Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 426

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 426
---
 acquired laboratory assets and operations, including the laboratory’s CLIA certification and its state operating
licenses from a provider of molecular diagnostic tests. The Company allocated $197,761 of the total purchase price to the certification
and licenses, which it considers indefinite-lived intangible assets.

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist
of the following:

|                       |     |   | February 28, 
         2025 |     |   | May 31, 
    2024 |
|:----------------------|:----|:--|-------------:|:----|:--|--------:|
| Outside services      |     | $ |      180,350 |     | $ | 123,065 |
| Employee compensation |     |   |       13,878 |     |   |  12,285 |
| Other                 |     |   |        4,400 |     |   |  13,298 |
| Total                 |     | $ |      198,628 |     | $ | 148,648 |

NOTE 7 – CONVERTIBLE NOTES PAYABLE

In the nine months ended February 28, 2025, the
Company amended its outstanding convertible note (“Note”) to one founder to reflect additional borrowings of $100,000 in August
2024 and $100,000 in November 2024. The Company estimates that the nominal interest rate on the Note is less than rates that may be obtained
from third parties. The Company recorded discounts of $24,970 on the additional borrowings at a weighted average estimated effective rate
of 9.6%, as additions to paid-in capital. Other terms and conditions of the Note were not affected.

No payments of principal or interest on the notes
are required prior to maturity. The notes call for interest at 4% per annum and are convertible at the option of the holder upon the Company’s
next equity financing involving the Company’s sale of its equity securities to third party investors. Upon any conversion, all unpaid
principal and accrued unpaid interest on the Notes will be exchanged for the Company’s securities at the lowest per unit price for
securities sold to third parties in the next equity financing.

In addition, the Notes are due upon demand at
the option of the holder when there is a liquidation event, which shall include:

| (i)   | The closing of the sale, lease, transfer or other disposition of