Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 108

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 108
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 liability insurance generally covering death or work-related injury of employees;
we maintain company insurance for those persons working in our offices and medical insurance for our employees. We hold public liability
insurance covering certain incidents involving unrelated parties that occur on or in the premises of the Company. We have directors and
officers liability insurance. We do not have key-man life insurance on any of our senior management or key personnel, or business interruption
insurance. Our insurance coverage may be insufficient to cover any claim for product liability, damage to our fixed assets or employee
injuries. If any claims for damage are brought against us, or if we experience any business disruption, litigation or natural disaster,
we might incur substantial costs and diversion of resources.

Fluctuations in exchange rates could result in foreign currency exchange losses

Our operations and equity are
funded in U.S. dollars and we currently incur the majority of our expenses in U.S. dollars or in H.K. dollars. H.K. dollar is
currently pegged to the U.S. dollar; however, we cannot guarantee that such peg will continue to be in place in the future. Our exposure
to foreign exchange risk primarily relates to the limited cash denominated in currencies other than the functional currencies of each
entity and limited revenue contracts dominated in H.K. dollars in certain Hong Kong operating entities. We do not believe that we
currently have any significant direct foreign exchange risk and have not hedged exposures denominated in foreign currencies or any other
derivative financial instruments.

If we are exposed to foreign
currency exchange risk as our results of operations, cash flows maybe subject to fluctuations in foreign currency exchange rates. For
example, if a significant portion of our clinical trial activities may be conducted outside of the United States, and associated
costs may be incurred in the local currency of the country in which the trial is being conducted, which costs could be subject to fluctuations
in currency exchange rates. We currently do not engage in hedging transactions to protect against uncertainty in future exchange rates
between particular foreign currencies and the U.S. dollar. A decline in the value of the U.S. dollar against currencies in countries
in which we conduct clinical trials could have a negative impact on our research and development costs. Foreign currency fluctuations
are unpredictable and may adversely affect our financial condition, results of operations and cash flows.

Our investments are subject to risks that could result in losses.

We had cash and cash equivalents
of $0.88 million, $2.01 million, and $1.88