Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063906
Chunk: 474

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 474
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ERS’ EQUITY (cont.) Warrants In the nine months ended February 28, 2025, the holder agreed to exchange 29,336 outstanding warrants to purchase shares of our common stock exercisable at a price of $5.87 per share, for 29,336shares of our Common Stock in the event of a public offering of securities by the Company prior to January 1, 2025. The holder’s right to receive such shares has expired. NOTE 11 — INCOME TAXES As of February 28, 2025 and May 31, 2024, the Company’s net deferred tax assets consisted primarily of research and development expenses and stock compensation A valuation allowance has been provided against its net deferred tax assets as, based on all available evidence, it is considered more likely than not that the deferred tax assets will not be realized in future periods. Uncertain tax positions are evaluated based on the facts and circumstances that exist at each reporting period. Subsequent changes in judgment based upon new information may lead to changes in recognition, derecognition, and measurement. Adjustment may result, for example, upon resolution of an issue with the taxing authorities or expiration of a statute of limitations barring an assessment for an issue. The Company recognizes a tax benefit from an uncertain tax position when it is more -likely - than-notthat it will be sustained upon examination by tax authorities. Income tax expense in the nine months ended February 28, 2025 and February 29, 2024 reflects increases in unrecognized tax benefits related to current deductions for certain funded research and development expenses subject to interpretations of applicable tax law, in excess of available net operating carryforwards. Future changes in these unrecognized tax benefits would affect the Company’s effective tax rate. In the absence of changes in related rulings or regulations, the Company does not anticipate any such change over the next 12 months. The Company’s policy is to recognize interest expense and penalties related to income tax matters in income tax expense. NOTE 12 — LOSS PER SHARE The following common stock equivalents have been excluded from the calculation of loss per share because their effects would be antidilutive in the nine months ended February 28, 2025 and February 29, 2024:

|                  |     |    2025 |     |    2024 |
| Stock options    |     | 511,950 |     | 511,950 |
| Restricted stock |     |  88,000 |     |  88,000 |
|