DARPA Picks Up Year 2 Option
Brian Marckx, CFA
AETHLON MEDICAL (AEMD): Free Stock Analysis
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Aethlon Medical (
announced that DARPA has picked up the second-year option of the
five-year $6.8 million DLT contract which will pay the company up
to $1.6 million if all of the eight related milestones are
met. DARPA picking up the year-two option is an obvious
positive for AEMD and lends additional support for their
Through fiscal Q1 2013 (ending 6/30/2012) AEMD had billed $1.58
million of the possible $2.0 million payable under the current
12-month contract. Subsequent to Q1, AEMD billed an
additional ~$180k has now invoiced for seven of the eight
milestones under this initial contract (and has completed the final
milestone worth $217k but has not yet invoiced for it).
Assuming all milestones are met through the two-year contract, AEMD
will be paid in aggregate ~$3.2 million under these DARPA DLT
awards through approximately December 2013 (or potentially
sooner). This is roughly in-line with our modeled revenue
estimates. DARPA could also pick up the years three
through five options which total an additional $3.6 million.
This morning's press release also notes that Aethlon has partnered
with two larger organizations relating to a follow-on DLT contract
opportunity called DARPA BAA-12-36. If AEMD scores the
contract, this could offer revenue upside to our model. The
award announcement is slated for this fall.
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