Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 428

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 428
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NOTE 8 – LEASES

The Company has a lease for laboratory space with
a term of one year with a one-year optional renewal. In the nine months ended February 28, 2025, the Company exercised its option to renew
the lease for the calendar year 2025 at a monthly rate of $3,565.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

Legal

The Company is not involved in any legal matters
arising in the normal course of business. While incapable of estimation, in the opinion of the management, the individual regulatory and
legal matters in which it might involve in the future are not expected to have a material adverse effect on the Company’s financial
position, results of operations, or cash flows.

NOTE 10 – STOCKHOLDERS’ EQUITY

Stock-Based Compensation

The Company maintains stock option plans, under
which shares are available for issuance of stock-based awards under terms established by the board of directors. Through February 28,
2025, awards under the plans generally consisted of stock options with exercise prices equal to the estimated fair market value of the
Company’s common stock, vesting and service conditions of 18 months to three years without market or performance conditions and
ten-year lives, and to restricted stock units with performance conditions. As of February 28, 2025, the number of shares authorized under
the 2024 Stock Option Plan is 600,000 shares, which will increase by 2% per year or such lower number of shares as may be determined by
the Company’s board of directors.

In the nine months ended February 28, 2025, the
Company entered into employment agreements with two executives that become effective upon the completion of an initial public offering
of its common stock. Options for an aggregate of 270,000 shares are issuable with a strike price equal to the offering price and certain
service-based and performance-based vesting provisions.

As of February 28, 2025, unrecognized stock-based
compensation expense related to options for which vesting is not considered probable was $1,093,712. As of February 28, 2025, unrecognized
stock-based compensation expense related to restricted stock units for which vesting is not considered probable was $652,080.

<div align='center'>F-29</div>

Founder Contribution

In nine months ended February 28, 2025, its founders
made contributions to the Company in the form of a