Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 421

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 421
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 the Company, its management, members of the immediate families of principal
owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly
influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully
pursuing its own separate interests. The Company discloses all related party transactions. All transactions are recorded at fair value
of the goods or services exchanged. See note 7, Convertible Notes Payable - Founders.

Research and Development Expenses

The Company expenses the cost of research and
development as incurred. Research and development expenses comprise costs incurred in performing research and development activities,
including clinical study costs, contracted services, and other external costs. Nonrefundable advance payments for goods and services that
will be used in future research and development activities are expensed when the activity is performed or when the goods have been received,
rather than when payment is made, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) Topic 730, Research and Development.

<div align='center'>F-24</div>

Property and Equipment

Equipment is carried at cost and depreciated on
a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major
replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed
from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility
of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be
recoverable.

Accounting for Income Taxes

The Company recognizes deferred tax liabilities
and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred
tax liabilities and assets are determined based on the difference between the financial statement basis and tax basis of assets and liabilities
using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which
tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance
for such tax assets and loss carryforwards is provided when it is determined to be more likely than not that the benefit of such deferred
tax asset will not be realized in future periods. Tax benefits of operating loss carryforwards