Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 228

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 228
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 In accordance with the provisions
of Accounting Standards Codification (“ ASC”) 810, Consolidation, the Group also consolidate any variable interest entity (“ VIE”)
of which the Company is the primary beneficiary. The typical condition for a controlling financial interest ownership is holding a majority
of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements
that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if that party has the
power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb
losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially
be significant to the VIE. The Group does not consolidate a VIE in which the Company has a majority ownership interest when we are not
considered the primary beneficiary. The Company has determined that the Company is the primary beneficiary of the VIE (see Note 13, Variable
Interest Entity). The Company evaluate its relationships with the VIE on an ongoing basis to determine whether it becomes the primary
beneficiary. All material intercompany balances and transactions have been eliminated in preparation of the consolidated financial statements.

F-8

APTORUM GROUP LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in U. S. Dollars)

Non-controlling interests

Non-controlling interests are recognized to reflect
the portion of the equity of majority-owned subsidiaries which are not attributable, directly or indirectly, to the controlling shareholder.
Non-controlling interests are classified as a separate line item in the equity section of the Group’s consolidated balance sheets
and have been separately disclosed in the Group’s consolidated statements of operations and comprehensive loss and consolidated
statements of equity to distinguish the interests from that of the Group.

Use of estimates

The preparation of the consolidated financial
statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as income
and expenses during the reporting period. Actual results could differ from those estimates. There is no significant accounting estimate.

Foreign currency translation and transaction

USD is the reporting currency. The functional
currency of subsidiaries in the Cayman Islands, Seychelles, Samoa and the United States are USD, the functional currency