Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 393

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 393
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5.

Note ii: The pro forma fair value adjustments
to intangible assets mainly arise from the recognition, on a pro forma basis, of in process research and development of Target. The pro
forma fair values of the intangible assets are based on estimation by the directors of the Company the assistance of an independent qualified
professional valuation advisor using primarily a cost approach.

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The consideration paid for the Acquisition
effectively included amounts in relation to the benefit of expected revenue growth, future market development and the assembled workforce
of Target, These benefits are not recognized separately from goodwill because they do not meet the recognition criteria for identifiable
intangible assets.

Should there be any adverse changes
to the business of the Target, including but not limited to, any subsequent adverse changes in the operation, impairment may be required
to be recognized against provisional goodwill in accordance with ASC 350-20-35 and the Company’s accounting policies.

The Company’s directors confirmed
that they will adopt consistent approach to assess impairment of goodwill in subsequent reporting periods in accordance with the requirements
of ASC 350-20-35 and will disclose in the Group’s annual report the basis and assumptions adopted by the Company’s directors
in the impairment assessment in accordance with the disclosure requirements in ASC 350-20-35.

The pro forma fair values of the identifiable
assets and liabilities and goodwill, if any, in relation to the Acquisition are subject to material change upon the completion of a definitive
merger agreement and re-determination of the accounting acquirer and purchase price allocation as of the date any closing, which may be
substantially different from their estimated amounts used in the preparation of this unaudited pro forma financial information.

Amounts allocated to patents are generally subject
to amortization over the lives of the patents, as definite-live intangible assets.

Amounts allocated to in-process research and development
are subject periodic impairment, including upon the abandonment of programs. Amounts allocated to goodwill are subject to periodic impairment,
including upon Company market price declines.

| (b) | The                                                                                                                       
 adjustment represents the estimated transaction costs, including legal and professional fees directly attributable to the 
 Acquisition and settled in cash.                                                                                          |

| (d) | Assumes no Class B Ordinary shares are converted into shares of preferred stock, as provided in the letter of intent. |

| (e) | Includes 1,535,000 shares issued in a January 2025 private placement. |

Other than the above adjustments, no