Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 229

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 229
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 of subsidiaries
in Hong Kong is Hong Kong Dollars (“ HKD”), the functional currency of a subsidiary in Singapore is Singapore Dollars (“ SGD”)
and the functional currency of a subsidiary in the United Kingdom is Great British Pound (“ GBP”). An entity’s functional
currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in
which it primarily generates and expends cash. The management considered various indicators, such as cash flows, market expenses, financing
and inter-company transactions and arrangements in determining the Group’s functional currency.

In the consolidated financial statements, the
financial information of the Company and its subsidiaries, which use HKD, SGD and GBP as their functional currency, has been translated
into USD. Assets and liabilities are translated from each subsidiary’s functional currency at the exchange rates on the balance
sheet dates, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using
the average exchange rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a
separate component of other comprehensive income or loss in the consolidated statements of operations and comprehensive income or loss.

Cash and cash equivalents

Cash and cash equivalents consists of cash on
hand, bank deposits and time deposits with an original maturity of three months or less at the date of purchase.

F-9

APTORUM GROUP LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in U. S. Dollars)

Accounts receivable and amounts due from related
parties

Accounts receivable and amounts due from related
parties are stated at the original amount less an allowance for credit losses, if any, based on a review of all outstanding amounts at
period end. An allowance is estimated in accordance with ASC Topic 326, Credit Lossesand records the allowance for credit losses
as an offset to accounts receivable or amounts due from related parties, and the expected credit losses charged to the allowance is included
in other operating expenses in the consolidated statements of operations and comprehensive loss. In determining expected credit losses,
the Group considers the historical level of credit losses, current economic trends, and reasonable and supportable forecasts that affect
the collectability of the future cash flows. As of December 31, 2024 and 2023, $522,191and $521,007allowance for credit losses were
made.

Inventories

Inventories are stated at lower of cost and net
realizable value.