Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 244

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 244
---
36 million in a Commercialization Readiness Pilot (CRP) grant as part of its
Small Business Innovation Research (SBIR) program. The award builds upon earlier studies conducted by DiamiR in collaboration with leading
academic centers and continues to support development of CogniMIR, DiamiR’s lead diagnostic product candidate for
early detection and monitoring of mild cognitive impairment and AD. The second award of $498,572 was granted to DiamiR by the National
Institute for Neurological Disorders and Stroke (NINDS) for a project entitled “Circulating Organ-enriched microRNAs as biomarkers
of Rett Syndrome.” As of February 28, 2025, DiamiR had received and applied all of its existing grant funding. DiamiR expects net
cash used in operating activities may increase significantly in future periods as a result of unfunded research and development expenses.

ADDF Award

In November 2019, DiamiR was awarded funding of
up to $492,000 from Alzheimer’s Drug Discovery Foundation (“ADDF”) in the form of an investment by ADDF in a convertible
promissory note (the “ADDF Note”) issued by DiamiR. Under the terms of this award, DiamiR was required to use the funding
solely for specified research activities. DiamiR retained ownership of related research results and intellectual property.

DiamiR borrowed $246,000 under
the ADDF Note upon closing in November 2019 and $246,000 in June 2020, following the issuance of required progress reports, with principal
and interest due and payable on November 11, 2022. The ADDF Note provided for interest at 8% per annum, compounded monthly and was convertible,
at the option of the holder upon maturity, upon a qualified equity or debt financing of at least $2,000,000, as defined, or at maturity
provided DiamiR’s business plan meets certain conditions.

Concurrent with the ADDF Note,
DiamiR issued warrants to the grantor for 29,336 shares of DiamiR’s common stock at an exercise price of $5.87 per share. The warrants
had a five-year life and an estimated fair value at issuance of $125,289, which was recorded as additional paid-in capital and represented
a discount on the Note. The discount was amortized on the interest method over the three-year term of the ADDF Note at an effective rate