Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063906
Chunk: 467

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 467
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 fair value of financial instruments, both assets and liabilities for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of May 31, 2024 and 2023, the recorded values of cash, accounts receivable, accounts payable and accrued expenses, and convertible note payable to founder approximate the fair values due to the short -termnature of the instruments. See note7, Convertible Notes Payable. The Company determines the fair value of financial and non -financialassets using the highest -levelinputs available in the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value as follows:

| Level 1: |     | Inputs that reflect unadjusted quoted prices in active markets that are accessible for identical assets or liabilities;                                                            |
| Level 2: |     | Inputs include quoted prices for similar assets and liabilities in active or inactive markets or that are observable for the asset or liability either directly or indirectly; and |
| Level 3: |     | Unobservable inputs that are supported by little or no market activity.                                                                                                            |

Since inception, the Company has made certain fair value estimates that are not recurring, generally related to share values and expected volatility, compensation expense and interest expense. Such estimates involve management’s review of available information of comparable companies and are therefore, generally unobservable Level 3 inputs. Concentrations of Credit Risk Cash, cash equivalents and accounts receivable potentially subject the Company to concentration of credit risk. Cash and cash equivalents are held at U.S. FDIC -insuredfinancial institutions and the amounts on deposit are sometimes above the FDIC insured limits of up to $250,000 per account. Intangible Assets The Company records acquired intangible assets based on fair value on the date of acquisition. Finite -livedintangible assets are recorded at cost and amortized on a straight -linebasis over the estimated lives of the assets. Indefinite -livedintangible assets are not subject to amortization. Impairment of Long-lived Assets The Company assesses impairment of asset groups, including intangible assets, when events or changes in circumstances indicate that their carrying amount may not be recoverable. Long -livedassets consist of property and equipment, net, right of use assets and other intangible assets, net. Circumstances which could trigger a review include, but are not limited to: (i) changes in Company