Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 403

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 403
---
The Company records acquired intangible assets
based on fair value on the date of acquisition. Finite-lived intangible assets are recorded at cost and amortized on a straight-line basis
over the estimated lives of the assets. Indefinite-lived intangible 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-lived
assets 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 plans; (ii) competition; (iii) significant adverse changes in the business
climate or legal or regulatory factors; (iv) or, expectations that the asset will more likely than not be sold or disposed of significantly
before the end of its estimated useful life. If the estimated future undiscounted cash flows, excluding interest charges, from the use
of an asset are less than its carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value.

Patent Costs

The Company has no experience or historical data
to support a probable future economic benefit for the arising patent application, filing and prosecution costs. Therefore, patent costs
were expensed as a general and administrative expense as incurred. Should the Company experience a legal cost to defend the patent in
the future, that cost would be capitalized only when it is part of the cost of retaining and obtaining the future economic benefit of
the patent. Costs related to an unsuccessful outcome would be expensed.

Revenue

The Company’s primary source of revenue
is grant revenue from non-customers. The Company applies the provisions of ASC Topic 958, Not-For-Profit Entities, applicable to
contributions received and recognizes grant revenue as qualified expenses are incurred. In the years ended May 31, 2024 and 2023, all
grant revenue was received from the National Institutes of Health (“NIH”).

Under these NIH grants, the Company receives funds
monthly on a cost-reimbursement basis for agreed-upon direct and indirect costs for specific research and development activities, together
with a specified fee. Allowable direct costs may include personnel costs, fees for laboratory and other contract services and supplies,
among others.

<div align='center'>F-10</div>

The Company is responsible for performing research
and development