Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 160

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 160
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                                                   (121,145          146,588  
  Government subsidies                                                              123,015          335,499  
  Sundry income                                                                      36,784           48,007  
  Total other income, net                                                         6,383,276        5,984,011  
  Net loss                                                                       (4,340,975      (11,525,102  

Revenue

Healthcare services income
was $431,378 and $1,295,889 for the years ended December 31, 2023, and 2022, which related to the service income derived from clinic.
The decline in healthcare services income was attributed primarily to the decision to terminate clinic services in the second quarter
of 2023. This was done to reallocate resources towards the development of the Company’s leading projects.

Cost of healthcare services

Cost of healthcare services
was $420,812 and $1,215,824 for the years ended December 31, 2023, and 2022, which related to the cost incurred by clinic. The decline
in cost of healthcare services was aligned with the decline in revenue when compared to last period.

Research and development expenses

The following table sets forth
a summary of our research and development expenses for the years ended December 31, 2023, and 2022. As a consequence of exclusive emphasis
on its lead projects and suspension of non-lead projects, there was a notable decrease in the utilization of external consultants and
full impairment of patents related to these non-lead projects. Moreover, the payroll expenses for research and development staff decreased
as a result of the reversal of deferred cash bonus payables to employees and consultants, and reduction of employees during current period.
The reversal was due to the Group’s agreements with employees and consultants to discharge the Group’s obligation to settle
their outstanding deferred cash bonus payables from previous years in exchange of fully vested ordinary shares.

                                                               Year Ended                       Year Ended                   
  Research and Development Expenses:                                                                                         
  Payroll expenses                                             $                   363,139      $                 1,305,363  
  Contracted research organizations services                                     1,387,534                        1,709,927  
  Sponsored research                                                                17,149                           17,061  
  Amortization and depreciation                                                  1,071,455                        1,064,012  
  Consultation                                                                   1,207,188                        4,423,963  
  Loss on disposal and impairments of