Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 231

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 231
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 or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the
Group considers the principal or most advantageous market in which it would transact its business, and it considers assumptions that market
participants would use when pricing the asset or liability.

As a basis for considering such assumptions, a
three-tier fair value hierarchy prioritizes the inputs utilized in measuring fair value as follows:

  Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.                                                                     
  Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for sim...  
  Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilit...  

The hierarchy requires the Group to maximize the
use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization
within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Group has
estimated the fair value amounts of its financial instruments using the available market information and valuation methodologies considered
to be appropriate and has determined that the carrying value of the Group’s cash, other receivables and prepayments, amounts due
from/to related parties, accounts payable and accrued expenses, and convertible notes to a related party as of December 31, 2024 and 2023
approximate fair value due to the short-term nature of these assets and liabilities.

Property and equipment, net

Property and equipment, net, is stated at cost
less accumulated depreciation and impairment losses. Cost represents the purchase price of the asset and other costs incurred to bring
the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major
additions to physical properties are capitalized.

Assets under construction are stated at cost less
impairment losses. Cost comprises of cost of laboratory equipment delivered but not ready to be used, together with interest expense capitalized
during the period of construction or installation and testing. Capitalization of these costs ceases and the asset concerned is transferred
to the appropriate fixed assets category when substantially all the activities necessary to prepare the asset for its intended use are