Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 275

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 275
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angible book value, net asset
value, intangible total replacement cost) and selected the asset approach, utilizing replacement cost, as the best alternative to estimate
the value of DiamiR’s member units.

The asset approach considers
the accumulated value of all of its tangible and intangible net assets. The valuation approach used under the asset approach was the asset
accumulation method. Its tangible assets and liabilities were measured at their carrying values since our tangible assets were primarily
comprised of cash, recently purchased equipment and accounts payable. Our intangible assets were valued using a replacement cost new method,
which measures the total cost, in current prices, to develop a new intangible asset having the same functionality or utility as the intangible
asset. The replacement cost new method considers the following cost components: direct costs, indirect costs, the intangible asset developer’s
profit, and an opportunity cost or entrepreneurial incentive (e.g., a measure of lost income opportunity cost during the development period
adequate to motivate the development process). For this purpose, our costs included personnel costs, using national averages of the costs
for the services provided, that were otherwise expensed in our Statements of Operations. The constructed replacement cost was then evaluated
for physical, functional, and economic obsolescence. The enterprise value was calculated as the sum of the net tangible assets and the
replacement cost of intangible assets. The per unit value was calculated by dividing the enterprise value by the number of outstanding
member units, with the resulting value discounted for restrictions on resale and lack of marketability of the member units.

There are significant judgments
and estimates inherent in the determination of the valuation method selected and of the inputs to the valuation method used to value our
stock. While the assumptions used represent management’s best estimates, these estimates involve inherent uncertainties and the
application of management’s judgment. As a result, if revisions are made to the underlying assumptions and estimates, the costs
DiamiR recognize when issuing stock-based compensation for acquiring goods or providing services could vary significantly from period
to period.

Stock Option Plans

DiamiR maintains two stock
option plans, under which shares are available for issuance of stock-based awards under terms established by the board of directors. Through
May 31, 2025, awards under the plans generally consisted of options with exercise prices equal to fair market value, vesting and
service conditions of 18 months to three years without market or performance conditions and ten-year lives. Options granted
in the year ended May