Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 105

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 105
---
angibles for purposes of determining whether we are a PFIC in the current or one or more future taxable years.

If we are a PFIC for any taxable
year during which a U.S. Holder owns our Class A Ordinary Shares or warrants, certain adverse U.S. federal income tax consequences could
apply to such U.S. Holder. As discussed under “Taxation – Material U.S. Federal Income Tax Considerations for U.S. Holders
– Passive Foreign Investment Company Rules”, a U.S. Holder may be able to make certain tax elections that would lessen the
adverse impact of PFIC status; however, in order to make such elections the U.S. holder will usually have to have been provided information
about the company by us, and there is no assurance that the company will provide such information.

For a more detailed discussion
of the application of the PFIC rules to us and the consequences to U.S. holders if we were determined to be a PFIC. (See “Taxation – Material
U.S. Federal Income Tax Considerations for U.S. Holders – Passive Foreign Investment Company Rules”)

Risks Related to Our Corporate Structure

One of our directors controls a majority of our voting shares.

One of our Executive Directors
and CEO, Mr. Ian Huen, and his affiliates, over which he is deemed to have control and/or have substantial influence, has voting rights
with respect to an aggregate of 2,030,509 Ordinary Shares, on an as converted basis (424,362 Aptorum
Class A ordinary shares and 1,606,147 Aptorum Class B ordinary shares), representing approximately 71% of the voting power of
our outstanding ordinary shares as of the date hereof. As a
result, Mr. Huen has the ability to control the outcome of matters submitted to our shareholders for approval, including the election
of directors and any merger, consolidation, or sale of all or substantially all of our assets. Additionally, in the event that Mr. Huen
controls our company at the time of his death, control may be transferred to a person or entity that he designates as his successor. As
a board member, Mr. Huen owes a fiduciary duty to our shareholders and must act in good faith in a manner he reasonably believes to be
in the best interests of our shareholders. As a shareholder, even a controlling shareholder, Mr. Huen is entitled to vote his shares,
and shares over which he has voting control as a