Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 242

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 242
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                           |     |                     |  (614,405 | ) |     |      | (1,318,431 | ) |     |        |  704,026 |   |

Revenue

Grant revenue was $1,319,531
for the year ended May 31, 2024 compared to $1,128,002 for the year ended May 31, 2023. The increase was due to increased reimbursable
direct development expenses for DiamiR’s CogniMIR product candidate.

As of May 31, 2024, DiamiR was eligible to receive
up to $0.5 million of additional funding to support qualified research and development expenses through August 2025 under the grants,
subject to availability of funds and satisfactory progress, as determined by the NIH. DiamiR expects grant revenues to decrease significantly
in future periods, after currently-available grant funding is used.

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 clinical study costs, contracted services, personnel costs, including stock-based compensation, and other external
costs. Personnel costs include the majority of compensation paid to DiamiR’s CEO, representing his participation in research and
development activities. 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”) ASC 730, Research and Development.

Research and Development expense was $1,156,860
and $1,336,498 for the years ended May 31, 2024 and 2023, respectively. The decrease is due to a decrease of $252,275 in stock-based compensation
expense partially, offset by higher personnel costs and consulting costs. Decreased stock-based compensation primarily reflects greater
vesting of options to DiamiR’s CEO in the prior year ended May 31, 2023. Certain other options and RSUs awarded to our CEO vest
upon the achievement of specified financing and development milestones not currently considered probable, for which significant stock-based
compensation expense may be recognized in future periods.

General and Administrative Expenses

General and administrative expenses consist primarily
of professional fees for legal, consulting, auditing, and tax services, patent costs and personnel