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Investment and Fair Value Measurement | 12 Months Ended
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Dec. 31, 2023
Investment and Fair Value Measurement [Abstract] |
INVESTMENT AND FAIR VALUE MEASUREMENT | 5. INVESTMENT AND FAIR VALUE MEASUREMENT Assets Measured at Fair Value on a Recurring Basis The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2023 and 2022:
December 31, 2023 |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Non-current Assets |  |  |  |  |  |  |  |  |  |  |  |
Long-term investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stocks |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total assets at fair value |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
December 31, 2022 |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Current Assets |  |  |  |  |  |  |  |  |  |  |  |
Marketable securities |  |  |  |  |  |  |  |  |  |  |  |
Common stocks |  | $ | 10,202 |  |  | $ | 92,279 |  |  | $ | - |  |  | $ | 102,481 |
Non-current Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-term investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stocks |  |  | - |  |  |  | - |  |  |  | 77,200 |  |  |  | 77,200 |
Total assets at fair value |  | $ | 10,202 |  |  | $ | 92,279 |  |  | $ | 77,200 |  |  | $ | 179,681 |
The following is a reconciliation of Level 3 assets measured and recorded at fair value on a recurring basis during the years ended December 31, 2023 and 2022:
|  | Common Stock |
Balance at January 1, 2023 |  | $ | 77,200 |
Impairment |  |  | (77,200 | )
Balance at December 31, 2023 |  | $ | - |
Net change in unrealized appreciation relating to investments still held at December 31, 2023 |  |  | - |
Balance at January 1, 2022 |  | $ | 77,200 |
Change in unrealized appreciation, net |  |  | - |
Balance at December 31, 2022 |  | $ | 77,200 |
Net change in unrealized appreciation relating to investments still held at December 31, 2022 |  |  | - |
For the year ended December 31, 2023, an impairment loss relating to an equity method investment amounted to $77,200, was recorded in other expenses, net, as the Group considered that the carrying amount of the equity method investment may not be recoverable, and this condition is determined to be other-than-temporary. The following table presents the quantitative information about the Group’s Level 3 fair value measurements of investment as of December 31, 2023 and 2022, which utilized significant unobservable internally-developed inputs:
December 31, 2023 |  | Valuation technique |  | Unobservable input |  | Range (weighted average)
Common stocks |  | Recent transactions |  | Recent transaction price |  | $0.0001 - $0.01
December 31, 2022 |  | Valuation technique |  | Unobservable input |  | Range (weighted average)
Common stocks |  | Recent transactions |  | Recent transaction price |  | $0.0001 - $0.01
Non-marketable investments The Group’s non-marketable investments are investments in privately held companies without readily determinable fair values. The carrying value of the non-marketable investments are adjusted based on price changes from observable transactions of identical or similar securities of the same issuer (referred to as the measurement alternative) or for impairment if the carrying amount of the non-marketable investments may not be fully recoverable. Any changes in carrying value are recorded within other income (expenses), net in the consolidated statements of operations and comprehensive loss. The following is a summary of annual upward or downwards adjustments and impairment recorded in other income (expenses), net, and included as adjustments to the carrying value of non-marketable investments held as of December 31, 2023, 2022 and 2021 based on the observable price in an orderly transaction for the same or similar security of the same issuers:
|  | Year ended December 31, 2023 |  |  | Year ended December 31, 2022 |  |  | Year ended December 31, 2021 |
Upward adjustments |  | $ | 6,431,088 |  |  | $ | 6,108,872 |  |  | $ | - |
Downward adjustments and impairment |  |  | - |  |  |  | (520,821 | ) |  |  | - |
Total unrealized gain from fair value change of non-marketable investments, net |  | $ | 6,431,088 |  |  | $ | 5,588,051 |  |  | $ | - |
The Group did not sell any non-marketable investments or recorded any realized gains or losses for the non-marketable investments measured at fair value on a non-recurring basis during the years ended December 31, 2023, 2022 and 2021. The following table summarizes the total carrying value of the non-marketable investments held as of December 31, 2023 and 2022 including cumulative unrealized upward and downward adjustments and impairment made to the initial cost basis of the investments:
|  | December 31, 2023 |  |  | December 31, 2022 |
Initial cost basis |  | $ | 4,079,707 |  |  | $ | 4,079,707 |
Upward adjustments |  |  | 12,539,960 |  |  |  | 6,108,872 |
Downward adjustments and impairment |  |  | (520,821 | ) |  |  | (520,821 | )
Total carrying value at the end of the year |  | $ | 16,098,846 |  |  | $ | 9,667,758 |
The Group did not transfer any non-marketable investments into marketable securities for the years ended December 31, 2023 and 2022. For the year ended December 31, 2023, one of the non-marketable investments with initial cost of $2.6 million and had a carrying value of $15.1 million was pledged for a convertible note issued to a related party (Note 15). Equity method investment, fair value option In December 2021, one of the Group’s subsidiaries, Libra Sciences Limited (“Libra”, formerly known as Aptorum Pharmaceutical Development Limited), issued Class A and Class B ordinary shares to various parties in exchange of licenses or cash. Each Class A share of Libra is entitled to 1 vote while each Class B share of Libra is entitled to 10 votes. Upon the share issuance, the Group was holding 97.27% economic interest and 31.51% voting power in Libra. The Group lost the controlling interest in Libra because it was transferred to a third party, and therefore deconsolidated Libra. However, the Group still owns 97.27% economic interest and 31.51% voting power, which is deemed as having significant influence over Libra. As a result, the Group’s investment in Libra is subject to the equity method of accounting. The Group assessed that the fair value option can better reflect the true value of Libra. Pursuant to ASC 825 – Financial Instruments (“ASC 825”), the Group elected to apply the fair value option for its investments in Libra and will remeasure its investments in Libra at fair value every reporting period. For the year ended December 31, 2023, the Group has determined that the carrying value of the investment is not recoverable and this condition is determined to be other-than-temporary. Consequently, an impairment for the investment of $77,200 has been recognized for the year end December 31, 2023.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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