Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 407

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 407
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NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist
of the following:

|                       |     |   | May 31, 
    2024 |     |   | May 31, 
    2023 |
|:----------------------|:----|:--|--------:|:----|:--|--------:|
| Outside services      |     | $ | 123,065 |     | $ |  24,904 |
| Employee compensation |     |   |  12,285 |     |   |  14,747 |
| Other                 |     |   |  13,298 |     |   |       - |
| Total                 |     | $ | 148,648 |     | $ |  39,651 |

NOTE 8 – CONVERTIBLE NOTES PAYABLE

Founders

In the year ended May 31, 2023, convertible notes
payable to founders with an aggregate principal amount of $425,000 due December 2022 were extended to December 31, 2026. In the year ended
May 31, 2024, the Company amended its outstanding convertible note (“Note”) to one founder to reflect additional borrowings
of $200,000 during the year and interest accrued to the date of the amended note. 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 $35,063 on the additional borrowing
at an estimated effective rate of 10%, as an addition 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, compounded monthly 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 all or substantially all of the assets of Company