Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 409

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 409
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 stock at an exercise price of $5.87 per
share. The warrants have a five-year life. The warrants had an estimated fair value at issuance of $125,289, which was recorded as additional
paid-in capital and represented a discount on the Note. The discount was amortized on the interest method over the three-year term of
the Note at an effective rate of 19%. In the year ended May 31, 2023, the ADDF Note, amounting to $606,662, including accrued interest,
was converted in accordance with its terms into 101,806 shares of common stock.

Interest expense

Interest expense consists of the following in
the years ended May 31:

|                          |     |   |   2024 |     |   |    2023 |
|:-------------------------|:----|:--|-------:|:----|:--|--------:|
| Interest on notes        |     | $ | 23,232 |     | $ |  44,531 |
| Amortization of discount |     |   | 25,367 |     |   |  69,644 |
| Total                    |     | $ | 48,599 |     | $ | 114,175 |

NOTE 9 – LEASES

As of May 31, 2022, the Company had a lease for
laboratory space with a term of one year and a one-year Company renewal option. The Company renewed the lease on a one-year basis in each
of the years ended May 31, 2023 and 2024. The Company considers exercise of its renewal options to be probable. Accordingly, it has recorded
right of use assets and lease liabilities related to the lease.

The lease agreement does not provide an implicit
borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date
for purposes of determining the present value of lease payments and recording lease liabilities. In determining this rate, the Company
estimated the rate of interest it would pay on collateralized loans with similar payment terms, in a similar economic environment, by
reference to comparable lessee companies.

Supplemental cash flow information and non-cash
activity related to leases include the following in the years ended May 31:

|                                                     |     |   |   2024 |     |   |   2023 |
|:----------------------------------------------------|:----|:--|-------:|:----