Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063906
Chunk: 450

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 450
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 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 -reimbursementbasis for agreed -upondirect 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. The Company is responsible for performing research and development activities but is not required to achieve any specified identified results. Accordingly, these grants do not contain general payback provisions. However, the Company’s performance, costs and compliance are subject to periodic audit and the Company may be required to repay funds already received in the event of noncompliance. Grant -yearsending after May 31, 2023 remained subject to audit as of May 31, 2024. As of May 31, 2024, the Company was eligible to receive up to $0.5 million of additional funding through August 2025 to support future research under the grants, subject to availability of funds and satisfactory progress, as determined by the NIH. F-42 DIAMIR BIOSCIENCES CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Accounting for Derivative Financial Instruments The Company evaluates stock options, stock warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under the relevant sections of ASC Topic 815 -40, Derivative Instruments and Hedging: Contracts in Entity’s Own Equity(“ASC Topic 815 -40”) and ASC Topic 470, Debt. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative instrument and is marked -to -marketat each balance sheet date and recorded as a liability. Financial instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815