Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 424

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 424
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4 remained subject to audit
as of February 28, 2025.

As of February 28, 2025, the Company had received
all funding available under these NIH grants.

In the nine months ended February 28, 2025, the
Company’s other revenue consists of nonrecurring fees earned under a material transfer agreement with a non-customer. The Company
recognized other revenue upon shipment of the subject materials.

<div align='center'>F-26</div>

Accounting for Derivative Financial Instruments

The Company evaluates stock options, stock warrants
or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted
for under the relevant sections of ASC Topic 815-40, Derivative Instruments and Hedging: Contracts in Entity’s Own Equity
(“ASC Topic 815-40”) and ASC Topic 470, Debt. The result of this accounting treatment could be that the fair value
of a financial instrument is classified as a derivative instrument and is marked-to-market at each balance sheet date and recorded as
a liability. Financial instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815-40
are reclassified to a liability account at the fair value of the instrument on the reclassification date. The Company has no financial
instruments meeting the criteria for derivative accounting as of February 28, 2025 and May 31, 2024.

Stock Based Compensation

The Company accounts for share-based compensation
arrangements with employees and non-employees using a fair value method which requires the recognition of compensation expense for costs
related to all share-based payments including share options. The fair value method requires the Company to estimate the fair value of
share-based payment awards on the date of grant using an option-pricing model. The Company uses the Black-Scholes option-pricing model
to estimate the fair value of options granted that are expensed on a straight-line basis over the requisite service period, which is generally
the vesting period. The Company accounts for forfeitures as they occur.

Leases

The Company accounts for its operating leases
under ASC 842, Leases. Accordingly, the Company determines whether a contract is, or contains, a lease at inception. Right-of-use
assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities