Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 405

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 405
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 right to use an underlying asset during the lease term, and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at lease commencement
based upon the estimated present value of unpaid lease payments over the lease term. The Company uses its incremental borrowing rate based
on the information available at lease commencement in determining the present value of unpaid lease payments.

Convertible Notes Payable

Debt issuance costs and discounts (premiums) related
to notes payable are reported as direct deductions (increases) to the outstanding debt and amortized over the term of the debt using the
effective interest method as an addition (reduction) to interest expense.

<div align='center'>F-11</div>

In August 2020, the FASB issued ASU No. 2020-06,
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)— “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”,
which simplifies the accounting for convertible instruments by removing major separation models currently required. Consequently, more
convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features.
ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception,
which will permit more equity contracts to qualify for it. The standard also simplifies the diluted net income per share calculation in
certain areas. The amendments in this update were effective for public entities that are smaller reporting companies, as defined by the
Securities and Exchange Commission (“SEC”), for the fiscal years beginning after December 15, 2023, including interim periods
within those fiscal years. The Company adopted the pronouncement early on a fully retrospective basis and has not recognized calculated
beneficial conversion features in its notes payable.

Recently Issued Accounting Pronouncements

There are no recently issued accounting pronouncements
that the Company believes might have a material impact on its financial position or results of operations.

NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist
of the following:

|                                    |     |   | May 31, 
    2024 |     |   | May 31, 
    2023 |
|:-----------------------------------|:----|:--|