Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 54

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 54
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, and we may not have, or be able to obtain, sufficient capital
to pay such amounts. Even if our agreements with any future corporate collaborators entitle us to indemnification against losses, such
indemnification may not be available or adequate should any claim arise.

Additionally, we may be sued
if the products that we commercialize, market or sell cause or are perceived to cause injury or are found to be otherwise unsuitable,
and may result in:

  decreased demand for those products;                                         
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  damage to our reputation;                                                    
  costs incurred related to product recalls;                                   
  limiting our opportunities to enter into future commercial partnership; and  
  a decline in the price of our Class A Ordinary Shares.                       

Our insurance coverage may be inadequate
to protect us against losses.

We currently maintain property
insurance for our office premises. We hold employer’s liability insurance generally covering death or work-related injury of employees;
we maintain company insurance for those persons working in our offices and medical insurance for our certain employee. We hold public
liability insurance covering certain incidents involving unrelated parties that occur on or in the premises of the Company. We have directors
and officers liability insurance. We do not have key-man life insurance on any of our senior management or key personnel, or business
interruption insurance. Our insurance coverage may be insufficient to cover any claim for product liability, damage to our fixed assets
or employee injuries. If any claims for damage are brought against us, or if we experience any business disruption, litigation or natural
disaster, we might incur substantial costs and diversion of resources.

Fluctuations in exchange rates could result
in foreign currency exchange losses

Our operations and equity
are funded in U. S. dollars and we currently incur the majority of our expenses in U. S. dollars or in H. K. dollars. H. K. dollar is currently
pegged to the U. S. dollar; however, we cannot guarantee that such peg will continue to be in place in the future. Our exposure to foreign
exchange risk primarily relates to the limited cash denominated in currencies other than the functional currencies of each entity and
limited revenue contracts dominated in H. K. dollars in certain Hong Kong operating entities. We do not believe that we currently have
any significant direct foreign exchange risk and have not hedged exposures denominated in foreign currencies or any other derivative financial
instruments.

If we are exposed