Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 115

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 115
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IC
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 Aptorum 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 intangibles 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 Aptorum 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.

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