Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 232

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 232
---

completed.

Depreciation of property and equipment is provided
using the straight-line method over their estimated useful lives:

  Computer equipment                                        3 years                                          
  Furniture, fixture, and office and medical equipment      5 years                                          
  Leasehold improvements                                    Shorter of the remaining lease terms or 5 years  
  Laboratory equipment                                      5 years                                          
  Motor vehicle                                             5 years                                          

Upon sale or disposal, the applicable amounts
of asset cost and accumulated depreciation are removed from the accounts and the net amount less proceeds from disposal is charged or
credited to operating expenses.

F-11

APTORUM GROUP LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in U. S. Dollars)

Intangible assets, net

Finite-lived intangible assets are carried at
cost less accumulated amortization and impairment if any. The finite intangible assets are amortized over their estimated useful life,
which is the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Group.

The Group’s intangible assets mainly consist
of computer software and is amortized over its useful life. The estimated useful life is generally5years. The Group will reassess the
remaining useful life on annual basis.

Impairment of long-lived assets

The Group reviews its long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events
occur, the Group compares the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result
from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying
amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over the fair value of the
assets, using the expected future discounted cash flows.

Convertible notes

The Group evaluates and accounts for conversion
options embedded in convertible notes in accordance with ASC 815 “ Derivatives and Hedging Activities”.

Applicable GAAP requires companies to bifurcate
conversion options from their host instruments and account for them as derivative financial instruments according to certain criteria.
The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly
and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded
derivative instrument and the host