125,274
Accounts receivable	45,009	208,781
Deferred financing costs	0	863
Prepaid expenses and other current assets	18,700	29,602
Total current assets	1,918,650	364,520
Property and equipment, net	54,352	145
Patents and patents pending, net	114,780	121,653
Deposits	17,226	10,376
Total assets	2,105,008	496,694
Current Liabilities	'	'
Accounts payable	790,272	822,832
Due to related parties	784,570	736,070
Notes payable	390,000	321,381
Convertible notes payable, net of discounts	2,244,942	2,367,631
Derivative liabilities	5,576,065	3,588,239
Accrued liquidated damages	437,800	437,800
Other current liabilities	2,426,263	1,367,185
Total current liabilities	12,649,912	9,641,138
Commitments and Contingencies (Note 12)	'	'
Stockholders' Deficit	'	'
Common stock, par value $0.001 per share; 500,000,000 shares authorized as of December 31, 2013 and March 31, 2013; 209,168,197 and 173,674,201 shares issued and outstanding as of December 31, 2013 and March 31, 2013, respectively	209,170	173,685
AdditionalPaid-In Capital	56,193,786	52,157,196
Accumulated deficit	-67,210,799	-61,475,325
Total Aethlon Medical, Inc. stockholders' deficit	-10,807,843	-9,144,444
Noncontrolling interests	262,939	0
Total stockholders' deficit	-10,544,904	-9,144,444
Total liabilities and stockholders' deficit	$2,105,008	$496,694

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Dec. 31, 2013	Mar. 31, 2013
Stockholders' Deficit	'	'
Common stock par value (in Dollars per share)	$0.00	$0.00
Common stock shares authorized	500,000,000	500,000,000
Common stock issued	209,168,197	173,674,201
Common stock outstanding	209,168,197	173,674,201

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
REVENUES	'	'	'	'
Government contract revenue	$76,313	$208,781	$916,796	$825,642
OPERATING EXPENSES	'	'	'	'
Professional fees	553,231	441,965	1,204,812	1,370,085
Payroll and related expenses	425,293	507,377	1,288,773	1,620,943
General and administrative	330,131	196,278	669,145	563,036
Total operating expenses	1,308,655	1,145,620	3,162,730	3,554,064
OPERATING LOSS	-1,232,342	-936,839	-2,245,934	-2,728,422
OTHER EXPENSE (INCOME)	'	'	'	'
Loss on debt conversion	0	26,716	40,256	122,775
(Gain)/loss on change in fair value of derivative liability	-78,175	-1,384,256	2,304,702	-1,745,718
Interest and other debt expenses	113,445	106,795	329,947	1,019,857
Interest income	-1	-38	-60	-145
Other expense	1,000,000	0	1,000,000	0
Total other expense	1,035,269	-1,250,783	3,674,845	-603,231
NET (LOSS) PROFIT BEFORE NONCONTROLLING INTERESTS	-2,267,611	313,944	-5,920,779	-2,125,191
Loss attributable to noncontrolling interests	-37,061	0	-37,061	0
NET (LOSS) PROFIT ATTRIBUTABLE TO COMMON STOCKHOLDERS	($2,230,550)	$313,944	($5,883,718)	($2,125,191)
BASIC AND DILUTED LOSS PER COMMON SHARE	($0.01)	$0	($0.03)	($0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED	198,153,316	158,759,162	187,505,561	142,812,062

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:	'	'
Net income (loss)	($5,883,718)	($2,125,191)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Loss attributable to noncontrolling interests	37,061	0
Depreciation and amortization	14,159	7,977
Stock based compensation	223,351	570,540
Loss on debt conversion	40,256	122,775
Non cash interest expense	0	11,846
Fair market value of common stock, warrants and options issued for services	264,343	185,851
Change in fair value of derivative liabilities	2,304,702	-1,745,718
Amortization of debt discount and deferred financing costs	5,147	585,871
Changes in operating assets and liabilities:	'	'
Prepaid expenses and other assets	4,052	-31,368
Accounts receivable	163,772	400,114
Accounts payable and other current liabilities	1,268,625	435,976
Due to related parties	48,500	4,000
Net cash used in operating activities	-1,583,872	-1,577,327
Cash flows from investing activities:	'	'
Purchases of property and equipment	-61,493	0
Net cash used in investing activities	-61,493	0
Cash flows from financing activities:	'	'
Principal repayments of notes payable	-200,000	-29,610
Net proceeds from the issuance of notes payable	400,000	'
Proceeds from the issuance of common stock	3,175,032	1,571,000
Net cash provided by financing activities	3,375,032	1,541,390
Net (decrease) increase in cash	1,729,667	-35,937
Cash at beginning of period	125,274	143,907
Cash at end of period	1,854,941	107,970
Supplemental disclosures of cash flow information	'	'
Interest	13,950	2,821
Income taxes	0	0
Supplemental disclosures of non-cash investing and financing activities:	'	'
Convertible notes payable converted to common stock	194,000	1,150,000
Notes payable converted to common stock	131,380	182,660
Accrued interest converted to common stock	175,080	272,402
Deferred financing costs recorded in connection with debt amendment	0	2,500
Reclassification of accounts payable to convertible note payable	47,000	0
Reclassification of note payable to convertible note payable	0	75,000
Reclassification of warrant derivative liability into equity	316,876	32,759
Reclassification of accrued interest to convertible notes payable	$20,027	$0

1_NATURE_OF_BUSINESS_AND_BASIS

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
1. NATURE OF BUSINESS AND BASIS OF PRESENTATION	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
NATURE OF BUSINESS AND BASIS OF PRESENTATION	'
	Aethlon Medical, Inc. ("Aethlon", the "Company", "we" or "us") is a medical device company focused on creating innovative devices that address unmet medical needs in cancer, infectious disease and other life-threatening conditions. At the core of our developments is the Aethlon ADAPT™ (Adaptive Dialysis-Like Affinity Platform Technology) system, a medical device platform that converges single or multiple affinity drug agents with advanced plasma membrane technology to create therapeutic filtration devices that selectively remove harmful particles from the entire circulatory system without loss of essential blood components. On June 25, 2013, the United States Food and Drug Administration (FDA) approved an Investigational Device Exemption (IDE) that allows us to initiate human feasibility studies of the Aethlon Hemopurifier® in the United States. Under the feasibility study protocol, we will enroll ten end-stage renal disease patients who are infected with the Hepatitis C virus (HCV) to demonstrate the safety of Hemopurifier therapy. Successful completion of this study will allow us the opportunity to initiate pivotal studies that are required for market clearance to treat HCV and other disease conditions in the United States.

	Successful outcomes of human trials will also be required by the regulatory agencies of certain foreign countries where we intend to sell this device. Some of our patents may expire before FDA approval or approval in a foreign country, if any, is obtained. However, we believe that certain patent applications and/or other patents issued more recently will help protect the proprietary nature of the Hemopurifier(R) treatment technology.

	In October 2013, our subsidiary, Exosome Sciences, Inc. (ESI), commenced operations with a focus on advancing exosome-based strategies to diagnose and monitor the progression of cancer, infectious disease and other life-threatening conditions.

	Our common stock is quoted on the OTCQB marketplace administered by the OTC Markets Group under the symbol "AEMD."

	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and applicable sections of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments necessary to make the financial statements not misleading have been included. The condensed consolidated balance sheet as of March 31, 2013 was derived from our audited financial statements. Operating results for the nine months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014. For further information, refer to our Annual Report on Form 10-K for the year ended March 31, 2013, which includes audited financial statements and footnotes as of March 31, 2013 and for the years ended March 31, 2013 and 2012.

2_LIQUIDITY

2. LIQUIDITY	9 Months Ended
2. LIQUIDITY	Dec. 31, 2013
Darpa Contract And Related Revenue Recognition	'
LIQUIDITY	'
	The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the ordinary course of business. We have experienced continuing losses from operations, are in default on certain debt, have negative working capital of approximately $10,731,000, recurring losses from operations and an accumulated deficit of approximately $67,211,000 at December 31, 2013, which among other matters, raises significant doubt about our ability to continue as a going concern. We have not generated significant revenue or any profit from operations since inception. A significant amount of additional capital will be necessary to advance the development of our products to the point at which they may become commercially viable. Our current financial resources may be insufficient to fund our capital expenditures, working capital and other cash requirements (consisting of accounts payable, accrued liabilities, amounts due to related parties and amounts due under various notes payable) for the next twelve months. Therefore we will be required to seek additional funds through debt and/or equity financing arrangements to finance our current and long-term operations.

	We are currently addressing our liquidity needs by exploring investment capital opportunities through the private placement of common stock or issuance of additional debt. We believe that our access to additional capital, together with existing cash resources and anticipated receipts under the Defense Advanced Research Projects Agency (DARPA) contract, as discussed in Note 11, will be sufficient to meet our liquidity needs for fiscal 2014. However, no assurance can be given that we will receive any funds in connection with our capital raising efforts.

	The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability of assets that might be necessary should we be unable to continue as a going concern.

3_SUMMARY_OF_SIGNIFICANT_ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	The summary of our significant accounting policies presented below is designed to assist the reader in understanding our condensed consolidated financial statements. Such financial statements and related notes are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to GAAP in all material respects, and have been consistently applied in preparing the accompanying condensed consolidated financial statements.

	PRINCIPLES OF CONSOLIDATION

	The accompanying condensed consolidated financial statements include the accounts of Aethlon Medical, Inc. and its majority-owned subsidiary, Exosome Sciences, Inc. (“ESI”), collectively hereinafter referred to as the "Company" or "Aethlon". All significant intercompany balances and transactions have been eliminated in consolidation. The Company classifies the noncontrolling interests in ESI as part of consolidated net loss in the three and nine months ended December 31, 2013 and includes the accumulated amount of noncontrolling interests as part of stockholders’ equity. If a change in ownership of ESI results in loss of control and deconsolidation, any retained ownership interest will be remeasured with the gain or loss reported in the statement of operations.

	LOSS PER COMMON SHARE

	Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation. Diluted loss per common share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued, and if the additional common shares were dilutive. As we had net losses for all periods presented, basic and diluted loss per common share are the same, since additional potential common shares have been excluded as their effect would be antidilutive.

	The potentially dilutive common shares outstanding at December 31, 2013 and 2012, which include common shares underlying outstanding stock options, warrants and convertible notes, were 145,105,572 and 135,505,936, respectively.

	REVENUE RECOGNITION

	DARPA Contract - With respect to revenue recognition, we entered into a government contract with DARPA and have recognized revenue under such contract. We adopted the Milestone method of revenue recognition for the DARPA contract under ASC 605-28 “Revenue Recognition – Milestone Method” and we believe we meet the requirements under ASC 605-28 for reporting contract revenue under the Milestone Method (see Note 11).

	In order to account for this contract, we identify the deliverables included within the contract and evaluates which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has standalone value to the collaborator. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units.

	A milestone is an event having all of the following characteristics:

	(1) There is substantive uncertainty at the date the arrangement is entered into that the event will be achieved. A vendor’s assessment that it expects to achieve a milestone does not necessarily mean that there is not substantive uncertainty associated with achieving the milestone.

	(2) The event can only be achieved based in whole or in part on either: (a) the vendor’s performance; or (b) a specific outcome resulting from the vendor’s performance.

	(3) If achieved, the event would result in additional payments being due to the vendor.

	A milestone does not include events for which the occurrence is either: (a) contingent solely upon the passage of time; or (b) the result of a counterparty’s performance.

	The policy for recognizing deliverable consideration contingent upon achievement of a milestone must be applied consistently to similar deliverables.

	The assessment of whether a milestone is substantive is performed at the inception of the arrangement. The consideration earned from the achievement of a milestone must meet all of the following for the milestone to be considered substantive:

	(1) The consideration is commensurate with either: (a) the vendor’s performance to achieve the milestone; or (b) the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone;

	(2) The consideration relates solely to past performance; and

	(3) The consideration is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement.

	A milestone is not considered substantive if any portion of the associated milestone consideration relates to the remaining deliverables in the unit of accounting (i.e., it does not relate solely to past performance). To recognize the milestone consideration in its entirety as revenue in the period in which the milestone is achieved, the milestone must be substantive in its entirety. Milestone consideration cannot be bifurcated into substantive and nonsubstantive components. In addition, if a portion of the consideration earned from achieving a milestone may be refunded or adjusted based on future performance, the related milestone is not considered substantive.

	Battelle Subcontract – With respect to revenue recognition, we entered into a subcontract agreement with Battelle Memorial Institute (“Battelle”) in March 2013. Battelle was chosen by DARPA to be the prime contractor on the systems integration portion of the original DARPA contract and we are one of several subcontractors on that systems integration project. The Battelle subcontract is under a time and materials basis and we began generating revenues under the subcontract in the three months ended September 30, 2013. Our expected revenue from the subcontract will be at the discretion of Battelle. The Battelle subcontract is our first cost-reimbursable contract.

	Our revenue under this contract will be a function of cost reimbursement plus an overhead mark-up for hours devoted to the project by specific employees (with specific hourly rates for those employees), for travel expenses related to the project, for any equipment purchased for the project and for the cost of any consultants hired by us to perform work on the project. Each payment will require approval by the program manager at Battelle.

