Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 104

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 104
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 income tax consequences.

A non-U.S. corporation will
be a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes, for such year, if either

| ● | At least 75% of its gross income for such year is passive income; or                                                                                                                               |
| ● | The average percentage of our assets (determined at the end of each quarter) during such year which produce passive income or which are held for the production of passive income is at least 50%. |

Passive income generally includes
dividends, interests, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains
from the disposition of passive assets.

A separate determination must
be made after the close of each taxable year as to whether a non-U.S. corporation is a PFIC for that year. For purposes of the PFIC analysis,
in general, a non-U.S. corporation is deemed to own its pro rata share of the gross income and assets of any entity in which it is considered
to own at least 25% of the equity by value. Based on the current and anticipated value of our assets, we believe we were a PFIC for U.S.
federal income tax purposes for our taxable year ended December 31, 2024, and we may be a PFIC for U.S. federal income tax purposes for
our current taxable year ending December 31, 2025.

In determining whether we
are a PFIC, cash and cash equivalents and investments are considered by the U.S. Internal Revenue Service (“IRS”) to be a
passive asset. During our taxable year ended December 31, 2024, we believe that the amount of cash we had on hand and investments were
greater than 50% of our total assets. The composition of our assets during the current taxable year may cause us to continue to be classified
as a PFIC. The determination of whether we will be a PFIC for our current taxable year or a future year may depend in part upon how quickly
we spend our liquid assets, and on the value of our goodwill and other unbooked intangibles not reflected on our balance sheet, which
may depend upon the market value of our Class A Ordinary Shares from time to time. Further, while we will endeavor to use a classification
methodology and valuation approach that is reasonable, the IRS may challenge our classification or valuation of our goodwill and other
unbooked int