Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 122

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 122
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firms headquartered in mainland China and in Hong Kong because of positions taken by PRC and Hong Kong authorities in those jurisdictions.

On December 29, 2022, the
Consolidated Appropriations Act was signed into law by President Biden. The Consolidated Appropriations Act contained, among other things,
an identical provision to AHFCAA, which reduce the number of consecutive non-inspection years required for triggering the prohibitions
under the HFCA Act from three years to two.

The PCAOB continues
to demand complete access in mainland China and Hong Kong moving forward and has resumed regular inspections since March 2023. The PCAOB
is continuing pursuing ongoing investigations and may initiate new investigations as needed. The PCAOB has also indicated that
it will act immediately to consider the need to issue new determinations with the HFCAA if needed. However, whether the PCAOB will
continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in Mainland China
and Hong Kong is subject to uncertainties and depends on a number of factors out of our and our auditor’s control.

If the PCAOB is
unable to inspect and investigate completely registered public accounting firms located in China in 2023 and beyond, or if we fail to,
among others, meet the PCAOB’s requirements, including retaining a registered public accounting firm that the PCAOB determines
it is able to inspect and investigate completely, we will be identified as a “Commission-identified Issuer,” and upon the
expiration of the applicable years of non-inspection under the HFCAA and relevant regulations, our shares will be delisted and will not
be permitted for trading over the counter. Such a delisting or prohibition would substantially impair your ability to sell or purchase
our shares, and the risk and uncertainty associated with delisting would have a negative impact on the price of our share. Moreover, the
HFCAA or other efforts to increase U.S. regulatory access to audit information could cause investor uncertainty for affected issuers,
including us, and the market price of our shares could be adversely affected. Such a prohibition would significantly affect our ability
to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition,
and prospects.

The SEC is assessing how to
implement other requirements of the HFCAA, including the listing and trading prohibition requirements described above. Future developments
in respect of increasing U.S. regulatory access to audit information are uncertain, as the legislative developments are