Aptorum Group Limited (Nasdaq: APM) (“Aptorum Group” or “We”), a
clinical stage biopharmaceutical company dedicated to meeting unmet
medical needs in oncology, autoimmune diseases and infectious
diseases, today announced financial results for the fiscal year
ended December 31, 2023, and provided an update on corporate
developments.
Mr. Ian Huen, Chief Executive Officer and Executive Director of
Aptorum Group, commented, “Throughout 2023, we have maintained a
strategic focus on the progression of our lead projects to
effectively utilize our resources. Additionally, the previously
announced proposed reverse merger with YOOV Group Holding
demonstrates our commitment to shareholder interests and our
continuous pursuit of opportunities that enhance our corporate
value.”
Corporate Highlights
On March 1, 2024, the Group entered into an Agreement and Plan
of Merger (the “Merger Agreement”) by and among Company, and YOOV
Group Holding Limited, a company organized under the laws of
British Virgin Islands (“YOOV”). The Merger Agreement was
unanimously approved by Company’s and YOOV’s boards of directors
(each board of directors, the “Board”), respectively. If the Merger
Agreement is approved by Company’s and YOOV’s shareholders (and the
other closing conditions are satisfied or waived in accordance with
the Merger Agreement), and upon consummation of the transactions
contemplated by the Merger Agreement, the Group will incorporate a
wholly-owned subsidiary under the laws of the British Virgin
Islands (“Merger Sub”) that will merge with and into YOOV, with
YOOV surviving the merger as a wholly-owned subsidiary of the Group
(collectively, the “Merger”). The Group, upon the closing of the
merger is referred to herein as the “combined company.” Upon
consummation of the transaction, YOOV will become a wholly-owned
subsidiary of the Group, and the existing YOOV shareholders and
existing Group shareholders will own approximately 90% and 10%,
respectively, of the outstanding shares of the combined company.
The consummation of this merger remains uncertain as it is
contingent upon the fulfillment of specific closing conditions.
Fiscal Year End Financial
Results
Aptorum Group reported a net loss of $4.3 million in 2023, as
compared to $11.5 million in 2022. The decrease in net loss were
largely attributed to disciplined cost control measures and a
strategic concentration on our lead projects. These efforts led to
a decrease in net loss by $7.2 million.
Research and development expenses were $5.2 million in 2023 as
compared to $9.2 million in 2022. As a consequence of exclusive
emphasis on its lead projects and suspension of non-lead projects,
there was a notable decrease in the utilization of external
consultants and full impairment of patents related to these
non-lead projects. Moreover, the payroll expenses for research and
development staff decreased as a result of the reversal of deferred
cash bonus payables to employees and consultants, and reduction of
employees during the current period. The reversal was due to the
Group’s agreements with employees and consultants to discharge the
Group’s obligation to settle their outstanding deferred cash bonus
payables from previous years in exchange of fully vested ordinary
shares.
General and administrative fees were $1.9 million in 2023 as
compared to $5.2 million in 2022. The decrease in general and
administrative fees was primary due to the reversal of deferred
cash bonus payables to employees and reduction of employees during
the current period. The reversal was due to the Group’s agreements
with employees to discharge the Group’s obligation to settle their
outstanding deferred cash bonus payables from previous years in
exchange of fully vested ordinary shares.
Legal and professional fees were $2.5 million in 2023 as
compared to $2.9 million in 2022. The decrease in legal and
professional fees was mainly due to less consulting services
engaged during 2023 as a consequence of exclusive emphasis on its
lead projects and suspension of non-lead projects.
Aptorum Group reported $2.0 million of cash as of December 31,
2023 compared to $5.0 million of cash and cash equivalents and
restricted cash as of December 31, 2022. The decrease was mainly
due to the cash and cash equivalents used in operating activities
of $7.7 million and repayment of bank loan of $3 million, partly
offset by the proceeds from issuance of Class A Ordinary Shares
through an at-the-market offering of $1.6 million, loan from
related parties of $2.5 million, and proceeds from issuance of
convertible notes of $3.0 million in 2023.
About Aptorum Group
Aptorum Group Limited (Nasdaq: APM) is a clinical stage
biopharmaceutical company dedicated to the discovery, development
and commercialization of therapeutic assets to treat diseases with
unmet medical needs, particularly in oncology (including orphan
oncology indications) and infectious diseases. The pipeline of
Aptorum is also enriched through the co-development of PathsDx
Test, a novel molecular-based rapid pathogen identification and
detection diagnostics technology, with Accelerate Technologies Pte
Ltd, commercialization arm of the Singapore’s Agency for Science,
Technology and Research.
For more information about the Company, please visit
www.aptorumgroup.com.
Disclaimer and Forward-Looking
Statements
This press release does not constitute an offer to sell or a
solicitation of offers to buy any securities of Aptorum Group.
This press release includes statements concerning Aptorum Group
Limited and its future expectations, plans and prospects that
constitute “forward-looking statements” within the meaning of the
US Private Securities Litigation Reform Act of 1995. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. In
some cases, you can identify forward-looking statements by terms
such as “may,” “should,” “expects,” “plans,” “anticipates,”
“could,” “intends,” “target,” “projects,” “contemplates,”
“believes,” “estimates,” “predicts,” “potential,” or “continue,” or
the negative of these terms or other similar expressions. Aptorum
Group has based these forward-looking statements, which include
statements regarding projected timelines for application
submissions and trials, largely on its current expectations and
projections about future events and trends that it believes may
affect its business, financial condition and results of
operations.
