Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 49

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 49
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 Public Company Accounting Oversight Board of the United States.
The material weakness identified was the lack of dedicated resources to take responsibility for the finance and accounting functions and
the preparation of financial statements in compliance with generally accepted accounting principles in the United States, or U. S. GAAP.

We have took actions to remediate
the abovementioned material weakness:

  provide trainings to staff regarding to the preparation of financial statements in compliance with generally accepted accounting principles in the United States;  

  change to a new and well-established accounting system to enhance effectiveness and financial and system control;  
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  establish clear roles and responsibilities for accounting and financial reporting staff to address finance and accounting issues; and  

  continue to monitor the improvement on internal control over financial reporting.  

However, since we are still
in the process of replenishing and building up a qualified finance and accounting team with sufficient dedicated resources, our management
assessed that the deficiency related to the lack of dedicated resources to take responsibility for the finance and accounting functions
and the preparation of financial statements in compliance with generally accepted accounting principles in the United States, or U. S.
GAAP, still existed as of December 31, 2024. We cannot assure you that we will not identify additional material weaknesses or significant
deficiencies in the future.

Our management concluded that
our internal controls over financial reporting were not effective as of December 31, 2024. Investors may lose confidence in our operating
results, the price of the Class A Ordinary Shares could decline and we may be subject to litigation or regulatory enforcement actions.
In addition, if we are unable to meet the requirements of Section 404 of the Sarbanes-Oxley Act, the Class A Ordinary Shares may not be
able to remain listed on the NASDAQ Capital Market.

We may market our products, if approved,
globally; if we do, we will be subject to the risk of doing business internationally.

We operate and expect to operate
in various countries, and we may not be able to market our products in, or develop new products successfully for, these markets. We may
also encounter other risks of doing business internationally including but not limited to:

  unexpected changes in, or impositions of, legislative or regulatory requirements;                                                                                                                     
  efforts to develop an international sales, marketing and distribution organization may increase our expenses, divert our management’s attention from the acquisition or development of drug candi...  
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