Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 121

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 121
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 not subject to PCAOB inspection. If the PCAOB is unable to
inspect the company’s auditors for three consecutive years, the issuer’s securities are prohibited to trade on a national
exchange. On December 2, 2020, the U.S. House of Representatives approved the HFCA Act.

On May 21, 2021, Nasdaq filed
three proposals with the SEC to (i) apply minimum offering size requirement for companies primarily operating in a “Restrictive
Market”, (ii) prohibit Restrictive Market companies from directly listing on Nasdaq Capital Market, and only permit them to list
on Nasdaq Global Select or Nasdaq Global Market in connection with a direct listing and (iii) apply additional and more stringent criteria
to an applicant or listed company based on the qualifications of the company’s auditors.

On March 24, 2021, the SEC
announced the adoption of interim final amendments to implement the submission and disclosure requirements of the HFCA Act. In the announcement,
the SEC clarifies that before any issuer will have to comply with the interim final amendments, the SEC must implement a process for identifying
covered issuers. The announcement also states that the SEC staff is actively assessing how best to implement the other requirements of
the HFCA Act, including the identification process and the trading prohibition requirements.

On June 22, 2021, the U.S.
Senate passed the AHFCAA, which, if signed into law, would amend the HFCA Act and require the SEC to prohibit an issuer’s securities
from trading on any U.S. stock exchanges if its auditor is not subject to the PCAOB inspections for two consecutive years instead of three
consecutive years.

On September 22, 2021, the
PCAOB adopted a final rule implementing the HFCA Act, which provides a framework for the PCAOB to use when determining, as contemplated
under the HFCA Act, whether the board of directors of a company is unable to inspect or investigate completely registered public accounting
firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction.

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On December 2, 2021, the SEC
adopted amendments to finalize rules implementing the submission and disclosure requirements in the HFCA Act.

On December 16, 2021, the
PCAOB issued a report on its determinations that it is unable to inspect or investigate completely PCAOB-registered public accounting