Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 96

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 96
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 Any such product liability claims may
include allegations of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the drug, negligence, strict
liability or a breach of warranties. Claims could also be asserted under state consumer protection acts. If we cannot successfully defend
ourselves against product liability claims, we may incur substantial liabilities or be required to limit commercialization of our drug
candidates. Even successful defense would require significant financial and management resources. Regardless of the merits or eventual
outcome, liability claims may result in:

| ● | decreased demand for our drugs;                                                      |
| ● | injury to our reputation;                                                            |
| ● | withdrawal of clinical trial participants and inability to continue clinical trials; |
| ● | initiation of investigations by regulators;                                          |
| ● | costs to defend the related litigation;                                              |
| ● | a diversion of management’s time and our resources;                                  |

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| ● | substantial monetary awards to trial participants or patients;                   |
| ● | product recalls, withdrawals or labeling, marketing or promotional restrictions; |
| ● | loss of revenue;                                                                 |
| ● | exhaustion of any available insurance and our capital resources;                 |
| ● | the inability to commercialize any drug candidate; and                           |
| ● | a decline in the price of our Class A Ordinary Shares.                           |

We shall seek to obtain the
appropriate insurance once our candidates are ready for clinical trial. However, our inability to obtain sufficient product liability
insurance at an acceptable cost to protect against potential product liability claims could prevent or inhibit the commercialization of
drugs we develop, alone or with collaborators. We currently do not have in place product liability insurance and although we plan to have
in place such insurance as and when the products are ready for commercialization, as well as insurance covering clinical trials, the amount
of such insurance coverage may not be adequate, we may be unable to maintain such insurance, or we may not be able to obtain additional
or replacement insurance at a reasonable cost, if at all. Our insurance policies may also have various exclusions, and we may be subject
to a product liability claim for which we have no coverage. We may have to pay any amounts awarded by a court or negotiated in a settlement
that exceed our coverage limitations or that are not covered by our insurance, 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