	CASH AND CASH EQUIVALENTS

	Accounting standards define "cash and cash equivalents" as any short-term, highly liquid investment that is both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. For the purpose of financial statement presentation, we consider all highly liquid investment instruments with original maturities of three months or less when purchased, or any investment redeemable without penalty or loss of interest to be cash equivalents. As of December 31, 2013 and March 31, 2013, we had no assets that were classified as cash equivalents.

	At December 31, 2013, our cash balances were as follows:

	Aethlon Medical, Inc.		$	588,066
	Exosome Sciences, Inc.			1,266,875
	Consolidated Cash Balance		$	1,854,941

	CONCENTRATIONS OF CREDIT RISKS

	Cash is maintained at two financial institutions in checking accounts and related cash management accounts. In October 2008, the Federal Deposit Insurance Corporation ("FDIC") increased the maximum level of deposit insurance at financial institutions from $100,000 to $250,000. Our cash balances were above such insured amount at December 31, 2013 and below the insured amount at March 31, 2013.

	All of our accounts receivable at March 31, 2013 and 2012 and all of our revenue in the fiscal year ended March 31, 2013 were from the U.S. Department of Defense.

	PROPERTY AND EQUIPMENT

	Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from two to five years. Repairs and maintenance are charged to expense as incurred while improvements are capitalized. Upon the sale or retirement of property and equipment, the accounts are relieved of the cost and the related accumulated depreciation with any gain or loss included in the consolidated statements of operations.

SEGMENTS

Historically, we operated in one segment that was based on our development of therapeutic devices. However in the December 2013 quarter, we initiated the operations of ESI to develop diagnostic tests. While the activities of ESI in the December 2013 quarter were of a start-up nature and were considered immaterial for segment related disclosures, we anticipate that we will treat ESI’s operations as a separate segment in future periods.

PATENTS

We capitalize the cost of patents, some of which were acquired, and amortize such costs over the estimated useful life, upon issuance of the patent.

RESEARCH AND DEVELOPMENT EXPENSES

We incurred research and development expenses during the three and nine month periods ended December 31, 2013 and 2012, which are included in various operating expense line items in the accompanying condensed consolidated statements of operations. Our research and development expenses in those periods were as follows:

		December 31,			December 31,
		2013			2012

Three months ended		$	542,383		$	371,253
Nine months ended		$	1,178,488		$	1,034,335

FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS

The fair value of certain convertible notes and related warrants at December 31, 2013 and March 31, 2013 were $5,576,065 and $3,588,239, respectively, based upon a third party valuation report that we commissioned. Warrants classified as derivative liabilities are reported at their estimated fair value, with changes in fair value being reported in current period results of operations.

EQUITY INSTRUMENTS FOR SERVICES PROVIDED BY PARTIES OTHER THAN EMPLOYEES

We account for transactions involving goods and services provided by third parties where we issue equity instruments as part of the total consideration using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable.

In transactions, when the value of the goods and/or services is not readily determinable and (1) the fair value of the equity instruments is more reliably measurable and (2) the counterparty receives equity instruments in full or partial settlement of the transactions, we use the following methodology:

(a) For transactions where goods have already been delivered or services rendered, the equity instruments are issued on or about the date the performance is complete (and valued on the date of issuance).

(b) For transactions where the instruments are issued on a fully vested, non-forfeitable basis, the equity instruments are valued on or about the date of the contract.

(c) For any transactions not meeting the criteria in (a) or (b) above, we re-measure the consideration at each reporting date based on its then current stock value.

IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS

We review our long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the cost basis of a long-lived asset is greater than the projected future undiscounted net cash flows from such asset (excluding interest), an impairment loss is recognized. Impairment losses are calculated as the difference between the cost basis of an asset and its estimated fair value. We believe that no impairment occurred at or during the three and nine months ended December 31, 2013 and 2012.

BENEFICIAL CONVERSION FEATURE OF CONVERTIBLE NOTES PAYABLE

The convertible feature of certain notes payable provides for a rate of conversion that is below the market value of our common stock. Such feature is normally characterized as a "Beneficial Conversion Feature" ("BCF"). We record the estimated fair value of the BCF, when applicable, in the condensed consolidated financial statements as a discount from the face amount of the notes. Such discounts are accreted to interest expense over the term of the notes using the effective interest method.

DERIVATIVE LIABILITIES AND CLASSIFICATION

We evaluate free-standing derivative instruments (or embedded derivatives) to properly classify such instruments within equity or as liabilities in our financial statements. Our policy is to settle instruments indexed to our common shares on a first-in-first-out basis.

The classification of a derivative instrument is reassessed at each balance sheet date. If the classification changes as a result of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified.

On April 1, 2009 we adopted new guidance, as codified in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 815-40, Derivatives and Hedging, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock (previously EITF 07-5), that requires us to apply a two-step model in determining whether a financial instrument or an embedded feature is indexed to our own stock and thus enables it to qualify for equity classification. We have identified several convertible debt or warrant agreements in which the embedded conversion feature or exercise price contains certain provisions that may result in an adjustment of the conversion or exercise price, which results in the failure of the these instruments to be considered to be indexed to our stock. Accordingly, under this guidance, we are required to record the estimated fair value of these instruments as derivative liabilities (see Note 8).

We re-measure the estimated fair value of derivative liabilities at each reporting period and record changes in fair value in other expense (income) in the current statement of operations.

REGISTRATION RIGHTS ARRANGEMENTS

We account for contingent obligations to make future payments or otherwise transfer consideration under a registration rights arrangement separately from any related financing transaction agreements, and any such contingent obligations are recognized only when it is determined that it is probable that the Company will become obligated for future payments and the amount, or range of amounts, of such future payments can be reasonably estimated.

STOCK-BASED COMPENSATION

Employee stock options and rights to purchase shares under stock participation plans are accounted for under the fair value method. Accordingly, share-based compensation is measured when all granting activities have been completed, generally the grant date, based on the fair value of the award. The exercise price of options is generally equal to the market price of the Company's common stock (defined as the closing price as quoted on the OTCBB) on the date of grant. Compensation cost recognized by the Company includes (a) compensation cost for all equity incentive awards granted prior to, but not yet vested as of April 1, 2006, based on the grant-date fair value estimated in accordance with the original provisions of the then current accounting standards, and (b) compensation cost for all equity incentive awards granted subsequent to April 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of subsequent accounting standards. We use a Binomial Lattice option pricing model for estimating fair value of options granted (see Note 8).

INCOME TAXES

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the difference between the consolidated financial statements and their respective tax basis. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts reported for income tax purposes, and (b) tax credit carryforwards. We record a valuation allowance for deferred tax assets when, based on our best estimate of taxable income (if any) in the foreseeable future, it is more likely than not that some portion of the deferred tax assets may not be realized.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

There were no recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, or the Securities and Exchange Commission during the nine months ended December 31, 2013 or that were issued in prior periods but do not become effective until future periods that in the opinion of management had, or are expected to have a material impact on our present or future consolidated financial statements.

4_NOTES_PAYABLE

4. NOTES PAYABLE	9 Months Ended
4. NOTES PAYABLE	Dec. 31, 2013
Debt Disclosure [Abstract]	'
NOTES PAYABLE	'
	Notes payable consist of the following:

		31-Dec-13					31-Mar-13
		Principal Balance			Accrued Interest		Principal Balance		Accrued Interest
	12% Notes payable, past due	$	185,000		$	346,875	$	185,000	$	326,062
	10% Note payable, past due		5,000			6,250		5,000		5,875
	Tonaquint Note		–			–		131,381		1,629
	Directors’ Notes		200,000			9,516		–		–
	Total	$	390,000		$	362,641	$	321,381	$	333,566

	During the nine month periods ended December 31, 2013 and 2012, we recorded interest expense of $47,838 and $47,447, respectively, related to the contractual interest rates of our notes payable.

	12% NOTES

	From August 1999 through May 2005, we entered into various borrowing arrangements for the issuance of notes payable from private placement offerings (the "12% Notes"). On April 21, 2010, a holder of $100,000 of the 12% Notes converted his principal balance and $71,758 of accrued interest into 687,033 shares of common stock at an agreed conversion price of $0.25 per share. We incurred a loss upon this conversion of $68,703 since the closing price of our common stock was $0.35 at the date of conversion. At December 31, 2013, the 12% Notes were past due, in default, and bearing interest at the default rate of 15%.

	10% NOTES

	At December 31, 2013, one 10% Note in the amount of $5,000, which is past due and in default, remained outstanding and it bears interest at the default rate of 15%.

	Management's plans to satisfy the remaining outstanding balance on these 12% and 10% Notes include converting the notes to common stock at market value or repayment with available funds.

	TONAQUINT NOTE

	On June 28, 2011, in conjunction with our satisfying all balances owed under a convertible note, we entered into a Termination Agreement with Tonaquint, Inc. under which both parties agreed that in consideration of the termination of a warrant, the waiving of all fees, penalties, the creation of the selling program and other factors, we agreed to issue an unsecured non-convertible promissory note (the "New Note") in the principal amount of $360,186, which provides for annual interest at a rate of 6%, payable monthly in either cash or our stock, at our option. The New Note originally had a maturity date of April 30, 2012. We subsequently extended the note initially to July 31, 2012 and then to July 31, 2013 and subsequently to August 31, 2013. We also recorded into principal $12,500 of the lender’s legal fees related to documentation of the extension agreement.

	During the nine months ended December 31, 2013, we issued 1,540,426 shares of common stock to convert $136,060 of principal and accrued interest (see Note 6). As a result of those conversions, the Tonaquint Note was paid off in full during the September 2013 quarter. We recorded a loss on conversion of $40,256 on those conversions over the nine months ended December 31, 2013.

	The following table shows the conversions into principal of the Tonaquint Note by fiscal year:

	Activity in Tonaquint Note
	Initial principal balance	$	360,186
	Lender’s legal fees		12,500
	Conversions during the fiscal year ended March 31, 2013		(241,307	)
	Conversions during the nine months ended December 31, 2013		(131,379	)
	Balance as of December 31, 2013	$	–

	Directors’ Notes

	In July 2013, we borrowed $400,000 from two of our directors under two 90 day notes for $200,000 each bearing 10% interest (the “Notes”). The Notes allow at the discretion of the holders if we did not pay back those loans by October 9, 2013 (i) to convert their principal and accrued interest into shares of common stock at $0.088 per share (the “Conversion Price”) and (ii) receive warrants to purchase common stock equal to 50% of the principal converted under the Notes, with an exercise price of $0.132 per share. Additionally, there was a provision for a penalty interest rate of 12%.

	That potential conversion price and warrant exercise price were based on the same pricing mechanism that we have used in prior equity unit financings since March 2012 (see Note 6) which are based on 80% of the then current market price of our common stock and with the warrant exercise price based on 120% of the same then current market price. We initially reserved 6,931,818 shares of common stock to support the conversion in full of the Notes and accrued interest as well as the exercise in full of the warrants (should such conversion and/or issuance occur).

	We subsequently paid back one of those loans in December 2013 along with all accrued interest in the amount of $9,367. That repayment extinguished all potential common stock and warrant issuance provisions of that Note.

	The holder of the second Note agreed to extend the expiration date of his Note to July 31, 2014.

5_CONVERTIBLE_NOTES_PAYABLE

5. CONVERTIBLE NOTES PAYABLE	9 Months Ended
5. CONVERTIBLE NOTES PAYABLE	Dec. 31, 2013
Convertible Notes Payable [Abstract]	'
CONVERTIBLE NOTES PAYABLE	'
	Convertible notes payable consist of the following at December 31, 2013:

			Principal		Unamortized			Net		Accrued
			Principal		Discount			Amount		Interest

	Amended and Restated Series A 12% Convertible Notes, past due		$	885,000	$	–		$	885,000	$	531,000
	December 2006 10% Convertible Notes, past due			17,000		–			17,000		17,800
	2008 10% Convertible Notes, past due			25,000		–			25,000		18,229
	October & November 2009 10% Convertible Notes			50,000		–			50,000		24,847
	April 2010 10% Convertible Note			75,000		–			75,000		29,563
	September 2010 10% Convertible Notes, past due			283,100		–			283,100		14,195
	April 2011 10% Convertible Notes, past due			400,400		–			400,400		46,102
	July and August 2011 10% Convertible Notes, $257,656 past due			377,683		–			377,683		86,079
	September 2011 Convertible Notes, past due			9,760		–			9,760		–
	Law Firm Note Number 1			75,000		–			75,000		6,667
	Law Firm Note Number 2			47,000		–			47,000		1,345
	Total – Convertible Notes		$	2,244,943	$	–		$	2,244,943	$	775,827

	All of the convertible notes payable in the above table are presently past due or will be due within one year of the December 31, 2013 balance sheet date.

	During the nine months ended December 31, 2013, we recorded interest expense of $267,557 related to the contractual interest rates of our convertible notes and interest expense of $4,284 related to the amortization of debt discounts on the convertible notes for a total of $271,841.

