Welcome to the Aethlon Medical Inc., Second Quarter Earnings Conference Call and Webcast. [Operator Instructions]. I would now like to turn the conference over to Mr. James Frakes, Chief Financial Officer. Please go ahead, sir.

Thank you, operator, and good afternoon everyone, and welcome to Aethlon Medical’s second quarter fiscal 2017 conference call. My name is Jim Frakes and I'm Aethlon’s Chief Financial Officer. Following this introduction and the reading of our forward-looking statements statement, Aethlon's Chairman and CEO, Jim Joyce; will provide an overview of Aethlon’s strategy, clinical testing status and recent developments. I will then make some brief remarks on Aethlon’s financials. We will then open up the call for the Q&A session. Before I hand the call over to Mr. Joyce, please note that the news release today on this call contain forward-looking statements within the meaning of the Federal Securities Act of 1933, and the Securities Exchange Act of 1934. Forward-looking statements involve risks and uncertainties that can cause actual results to differ materially from those anticipated or suggested by such forward-looking statements. Statements involving words such as may, believe, anticipate, expect, intend, plan, project, estimate, or similar expressions constitute forward-looking statements. Factors that may contribute to such differences include without limitation risk related to the company’s ability to develop and commercialize its products, the ability to fund and complete clinical testing of the company’s products, the company’s ability to raise working capital if and when needed, the company’s ability to protect its intellectual property, the impact of changing government regulations on biomedical devices and other risk factors. The foregoing list of risk and uncertainties is illustrative, but is not exhaustive. Additional risk factors can be found under the caption Risk Factors in the company’s Annual Report on Form 10-K for the year ended March 31, 2016 and in the company’s other filings with the Securities and Exchange Commission. For a more detailed discussion of the risk and uncertainties that could cause actual results to differ materially from any forward-looking statements, please see the company’s public filings are all available on our website www.aethlonmedical.com. With that, I will now turn the call over to Mr. Joyce.

Thanks, Jim. Before I share our clinical progress in other quarterly advances I would like to respond share our request in our institutional and mutual fund ownership especially at some financial portals including Yahoo Finance, they report such ownership of being below 1% of our company. As some may recall I referenced in the trading call [ph] that [indiscernible] in the NASDAQ inclusion lots of microcap index will increase our stature amongst institutional investors. In this regard I want to provide clarity that reports to institutional and mutual fund ownership in our company has increased over 22% with more than 25 sets amenities among our 7500 plus shareholders. Sachs Investment Group has increased their ownership to 15.54% and other holders include name such as Fidelity, Blackrock, [indiscernible] Royal Bank of Canada and Vanguard. Additionally Jim Frakes will review on further detail we’re proud that we have continued demand on monthly burn of $300,000 which is considerable clinical stage therapeutic company and we have more than $12 million of our $12.5 million at the market financing facility available which allows us to access capital on prevalent market prices. With that said I would like to update you on the clinical progress of our Hemopurifier which we believe to be the first and only medical technology being advanced and FDA approved studies as a broad spectrum counter measure against infectious pathogens. As a broad spectrum [indiscernible] of Hemopurifier has been demonstrated in human and in-vitro studies to provide rapid real time capture of different strands, species and viruses. We provide as an adjunct to improve the benefit of conventional anti-viral drugs and also serves as first line counter measure to address bio-pathogens that are not treatable with the anti-viral drugs. If you’re looking for a public market comparable there is none. Our…

Thanks, Jim. Given our strategy of driving the U.S. clinical progression we’re not focused on the generation of revenues at this time. However we did complete the final two milestones of our DARPA contract in the September 2016 quarter. As a result of achieving those two milestones we have recorded revenues of 387,000 from our government contracts in the second quarter of fiscal 2017 compared to 188,000 in the second quarter of fiscal 2016. We achieved one milestone in the prior year period. As Jim Joyce noted we have applied for three new government research contracts and are considering applying for additional contracts as well landing one and all of these new contracts may provide revenue opportunities for U.S. in the future. At September 30, 2016 we had a cash balance of approximately $556,000 that cash position combined with capital generated under our $12.5 million capital market financing agreement we will continue to be used to fund our FDA approved feasibility study in the U.S. and our operations. This arrangement won't allow us to access capital at our discretion at prevailing market crisis. We raised approximately $267,000 in the September quarter to the aftermarket financing arrangement and we’re continuing to use it discretely. Our consolidating operating expenses were $2.6 million in the second quarter of fiscal 2017 compared to $1.3 million in the prior year period. This increase was approximately 1.3 million was due to increases in payroll and related expenses of $1.2 million and the professional fees of $122,000 which were partially offset by a reduction in general and administrative expenses of $36,000. The $1.2 million increase in payroll and related expenses was due to a $1.5 million increase in non-cash stock based compensation which was partially offset by a $257,000 decrease in cash based compensation. The increase in…

[Operator Instructions]. Our first question comes from Yi Chen with Rodman Renshaw. Please go ahead.

Can you give us some additional color, how the results of the ongoing feasibility study will impact the future trials of exosome based trials that’s targeting cancer? Thank you.

In regards to our feasibility study the completion of that study unlike our ability as I referenced to move forward with different indications and infectious RO pathogens but it's also been a gaining factor for us to sit down with FDA and discuss a similar feasibility study in oncology related to the removal of tumor derived exosomes. Over the years we have collected data indicating our ability to capture tumor derived exosomes under a variety of different oncology indications but internally complete the feasibility study, it is more than possible to sit down with FDA and ask for another feasibility study related to oncology. So with the completion of this study that’s the pathway that we will now venture into that should complement what we’re doing in infectious disease.

So you still anticipate to receive the results from a current feasibility study by the end of the year and with that results you will have a clear pathway going forward regarding which indication to present, talking about infectious disease which indication to pursue and what the next steps will be is that correct?

That’s correct. We have a good idea of the indication that will pursue through humanitarian news device pathways, but in terms of a larger clinical study or pivotal study required for approval into a large disease condition we have not chosen the final indication and there hasn’t been need for us to do so at this point in time. So we will share that indication and provide further guidance in the near future.

[Operator Instructions]. And at this time I'm showing no further questions. I would like to turn the conference back over to Mr. Jim Joyce for any closing remarks.

Okay. I appreciate everyone's participation today. As there are no more questions we are complete and close out our second quarter 2017 call. I appreciate your participation and invite you to participate again on our next call which should be in early February. Take care and again thank you.

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