Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 179

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 179
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 by non-related parties option holders and cancelled our obligations for deferred cash bonus payables of $1.6 million by issuance
of 70,430 fully vested Class A Ordinary Shares. We accounted for this exchange for both related parties and non-related parties share
option holders as a modification to share based compensation which required the remeasurement of existing share options value at the time
of the modification. The total incremental cost as a result of the modification was $0.7 million.

In line with Nasdaq requirements, we have established a clawback policy
which, subject to limited exceptions, requires that any incentive compensation (including both cash and equity compensation) paid to any
current or former executive officer on or after October 2, 2023, is subject to recoupment if (i) the incentive compensation was calculated
based on financial statements that were required to be restated due to material noncompliance with financial reporting requirements, without
regard to any fault or misconduct; and (ii) that noncompliance resulted in overpayment of the incentive compensation within the three
fiscal years preceding the date the restatement. A copy of our clawback policy has been filed as Exhibit 97.1 to this annual report on
Form 20-F.

C. Board Practices

Board of Directors

Our Board of Directors currently
consists of seven members, all of whom were elected pursuant to our current Memorandum and Articles. Our nominating and governance committee
and board of directors will consider a broad range of factors relating to the qualifications and background of nominees, which may include
diversity and is not limited to race, gender or national origin. We have no formal policy regarding board diversity. Our nominating and
governance committee’s and board of directors’ priority in selecting board members is identification of persons who will further
the interests of our shareholders through his or her established record of professional accomplishment, the ability to contribute positively
to the collaborative culture among board members, knowledge of our business, understanding of the competitive landscape and professional
and personal experiences and expertise relevant to our growth strategy.

Committees of the Board of Directors

Our Board of Directors has
established an audit committee, a compensation committee and a nominating and corporate governance committee, each of which operates pursuant
to a separate charter adopted by our Board of Directors. The composition and functioning of all of our committees will comply with all
applicable requirements of the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and