	Convertible notes payable consisted of the following at March 31, 2013:

			Principal		Unamortized			Net		Accrued
			Principal		Discount			Amount		Interest

	Amended and Restated Series A 12% Convertible Notes, past due		$	885,000	$	–		$	885,000	$	398,250
	2008 10% Convertible Notes, past due			25,000		–			25,000		15,417
	December 2006 10% Convertible Notes, past due			17,000		–			17,000		15,888
	October & November 2009 10% Convertible Notes			50,000		(389	)		49,611		20,000
	April 2010 10% Convertible Note			75,000		(3,895	)		71,105		23,938
	September 2010 10% Convertible Notes, past due			308,100		–			308,100		52,393
	April 2011 10% Convertible Notes, past due			400,400		–			400,400		100,100
	July and August 2011 10% Convertible Notes, $257,656 past due			357,655		–			357,655		68,704
	September 2011 Convertible Notes, past due			178,760		–			178,760		–
	Law Firm Note			75,000		–			75,000		3,854
	Total – Convertible Notes		$	2,371,915	$	(4,284	)	$	2,367,631	$	698,544

	AMENDED AND RESTATED SERIES A 12% CONVERTIBLE NOTES

	In June 2010, we entered into Amended and Restated 12% Series A Convertible Promissory Notes (the "Amended and Restated Notes") with the holders of certain promissory notes previously issued by the Company (“Amended Series A 10% Convertible Notes” or the "Prior Notes"), and all amendments to the Prior Notes.

	The Amended and Restated Notes, in the principal amount of $900,000 matured on December 31, 2010. In connection with the restructuring we paid $54,001 of accrued and default interest through the date of the restructuring, liquidated damages of $205,000 and $54,003 of prepaid interest through the expiration date in the aggregate amount of $313,004 through the issuance of units ("Units") at a fixed rate of $0.20 per Unit, each Unit consisting of one share of our common stock and one common stock purchase warrant to purchase one share of our common stock at a fixed exercise price of $0.20 per share as prescribed in the Amended and Restated Note Agreement. The noteholders have antidilution price protection on the Amended and Restated Notes.

	In addition to the extension of the expiration date of the Amended and Restated Notes to December 31, 2010, we agreed to increase the annual interest rate from ten percent to twelve percent. We also agreed to change the exercise prices on all of the warrants held by the noteholders to $0.20 per share, to change certain formerly contingent warrants to non-contingent warrants and to extend the expiration date of their warrants to February 2016.

	As of December 31, 2010, the Amended and Restated Notes matured and as of December 31, 2013 remain in default. We are accruing interest at the revised default rate of 20% following the expiration date of December 31, 2010.

	During the fiscal year ended March 31, 2013, the holders of $15,000 of the Amended and Restated Notes converted their principal and related accrued interest into common stock per the conversion formula.

	We have begun discussions with the noteholders regarding an extension to the notes but there can be no assurance that we will be able to do so on terms that we deem acceptable or at all. We are recording interest at the default rate of 20%.

	DECEMBER 2006 10% CONVERTIBLE NOTES

	At December 31, 2013, one note representing $17,000 of the December 2006 10% Notes remained outstanding and in default. This note is convertible into our common stock at $0.17 per share. We are recording interest at the default rate of 15%. Subsequent to December 31, 2013, we paid off this note and all related accrued interest (see Note 14).

	2008 10% CONVERTIBLE NOTES

	One 2008 10% Convertible Note in the amount of $25,000 which matured in January 2010 remained outstanding at December 31, 2013. This note is convertible into our common stock at $0.50 per share. We are recording interest at the default rate of 15%.

	OCTOBER & NOVEMBER 2009 10% CONVERTIBLE NOTES

In October and November 2009, we raised $430,000 from the sale to accredited investors of 10% convertible notes ("October & November 2009 10% Convertible Notes"). The October & November 2009 10% Convertible Notes matured at various dates between April 2011 and May 2011 and are convertible into our common stock at a fixed conversion price of $0.25 per share prior to maturity. The investors also received matching three year warrants to purchase unregistered shares of our common stock at a price of $0.25 per share. We measured the fair value of the warrants and the beneficial conversion feature of the notes and recorded a 100% discount against the principal of the notes. We are amortizing this discount using the effective interest method over the term of the notes.

Deferred financing costs of $20,250 incurred in connection with this financing were issued in the form of a convertible note with warrants on the same terms as those received by the investors. We capitalized the $20,250 of deferred financing costs and amortized them over the term of the notes using the effective interest method.

In July 2012, we issued 461,409 shares of common stock to the holder of the $25,000 note in exchange for the value of the principal and related accrued interest of $8,000 under the same terms that we used to sell units consisting of one share of common stock and one-half of a stock purchase warrant on June 29, 2012 (see Note 6). The 461,409 share issuance was priced based on 80% of the trailing five day average before issuance to be consistent with the equity unit structure. As part of that structure, the noteholder also received seven year warrants to purchase 230,705 share of common stock at a price of $0.107 per share. The $16,149 value of the warrant was calculated using the binomial lattice valuation methodology. We recorded a loss on conversion of $45,796 on the conversions in the quarter ended September 30, 2012.

The following table shows the conversions into principal of the October and November 2009 Convertible Notes Note by fiscal year:

Activity in October and November 2009 Convertible Notes
Initial principal balance, including $250,000 of deferred financing costs		$	450,250
Conversions during the fiscal year ended March 31, 2010			(70,000	)
Conversions during the fiscal year ended March 31, 2011			(175,000	)
Conversions during the fiscal year ended March 31, 2012			(130,250	)
Conversions during the fiscal year ended March 31, 2013			(25,000	)
Balance as of December 31, 2013		$	50,000

On March 31, 2012, we agreed to extend the expiration date and to change the exercise price of certain warrants of one of the note holders by two years in exchange for the extension of $50,000 of the October & November 2009 10% Convertible Notes and the $75,000 April 2010 10% Convertible Note (see below) by that same two year period. We recorded a charge of $77,265 relating to this modification.

In September 2013, we agreed to extend the expiration date of certain warrants of one of the note holders by two years in exchange for the extension of $50,000 of the October & November 2009 10% Convertible Notes and the $75,000 April 2010 10% Convertible Note (see below) by that same two year period. Management assessed the change in the value of the notes and related warrants before and after that extension and determined that the change in value related to the change in terms was not significant.

APRIL 2010 10% CONVERTIBLE NOTE

In April 2010, we raised $75,000 from the sale to an accredited investor of a 10% convertible note. The convertible note matured in October 2011 and is convertible into our common stock at a fixed conversion price of $0.25 per share prior to maturity. The investor also received three year warrants to purchase 300,000 unregistered shares of our common stock at a price of $0.25 per share.

We measured the fair value of the warrants and the beneficial conversion feature of the notes and recorded a 100% discount against the principal of the notes. We amortized this discount using the effective interest method over the term of the note. As of September 30, 2013, there have not been any conversions of the April 2010 10% Convertible Note.

On March 31, 2012, we agreed to extend the expiration date and to change the exercise price of certain warrants of the note holder by two years in exchange for his extension of $50,000 of the October & November 2009 10% Convertible Notes and the $75,000 April 2010 10% Convertible Note by that same two year period. We recorded a charge of $77,265 relating to this modification in the quarter ended March 31, 2012.

In September 2013, we agreed to extend the expiration date of certain warrants of one of the note holders by two years in exchange for the extension of $50,000 of the October & November 2009 10% Convertible Notes and the $75,000 April 2010 10% Convertible Note (see below) by that same two year period. Management assessed the change in the value of the notes and related warrants before and after that extension and determined that the change in value related to the change in terms was not significant.

SEPTEMBER 2010 10% CONVERTIBLE NOTES

On September 3, 2010, we entered into a Subscription Agreement with three accredited investors (the “Purchasers”) providing for the issuance and sale of convertible promissory notes and corresponding warrants in the aggregate principal amount of $1,430,000. The initial closing under the Subscription Agreement resulted in the issuance and sale of (i) convertible promissory notes in the aggregate principal amount of $743,600, (ii) five-year warrants to purchase an aggregate of 3,718,000 shares of our common stock at an exercise price of $0.31125 per share, and (iii) five-year warrants to purchase an aggregate of 3,718,000 shares of our common stock at an exercise price of $0.43575 per share. The convertible promissory notes bear interest compounded monthly at the annual rate of ten percent (10%) and matured on September 3, 2011. The aggregate gross cash proceeds were $650,000, the balance of the principal amount representing a due diligence fee and an original issuance discount. The convertible promissory notes are convertible at the option of the holders into shares of our common stock at a price per share equal to eighty percent (80%) of the average of the three lowest closing bid prices of the common stock as reported by Bloomberg L.P. for the principal market on which the common stock trades or is quoted for the ten (10) trading days preceding the proposed conversion date. Subject to adjustment as described in the notes, the conversion price may not be more than $0.30 nor less than $0.20. There are no registration requirements with respect to the shares of common stock underlying the notes or the warrants.

The following table shows the conversions into principal of the September 2010 10% Convertible Notes by fiscal year:

Activity in September 2010 10% Convertible Notes
Initial principal balance		$	743,600
Conversions during the fiscal year ended March 31, 2012			(405,500	)
Conversions during the fiscal year ended March 31, 2013			(30,000	)
Conversions during the nine months ended December 31, 2013			(25,000	)
Balance as of December 31, 2013		$	283,100

$25,000 of the September 2010 10% Convertible Notes converted to common stock during the nine months ended December 31, 2013. We are recording interest at the default rate of 15%.

APRIL 2011 10% CONVERTIBLE NOTES

In April 2011, we entered into a Subscription Agreement with two accredited investors (the “Purchasers”) providing for the issuance and sale of convertible promissory notes and corresponding warrants in the aggregate principal amount of $385,000. The closing under the Subscription Agreement resulted in the issuance and sale by us of (i) convertible promissory notes in the aggregate principal amount of $385,000, (ii) five-year warrants to purchase an aggregate of 4,004,000 shares of our common stock at an exercise price of $0.125 per share, and (iii) five-year warrants to purchase an aggregate of 4,004,000 shares of our common stock at an exercise price of $0.175 per share. The convertible promissory notes bear interest compounded monthly at the annual rate of ten percent (10%) and matured on April 1, 2012. The aggregate gross cash proceeds to us were $350,000, the balance of the principal amount representing a due diligence fee and an original issuance discount. The convertible promissory notes are convertible at the option of the holders into shares of our common stock at a price per share equal to eighty percent (80%) of the average of the three lowest closing bid prices of the common stock as reported by Bloomberg L.P. for the principal market on which the common stock trades or is quoted for the ten (10) trading days preceding the proposed conversion date. Subject to adjustment as described in the notes, the conversion price may not be more than $0.20 nor less than $0.10. There are no registration requirements with respect to the shares of common stock underlying the notes or the warrants.

In addition, we issued (i) five-year warrants to purchase an aggregate of 812,500 shares of our common stock at an exercise price of $0.125 per share, and (ii) five-year warrants to purchase an aggregate of 812,500 shares of our common stock at an exercise price of $0.175 per share to the Purchasers. These warrants were issued as an antidilution adjustment under certain common stock purchase warrants held by the Purchasers that were acquired from us in September 2010.

As of December 31, 2013, there have not been any conversions of the April 2011 10% Convertible Notes. We are recording interest at the default rate of 15%.

JULY & AUGUST 2011 10% CONVERTIBLE NOTES

During the three months ended September 30, 2011, we raised $357,656 in 10% convertible notes. Those notes had a fixed conversion price of $0.09 per share and carried an interest rate of 10%. The convertible notes matured in July and August 2012. We also issued those investors five year warrants to purchase 3,973,957 shares of common stock at $0.125 per share.

We measured the fair value of the warrants and the beneficial conversion feature of the notes and recorded a $257,926 discount against the principal of the notes. We amortized this discount using the effective interest method over the term of the note. As of September 30, 2013, there have not been any conversions of the July & August 2011 10% Convertible Notes.

Effective July 14, 2012, holders of three notes totaling $100,000 agreed to extend the expiration date of their notes to July 13, 2013. Subsequent to June 30, 2013, the holders of the three notes agreed to extend their notes to July 16, 2014. As part of the extension, we agreed to capitalize accrued interest of $20,027 into the principal balance.

At December 31, 2013, the outstanding principal balance was $377,683, of which $257,655 was in default. Following the expiration of the maturity dates on the $257,655 of notes that are now in default, we began to accrue interest at the default interest rate of 15%.

SEPTEMBER 2011 CONVERTIBLE NOTES

On September 23, 2011, we entered into a Subscription Agreement with two accredited investors (the “Purchasers”) providing for the issuance and sale of convertible promissory notes and corresponding warrants in the aggregate principal amount of $253,760. The warrants carried a five-year term to purchase an aggregate of 3,625,143 shares of our common stock at an exercise price of $0.10 per share. The convertible promissory notes do not bear an interest rate and mature on September 23, 2012. The aggregate net cash proceeds to us were $175,000, the balance of the principal amount representing a due diligence fee and an original issuance discount. The convertible promissory notes are convertible at the option of the holders into shares of our common stock at a price per share equal to $0.07. Subject to adjustments as described in the notes, the conversion price may not be more than $0.07. There are no registration requirements with respect to the shares of common stock underlying the notes or the warrants.

We measured the fair value of the warrants and the beneficial conversion feature of the notes and recorded a $168,804 discount against the principal of the notes. We amortized this discount using the effective interest method over the term of the note.

