Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 205

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 205
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ers
should discuss their election alternatives with their own tax advisors. Once an election is made, the Electing Holder is subject to the
QEF rules for as long as we are a PFIC.

It should be noted that in
order to make a QEF election a U. S. Holder needs information from us concerning our PFIC status and our financial results for the year.
We cannot assure our U. S. Holders that we will provide such information.

As an alternative to making
a QEF election, a U. S. Holder may make a “mark-to-market” election with respect to our Class A Ordinary Shares provided our
Class A Ordinary Shares are treated as “marketable stock.” The Class A Ordinary Shares generally will be treated as marketable
stock if they are regularly traded on a “qualified exchange or other market” (within the meaning of applicable Treasury Regulations)
on at least 15 days during each calendar quarter (other than in de minimis amounts).

If a U. S. Holder makes an
effective mark-to-market election, for each taxable year that we are a PFIC, the U. S. Holder will include as ordinary income the excess
of the fair market value of its Class A Ordinary Shares at the end of the year over its adjusted tax basis in the Class A Ordinary Shares.
You will be entitled to deduct as an ordinary loss in each such year the excess of your adjusted tax basis in the Class A Ordinary Shares
over their fair market value at the end of the year, but only to the extent of the net amount previously included in income as a result
of the mark-to-market election. A U. S. Holder’s adjusted tax basis in the Class A Ordinary Shares will be increased by the amount
of any income inclusion and decreased by the amount of any deductions under the mark-to-market rules. In addition, upon the sale or other
disposition of your Class A Ordinary Shares in a year that we are PFIC, any gain will be treated as ordinary income and any loss will
be treated as ordinary loss, but only to the extent of the net amount of previously included income as a result of the mark-to-market
election.

If a U. S. Holder makes a mark-to-market
election, it will be effective for the taxable year for which the election is made and all subsequent taxable years unless the Class A
Ordinary Shares are no longer regularly traded on a qualified exchange or other market, or the IRS consents to the revocation of the election