Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 117

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 117
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 Rules, and the requirement that our compensation and nominating
and corporate governance committees consist entirely of independent directors. Although we do not intend to rely on the “controlled
company” exemption under the Nasdaq listing rules, we could elect to rely on this exemption in the future. If we elect to rely on
the “controlled company” exemption, a majority of the members of our board of directors might not be independent directors
and our nominating and corporate governance and compensation committees might not consist entirely of independent directors. Accordingly,
during any time while we remain a controlled company relying on the exemption and during any transition period following a time when we
are no longer a controlled company, you would not have the same protections afforded to shareholders of companies that are subject to
all of the Nasdaq Capital Market corporate governance requirements. Our status as a controlled company could cause Aptorum Class A
ordinary share to look less attractive to certain investors or otherwise harm our trading price.

We may not be able to consolidate the financial results of some of our affiliated companies or such consolidation could materially adversely affect our operating results and financial condition.

The Company has one VIE which
is incorporated under the laws of Cayman Islands and conducts operations in Hong Kong. The Company does not currently consolidate
this VIE since the Group does not have a variable interest in them and is not determined to be the primary beneficiary of it at this time
under U.S. GAAP. This determination is based on whether the Group has a variable interest (or combination of variable interests)
that provides the Company with (a) the power to direct the activities that most significantly impact the VIE’s economic performance
and (b) the obligation to absorb losses or right to receive benefits that could be potentially significant to the VIE. The Group
continually reassesses whether it is the primary beneficiary of a VIE throughout the entire period the Group is involved with the VIE. According
to those standards, we determined that we do not have the power to manage and make decisions that affect Libra’s research and development
activities, which activities most significantly impact Libra’s economic performance. Accordingly, we determined that we are not
the primary beneficiary of Libra. As a result, Libra’s financial results are not consolidated in our consolidated financial statements.
If, in the future an affiliate company becomes a VIE and we become the primary beneficiary of it for accounting purposes, we would be
required to consolidate that entity’s financial results in our consolidated financial statements. If we become the primary