The following table shows the conversions into principal of the September 2011 Convertible Notes by fiscal year:

Activity in September 2011 Convertible Notes
Initial principal balance		$	253,760
Conversions during the fiscal year ended March 31, 2012			(15,000	)
Conversions during the fiscal year ended March 31, 2013			(60,000	)
Conversions during the nine months ended December 31, 2013			(169,000	)
Balance as of December 31, 2013		$	9,760

At December 31, 2013, the outstanding principal balance was in default and there was no accrued interest as these notes do not bear interest.

LAW FIRM NOTE NUMBER 1

On March 22, 2012, we entered into a Promissory Note with our corporate law firm for the amount of $75,000, which represented the majority of the amount we owed to that firm. The Promissory Note originally had a maturity date of December 31, 2012 and bears interest at five percent per annum. The note is convertible at the option of the holder into shares of our common stock at a 10% discount to the market price of the common stock on the date prior to conversion with a floor price on such conversions of $0.08 per share. This ability of the holder to convert became exercisable upon the amendment of the Articles of Incorporation increasing the authorized shares of our common stock to a number greater than 250,000,000. As that increase in the authorized number of shares of our common stock was approved by our stockholders at a Special Stockholders Meeting on June 4, 2012, this note was reclassified to a convertible note as of June 30, 2012. During the quarter ended June 30, 2013, the parties agreed to extend the Maturity Date of the Note to October 1, 2013 and subsequent to September 30, 2013, the expiration date of this note was again extended to October 1, 2014. As of December 31, 2013, there have not been any conversions of the Law Firm Note Number 1.

At December 31, 2013, the outstanding principal balance was $75,000.

LAW FIRM NOTE NUMBER 2

On June 4, 2013, we entered into a Promissory Note with our corporate law firm for the amount of $47,000, which represented approximately 50% of the amount we owed to that firm for services in 2012. The Promissory Note has a maturity date of October 1, 2014 and bears interest at five percent per annum. The note is convertible at the option of the holder into shares of our common stock at a 10% discount to the market price of the common stock on the date prior to conversion with a floor price on such conversions of $0.07 per share. As of December 31, 2013, there have not been any conversions of the Law Firm Note Number 2.

At December 31, 2013, the outstanding principal balance was $47,000.

6_EQUITY_TRANSACTIONS

6. EQUITY TRANSACTIONS	9 Months Ended
6. EQUITY TRANSACTIONS	Dec. 31, 2013
Equity [Abstract]	'
EQUITY TRANSACTIONS	'
	Aethlon Medical, Inc. Equity Transactions

	In May 2013, we issued to a scientific advisory board member and a scientific consultant a three year option to purchase 125,000 shares of our common stock at a price of $0.11 per share.

	In June 2013, we completed a unit subscription agreement with three accredited investors (the “Purchasers”) pursuant to which the Purchasers purchased $128,000 of units (the "Units" and each a "Unit"), with each Unit consisting of (i) one share of Common Stock at a price per share of $0.081 and (ii) a warrant to purchase such number of shares of Common Stock as shall equal (a) fifty percent of the Subscription Amount divided by (b) $0.081 (the "Warrant Shares") at an exercise price of $0.121 per Warrant Share. This resulted in the issuance of 1,580,248 shares of Common Stock and 790,124 Warrant Shares.

	In June 2013, we issued to our CEO the remaining 3,400,000 shares under his restricted share grant, all of which were vested.

	During the three months ended June 30, 2013, we issued 3,448,337 shares of restricted common stock to the holders of three notes issued by the Company in exchange for the partial conversion of principal and interest in an aggregate amount of $246,500 at an average conversion price of $0.07 per share.

	During the three months ended June 30, 2013, we issued 222,734 shares of common stock pursuant to our S-8 registration statement covering our Amended 2010 Stock Plan at an average price of $0.10 per share in payment for legal services valued at $21,750 based on the value of the services provided.

	In July 2013, our compensation committee and Board of Directors approved the issuance of four stock option grants to four of our executives. The options carried an exercise price of $0.10 per share, have a ten year life and vest over the following schedule: 25% on July 1, 2014, 25% on July 1, 2015, 25% on July 1, 2016 and 25% on July 1, 2017. The numbers of shares underlying each of the stock option grants were as follows: 2,000,000 shares to our chief executive officer and 500,000 shares each to our president, chief science officer and chief financial officer (see Note 9).

	In August 2013, we completed a unit subscription agreement with four accredited investors (the “Purchasers”) pursuant to which the Purchasers purchased $100,000 of units (the "Units" and each a "Unit"), with each Unit consisting of (i) one share of Common Stock at a price per share of $0.111 and (ii) a warrant to purchase such number of shares of Common Stock as shall equal (a) fifty percent of the Subscription Amount divided by (b) $0.111 (the "Warrant Shares") at an exercise price of $0.167 per Warrant Share. This resulted in the issuance of 900,901 shares of Common Stock and 450,451 Warrant Shares.

	During the three months ended September 30, 2013, we issued 933,522 shares of common stock pursuant to our S-8 registration statement covering our Amended 2010 Stock Plan at an average price of $0.14 per share in payment for legal and scientific consulting services valued at $127,593 based on the value of the services provided.

	During the three months ended September 30, 2013, we issued 1,168,343 shares of restricted common stock at an average price of $0.10 per share in payment for investor relations and public relations services valued at $115,000 based on the value of the services provided.

	During the three months ended September 30, 2013, 18 warrant holders exercised 6,581,259 warrants to receive 3,407,468 restricted shares of common stock in cashless exercise transactions.

	During the three months ended September 30 2013, we issued 2,795,367 shares of restricted common stock to the holders of four notes issued by the Company in exchange for the partial or full conversion of principal and interest in an aggregate amount of $173,960 at an average conversion price of $0.06 per share.

	During the three months ended December 31, 2013, a warrant holder exercised 2,805,000 warrants in exchange for 1,577,736 shares in a cashless exercise transaction.

	During the three months ended December 31 2013, we issued 1,465,200 shares of restricted common stock to the holders of two notes issued by us in exchange for the partial or full conversion of accrued interest in an aggregate amount of $80,000 at an average conversion price of $0.05 per share.

	During the three months ended December 31, 2013, we entered into a unit purchase agreement (the “Unit Purchase Agreement”) and subscription agreements (the “Subscription Agreements”) with 32 accredited investors (collectively, the “Purchasers”), pursuant to which the Purchasers purchased an aggregate of 143.67 units (collectively, the “Units”) from us, with each Unit consisting of (a) one hundred thousand (100,000) shares of our common stock, at a purchase price of $0.125 per share and (b) a warrant to purchase fifty thousand (50,000) shares of common stock (collectively, the “Warrants”). The Purchasers acquired an aggregate of 14,367,200 shares of common stock and Warrants to acquire up to an aggregate of 7,183,600 shares of common stock for an aggregate purchase price of $1,795,900. The net proceeds that we received totaled $1,447,032. In accordance with the terms of the Unit Purchase Agreement, the offering of securities thereunder terminated on December 31, 2013.

	A FINRA registered broker-dealer was engaged as placement agent in connection with the above Unit Purchase Agreement. We paid the placement agent an aggregate cash fee in the amount of $270,508 and have issued or will issue the placement agent or its designees Warrants to purchase an aggregate of 2,155,080 shares of Common Stock.

	The Warrants issued to the Purchasers and the placement agent (each, a “Holder”) are exercisable for a period of five years from the date of issuance at an exercise price of $0.22, subject to adjustment. A Holder may exercise a Warrant by paying the exercise price in cash or by exercising the Warrant on a cashless basis. In the event a Holder exercises a Warrant on a cashless basis, we will not receive any proceeds. The exercise price of the Warrants is subject to customary adjustments provisions for stock splits, stock dividends, recapitalizations and the like. Each Holder has contractually agreed to restrict its ability to exercise its Warrant such that the number of shares of the common stock held by the Holder and its affiliates after such exercise does not exceed 4.99% of the our then issued and outstanding shares of common stock.

	Exosome Sciences, Inc. Equity Transactions

	In October 2013, ESI, at that time a wholly owned subsidiary of ours, issued a total of 3 promissory notes (collectively, the “Shah Notes”) in the aggregate principal amount of $250,000 to Dr. Chetan Shah, a director of the Company, in exchange for Dr. Shah’s loan of funds in the same aggregate amount to ESI. Each Shah Note bore interest at the rate of 10% per annum and was due and payable in full, including all accrued interest thereon, one year from the date of issuance. The Shah Notes were unsecured and did not provide for conversion of the debt into any other security. The Notes were not guaranteed by us.

	On November 21, 2013, ESI, prior to the transaction described herein, a wholly owned diagnostic subsidiary of ours, entered into a stock purchase agreement (the “Stock Purchase Agreement”) with twelve accredited investors (collectively, the “Purchasers”), pursuant to which the Purchasers purchased an aggregate of 220,000 shares of ESI’s common stock, par value $.001 per share (the “Common Stock”), at a purchase price of $5.00 per share, for an aggregate purchase price of $1,100,000, or a post money valuation of $7,100,000 for ESI. As a result of the transaction, our percentage ownership of the outstanding capital stock of ESI was reduced from 100% to approximately 84.5%.

	On December 13, 2013, ESI entered into a stock purchase agreement (the “Stock Purchase Agreement”) with three accredited investors (collectively, the “Purchasers”), pursuant to which the Purchasers purchased an aggregate of 80,000 shares of ESI’s common stock, par value $.001 per share (the “Common Stock”), at a purchase price of $5.00 per share, for an aggregate purchase price of $400,000, or a post money valuation of $7,500,000 for ESI. The aggregate gross proceeds received by ESI under the Stock Purchase Agreement were $1,500,000, including the $1,100,000 of sales on November 21, 2013 noted above (the “Prior Sales”). As a result of the transaction, including the Prior Sales, the Company’s percentage ownership of the outstanding capital stock of ESI was reduced from 100% to 80%.

	One of the Purchasers, Dr. Chetan Shah, is a director of the Company. Dr. Shah purchased 70,000 ESI shares for an aggregate purchase price of $350,000, $100,000 of which was paid in cash and $250,000 of which was paid by conversion of the total principal outstanding of $250,000 under the Shah Notes previously issued to Dr. Shah by ESI. Dr. Shah did not participate in the negotiation of the purchase and sale terms, including price per share. His participation in the offering was on the same terms and conditions as offered to the other Purchasers. The accrued interest of $4,583 on the Shah Notes was paid in cash to Dr. Shah by ESI following the conversion of the Shah Notes into ESI shares as noted above.

	The securities sold in the private placement were not registered under the Securities Act, or the securities laws of any state, and were offered and sold in reliance on the exemption from registration afforded by Section 4(2) and Regulation D (Rule 506) under the Securities Act and corresponding provisions of state securities laws, which exempt transactions by an issuer not involving any public offering. Each Purchaser is an “accredited investor” as such term is defined in Regulation D promulgated under the Securities Act. This current report shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from the registration requirements and certificates evidencing such shares contain a legend stating the same.

7_OTHER_CURRENT_LIABILITIES

7. OTHER CURRENT LIABILITIES	9 Months Ended
7. OTHER CURRENT LIABILITIES	Dec. 31, 2013
Other Liabilities Disclosure [Abstract]	'
OTHER CURRENT LIABILITIES	'
	At December 31, 2013 and March 31, 2013, our other current liabilities were comprised of the following items:

		December 31,		March 31,
		2013		2013
	Accrued interest	$	1,143,225	$	1,032,110
	Litigation related accrual		1,000,000		–
	Accrued legal fees		179,465		179,465
	Other		103,573		155,610
	Total other current liabilities	$	2,426,263	$	1,367,185

	As of the date of this report, various promissory and convertible notes payable in the aggregate principal amount of $2,067,916 (as identified in Notes 4 and 5 above) have reached maturity and are past due. We are continually reviewing other financing arrangements to retire all past due notes. At December 31, 2013, we had accrued interest in the amount of $1,061,046 associated with these defaulted notes in accrued liabilities payable (see Notes 4 and 5).

8_FAIR_VALUE_MEASUREMENTS

8. FAIR VALUE MEASUREMENTS

9 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

We follow FASB ASC 820, "fair value measurements and disclosures" (“ASC 820”) in connection with assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition. The guidance applies to our derivative liabilities. We had no assets or liabilities measured at fair value on a non-recurring basis for any period reported.

ASC 820 requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: We measure the fair value of applicable financial and non-financial assets based on the following fair value hierarchy:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.

The fair value of our recorded derivative liabilities is determined based on unobservable inputs that are not corroborated by market data, which is a Level 3 classification. We record derivative liabilities on our balance sheet at fair value with changes in fair value recorded in our consolidated statements of operations.

