Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 204

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 204
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 income; and  

  the amount allocated to each other year will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on t...  

It should be noted that, until
such time as we make a distribution, there are no tax consequences to Non-Electing Holders. However, if we ever did make a distribution
it would in all likelihood be an excess distribution (because we would not have previously made any distributions to holders of Class
A Ordinary Shares). At that point, and for all subsequent distributions, the rules described above would apply to Non-Electing Holders.
The tax liability for amounts allocated to years prior to the year of disposition or “excess distribution” cannot be offset
by any net operating losses for such years, and gains (but not losses) realized on the sale of the Class A Ordinary Shares cannot be treated
as capital, even if you hold the Ordinary Shares as capital assets.

Certain elections may be available
that would result in alternative treatments. The adverse consequences of owning stock in a PFIC could be mitigated if a U. S. Holder makes
a valid QEF election (a U. S. Holder which we refer to as an “ Electing Holder”) which, among other things, would require the
Electing Holder to include currently in income its pro rata share of the PFIC’s net capital gain and ordinary earnings, if any,
for our taxable year that ends with or within the taxable year of the Electing Holder, regardless of whether or not the Electing Holder
actually received distributions from us. When an Electing Holder makes a QEF election, its adjusted tax basis in our Class A Ordinary
Shares is increased to reflect taxed but undistributed earnings and profits. Distributions of earnings and profits that had been previously
taxed will result in a corresponding reduction in the adjusted tax basis in our Class A Ordinary Shares and will not be taxed again once
distributed. An Electing Holder would generally recognize capital gain or loss on the sale, exchange or other disposition of our Class
A Ordinary Shares.

A U. S. Holder can make a QEF
election with respect to any year that we are a PFIC by filing IRS Form 8621 with its U. S. federal income tax return. This election must
be made by the deadline (including extensions) for filing the U. S. Holder’s federal tax return for the year in question. U. S. Hold