Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 399

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 399
---
 a new basis (equal to the fair market
value of the Class A Ordinary Shares on the last day of the last year in which we are treated as a PFIC) and holding period (which new
holding period will begin the day after such last day) in your Class A Ordinary Shares for tax purposes.

IRC Section 1014(a) provides
for a step-up in basis to the fair market value for our Class A Ordinary Shares when inherited from a decedent that was previously a holder
of our Class A Ordinary Shares. However, if we are determined to be a PFIC and a decedent that was a U.S. Holder did not make either a
timely qualified electing fund election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) our
Class A Ordinary Shares, or a mark-to-market election and ownership of those Class A Ordinary Shares are inherited, a special provision
in IRC Section 1291(e) provides that the new U.S. Holder’s basis should be reduced by an amount equal to the Section 1014 basis
minus the decedent’s adjusted basis just before death. As such if we are determined to be a PFIC at any time prior to a decedent’s
passing, the PFIC rules will cause any new U.S. Holder that inherits our Class A Ordinary Shares from a U.S. Holder to not get a step-up
in basis under Section 1014 and instead will receive a carryover basis in those Class A Ordinary Shares.

You are urged to consult
your tax advisors regarding the application of the PFIC rules to your investment in our Class A Ordinary Shares and the elections discussed
above.

Information Reporting and Backup Withholding

Dividend payments with respect
to our Class A Ordinary Shares and proceeds from the sale, exchange or redemption of our Class A Ordinary Shares may be subject to information
reporting to the IRS and possible U.S. backup withholding. Backup withholding will not apply, however, to a U.S. Holder who furnishes
a correct taxpayer identification number and makes any other required certification on IRS Form W-9 or who is otherwise exempt from backup
withholding. U.S. Holders who are required to establish their exempt status generally must provide such certification on IRS Form W-9.
U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding
rules.

Backup withholding is not
an