Our fair value measurements at the December 31, 2013 reporting date are classified based on the valuation technique level noted in the table below (there were no transfers in or out of level 3 for all periods presented):

Quoted Prices

Significant

in Active

Other

Significant

Markets for

Observable

Unobservable

December 31,

Identical Assets

Inputs

Description

2013

(Level 1)

(Level 2)

(Level 3)

Derivative Liabilities

5,576,065

–

5,576,065

Total Assets

5,576,065

–

5,576,065

The following outlines the significant weighted average assumptions used to estimate the fair value information presented, in connection with our warrant and embedded conversion option derivative instruments utilizing the Binomial Lattice option pricing model:

Nine Months Ended December 31, 2013

Risk free interest rate

0.02% - 2.04%

Average expected life

0.25 – 3 years

Expected volatility

58.0% - 103.1%

Expected dividends

None

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the nine months ended December 31, 2013:

Change in

Reclassification

estimated fair

of Derivative

Recorded

value recognized

Liability to

April 1,

New Derivative

in results

Paid in

December 31,

2013

Liabilities

of operations

capital

2013

Derivative liabilities

3,588,239

–

2,304,702

316,876

)

5,576,065

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the nine months ended December 31, 2012:

Change in

Reclassification

estimated fair

of Derivative

Recorded

value recognized

Liability to

April 1,

New Derivative

in results

Paid in

December 31,

2012

Liabilities

of operations

capital

2012

Derivative liabilities

3,588,615

–

1,745,718

)

32,759

)

1,810,138

The fair value of derivative liabilities that we recorded for the nine months ended December 31, 2012 was related to our April 2011 convertible note, July & August 2011 10% convertible notes and the September 2011 convertible note offerings (see Note 5) and was based upon an independent valuation report.

9_STOCK_COMPENSATION

9. STOCK COMPENSATION	9 Months Ended
9. STOCK COMPENSATION	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
STOCK COMPENSATION	'
	The following table summarizes share-based compensation expenses relating to shares and options granted and the effect on basic and diluted loss per common share during the three and nine months ended December 31, 2013 and 2012:

			Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
			31-Dec-13			31-Dec-12			31-Dec-13			31-Dec-12

	Total share-based compensation expense		$	32,750		$	175,045		$	223,351		$	570,540

	Total share-based compensation expense included in net loss		$	32,750		$	175,045		$	223,351		$	570,540

	Basic and diluted loss per common share		$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

	The following table breaks out the components of our share-based compensation expenses relating to shares and options granted and the effect on basic and diluted loss per common share during the three and nine months ended December 31, 2013 and 2012.

			Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
			31-Dec-13			31-Dec-12			31-Dec-13			31-Dec-12
	Vesting of stock options			32,750			77,421			156,993			258,468
	Incremental fair value of option modifications			--			957			1,914			22,071
	Vesting expense associated with CEO restricted stock grant			--			96,667			64,444			290,001
	Total share-based compensation expense		$	32,750		$	175,045		$	223,351		$	570,540

	Total share-based compensation expense included in net loss		$	32,750		$	175,045		$	223,351		$	570,540

	Basic and diluted loss per common share		$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

	All of the stock-based compensation expense recorded during the nine months ended December 31, 2013 and 2012, which totaled $223,351 and $570,540, respectively, is included in payroll and related expense in the accompanying condensed consolidated statements of operations. Stock-based compensation expense recorded during the three and nine months ended December 31, 2013 and 2012 had no impact on basic and diluted loss per common share.

	In the nine months ended December 31, 2013, we granted to a scientific advisory board member and a scientific consultant a three year option to purchase 125,000 shares of our common stock at a price of $0.11 per share.

	The following outlines the significant weighted average assumptions used to estimate the fair value information, which is based on historical data, with respect to stock option grants utilizing the Binomial Lattice option pricing models at, and during the nine months ended December 31, 2013:

	Risk free interest rate	0.38% - 2.50%
	Average expected life	3 years - 10 years
	Expected volatility	94.6% - 102.7%
	Expected dividends	None

	We review share-based compensation on a quarterly basis for changes to the estimate of expected award forfeitures based on actual forfeiture experience. The cumulative effect of adjusting the forfeiture rate for all expense amortization is recognized in the period the forfeiture estimate is changed. The effect of forfeiture adjustments for the nine months ended December 31, 2013 was insignificant.

	The expected volatility is based on the historic volatility. The expected life of options granted is based on the "simplified method" as described in the SEC's guidance due to changes in the vesting terms and contractual life of current option grants compared to our historical grants.

	Options outstanding that have vested and are expected to vest as of December 31, 2013 are as follows:

									Weighted
						Weighted			Average
						Average			Remaining
			Number of			Exercise			Contractual
			Shares			Price			Term in Years

	Vested			21,012,455		$	0.28			3.63
	Expected to vest			3,708,343		$	0.11			9.45
	Total			24,720,798		$	0.26			4.5

	A summary of stock option activity during the nine months ended December 31, 2013 is presented below:

			Number of Options			Range of Exercise		Weighted Average
						Price		Exercise
								Price
	Stock options outstanding at March 31, 2013			21,095,798		$0.76 - $0.41		$0.28
	Exercised			–		$--
	Granted			3,625,000		$0.10 - 0.11		$0.10
	Cancelled/Expired			–		--
	Stock options outstanding at December 31, 2013			24,720,798		$0.076 - $0.41		$0.28
	Stock options exercisable at December 31, 2013			21,012,455		$0.076 - $0.41		$0.26

At December 31, 2013, there was approximately $304,529 of unrecognized compensation cost related to share-based payments which is expected to be recognized over a weighted average period of 2.32 years.

On December 31, 2013, our stock options had a negative intrinsic value since the closing price on that date of $0.17 per share was below the weighted average exercise price of our stock options.

10_WARRANTS

10. WARRANTS	9 Months Ended
10. WARRANTS	Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
WARRANTS	'
	A summary of warrant activity during the nine months ended December 31, 2013 is presented below:

			Number of Warrants			Range of Exercise	Weighted Average
						Price	Exercise
							Price
	Warrants outstanding at March 31, 2013			75,647,294		$0.076 - $0.25	$0.11
	Exercised			(4,985,204	)	$0.07 - $0.11	$0.10
	Issued			12,851,982		$0.121- $0.22	$0.20
	Cancelled/Expired			(6,037,419	)	$0.07 - $0.132	$0.11
	Warrants outstanding at December 31, 2013			77,476,653		$0.076 - $0.25	$0.13
	Warrants exercisable at December 31, 2013			77,476,653		$0.076 - $0.25	$0.13

	The following outlines the significant weighted average assumptions used to estimate the fair value information, which is based on historical data, with respect to warrants utilizing the Binomial Lattice option pricing models at, and during the nine months ended December 31, 2013:

	Risk free interest rate	0.86% - 2.04%
	Average expected life	7 years
	Expected volatility	90.3 – 98.5%
	Expected dividends	None

11_DARPA_CONTRACT_AND_RELATED_

11. DARPA CONTRACT AND RELATED REVENUE RECOGNITION	9 Months Ended
11. DARPA CONTRACT AND RELATED REVENUE RECOGNITION	Dec. 31, 2013
Revenue Recognition [Abstract]	'
DARPA CONTRACT AND RELATED REVENUE RECOGNITION	'
	As discussed in Note 3, we entered into a contract with the DARPA on September 30, 2011. Under the DARPA award, we have been engaged to develop a therapeutic device to reduce the incidence of sepsis, a fatal bloodstream infection that often results in the death of combat-injured soldiers. The award from DARPA is a fixed-price contract with potential total payments to us of $6,794,389 over the course of five years, including payments of up to $1,975,047 in the first year. Fixed price contracts require the achievement of multiple, incremental milestones to receive the full award during each year of the contract. Under the terms of the contract, we will perform certain incremental work towards the achievement of specific milestones against which we will invoice the government for fixed payment amounts. Originally, only the base year (year one contract) was effective for the parties, however, DARPA subsequently exercised the option on the second and third years of the contract. DARPA has the option to enter into the contract for years four and five. The milestones are comprised of planning, engineering and clinical targets, the achievement of which in some cases will require the participation and contribution of third party participants under the contract. There can be no assurance that we alone, or with third party participants, will meet such milestones to the satisfaction of the government and in compliance with the terms of the contract or that we will be paid the full amount of the contract revenues during any year of the contract term. We commenced work under the contract in October 2011.

	DARPA recently informed us that due to budget restrictions within the Department of Defense, that they planned to reduce the scope of our contract in years three through five of the contract. The reduction in scope will focus our research on exosomes, viruses and blood processing instrumentation. This scope reduction will reduce the possible payments under the contract by $858,491 over years three through five. While this contract change is not yet in place, we expect it to occur in the near future. We recently completed a rebudgeting of the expected costs on the remaining years of the DARPA contract based on the reduced milestones and have concluded that the reductions in our costs due to the scaled back level of work will almost entirely offset the anticipated revenue levels based on current assumptions.

	The details of the four milestones achieved during the nine month period ended December 31, 2013 were as follows:

	Milestone 2.3.2.2 – Formulate initial design work based on work from the previous phase. Begin to build and test selected instrument design and tubing sets. The milestone payment was $195,581. Management considers this milestone to be substantive as it was not dependent on the passage of time nor was it based solely on another party's efforts. We demonstrated that we were able to formulate the initial design work and to build and test selected instrument design and tubing sets as part of our submission for approval. The report was accepted by the contracting officer's representative and the invoice was submitted thereafter.

	Milestone 2.3.2.2 – Write and test software and conduct ergonomic research. Begin discussions with the systems integrator. The milestone payment was $195,581. Management considers this milestone to be substantive as it was not dependent on the passage of time nor was it based solely on another party's efforts. We obtained wrote and tested software and conducted ergonomic research and began discussions with the systems integrator. The report was accepted by the contracting officer's representative and the invoice was submitted thereafter.

	Milestone 2.3.3.2 – Cartridge construction with optimized affinity matrix design for each potential target. Complete the capture agent screening. The milestone payment was $208,781. Management considers this milestone to be substantive as it was not dependent on the passage of time nor was it based solely on another party's efforts. We completed the cartridge construction with optimized affinity matrix design for each potential target and completed the capture agent screening. The report was accepted by the contracting officer's representative and the invoice was submitted thereafter.

	Milestone M5 – Target capture > 90% in 24 hours for at least three targets in blood or blood components. The milestone payment was $208,781. Management considers this milestone to be substantive as it was not dependent on the passage of time nor was it based solely on another party's efforts. We demonstrated that we were able to capture > 90% in 24 hours for at least three of the agreed targets in blood or blood components. The report was accepted by the contracting officer's representative and the invoice was submitted thereafter.

12_COMMITMENTS_AND_CONTINGENCI

12. COMMITMENTS AND CONTINGENCIES	9 Months Ended
12. COMMITMENTS AND CONTINGENCIES	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	LEGAL MATTERS

	From time to time, claims are made against us in the ordinary course of business, which could result in litigation. Claims and associated litigation are subject to inherent uncertainties and unfavorable outcomes could occur, such as monetary damages, fines, penalties or injunctions prohibiting us from selling one or more products or engaging in other activities.

	The occurrence of an unfavorable outcome in any specific period could have a material adverse effect on our results of operations for that period or future periods. Other than as mentioned here, we are not presently a party to any pending or threatened legal proceedings.

	On July 5, 2012, Gemini Master Fund, Ltd., a Cayman Islands company ("Gemini"), filed a complaint against us in the Supreme Court of the State of New York, County of New York, entitled Gemini Master Fund Ltd. v. Aethlon Medical, Inc., Index No. 652358/2012 (the "Complaint"). In the Complaint, Gemini is seeking relief both in the form of money damages and delivery of shares of our common stock. The Complaint alleges, among other things, that we are in default of a certain promissory note originally issued to Gemini on February 12, 2010 by failing to pay the note in full and by failing to honor certain requests by Gemini to convert principal and interest under the note into shares of the Company's common stock. The Complaint also alleges that we failed to issue shares upon the presentation of an exercise notice under a warrant originally issued to Gemini on November 22, 2010. The lawsuit also alleges that we should have issued shares pursuant to the exercise of a warrant issued in 2009. We believe that we have defenses to the claims asserted and we continue to vigorously defend the lawsuit. The parties in the lawsuit have filed cross motions for summary judgment on some of the claims. No trial date has yet been set. There can be no assurances, however, that the litigation will be decided in our favor as to all, or any part, of Gemini's Complaint. An adverse decision in the litigation could have an adverse effect on our operations and could be dilutive to our shareholders.

	In relation to this matter, we accrued $1,000,000 at December 31, 2013 for possible settlement. Although the parties to the lawsuit are in on-going settlement discussions at the time this Form 10-Q is filed and no assurance exists that a settlement will be reached, the accrual was made based on the possibility that a settlement might be reached that would result in the issuance of equity instruments to satisfy the exercise of various warrants. The accrual is included in other expense and other current liabilities on the accompanying condensed consolidated financial statements.

	LEASES

	We currently rent approximately 2,300 square feet of executive office space at 8910 University Center Lane, Suite 660, San Diego, CA 92122 at the rate of $7,299 per month on a lease that expires in September 2014 based on a one year extension signed in August 2013.

	We also rent approximately 1,700 square feet of laboratory space at 11585 Sorrento Valley Road, Suite 109, San Diego, California 92121 at the rate of $2,917 per month on a two year lease that expires in October 2014.

	In October 2013, our Exosome Sciences, Inc. (ESI) subsidiary entered into a one year lease for approximately 2,055 square feet of laboratory space at 11 Deer Park Drive, Suite 103, Monmouth Junction, New Jersey 08852 at the rate of $3,425 per month.

