Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 429

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 429
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 loan with an interest rate below market. The Company recorded a discounts of $24,970
on the loan as additional paid-in capital.

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 29,336 shares 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-not that 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:

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