Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 247

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 247
---
,477                        ( 1,071,774                           ( 907,495  
  Non-deductible expenses                                                                                         195                             98,704                                   -  
  Change in valuation allowance                                                                               702,123                          1,705,603                           3,072,924  
  Effective income tax expense                                                          $                           -      $                           -      $                            -  

F-21

APTORUM GROUP LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in U. S. Dollars)

Deferred tax asset, net

Deferred tax assets and deferred tax liabilities
reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purpose
and the tax bases used for income tax purpose. The following represents the tax effect of each major type of temporary difference.

                                                      December 31,                        December 31,                    
  Deferred tax asset:                                                                                                     
  Tax loss carry forward                              $                   15,107,318      $                   16,956,748  
  Share-based payment expenses                                                     -                             229,126  
  Depreciation and amortization                                              128,896                             128,866  
  Impairment loss on assets                                                  537,830                              92,416  
  Total Deferred tax asset                                                15,774,044                          17,407,156  
  Valuation allowance                                                   ( 15,774,044                        ( 17,407,156  
  Deferred tax asset, net of valuation allowance      $                            -      $                            -  

As of December 31, 2024 and 2023, the Group had
net operating loss carry-forwards of $91,436,307and $102,367,435, respectively, including its Hong Kong, Singapore, the United States,
and the United Kingdom operations, which are available to reduce future taxable income and have an unlimited carryover period. For the
year ended December 31, 2024, there was no tax loss carried forward expired, while tax loss brought forward of $13,854,614was cancelled
due to the disposal of various subsidiaries.

Valuation allowance was provided against deferred
tax assets in entities where it was determined, it was more likely than not that the benefits of the deferred tax assets will not be realized.
The Group had deferred tax assets which consisted of tax loss carry forward, which can be carried forward to offset future taxable income.
The Group maintains a full valuation allowance on its net deferred tax assets