13_PROPERTY_AND_EQUIPMENT

13. PROPERTY AND EQUIPMENT	9 Months Ended
13. PROPERTY AND EQUIPMENT	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
PROPERTY AND EQUIPMENT	'
	Property and equipment, net, consist of the following:

		31-Dec-13			31-Mar-13
	Furniture and office equipment at cost:
	Aethlon Medical, Inc.	$	291,781		$	289,031
	Exosome Sciences, Inc.		58,743			–
	Consolidated furniture and office equipment at cost		350,524			289,031
	Accumulated depreciation		(296,172	)		(288,886	)
		$	54,352		$	145

	Depreciation expense for the nine months ended December 31, 2013 approximated $7,000.

14_SUBSEQUENT_EVENTS

14. SUBSEQUENT EVENTS	9 Months Ended
14. SUBSEQUENT EVENTS	Dec. 31, 2013
Segment Reporting [Abstract]	'
SUBSEQUENT EVENTS	'
	Management has evaluated events subsequent to December 31, 2013 through the date that the accompanying condensed consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events which may require adjustment of and/or disclosure in such financial statements.

	In January 2014, we repaid the $17,000 principal balance of the December 2006 10% Notes and all related accrued interest.

	In January 2014, we billed DARPA $352,938 and Battelle $10,560 for work under those contracts. We subsequently received a payment of $195,796 from DARPA.

	In January 2014, 2 warrant holders exercised 211,736 warrants to receive 95,222 restricted shares of common stock in cashless exercise transactions.

3_SUMMARY_OF_SIGNIFICANT_ACCOU1

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
PRINCIPLES OF CONSOLIDATION	'
	The accompanying condensed consolidated financial statements include the accounts of Aethlon Medical, Inc. and its majority-owned subsidiary, Exosome Sciences, Inc. (“ESI”), collectively hereinafter referred to as the "Company" or "Aethlon". All significant intercompany balances and transactions have been eliminated in consolidation. The Company classifies the noncontrolling interests in ESI as part of consolidated net loss in the three and nine months ended December 31, 2013 and includes the accumulated amount of noncontrolling interests as part of stockholders’ equity. If a change in ownership of ESI results in loss of control and deconsolidation, any retained ownership interest will be remeasured with the gain or loss reported in the statement of operations.
LOSS PER COMMON SHARE	'
	Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation. Diluted loss per common share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued, and if the additional common shares were dilutive. As we had net losses for all periods presented, basic and diluted loss per common share are the same, since additional potential common shares have been excluded as their effect would be antidilutive.

	The potentially dilutive common shares outstanding at December 31, 2013 and 2012, which include common shares underlying outstanding stock options, warrants and convertible notes, were 145,105,572 and 135,505,936, respectively.
REVENUE RECOGNITION	'
	DARPA Contract - With respect to revenue recognition, we entered into a government contract with DARPA and have recognized revenue under such contract. We adopted the Milestone method of revenue recognition for the DARPA contract under ASC 605-28 “Revenue Recognition – Milestone Method” and we believe we meet the requirements under ASC 605-28 for reporting contract revenue under the Milestone Method (see Note 11).

	In order to account for this contract, we identify the deliverables included within the contract and evaluates which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has standalone value to the collaborator. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units.

	A milestone is an event having all of the following characteristics:

	(1) There is substantive uncertainty at the date the arrangement is entered into that the event will be achieved. A vendor’s assessment that it expects to achieve a milestone does not necessarily mean that there is not substantive uncertainty associated with achieving the milestone.

	(2) The event can only be achieved based in whole or in part on either: (a) the vendor’s performance; or (b) a specific outcome resulting from the vendor’s performance.

	(3) If achieved, the event would result in additional payments being due to the vendor.

	A milestone does not include events for which the occurrence is either: (a) contingent solely upon the passage of time; or (b) the result of a counterparty’s performance.

	The policy for recognizing deliverable consideration contingent upon achievement of a milestone must be applied consistently to similar deliverables.

	The assessment of whether a milestone is substantive is performed at the inception of the arrangement. The consideration earned from the achievement of a milestone must meet all of the following for the milestone to be considered substantive:

	(1) The consideration is commensurate with either: (a) the vendor’s performance to achieve the milestone; or (b) the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone;

	(2) The consideration relates solely to past performance; and

	(3) The consideration is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement.

	A milestone is not considered substantive if any portion of the associated milestone consideration relates to the remaining deliverables in the unit of accounting (i.e., it does not relate solely to past performance). To recognize the milestone consideration in its entirety as revenue in the period in which the milestone is achieved, the milestone must be substantive in its entirety. Milestone consideration cannot be bifurcated into substantive and nonsubstantive components. In addition, if a portion of the consideration earned from achieving a milestone may be refunded or adjusted based on future performance, the related milestone is not considered substantive.

	Battelle Subcontract – With respect to revenue recognition, we entered into a subcontract agreement with Battelle Memorial Institute (“Battelle”) in March 2013. Battelle was chosen by DARPA to be the prime contractor on the systems integration portion of the original DARPA contract and we are one of several subcontractors on that systems integration project. The Battelle subcontract is under a time and materials basis and we began generating revenues under the subcontract in the three months ended September 30, 2013. Our expected revenue from the subcontract will be at the discretion of Battelle. The Battelle subcontract is our first cost-reimbursable contract.

	Our revenue under this contract will be a function of cost reimbursement plus an overhead mark-up for hours devoted to the project by specific employees (with specific hourly rates for those employees), for travel expenses related to the project, for any equipment purchased for the project and for the cost of any consultants hired by us to perform work on the project. Each payment will require approval by the program manager at Battelle.
CASH AND CASH EQUIVALENTS	'
	Accounting standards define "cash and cash equivalents" as any short-term, highly liquid investment that is both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. For the purpose of financial statement presentation, we consider all highly liquid investment instruments with original maturities of three months or less when purchased, or any investment redeemable without penalty or loss of interest to be cash equivalents. As of December 31, 2013 and March 31, 2013, we had no assets that were classified as cash equivalents.

	At December 31, 2013, our cash balances were as follows:

	Aethlon Medical, Inc.	$	588,066
	Exosome Sciences, Inc.		1,266,875
	Consolidated Cash Balance	$	1,854,941
CONCENTRATIONS OF CREDIT RISKS	'
	Cash is maintained at two financial institutions in checking accounts and related cash management accounts. In October 2008, the Federal Deposit Insurance Corporation ("FDIC") increased the maximum level of deposit insurance at financial institutions from $100,000 to $250,000. Our cash balances were above such insured amount at December 31, 2013 and below the insured amount at March 31, 2013.

	All of our accounts receivable at March 31, 2013 and 2012 and all of our revenue in the fiscal year ended March 31, 2013 were from the U.S. Department of Defense.
PROPERTY AND EQUIPMENT	'
	Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from two to five years. Repairs and maintenance are charged to expense as incurred while improvements are capitalized. Upon the sale or retirement of property and equipment, the accounts are relieved of the cost and the related accumulated depreciation with any gain or loss included in the consolidated statements of operations.
SEGMENTS	'
	Historically, we operated in one segment that was based on our development of therapeutic devices. However in the December 2013 quarter, we initiated the operations of ESI to develop diagnostic tests. While the activities of ESI in the December 2013 quarter were of a start-up nature and were considered immaterial for segment related disclosures, we anticipate that we will treat ESI’s operations as a separate segment in future periods.
PATENTS	'
	We capitalize the cost of patents, some of which were acquired, and amortize such costs over the estimated useful life, upon issuance of the patent.
RESEARCH AND DEVELOPMENT EXPENSES	'
	We incurred research and development expenses during the three and nine month periods ended December 31, 2013 and 2012, which are included in various operating expense line items in the accompanying condensed consolidated statements of operations. Our research and development expenses in those periods were as follows:

		December 31,		December 31,
		2013		2012

	Three months ended	$	542,383	$	371,253
	Nine months ended	$	1,178,488	$	1,034,335
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
	The fair value of certain convertible notes and related warrants at December 31, 2013 and March 31, 2013 were $5,576,065 and $3,588,239, respectively, based upon a third party valuation report that we commissioned. Warrants classified as derivative liabilities are reported at their estimated fair value, with changes in fair value being reported in current period results of operations.
EQUITY INSTRUMENTS FOR SERVICES PROVIDED BY OTHER THAN EMPLOYEES	'
	We account for transactions involving goods and services provided by third parties where we issue equity instruments as part of the total consideration using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable.

	In transactions, when the value of the goods and/or services is not readily determinable and (1) the fair value of the equity instruments is more reliably measurable and (2) the counterparty receives equity instruments in full or partial settlement of the transactions, we use the following methodology:

	(a) For transactions where goods have already been delivered or services rendered, the equity instruments are issued on or about the date the performance is complete (and valued on the date of issuance).

	(b) For transactions where the instruments are issued on a fully vested, non-forfeitable basis, the equity instruments are valued on or about the date of the contract.

	(c) For any transactions not meeting the criteria in (a) or (b) above, we re-measure the consideration at each reporting date based on its then current stock value.
IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS	'
	We review our long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the cost basis of a long-lived asset is greater than the projected future undiscounted net cash flows from such asset (excluding interest), an impairment loss is recognized. Impairment losses are calculated as the difference between the cost basis of an asset and its estimated fair value. We believe that no impairment occurred at or during the three and nine months ended December 31, 2013 and 2012.
BENEFICIAL CONVERSION FEATURE OF CONVERTIBLE NOTES PAYABLE	'
	The convertible feature of certain notes payable provides for a rate of conversion that is below the market value of our common stock. Such feature is normally characterized as a "Beneficial Conversion Feature" ("BCF"). We record the estimated fair value of the BCF, when applicable, in the condensed consolidated financial statements as a discount from the face amount of the notes. Such discounts are accreted to interest expense over the term of the notes using the effective interest method.
DERIVATIVE LIABILITIES AND CLASSIFICATION	'
	We evaluate free-standing derivative instruments (or embedded derivatives) to properly classify such instruments within equity or as liabilities in our financial statements. Our policy is to settle instruments indexed to our common shares on a first-in-first-out basis.

	The classification of a derivative instrument is reassessed at each balance sheet date. If the classification changes as a result of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified.

	On April 1, 2009 we adopted new guidance, as codified in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 815-40, Derivatives and Hedging, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock (previously EITF 07-5), that requires us to apply a two-step model in determining whether a financial instrument or an embedded feature is indexed to our own stock and thus enables it to qualify for equity classification. We have identified several convertible debt or warrant agreements in which the embedded conversion feature or exercise price contains certain provisions that may result in an adjustment of the conversion or exercise price, which results in the failure of the these instruments to be considered to be indexed to our stock. Accordingly, under this guidance, we are required to record the estimated fair value of these instruments as derivative liabilities (see Note 8).

	We re-measure the estimated fair value of derivative liabilities at each reporting period and record changes in fair value in other expense (income) in the current statement of operations.
REGISTRATION PAYMENT ARRANGEMENTS	'
	We account for contingent obligations to make future payments or otherwise transfer consideration under a registration rights arrangement separately from any related financing transaction agreements, and any such contingent obligations are recognized only when it is determined that it is probable that the Company will become obligated for future payments and the amount, or range of amounts, of such future payments can be reasonably estimated.
STOCK-BASED COMPENSATION	'
	Employee stock options and rights to purchase shares under stock participation plans are accounted for under the fair value method. Accordingly, share-based compensation is measured when all granting activities have been completed, generally the grant date, based on the fair value of the award. The exercise price of options is generally equal to the market price of the Company's common stock (defined as the closing price as quoted on the OTCBB) on the date of grant. Compensation cost recognized by the Company includes (a) compensation cost for all equity incentive awards granted prior to, but not yet vested as of April 1, 2006, based on the grant-date fair value estimated in accordance with the original provisions of the then current accounting standards, and (b) compensation cost for all equity incentive awards granted subsequent to April 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of subsequent accounting standards. We use a Binomial Lattice option pricing model for estimating fair value of options granted (see Note 8).
INCOME TAXES	'
	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the difference between the consolidated financial statements and their respective tax basis. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts reported for income tax purposes, and (b) tax credit carryforwards. We record a valuation allowance for deferred tax assets when, based on our best estimate of taxable income (if any) in the foreseeable future, it is more likely than not that some portion of the deferred tax assets may not be realized.
SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS	'
	There were no recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, or the Securities and Exchange Commission during the nine months ended December 31, 2013 or that were issued in prior periods but do not become effective until future periods that in the opinion of management had, or are expected to have a material impact on our present or future consolidated financial statements.

