Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 266

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 266
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recurring fees from a non-customer under a material transfer agreement.

Research and Development Expenses

DiamiR expenses the cost of
research and development as incurred. Research and development expenses comprise costs incurred in performing research and development
activities, including salaries and benefits, stock-based compensation, contracted services, and other external costs. Personnel costs
include the majority of compensation paid to DiamiR’s Chief Executive Officer, representing his participation in research and development
activities.

Research and Development expense
was $650,591 for the year ended May 31, 2025, compared to $1,156,860 for the year ended May 31, 2024. The decrease reflects
a decrease of approximately $214,000 in salaries and benefits from employee salary reductions, a decrease of approximately $159,000 in
stock based compensation expense, and decrease in other direct expenses for our CogniMIR product candidate, corresponding
to the decrease in available grant funding. Decreased stock-based compensation primarily reflects greater vesting of options to DiamiR’s
Chief Executive Officer in the year ended May 31, 2024.

General and Administrative Expenses

General and administrative
expenses consist primarily of professional fees for legal, consulting, auditing, and tax services, patent costs and personnel costs, including
stock based compensation. Other general and administrative expenses include facility and office expenses, conference fees and travel.

General and Administrative
expense was $624,388 and $614,074 for the years ended May 31, 2025 and 2024, respectively. In the year ended May 31, 2025,
DiamiR expensed approximately $151,000 of deferred offering costs, which was partially offset by decreased employee compensation and consulting
fees in the period.

Interest Expense

Interest expense relates to
interest accrued and the amortization of discounts on loans obtained from founders. Interest expense was $82,046 for the year ended May 31,
2025 compared to $48,599 for the year ended May 31, 2024, The increase reflects additional loans received from the founders during
the periods.

Income Tax Expense

Income Tax expense was $17,939
and $114,403 for the years ended May 31, 2025 and 2024, respectively, and reflects a provision for uncertain tax positions related
to research and development expenses. Lower income tax expense for the year ended May 31, 2025 reflects the impact of lower grant
revenue in the period.