Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063906
Chunk: 262

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 262
---
 pipeline of drug candidates has been steadily advancing. For more information on the nature of the efforts and steps necessary to develop our drug candidates, see “Business — Lead Projects.” 144

Our drug candidates are still in development, and we have incurred and will continue to incur significant research and development costs for pre -clinicalstudies and clinical trials. We expect that our research and development expenses will significantly increase in future periods in line with the advancement and expansion of the development of our drug candidates. Research and development expenses include: •employee and consultant compensation related expenses, including salaries, benefits and share based compensation expenses; •expenses incurred for payments to CROs, investigators and clinical trial sites that conduct our clinical studies; •the cost of acquiring IP rights which did not meet the criteria of capitalization under the U.S. GAAP; •cost associated with sponsored research programs with various universities and research institutions •facilities, depreciation, and other expenses, which include office leases and other overhead expenses; and •costs associated with patent applications. Research and development expenses incurred totaled $2.2 million, $5.2 million, and $9.2 million for the years ended December 31, 2024, 2023 and 2022, respectively, representing approximately 55.7%, 46.6%, and 49.0% of our total operating expenses for the respective period. We have been able to fund the research and development expenses for our drug candidates through a range of sources, including the proceeds raised from our public offering and follow -onofferings on Nasdaq, private placement to other investors and line of credit facilities from shareholders, related parties, and banks. This diversified approach to funding allows us to not depend on any one method of funding for our research and development activities, thereby reducing the risk that sufficient financing will be unavailable as we continue to accelerate the development of our drug candidates. RESULTS OF OPERATIONS Results of Operations for the Years ended December 31, 2024, and 2023 During the second quarter of 2023, the Company decided to streamline its operations by terminating clinic services and suspending non -leadR&D projects. This measure is aimed at optimizing the allocation of our resources and focusing our efforts on advancing our lead projects, which hold the most promise for commercial success and beneficial impact. This decision aligns with our commitment to enhance shareholder value and effectively drive our core objectives forward in the competitive landscape. The following table summarizes our results of operations for the years ended December 31, 202