3_SUMMARY_OF_SIGNIFICANT_ACCOU2

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Dec. 31, 2013
Accounting Policies [Abstract]	'
Sumarry of cash balances	'
	Aethlon Medical, Inc.	$	588,066
	Exosome Sciences, Inc.		1,266,875
	Consolidated Cash Balance	$	1,854,941
Research and development expenses	'
		December 31,		December 31,
		2013		2012

	Three months ended	$	542,383	$	371,253
	Nine months ended	$	1,178,488	$	1,034,335

4_NOTES_PAYABLE_Tables

4. NOTES PAYABLE (Tables)	9 Months Ended
4. NOTES PAYABLE (Tables)	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Notes payable, all current liabilities and unsecured	'
		31-Dec-13					31-Mar-13
		Principal Balance			Accrued Interest		Principal Balance		Accrued Interest
	12% Notes payable, past due	$	185,000		$	346,875	$	185,000	$	326,062
	10% Note payable, past due		5,000			6,250		5,000		5,875
	Tonaquint Note		–			–		131,381		1,629
	Directors’ Notes		200,000			9,516		–		–
	Total	$	390,000		$	362,641	$	321,381	$	333,566
Activity in Tonaquint Note	'
	Activity in Tonaquint Note
	Initial principal balance	$	360,186
	Lender’s legal fees		12,500
	Conversions during the fiscal year ended March 31, 2013		(241,307	)
	Conversions during the nine months ended December 31, 2013		(131,379	)
	Balance as of December 31, 2013	$	–

5_CONVERTIBLE_NOTES_PAYABLE_Ta

5. CONVERTIBLE NOTES PAYABLE (Tables)	9 Months Ended
5. CONVERTIBLE NOTES PAYABLE (Tables)	Dec. 31, 2013
Convertible Notes Payable [Abstract]	'
Convertible notes payable	'
	Convertible notes payable consist of the following at December 31, 2013:

		Principal			Unamortized			Net		Accrued
		Principal			Discount			Amount		Interest

	Amended and Restated Series A 12% Convertible Notes, past due	$	885,000		$	–		$	885,000	$	531,000
	December 2006 10% Convertible Notes, past due		17,000			–			17,000		17,800
	2008 10% Convertible Notes, past due		25,000			–			25,000		18,229
	October & November 2009 10% Convertible Notes		50,000			–			50,000		24,847
	April 2010 10% Convertible Note		75,000			–			75,000		29,563
	September 2010 10% Convertible Notes, past due		283,100			–			283,100		14,195
	April 2011 10% Convertible Notes, past due		400,400			–			400,400		46,102
	July and August 2011 10% Convertible Notes, $257,656 past due		377,683			–			377,683		86,079
	September 2011 Convertible Notes, past due		9,760			–			9,760		–
	Law Firm Note Number 1		75,000			–			75,000		6,667
	Law Firm Note Number 2		47,000			–			47,000		1,345
	Total – Convertible Notes	$	2,244,943		$	–		$	2,244,943	$	775,827

	Convertible notes payable consisted of the following at March 31, 2013:

		Principal			Unamortized			Net		Accrued
		Principal			Discount			Amount		Interest

	Amended and Restated Series A 12% Convertible Notes, past due	$	885,000		$	–		$	885,000	$	398,250
	2008 10% Convertible Notes, past due		25,000			–			25,000		15,417
	December 2006 10% Convertible Notes, past due		17,000			–			17,000		15,888
	October & November 2009 10% Convertible Notes		50,000			(389	)		49,611		20,000
	April 2010 10% Convertible Note		75,000			(3,895	)		71,105		23,938
	September 2010 10% Convertible Notes, past due		308,100			–			308,100		52,393
	April 2011 10% Convertible Notes, past due		400,400			–			400,400		100,100
	July and August 2011 10% Convertible Notes, $257,656 past due		357,655			–			357,655		68,704
	September 2011 Convertible Notes, past due		178,760			–			178,760		–
	Law Firm Note		75,000			–			75,000		3,854
	Total – Convertible Notes	$	2,371,915		$	(4,284	)	$	2,367,631	$	698,544
Activity in Convertible Notes	'

	The following table shows the conversions into principal of the October and November 2009 Convertible Notes Note by fiscal year:

	Activity in October and November 2009 Convertible Notes
	Initial principal balance, including $250,000 of deferred financing costs	$	450,250
	Conversions during the fiscal year ended March 31, 2010		(70,000	)
	Conversions during the fiscal year ended March 31, 2011		(175,000	)
	Conversions during the fiscal year ended March 31, 2012		(130,250	)
	Conversions during the fiscal year ended March 31, 2013		(25,000	)
	Balance as of December 31, 2013	$	50,000

	The following table shows the conversions into principal of the September 2010 10% Convertible Notes by fiscal year:

	Activity in September 2010 10% Convertible Notes
	Initial principal balance	$	743,600
	Conversions during the fiscal year ended March 31, 2012		(405,500	)
	Conversions during the fiscal year ended March 31, 2013		(30,000	)
	Conversions during the nine months ended December 31, 2013		(25,000	)
	Balance as of December 31, 2013	$	283,100

	The following table shows the conversions into principal of the September 2011 Convertible Notes by fiscal year:

	Activity in September 2011 Convertible Notes
	Initial principal balance	$	253,760
	Conversions during the fiscal year ended March 31, 2012		(15,000	)
	Conversions during the fiscal year ended March 31, 2013		(60,000	)
	Conversions during the nine months ended December 31, 2013		(169,000	)
	Balance as of December 31, 2013	$	9,760

7_OTHER_CURRENT_LIABILITIES_Ta

7. OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
7. OTHER CURRENT LIABILITIES (Tables)	Dec. 31, 2013
Other Liabilities Disclosure [Abstract]	'
Other Current Liabilities	'
		December 31,		March 31,
		2013		2013
	Accrued interest	$	1,143,225	$	1,032,110
	Litigation related accrual		1,000,000		–
	Accrued legal fees		179,465		179,465
	Other		103,573		155,610
	Total other current liabilities	$	2,426,263	$	1,367,185

8_FAIR_VALUE_MEASUREMENTS_Tabl

8. FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair value measurements based on the valuation technique

Quoted Prices

Significant

in Active

Other

Significant

Markets for

Observable

Unobservable

December 31,

Identical Assets

Inputs

Description

2013

(Level 1)

(Level 2)

(Level 3)

Derivative Liabilities

5,576,065

–

5,576,065

Total Assets

5,576,065

–

5,576,065

Significant weighted average assumptions used to estimate the fair value information utilizing the Binomial Lattice option pricing model

Nine Months Ended December 31, 2013

Risk free interest rate

0.02% - 2.04%

Average expected life

0.25 – 3 years

Expected volatility

58.0% - 103.1%

Expected dividends

None

Summary of changes in the fair value of our Level 3 financial instruments

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the nine months ended December 31, 2013:

Change in

Reclassification

estimated fair

of Derivative

Recorded

value recognized

Liability to

April 1,

New Derivative

in results

Paid in

December 31,

2013

Liabilities

of operations

capital

2013

Derivative liabilities

3,588,239

–

2,304,702

316,876

)

5,576,065

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the nine months ended December 31, 2012:

Change in

Reclassification

estimated fair

of Derivative

Recorded

value recognized

Liability to

April 1,

New Derivative

in results

Paid in

December 31,

2012

Liabilities

of operations

capital

2012

Derivative liabilities

3,588,615

–

1,745,718

)

32,759

)

1,810,138

9_STOCK_COMPENSATION_Tables

9. STOCK COMPENSATION (Tables)	9 Months Ended
9. STOCK COMPENSATION (Tables)	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Components of share-based compensation expenses relating to shares and options granted	'

			Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
			31-Dec-13			31-Dec-12			31-Dec-13			31-Dec-12

	Total share-based compensation expense		$	32,750		$	175,045		$	223,351		$	570,540

	Total share-based compensation expense included in net loss		$	32,750		$	175,045		$	223,351		$	570,540

	Basic and diluted loss per common share		$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

			Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
			31-Dec-13			31-Dec-12			31-Dec-13			31-Dec-12
	Vesting of stock options			32,750			77,421			156,993			258,468
	Incremental fair value of option modifications			--			957			1,914			22,071
	Vesting expense associated with CEO restricted stock grant			--			96,667			64,444			290,001
	Total share-based compensation expense		$	32,750		$	175,045		$	223,351		$	570,540

	Total share-based compensation expense included in net loss		$	32,750		$	175,045		$	223,351		$	570,540

	Basic and diluted loss per common share		$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average assumptions used to estimate the fair value information	'
	Risk free interest rate	0.38% - 2.50%
	Average expected life	3 years - 10 years
	Expected volatility	94.6% - 102.7%
	Expected dividends	None
Options outstanding	'
									Weighted
						Weighted			Average
						Average			Remaining
			Number of			Exercise			Contractual
			Shares			Price			Term in Years

	Vested			21,012,455		$	0.28			3.63
	Expected to vest			3,708,343		$	0.11			9.45
	Total			24,720,798		$	0.26			4.5
Stock option activity	'
			Number of Options			Range of Exercise		Weighted Average
						Price		Exercise
								Price
	Stock options outstanding at March 31, 2013			21,095,798		$0.76 - $0.41		$0.28
	Exercised			–		$--
	Granted			3,625,000		$0.10 - 0.11		$0.10
	Cancelled/Expired			–		--
	Stock options outstanding at December 31, 2013			24,720,798		$0.076 - $0.41		$0.28
	Stock options exercisable at December 31, 2013			21,012,455		$0.076 - $0.41		$0.26

10_WARRANTS_Tables

10. WARRANTS (Tables)	9 Months Ended
10. WARRANTS (Tables)	Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
Summary of warrant activity exercisable and outstanding	'
			Number of Warrants			Range of Exercise	Weighted Average
						Price	Exercise
							Price
	Warrants outstanding at March 31, 2013			75,647,294		$0.076 - $0.25	$0.11
	Exercised			(4,985,204	)	$0.07 - $0.11	$0.10
	Issued			12,851,982		$0.121- $0.22	$0.20
	Cancelled/Expired			(6,037,419	)	$0.07 - $0.132	$0.11
	Warrants outstanding at December 31, 2013			77,476,653		$0.076 - $0.25	$0.13
	Warrants exercisable at December 31, 2013			77,476,653		$0.076 - $0.25	$0.13
Weighted average assumptions used to estimate the fair value, with respect to warrants utilizing the Binomial Lattice option pricing model	'
	Risk free interest rate	0.86% - 2.04%
	Average expected life	7 years
	Expected volatility	90.3 – 98.5%
	Expected dividends	None

13_PROPERTY_AND_EQUIPMENT_Tabl

13. PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
13. PROPERTY AND EQUIPMENT (Tables)	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
Sumarry of Property and equipment	'
		31-Dec-13			31-Mar-13
	Furniture and office equipment at cost:
	Aethlon Medical, Inc.	$	291,781		$	289,031
	Exosome Sciences, Inc.		58,743			–
	Consolidated furniture and office equipment at cost		350,524			289,031
	Accumulated depreciation		(296,172	)		(288,886	)
		$	54,352		$	145

2_LIQUIDITY_Details_Narrative

2. LIQUIDITY (Details Narrative) (USD $)	Dec. 31, 2013	Mar. 31, 2013
LiquidityDetailsAbstract	'	'
Working capital	$10,731,000	'
Recurring losses from operations and accumulated deficit	$67,210,799	$61,475,325

3_SUMMARY_OF_SIGNIFICANT_ACCOU3

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012
Consolidated Cash Balance	$1,854,941	$125,274	$107,970	$143,907
Aethlon Medical, Inc	'	'	'	'
Consolidated Cash Balance	588,066	'	'	'
Exosome Sciences, Inc	'	'	'	'
Consolidated Cash Balance	$1,266,875	'	'	'

3_SUMMARY_OF_SIGNIFICANT_ACCOU4

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]	'	'	'	'
Research and development expenses	$542,383	$371,253	$1,178,488	$1,034,335

3_SUMMARY_OF_SIGNIFICANT_ACCOU5

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
Accounting Policies [Abstract]	'	'	'
Diluted average number of common shares outstanding	145,105,572	135,505,936	'
Fair value of convertible notes and related warrants based on third party valuation	$5,576,065	'	$3,588,239

4_NOTES_PAYABLE_Details

4. NOTES PAYABLE (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013
Principal Balance	$390,000	$321,381
Accrued Interest on notes payable	362,641	333,566
12% Notes Payable	'	'
Principal Balance	185,000	185,000
Accrued Interest on notes payable	346,875	326,062
10% Note payable	'	'
Principal Balance	5,000	5,000
Accrued Interest on notes payable	6,250	5,875
Tonaquint Note	'	'
Principal Balance	'	131,381
Accrued Interest on notes payable	'	1,629
Directors Notes	'	'
Principal Balance	200,000	'
Accrued Interest on notes payable	$9,516	'

4_NOTES_PAYABLE_Details_1

4. NOTES PAYABLE (Details 1) (USD $)	9 Months Ended
4. NOTES PAYABLE (Details 1) (USD $)	Dec. 31, 2013
Notes Payable Details 1	'
Initial principal balance	$360,186
Lenderbs legal fees	12,500
Conversions during the fiscal year ended March 31, 2013	-241,307
Conversions during the six months ended September 30, 2013	-131,379
Balance as of September 30, 2013	$0

4_NOTES_PAYABLE_Details_Narrat

4. NOTES PAYABLE (Details Narrative) (USD $)	9 Months Ended
4. NOTES PAYABLE (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
Interest expense related to notes payable	$47,838	$47,447	'
Principal Balance	390,000	'	321,381
Accrued Interest on notes payable	362,641	'	333,566
12% Notes Payable	'	'	'
Principal Balance	185,000	'	185,000
Accrued Interest on notes payable	346,875	'	326,062
Interest rate	15.00%	'	'
10% Note payable	'	'	'
Principal Balance	5,000	'	5,000
Accrued Interest on notes payable	$6,250	'	$5,875
Interest rate	15.00%	'	'

