Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 56

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 56
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 exposed to potential risks of losses from litigation and possible liability.

In addition, we are highly
dependent on our IT infrastructure to store research data and information and manage our business operations. We do not backup all data
on a real-time basis and the effectiveness of our business operations may be materially affected by any failure in our IT infrastructure.
If our communications and IT systems do not function properly, or if there is any partial or complete failure of our systems, we could
suffer financial losses, business disruption or damage to our reputation.

Business disruptions could seriously harm
our future revenue and financial condition and increase our costs and expenses.

Our operations, and those
of our research institution collaborators, CROs, suppliers and other contractors and consultants, could be subject to supply chain disruptions,
earthquakes, power shortages, telecommunications failures, damage from computer viruses, material computer system failures, water shortages,
floods, hurricanes, typhoons, fires, extreme weather conditions, medical epidemics and other natural or man-made disasters or business
interruptions. In addition, we partially rely on our research institution collaborators for conducting research and development of our
drug candidates, and they may be affected by government shutdowns or withdrawn funding. The occurrence of any of these business disruptions
could seriously harm our operations and financial condition and increase our costs and expenses. We rely on contract manufacturers to
produce and process our drug candidates. Our ability to obtain clinical supplies of our drug candidates could be disrupted if the operations
of these suppliers are affected by a man-made or natural disaster or other business interruption. A large portion of our contract manufacturer’s
operations is in a single facility. Damage or extended periods of interruption to our corporate or our contract manufacturer’s development
or research facilities due to fire, natural disaster, power loss, communications failure, unauthorized entry or other events could cause
us to cease or delay development of some or all of our drug candidates.

We may be exposed to various risks related
to the regulatory environment of the pharmaceutical industry in the PRC.

We are the exclusive licensee
to certain PRC patents directed to our drug candidates; and we also intend to file application for certain products in the PRC. The pharmaceutical
industry in the PRC is subject to comprehensive government regulation and supervision, encompassing the approval, registration, manufacturing,
packaging, licensing and marketing of new drugs. (See “ Item 4. Information on the Company - B. Business Overview - Regulations”).
In recent years, the regulatory framework in the P