Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 230

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 230
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 Cost is determined using the weighted average method.

Where there is evidence that the utility of inventories,
in their disposal in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes
in price levels, or other causes, the inventories are written down to net realizable value. During the years ended December 31, 2024,
2023 and 2022, the write-down of inventories were $ nil, $13,206and $ nilrespectively.

Long-term investments, net

The Group’s long-term investments consist
of equity method investment in common stocks and non-marketable investments in non-redeemable preferred shares of privately-held companies
that are not required to be consolidated under the variable interest or voting models. Long-term investments are classified as non-current
assets on the consolidated balance sheets as those investments do not have stated contractual maturity dates.

Non-marketable investments

The non-marketable equity securities not accounted
for under the equity method are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in
orderly transactions for identical or similar investments of the same issuer. Adjustments are determined primarily based on a market approach
as of the transaction date. The Group also makes a qualitative assessment of whether the investment is impaired at each reporting date.
If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in
accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes
an impairment loss in earnings equal to the difference between the carrying value and fair value.

Equity method investment - Fair value option

The Group elects the fair value option for an
investment that would otherwise be accounted for using the equity method of accounting. Such election is irrevocable and is applied on
an investment by investment basis at initial recognition. The fair value of such investments is based on quoted prices in an active market,
if any, or recent orderly transactions for identical or similar investment of the same issuer. Changes in the fair value of these equity
method investments are recognized in other income (expenses), net in the consolidated statements of operations and comprehensive loss.

F-10

APTORUM GROUP LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in U. S. Dollars)

Fair value measurement

Fair value is defined as the price that would
be received from selling an asset