Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 240

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 240
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0.5million impairment
for the year ended December 31, 2024 and 2022 since the Group considered the investees’ ability to continue as a going concern and
the investment is not recoverable.

The following table summarizes the total carrying
value of the non-marketable investments held as of December 31, 2024 and 2023 including cumulative unrealized upward and downward
adjustments and impairment made to the initial cost basis of the investments:

                                                   December 31,                       December 31,                  
  Initial cost basis                               $                   4,079,707      $                  4,079,707  
  Upward adjustments                                                  12,539,960                        12,539,960  
  Downward adjustments                                                         -                                 -  
  Impairment                                                         ( 1,520,821                         ( 520,821  
  Total carrying value at the end of the year      $                  15,098,846      $                 16,098,846  

The Group did not transfer any non-marketable
investments into marketable securities for the years ended December 31, 2024 and 2023.

For the years ended December 31, 2024 and 2023,
one of the non-marketable investments with initial cost of $2.6million and had $15.1million carrying value was pledged for a convertible
note issued to a related party (Note 15).

Equity method investment, fair value option

In December 2021, one of the Group’s subsidiaries,
Libra Sciences Limited (“ Libra”, formerly known as Aptorum Pharmaceutical Development Limited), issued Class A and Class B
ordinary shares to various parties in exchange of licenses or cash. Each Class A share of Libra is entitled to 1 vote while each Class
B share of Libra is entitled to 10 votes. Upon the share issuance, the Group was holding97.27% economic interest and31.51% voting power
in Libra. The Group lost the controlling interest in Libra because it was transferred to a third party, and therefore deconsolidated Libra.
However, the Group still owns97.27% economic interest and31.51% voting power, which is deemed as having significant influence over Libra.
As a result, the Group’s investment in Libra is subject to the equity method of accounting. The Group assessed that the fair value
option can better reflect the true value of Libra. Pursuant to ASC