5_CONVERTIBLE_NOTES_PAYABLE_De

5. CONVERTIBLE NOTES PAYABLE (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013
Principal	$2,244,943	$2,371,915
Unamortized Discount	0	-4,284
Net Amount	2,244,942	2,367,631
Accrued Interest on convertible notes payable	775,827	698,544
Amended and Restated Series A 12% Convertible notes	'	'
Principal	885,000	885,000
Unamortized Discount	0	0
Net Amount	885,000	885,000
Accrued Interest on convertible notes payable	531,000	398,250
December 2006 10% Convertible Notes	'	'
Principal	17,000	17,000
Unamortized Discount	0	0
Net Amount	17,000	17,000
Accrued Interest on convertible notes payable	17,800	15,888
2008 10% Convertible Notes	'	'
Principal	25,000	25,000
Unamortized Discount	0	0
Net Amount	25,000	25,000
Accrued Interest on convertible notes payable	18,229	15,417
October and November 2009 10% Convertible Notes	'	'
Principal	50,000	50,000
Unamortized Discount	0	-389
Net Amount	50,000	49,611
Accrued Interest on convertible notes payable	24,847	20,000
April 2010 10% Convertible Note	'	'
Principal	75,000	75,000
Unamortized Discount	0	-3,895
Net Amount	75,000	71,105
Accrued Interest on convertible notes payable	29,563	23,938
September 2010 10% Convertible Notes	'	'
Principal	283,100	308,100
Unamortized Discount	0	0
Net Amount	283,100	308,100
Accrued Interest on convertible notes payable	14,195	52,393
April 2011 10% Convertible Notes	'	'
Principal	400,400	400,400
Unamortized Discount	0	0
Net Amount	400,400	400,400
Accrued Interest on convertible notes payable	46,102	100,100
July and August 2011 10% Convertible Notes	'	'
Principal	377,683	357,655
Unamortized Discount	0	0
Net Amount	377,683	357,655
Accrued Interest on convertible notes payable	86,079	68,704
September 2011 Convertible Notes	'	'
Principal	9,760	178,760
Unamortized Discount	0	0
Net Amount	9,760	178,760
Accrued Interest on convertible notes payable	0	0
Law Firm Note	'	'
Principal	75,000	75,000
Unamortized Discount	0	0
Net Amount	75,000	75,000
Accrued Interest on convertible notes payable	6,667	3,854
Law Firm Note 2	'	'
Principal	47,000	'
Unamortized Discount	0	'
Net Amount	47,000	'
Accrued Interest on convertible notes payable	$1,345	'

5_CONVERTIBLE_NOTES_PAYABLE_De1

5. CONVERTIBLE NOTES PAYABLE (Details 1) (USD $)	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013
5. CONVERTIBLE NOTES PAYABLE (Details 1) (USD $)	Dec. 31, 2013	Mar. 31, 2013	2009 Convertible Notes	2010 Convertible Notes	2011 Convertible Notes
Initial principal balance	$2,244,943	$2,371,915	$450,250	$743,600	$253,760
Conversions during the fiscal year ended March 31, 2010	'	'	-70,000	'	'
Conversions during the fiscal year ended March 31, 2011	'	'	-175,000	'	'
Conversions during the fiscal year ended March 31, 2012	'	'	-130,250	-405,500	-15,000
Conversions during the fiscal year ended March 31, 2013	'	'	-25,000	-30,000	-60,000
Conversions during the nine months ended December 31, 2013	'	'	'	-25,000	-169,000
Balance as of September 30, 2013	$2,244,943	$2,371,915	$50,000	$283,100	$9,760

5_CONVERTIBLE_NOTES_PAYABLE_De2

5. CONVERTIBLE NOTES PAYABLE (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
5. CONVERTIBLE NOTES PAYABLE (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Interest expense related to convertible notes payable	$113,445	$106,795	$329,947	$1,019,857
Convertible Notes	'	'	'	'
Interest expense related to convertible notes payable	'	'	267,557	'
Debt Discounts	'	'	'	'
Interest expense related to convertible notes payable	'	'	4,284	'
Convertible notes and debt discount	'	'	'	'
Interest expense related to convertible notes payable	'	'	$271,841	'

7_OTHER_CURRENT_LIABILITIES_De

7. OTHER CURRENT LIABILITIES (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013
Other Liabilities, Current [Abstract]	'	'
Accrued interest	$1,143,225	$1,032,110
Litigation related accrual	1,000,000	0
Accrued legal fees	179,465	179,465
Other	103,573	155,610
Total other current liabilities	$2,426,263	$1,367,185

7_OTHER_CURRENT_LIABILITY_Deta

7. OTHER CURRENT LIABILITY (Details Narrative) (USD $)	Dec. 31, 2013
Other Liabilities Disclosure [Abstract]	'
Promissory and Convertible Notes Payable in default	$2,067,916
Accrued Interest On Notes Payable in default	$1,061,046

8_FAIR_VALUE_MEASUREMENTS_Deta

8. FAIR VALUE MEASUREMENTS (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'
Derivative Liabilities	$5,576,065	'	'	'
Total Assets	5,576,065	'	'	'
Fair Value Inputs Level 1	'	'	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'
Derivative Liabilities	0	'	'	'
Total Assets	0	'	'	'
Fair Value Inputs Level 2	'	'	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'
Derivative Liabilities	0	'	'	'
Total Assets	0	'	'	'
Fair Value Inputs Level 3	'	'	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'
Derivative Liabilities	5,576,065	3,588,239	1,810,138	3,588,615
Total Assets	$5,576,065	'	'	'

8_FAIR_VALUE_MEASUREMENT_Detai

8. FAIR VALUE MEASUREMENT (Details 1) (Fair Value Inputs Level 3)	9 Months Ended
	Dec. 31, 2013
Fair Value Inputs Level 3	'
Fair Value Assumptions and Methodology for Assets and Liabilities	'
Risk free interest rate minimum	0.02%
Risk free interest rate maximum	2.04%
Average expected life minimum	'3 months
Average expected life maximum	'3 years
Expected volatility minimum	58.00%
Expected volatility maximum	103.10%
Expected dividends	0.00%

8_FAIR_VALUE_MEASUREMENT_Detai1

8. FAIR VALUE MEASUREMENT (Details 2) (USD $)	9 Months Ended
8. FAIR VALUE MEASUREMENT (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Derivative liabilities	$5,576,065	'
Fair Value Inputs Level 3	'	'
Derivative liabilities	3,588,239	3,588,615
Recorded new derivative liabilities	0	0
Change in estimated fair value recognized in results of operations	2,304,702	-1,745,718
Reclassification of derivative liability to paid in capital	-316,876	-32,759
Derivative liabilities	$5,576,065	$1,810,138

9_STOCK_COMPENSATION_Details

9. STOCK COMPENSATION (Details) (USD $)	3 Months Ended		9 Months Ended
9. STOCK COMPENSATION (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'	'
Vesting of stock options	$32,750	$77,421	$156,993	$258,468
Incremental fair value of option modifications	0	957	1,914	22,071
Vesting expense associated with CEO restricted stock grant	0	96,667	64,444	290,001
Total share-based compensation expense	32,750	175,045	223,351	570,540
Total share-based compensation expense included in net loss	$32,750	$175,045	$223,351	$570,540
Basic and diluted loss per common share	$0	$0	$0	$0

9_STOCK_COMPENSATION_Details_1

9. STOCK COMPENSATION (Details 1) (USD $)	9 Months Ended
9. STOCK COMPENSATION (Details 1) (USD $)	Dec. 31, 2013
Minimum	'
Risk free interest rate	0.38%
Average expected life	'3 years
Expected volatility	94.60%
Maximum	'
Risk free interest rate	2.50%
Average expected life	'10 years
Expected volatility	102.70%
Stock Options	'
Expected dividends	0

9_STOCK_COMPENSATION_Details_2

9. STOCK COMPENSATION (Details 2) (Stock Options, USD $)	9 Months Ended
9. STOCK COMPENSATION (Details 2) (Stock Options, USD $)	Dec. 31, 2013	Mar. 31, 2013
Stock Options	'	'
Number of Shares, Vested	21,012,455	'
Weighted Average Exercise Price, Vested	$0.28	'
Weighted Average Remaining Contractual Term in Years, Vested	'3 years 7 months 17 days	'
Number of Shares, Expected to vest	3,708,343	'
Weighted Average Exercise Price, Expected to vest	$0.11	'
Weighted Average Remaining Contractual Term in Years, Expected to vest	'9 years 5 months 12 days	'
Number of Shares	24,720,798	21,095,798
Weighted Average Exercise Price	$0.26	'
Weighted Average Remaining Contractual Term in Years	'4 years 6 months	'

9_STOCK_COMPENSATION_Details_3

9. STOCK COMPENSATION (Details 3) (Stock Options, USD $)	9 Months Ended
9. STOCK COMPENSATION (Details 3) (Stock Options, USD $)	Dec. 31, 2013
Stock Options	'
Amount	'
Stock options outstanding at March 31, 2013	21,095,798
Exercised	0
Granted	3,625,000
Cancelled/Expired	0
Stock options outstanding at December 31, 2013	24,720,798
Stock options exercisable at December 31, 2013	21,012,455
Range of Exercise Price	'
Stock options outstanding Minimum at March 31, 2013	$0.76
Stock options outstanding at Maximum March 31, 2013	$0.41
Exercised	$0
Granted Minimum	$0.10
Granted maximum	$0.11
Cancelled/Expired	$0
Stock options outstanding Minimum at December 31, 2013	$0.08
Stock options outstanding Maximum at December 31, 2013	$0.41
Stock options exercisable Minimum at December 31, 2013	$0.08
Stock options exercisable Maximum at December 31, 2013	$0.41
Weighted Average Exercise Price	'
Stock options outstanding at March 31, 2013	$0.28
Granted	$0.10
Stock options outstanding at December 31, 2013	$0.28
Stock options exercisable at December 31, 2013	$0.26

9_STOCK_COMPENSATION_Details_N

9. STOCK COMPENSATION (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
9. STOCK COMPENSATION (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'	'
Stock-based compensation expense	$32,750	$175,045	$223,351	$570,540
Unrecognized compensation cost	$304,529	'	$304,529	'
Weighted average period for recognition of unrecognized compensation cost	'	'	'2 years 3 months 25 days	'
Intrinsic value	'	'	$0.17	'

10_WARRANTS_Details

10. WARRANTS (Details) (Warrants, USD $)	9 Months Ended
10. WARRANTS (Details) (Warrants, USD $)	Dec. 31, 2013
Warrants	'
Summary Of Warrant Activity [Abstract]	'
Warrants Outstanding	75,647,294
Warrants Exercised	-4,985,204
Warrants Issued	12,851,982
Warrants Cancelled/Expired	-6,037,419
Warrants outstanding	77,476,653
Warrants exercisable	77,476,653
Range of Exercise Price	'
Warrants outstanding, beginning - Range of Exercise Price Minimum	$0.08
Warrants outstanding, beginning - Range of Exercise Price Maximum	$0.25
Warrants Exercised - Range of Exercise Price Minimum	$0.07
Warrants Exercised - Range of Exercise Price Maximum	$0.11
Warrants Issued - Range of Exercise Price Minimum	$0.12
Warrants Issued - Range of Exercise Price Maximum	$0.22
Warrants Cancelled/Expired - Range of Exercise Price Minimum	$0.07
Warrants Cancelled/Expired - Range of Exercise Price Maximum	$0.13
Warrants outstanding, ending - Range of Exercise Price Minimum	$0.08
Warrants outstanding, ending - Range of Exercise Price Maximum	$0.25
Warrants Exercisable, ending - Range of Exercise Price Minimum	$0.08
Warrants Exercisable, ending - Range of Exercise Price Maximum	$0.25
Weighted Average Exercise Price	'
Warrants outstanding Weighted Average Exercise Price	$0.11
Warrants Exercised Weighted Average Exercise Price	$0.10
Warrants Issued Weighted Average Exercise Price	$0.20
Warrants Cancelled/Expired Weighted Average Exercise Price	$0.11
Warrants outstanding Weighted Average Exercise Price, ending	$0.13
Warrants exercisable Weighted Average Exercise Price	$0.13

10_WARRANTS_Details_1

10. WARRANTS (Details 1) (USD $)	9 Months Ended
10. WARRANTS (Details 1) (USD $)	Dec. 31, 2013
Minimum	'
Risk free interest rate	0.86%
Expected Volatility Rate	90.30%
Maximum	'
Risk free interest rate	2.04%
Expected Volatility Rate	98.50%
Warrants	'
Average expected life	'7 years
Expected dividends	0

13_PROPERTY_AND_EQUIPMENT_Deta

13. PROPERTY AND EQUIPMENT (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013
Furniture and office equipment, cost	$350,524	$289,031
Accumulated depreciation	-296,172	-288,886
Furniture and office equipment, net	54,352	145
Aethlon Medical, Inc	'	'
Furniture and office equipment, cost	291,781	289,031
Exosome Sciences, Inc	'	'
Furniture and office equipment, cost	$58,743	'