These forward-looking statements speak only as of the date of
this press release and are subject to a number of risks,
uncertainties and assumptions including, without limitation, risks
related to its announced management and organizational changes, the
continued service and availability of key personnel, its ability to
expand its product assortments by offering additional products for
additional consumer segments, development results, the company’s
anticipated growth strategies, anticipated trends and challenges in
its business, and its expectations regarding, and the stability of,
its supply chain, and the risks more fully described in Aptorum
Group’s Form 20-F and other filings that Aptorum Group may make
with the SEC in the future. As a result, the projections included
in such forward-looking statements are subject to change and actual
results may differ materially from those described herein.
Aptorum Group assumes no obligation to update any
forward-looking statements contained in this press release as a
result of new information, future events or otherwise.
This press release is provided “as is” without any
representation or warranty of any kind.
APTORUM GROUP LIMITED
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
For Years Ended December 31,
2023 and 2022
(Stated in U.S.
Dollars)
Year Ended December 31,
2023
Year Ended December 31,
2022
Revenue
Healthcare services income
$
431,378
$
1,295,889
Operating expenses
Cost of healthcare services
(420,812
)
(1,215,824
)
Research and development expenses
(5,198,329
)
(9,219,595
)
General and administrative fees
(1,930,637
)
(5,220,405
)
Legal and professional fees
(2,538,161
)
(2,888,140
)
Other operating expenses
(1,067,690
)
(261,038
)
Total operating expenses
(11,155,629
)
(18,805,002
)
Other income, net
Loss on investments in marketable
securities, net
(9,266
)
(134,134
)
Gain on long-term investments
6,353,888
5,588,051
Interest (expense) income, net
(121,145
)
146,588
Sundry income
159,799
383,506
Total other income, net
6,383,276
5,984,011
Net loss
(4,340,975
)
(11,525,102
)
Net loss attributable to non-controlling
interests
1,516,328
1,725,542
Net loss attributable to Aptorum Group
Limited
$
(2,824,647
)
$
(9,799,560
)
Net loss per share attributable to Aptorum
Group Limited
- Basic(1)
$
(0.62
)
$
(2.75
)
- Diluted(1)
$
(0.62
)
$
(2.75
)
Weighted-average shares outstanding
- Basic(1)
4,521,133
3,569,484
- Diluted(1)
4,521,133
3,569,484
Net loss
$
(4,340,975
)
$
(11,525,102
)
Other comprehensive (loss)
income
Exchange differences on translation of
foreign operations
(44,430
)
35,826
Other comprehensive (loss) income
(44,430
)
35,826
Comprehensive loss
(4,385,405
)
(11,489,276
)
Comprehensive loss attributable to
non-controlling interests
1,516,328
1,725,542
Comprehensive loss attributable to the
shareholders of Aptorum Group Limited
(2,869,077
)
(9,763,734
)
(1)
All per share amounts and shares
outstanding for all periods have been retroactively restated to
reflect APTORUM GROUP LIMITED’s 1 for 10 reverse stock split, which
was effective on January 23, 2023.
APTORUM GROUP LIMITED
CONSOLIDATED BALANCE
SHEETS
December 31, 2023 and
2022
(Stated in U.S.
Dollars)
December 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash
$
2,005,351
$
1,882,545
Restricted cash
-
3,130,335
Accounts receivable
47,709
174,426
Inventories
-
27,722
Marketable securities, at fair value
-
102,481
Amounts due from related parties, net
961
129,677
Due from brokers
-
652
Loan receivable from related parties,
net
-
875,956
Other receivables and prepayments
422,071
744,008
Total current assets
2,476,092
7,067,802
Property and equipment, net
1,663,926
2,825,059
Operating lease right-of-use assets
182,057
347,000
Long-term investments
16,098,846
9,744,958
Intangible assets, net
147,347
752,705
Long-term deposits
71,823
129,847
Total Assets
$
20,640,091
$
20,867,371
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities:
Amounts due to related parties
$
79,180
$
12,693
Accounts payable and accrued expenses
1,894,341
6,166,807
Operating lease liabilities, current
125,232
310,548
Bank loan
-
3,000,000
Convertible notes
-
3,013,234
Total current liabilities
2,098,753
12,503,282
Operating lease liabilities,
non-current
99,485
30,784
Convertible notes to a related party
3,058,500
-
Loan payables to related parties
-
500,000
Total Liabilities
$
5,256,738
$
13,034,066
Commitments and contingencies
-
-
EQUITY
Class A Ordinary Shares ($0.00001 par
value, 9,999,996,000,000 shares authorized, 2,937,921 shares issued
and outstanding as of December 31, 2023; $10.00 par value;
6,000,000 shares authorized, 1,326,953 shares issued and
outstanding as of and 2022(1))
$
31
$
13,269,528
Class B Ordinary Shares ($0.00001 par
value; 4,000,000 shares authorized, 2,243,776 shares issued and
outstanding as of December 31, 2023; $10.00 par value; 4,000,000
shares authorized, 2,243,776 shares issued and outstanding as of
December 31, 2022(1))
22
22,437,754
Additional paid-in capital
93,018,528
45,308,080
Accumulated other comprehensive (loss)
income
(10,623
)
33,807
Accumulated deficit
(68,161,722
)
(65,337,075
)
Total equity attributable to the
shareholders of Aptorum Group Limited
24,846,236
15,712,094
Non-controlling interests
(9,462,883
)
(7,878,789
)
Total equity
15,383,353
7,833,305
Total Liabilities and Equity
$
20,640,091
$
20,867,371
(1)
All per share amounts and shares
outstanding for all periods have been retroactively restated to
reflect APTORUM GROUP LIMITED’s 1 for 10 reverse stock split, which
was effective on January 23, 2023.
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version on businesswire.com: https://www.businesswire.com/news/home/20240424559376/en/
Aptorum Group Limited Investor Relations Department
investor.relations@aptorumgroup.com +44 20 80929299
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